NetworkTigers explores the future of the OEM landscape, from cybersecurity threats to sustainability, smart factories, and blockchain-driven transparency by 2030.
OEMs, or original equipment manufacturers, are a reliable and growing area of the networking industry. However, they will also face unique threats in the coming 5 years as the industry expands. Network Tigers speaks up about what we see as significant shifts to the OEM landscape by 2030.
Responding to large-scale attacks
One of the most alarming trends to emerge in recent years is the growing risk of large-scale attacks. Hackers are setting their sights higher than ever before, now focusing on exploiting cloud-based platforms, vulnerabilities in third-party vendors, shared software issues, and API breaches. These kinds of incidents have a broader impact than just a one-on-one data breach or hack. They can reach across the industry, affecting millions of users simultaneously.
Consider this: from 2021 to 2024, there has been over a 1,500% increase in the number of data security incidents with a rated “massive” impact, meaning that millions of assets can be potentially affected in the breach and for reference, “massive” scale attacks accounted for just 1.2% of attacks in 2021. Today, 60% of incidents have an impact rated “high” or “massive”. Part of this is due to a nearly 30% rise in API incidents, as well as the increased interconnectivity of digital systems.
OEMS are uniquely positioned to be threatened by the rise of large-scale attacks, as a single data breach in an OEM can quickly spread across the industry with reverberating consequences. In response, OEMs and tier 1 suppliers will need to develop ground-up solutions to ensure that these kinds of attacks do not impact shared products. OEMs are on the front lines of hackers seeking to maximize the impact of their intrusions, and will need to double down on their cybersecurity efforts to respond effectively by 2030. Part of this response may come from AI-backed network compliance technology, the move to OEM edge computing, and the development of quantum-resistant encryption.
Unified IT and OT
A recent Deloitte study on OEMs and smart factories reveals that while 90% of manufacturers can detect cyberattacks, very few have integrated the same level of monitoring into their operational technology (OT) environments. By 2030, the OEM landscape is likely to adopt a more holistic approach to security, integrating cybersecurity from IT systems, such as enterprise software and cloud infrastructure, into operational technology environments as well.
Operational technologies (OT) can be vulnerable to hacks and intrusions through programmable logic controllers, distributed control systems, industrial IoT devices, and more. These systems increase productivity and allow OEMs to produce high-quality gear for less. However, threats to OT systems are also on the rise. The Cybersecurity and Infrastructure Security Agency (CISA) has also listed over 1,200 known OT system-related threats from more than 300 OEMs and system providers. We predict that the increased digitization of manufacturing from OEMs will be more closely targeted by hackers in 2030, but that we will also see a significant uptick in OT security prioritization.
Sustainability
As climate-related disasters strain supply chains and there are increasing shortages of semiconductors and rare earth materials, OEMs have the potential to pivot towards more sustainable tech solutions to meet rising demand. OEMs have already been driven to diversify their supplier sources and move production closer to their home markets. These shifts can reduce the frequency of supply chain issues that OEMs face, as well as create opportunities for more sustainable solutions. Reduced long-distance shipping footprints, lowered emissions in local markets, and investing in more efficient computing all can save companies money while allowing OEMs to function more agilely in 2030 and beyond. Green tech, such as multi-core CPUs and high-capacity SSDs, has the potential to become a large part of the OEM market share moving forward.
Blockchain transparency
Blockchain technology has the potential to revolutionize transparency in the original equipment manufacturer (OEM) industry. Blockchain tracing can enable OEMs to verify the authenticity of parts and components, as well as trace issues back to their source. This can improve overall quality and build consumer trust in OEMs. Additionally, blockchain enables each transaction to be recorded and stored indefinitely in a ledger, as well as implement “smart contracts” between OEMs and suppliers. This can streamline negotiations, lower administrative costs and transactional fees, and increase overall efficiency.
In 2030, the OEM landscape will need to respond to regulatory pressures, ongoing supply chain challenges, and concerns about raw materials. Additionally, they may become increased targets for hackers seeking to maximize the impact of large-scale attacks. However, the future looks bright for OEMs when considering advances in machine learning, blockchain technology, and the potential for OEMs to leverage quantum mechanics into their cybersecurity and manufacturing processes. OEMs are ahead of the curve in many ways today, and they can maintain this advantage with the rapid advancement of manufacturing technology, swift response times, enhanced product quality, and efficient organizational structures.
About NetworkTigers
NetworkTigers is the leader in the secondary market for Grade A, seller-refurbished networking equipment. Founded in January 1996 as Andover Consulting Group, which built and re-architected data centers for Fortune 500 firms, NetworkTigers provides consulting and network equipment to global governmental agencies, Fortune 2000, and healthcare companies. www.networktigers.com.
