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How Are Cyber Threats Evolving in Smart Manufacturing? (2026 Outlook)

smart factory

Ransomware attacks against industrial organizations increased by 87% year-over-year, with the manufacturing sector being the most targeted.

If you operate multiple plants or rely on connected production systems, that spike directly raises your exposure to downtime and financial loss. Smart factories connect thousands of sensors, controllers, and analytics tools, each of which is a potential entry point for attackers. As IoT is transforming the manufacturing industry, these connected devices improve efficiency but also increase exposure to new cyber risks that demand advanced protection.

As IT and OT systems converge, manufacturers face increasingly sophisticated cyber threats that require faster, smarter defenses. By 2026, cybersecurity will serve as a competitive advantage, not merely a safeguard.

This article examines the rising threat landscape, introduces practical frameworks such as Zero Trust and OT segmentation, and demonstrates how Keystone partners with manufacturers to enhance resilience before the next attack occurs.

Key takeaways

  • Strengthen segmentation between IT and OT environments following frameworks like NIST SP 800-82 to limit lateral movement and isolate critical production systems.
  • Monitor IoT assets and supply-chain partners in real time with continuous visibility tools to catch anomalies before they disrupt operations.
  • Train teams to recognize AI-driven phishing and social engineering attacks, reducing the likelihood of credential theft or unauthorized access.
  • Conduct annual risk assessments aligned with ISO 27001 standards to measure gaps, improve uptime, and validate your incident response readiness.
  • Partner with cybersecurity experts who have proven industrial security credentials and understand how to safeguard connected manufacturing networks from persistent threats.

The expanding attack surface in smart manufacturing

As smart factories grow more connected, every new integration adds both capability and complexity. From automated conveyors to cloud-connected sensors, thousands of endpoints now share data across IT and OT (Operational Technology) networks.

That interconnected web boosts efficiency but also multiplies IoT-driven vulnerabilities that attackers can exploit. When a single device lacks proper segmentation, it can expose the entire attack surface across production, logistics, and management systems.

Connected IoT devices widen vulnerabilities and blur IT/OT boundaries

In many facilities, the same network that moves production data also carries business communications and cloud backups. This overlap creates friction between convenience and control.

Without rigorous zoning and authentication, even a single infected sensor can establish a direct path to critical OT systems. NIST SP 800-82 Rev. 3 emphasizes the importance of using segmentation and least privilege to prevent cross-network pivoting between IT and OT environments.

How threat crossover happens between enterprise networks and plant systems

Threat actors often exploit shared credentials, outdated firmware, or remote access points to bridge the gap between IT and OT. Once inside, they can manipulate control logic, delay safety responses, or encrypt production data.

This crossover blurs accountability and magnifies downtime costs. Every connected PLC, IoT gateway, and vendor VPN session represents a potential bridgehead. To keep that map under control, audit all IoT and remote-access points quarterly to identify new or unmanaged entry paths before attackers do.

Key Cyber Threats Manufacturers Will Face in 2026

The coming year will bring sharper, faster, and more sophisticated threats to manufacturing operations. Many smart factories use MSPs to streamline production while strengthening cybersecurity to handle these emerging risks. Attackers now combine automation with artificial intelligence to breach defenses, disrupt output, and monetize chaos. Understanding what’s next helps you plan countermeasures before vulnerabilities are exploited.

AI-enhanced ransomware and data poisoning targeting predictive systems

Generative AI provides cybercriminals with new tools to personalize phishing attacks, write malicious code, and create deepfakes of executives. In one high-profile case, a Hong Kong finance employee transferred $25 million after a video call with a deepfake “CFO,” showing AI’s power in industrial-scale social engineering.

Mandiant’s M-Trends 2025 report found that the global median dwell time increased to 11 days, providing attackers with more time to manipulate data or stage multi-phase ransomware attacks.

These longer footholds enable adversaries to poison AI-driven quality models, alter predictive maintenance data, or disable fail-safes during production.

Supply-chain and vendor attacks compromising firmware and updates

Modern plants depend on interconnected vendors for software updates and spare parts. Compromising one trusted supplier can cascade into hundreds of affected networks.

Attackers target firmware repositories, maintenance tools, or logistics systems to spread malware across multiple clients. Tightening supply-chain vetting and digital signing processes can help prevent such silent insertions.

Industrial espionage through compromised IoT and PLCs

Industrial espionage is moving from boardrooms to factory floors. Attackers infiltrate programmable logic controllers (PLCs) and IoT sensors to steal proprietary formulas, production data, and design blueprints. Many of these devices run with weak encryption or outdated firmware, creating easy entry points for competitors or state-backed actors.

Once inside, a single PLC can quietly send real-time data about production volumes, process temperatures, or material composition. That exposure puts intellectual property at risk and erodes a manufacturer’s competitive edge. As cyber threats in smart manufacturing become more advanced, encrypt machine communications, restrict PLC network access, and continuously monitor for data anomalies that signal unauthorized activity.

Insider misuse and credential abuse through remote-management tools

Human error and overprivileged access remain leading causes of breaches. Hybrid work and remote plant management amplify that risk when shared accounts or unverified tools bypass regular security checks.

CISA’s #StopRansomware campaign highlights active Ransomware-as-a-Service (RaaS) groups, such as Medusa and Interlock, that target manufacturing through the use of stolen credentials and weak access controls.

To close these gaps, require vendor risk reviews and enforce least-privilege credentials for every external connection. Limiting automation privileges to what’s strictly necessary can reduce exposure without slowing production.

Why traditional cybersecurity no longer works

Manufacturers still rely on outdated firewalls, antivirus tools, and patchwork monitoring systems built for isolated networks. Partnering through co-managed IT accelerates Industry 4.0 in manufacturing by merging expert oversight with in-house teams for stronger protection and faster modernization.

