Manufacturing sector faces rising cyber risks amid rapid digitalization

The manufacturing sector is facing escalating cyber risks as rapid digitalization transforms production environments into cyber-physical systems. A global report by Kaspersky and VDC Strategy indicates that while only 9% of organizations are currently fully digital, 60% expect to reach that state within two years. This shift links shop-floor equipment and production lines to digital platforms, meaning digital disruptions can now cause physical consequences, such as halting production lines or invalidating traceability records.

In the United Kingdom, research from MakeUK reveals that nearly one-third of manufacturers faced cyber-attacks targeting their operations or supply chains last year. The vulnerability of the sector was highlighted by a major breach at automotive manufacturer JLR, which reportedly cost the British economy at least £1.9bn due to lost output.

Experts note that the threat landscape is being shaped by hostile state-backed actors and the rise of generative AI capable of autonomous hacking. Furthermore, the interconnection of facilities intended to improve operational visibility has inadvertently expanded the potential damage radius during security compromises. The MakeUK survey also identified a gap in preparedness, noting that only half of the affected manufacturers maintained formal response plans.