60% of manufacturers target full digitalisation as cyber risks grow

As factories become more connected and dependent on digital systems, cyberattacks are increasingly becoming a direct business risk for manufacturers, with disruptions capable of stopping production for hours and causing losses of more than $1 million.

A new report by Kaspersky and VDC Strategy found that 60% of industrial companies expect to become fully digital within the next two years, compared with just 9% that describe themselves as fully digital today.

The report, titled “Cyber Resilience, Built for Manufacturing”, highlights how the rapid move towards digitalisation is changing both factory operations and the risks manufacturers face.

According to the report, 24% of manufacturers said improving production volumes or operational efficiency was the main reason behind their digital transformation.

Another 15% cited reducing operating or production costs, while 14% pointed to creating new strategic opportunities. Around 13% said improving cyber resilience was a key driver.

Factories are increasingly connecting production equipment with digital systems such as Manufacturing Execution Systems (MES), Supervisory Control and Data Acquisition (SCADA) systems, sensors and automated equipment.

While these technologies can improve efficiency, they also mean that a cyber incident can move beyond computers and directly affect factory operations.

Nearly 60% of manufacturing organisations surveyed estimated that cyber incidents resulted in losses exceeding $1 million per incident.

Average downtime following an incident stood at 15.3 hours.

The report said much of the financial impact comes from halted production, missed deliveries and penalties rather than simply the cost of investigating the cyberattack.

An attack could slow or stop production lines, affect work in progress and compromise quality and traceability records.

Even after digital systems are restored, manufacturers may need to confirm that production processes and records remain reliable before operations can fully restart.

The report found that IT departments manage security policies in 59% of organisations. However, these policies may not always address the specific needs of factory environments.

Managing a large number of cybersecurity tools was identified as a challenge by 44% of organisations, while 38% reported difficulties updating Operational Technology (OT) systems.

Andrey Strelkov, Head of Industrial Cybersecurity Product Line at Kaspersky, said the focus is increasingly moving beyond simply preventing attacks.

“The goal is to minimise operational impact and accelerate recovery, rather than focusing exclusively on preventing breaches,” he said.

As manufacturers continue their digital transformation, the report said cybersecurity will increasingly need to be treated as part of everyday production planning, helping factories protect operations, reduce downtime and recover more quickly when incidents occur.