Cyber risks threaten to derail APAC manufacturing digitization

Nearly 40% of industrial enterprises globally identify cybersecurity as the main challenge in upgrading their operational technology (OT) systems.

Manufacturing companies across Asia Pacific are accelerating their digitalization efforts, but cybersecurity risks are threatening to derail progress.

According to new research by Kaspersky and VDC Research, nearly 40% of industrial enterprises globally and 45% in APAC identify cybersecurity as the main challenge in upgrading their operational technology (OT) systems. Manufacturing, along with energy, utilities, and logistics, is among the industries most affected.

Whilst 63% of industrial firms worldwide aim to achieve full digital transformation within the next two years, the manufacturing sector shows uneven progress.

Around a third of companies are still heavily dependent on manual processes or just beginning to adopt digital technologies.

In APAC, manufacturers are slightly ahead, with 36% running multiple connected technologies, 33% fully integrated, and 9% having reached full digital maturity.

However, this progress highlights growing vulnerabilities. APAC manufacturers report serious cybersecurity challenges: 68% cite gaps in security capabilities, 56% struggle with insufficient budgets or staffing, and 35% are grappling with regulatory compliance.

The urgency is rising as the connected manufacturing industry in APAC is projected to balloon to $80b by 2029. Experts warn that without robust cybersecurity, manufacturers risk operational disruptions, financial losses, and stalled innovation.