Listening to the Voice of the Customer: Cisco’s 2024 State of Industrial Networking Report

Nothing has been more energizing in my career than listening to customers. Hearing them describe their current challenges, envision new competitive advantages, and measure their ROI are but a few examples. These insights are invaluable not only to strategic partners and market leaders like Cisco but also to industry peers who are learning about the highest value use cases emerging from the rapid modernization of industrial networks.

Needless to say, hearing from 1,000+ industry professionals at once is a rare opportunity, and that is why I am excited to share our 2024 State of Industrial Networking Report with you.

The industrial landscape is undergoing massive transformations as the list of use cases, business outcomes, and competitive advantages driven by operational network investments continues to grow. As a result, operational technology (OT) networks are converging with their enterprise IT counterparts, creating a complex and dynamic environment. To understand the challenges and opportunities that lie ahead, Cisco, in association with Sapio Research, conducted a comprehensive survey gathering insights from over 1,000 industry professionals across 17 countries and in 20 sectors, including manufacturing, utilities and transportation.

The 2024 State of Industrial Networking Report sheds light on the evolving industrial networking landscape, revealing key trends that will shape the future. Let's look at some of the report's most significant findings:

OT Security Takes Center Stage

The report highlights a growing concern for OT cybersecurity across all industries. Industrial networks, traditionally air-gapped from the outside world, are now increasingly connected, making them vulnerable to cyberattacks. A backlog of legacy systems and assets, an expanding attack surface, and an overstretched workforce are exacerbating the problem. A significant portion of respondents (89%) cited cybersecurity compliance as very or extremely important. This reflects the global need for robust security solutions specifically designed for the unique needs of industrial environments.

Collaboration is Key: Bridging the IT/OT Divide

With 41% of firms' reporting IT and OT teams working independently, the report underscores the critical role of improved collaboration between these two teams. Operational efficiency and agility hinge on much better integration between these two traditionally independent departments. The benefits include simplified operations, improvements in cybersecurity defense and remediation, and faster, better-informed decisions. The feedback from the survey was clear. A single vendor solution designed and integrated for both types of networks is a major catalyst for driving IT/OT collaboration.

Preparing for AI in Industrial Networking

48% of the respondents cited Artificial intelligence (AI) as the emerging technology that will have the most significant impact on industrial networking over the next five years. AI is poised to play a transformative role in industrial networking, with the ability to automate tasks, improve network performance, and predict potential issues before they disrupt operations. Participants further stated that AI in industrial networking would be a spending priority in the same time period, which further indicates the urgency to prepare operational networks for the highest value AI use cases.

Beyond the Headlines: What Does it Mean for You?

The findings of the report paint a clear picture of the evolving industrial landscape. Here are some key takeaways for organizations as they plan the transformation of their industrial operations:

• Invest at a competitive level: 63% of respondents have ramped up spending on industrial infrastructure over the past year. It's critical that organizations invest in their operational network as a competitive differentiator.
• Establish strong cybersecurity practices: the need for robust cybersecurity to protect critical infrastructure has never been greater. Addressing the growing global threat landscape requires embedding OT security into the network fabric and strong remote access capabilities. For the very latest on OT security, please see "The Forrester Wave™: Operational Technology Security Solutions, Q2 2024".
• Improve IT/OT Collaboration: Increased communication and collaboration between IT and OT is essential for maximum operational efficiency, improved cybersecurity, simplified operations and reduced costs. It also enhances automation and helps address growing skilled labor shortages.
• Prepare for AI: AI is coming to automate tasks, improve operational efficiencies, and generate predictive insights. Ensuring your operational network is AI-ready is a high priority for most organizations today.
• Find a partner who knows both IT and OT: Industrial organizations need a partner to address the broad range of challenges being faced in both IT and OT today. Further, strategic partners should provide deep industry insights and network blueprints to ensure a strategy that delivers operational simplicity, security and scale.

Building a Secure and Efficient Industrial Future

As organizations globally look to build a secure, efficient, and future-proof industrial networking foundation, we're hoping this report gives you context and insight from your peers to help your planning and strategies. Cisco is the market leader in both enterprise and industrial networking, and we look forward to working with you to help you navigate today's complex operational landscape.

Download the Full Report:

For a deeper dive into the findings of Cisco's 2024 State of Industrial Networking Report, download the full report here.

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