Supply chains form the backbone of global trade, integrating various elements of production and distribution. As these systems become more intricate, they face increased cyber threats. The logistics sector, with its extensive data and interconnected networks, is particularly susceptible. By 2035, it's anticipated that nearly 45% of supply chains will be largely autonomous, heightening the risk of cyber exposure.
Between July 2023 and July 2024, there were about 27 cyber incidents affecting transportation and logistics firms. A study from Stenden University of Applied Sciences in the Netherlands revealed a rise in cyber attacks on the shipping sector, with 64 incidents in 2023, up from three in 2013. These breaches can result in data loss and operational disruptions, prompting logistics leaders to address these risks.
Cyber security in logistics is set to grow at a CAGR of 12% from 2024 to 2037, with the market expected to increase from USD 8.4 billion in 2024 to USD 36.6 billion by 2037. This growth is driven by innovation, exemplified by approximately 5,000 cyber security-related patents filed between 2019 and 2023. While few patents are deemed groundbreaking, their volume indicates the industry's commitment to cyber resilience. Mentions of cyber security in C-suite discussions declined from 150 in 2022 to 90 in 2024, suggesting it is now seen as a standard business requirement.
Patents play a role in setting industry standards. Widely adopted patented technologies, like encryption and authentication protocols, often become security benchmarks. They incentivize ongoing innovation and promote knowledge sharing.
The logistics sector faces vulnerabilities that cyber criminals can exploit, leading to breaches and disruptions. The IBM Cost of a Data Breach Report highlights a global average breach cost of USD 4.88 million in 2024, a 10% rise from the previous year. To mitigate risks, providers use layered security frameworks, advanced encryption, and multi-factor authentication. Regular vulnerability assessments and penetration testing bolster defenses.
Human error is a major cyber security threat. The Cyber Management Alliance notes that many organizations lack adequate training to combat threats like phishing. Regular training sessions are essential for building a culture of cyber vigilance. Randy Rose from the Centre for Internet Security emphasizes that "Cyber security education that sticks can be the difference between a user who clicks a link and a user who stops to think."
The integration of IoT devices in logistics enhances real-time monitoring but introduces potential vulnerabilities. IoT infrastructure security must be managed proactively. Companies also require partners and suppliers to adhere to strict cyber security protocols, reinforced through audits and encrypted data transmission.
Real-time threat monitoring is crucial for managing evolving threats. By using real-time systems, logistics companies can detect irregular network activity and respond promptly. As digitalization progresses, cyber security remains vital for protecting data and maintaining trust across supply chains.
© A.P. Moller - MaerskFor more information:Mikkel Linnet
A.P. Moller - Maersk
Tel: +45 24821196
Email: Mikkel.Elbek.Linnet@maersk.com
www.maersk.com