These legacy systems were never designed for today’s hybrid IT and OT environments, where production lines, data centers, and remote teams share the same digital ecosystem.

As a result, traditional defenses struggle to detect cybersecurity threats that move laterally across both corporate and plant networks, exposing the manufacturing industry to greater risk.

Legacy systems and perimeter tools can’t secure hybrid IT/OT networks

Older security models focus on keeping hackers out, but many cyberattacks start from within the network. Compromised credentials, connected devices, and third-party applications create new entry points that legacy systems cannot see.

When outdated gateways and unpatched software meet modern cyber risks, data breaches and downtime become inevitable. For factories running older production controllers, even minor configuration flaws can grant attackers invisible access to critical systems.

Visibility gaps leave undetected threats in operational environments

Without a unified view of their infrastructure, manufacturers often miss early indicators of compromise. According to the CISA and the UK NCSC’s 2025 joint guidance, maintaining a definitive OT asset inventory is crucial for effective incident response and operational resilience.

In practice, this means mapping every programmable logic controller (PLC), remote-access tool, and third-party integration to ensure anomalies are visible before they cascade into production stoppages or costly data breaches.

Reactive response drives extended downtime and higher recovery costs

Relying on reactive fixes after an incident increases downtime, inflates recovery costs, and damages trust with clients and regulators. Preventing production downtime with proactive IT support gives manufacturers a major advantage, reducing recovery time and keeping output on schedule.

Unified dashboards that merge OT telemetry with enterprise SIEM data can help close this gap by surfacing anomalies in real-time. To stay ahead, establish integrated visibility across plants and partners, enabling you to contain an attack within minutes rather than days.

These challenges make it clear that incremental updates are no longer enough. Manufacturers need a future-ready framework that rethinks security from the ground up.

Building a 2026-ready cyber strategy for manufacturing with Keystone

Manufacturers face escalating risks from ransomware, connected supply chains, and costly downtime. With Keystone, you can replace outdated defenses with a proactive cybersecurity framework built for industrial environments. Our approach strikes a balance between prevention, detection, and resilience, aligning with global standards such as NIST SP 800-82, ISO 27001, and IEC 62443.

Strengthen identity control with Zero Trust and continuous monitoring

Keystone helps manufacturers establish Zero Trust security that verifies every user, device, and connection across IT and OT systems. Continuous monitoring tools track network behavior in real-time to detect anomalies before they cause downtime. Effective network monitoring is critical for manufacturing operations because it allows teams to spot and isolate threats instantly. This ensures that every access point is authenticated and every system interaction remains secure.

Protect operations through OT segmentation and least privilege

Following NIST segmentation guidelines, Keystone isolates IT and OT systems to contain threats and prevent lateral movement. Our engineers enforce least privilege access, giving users and machines only the permissions they need. This safeguards production data, control logic, and intellectual property from internal misuse or external breaches.

Predict and prevent attacks with machine learning-driven detection

Keystone’s AI-enhanced monitoring identifies cyber threats and performance anomalies before they disrupt production. These AI solutions for manufacturers help predict attacks, protect uptime, and improve overall operational intelligence. By learning from live operational telemetry, our systems flag potential breaches early and reduce false alarms. This proactive detection helps manufacturers protect uptime and avoid the high cost of unplanned outages.

Reduce third-party risk with supply chain and vendor security governance

Keystone conducts in-depth vendor audits and software integrity checks aligned with IEC 62443-2-1:2024 standards. This process enhances risk management in the supply chain by identifying vulnerable suppliers before they cause disruptions to production. We validate firmware, track supplier compliance, and ensure every partner connection meets strict cybersecurity criteria. This closes hidden backdoors that could compromise your operations through supply chain complexity.

A 2026-ready cyber strategy with Keystone helps you secure production, reduce downtime risk, and stay ahead of evolving threats. With industrial expertise and continuous visibility, Keystone makes cybersecurity a driver of resilience and competitive advantage.

Keystone’s Role in Helping Manufacturers Stay Ahead

The right partner can mean the difference between a near miss and a multimillion-dollar shutdown. Keystone delivers continuous protection for the manufacturing sector, combining expertise across IT, OT, and the Industrial Internet of Things (IIoT) to keep production safe and profitable.

24/7 hybrid monitoring and rapid incident response for smart factories

Keystone’s 24/7 monitoring unites IT network visibility with OT telemetry. Real-time alerts and rapid containment protocols ensure that ransomware, malware, and system anomalies are neutralized within minutes, not hours.

Expertise in securing ERP, MES, and industrial control systems (ICS)

Our engineers understand how your industrial control systems (ICS) and enterprise platforms interact. Whether it’s securing ERP data, isolating MES workflows, or validating firmware updates, Keystone applies industry-proven cybersecurity standards to protect uptime and data integrity across connected operations.

Cybersecurity risk assessments reveal 2026 readiness gaps

Through structured risk assessments, Keystone identifies vulnerabilities hidden within legacy devices, vendor access points, and automated workflows. The result is a clear cybersecurity posture roadmap that prioritizes remediation and compliance for 2026 and beyond.

Final thoughts: future-proofing smart manufacturing security

The next wave of threats will test every system and supplier in the manufacturing industry. Many organizations are now working to develop cloud-based IT infrastructures that support flexible, secure operations and easier integration between IT and OT systems. Staying resilient requires more than technology; it demands continuous improvement, regulatory alignment, and trusted expertise. As smart factories expand, your defense strategy must evolve just as quickly to sustain operational resilience and meet emerging standards.

Contact Keystone today to assess your 2026 manufacturing cybersecurity readiness.

We’ll help you protect your production line before the next attack and build the confidence to grow securely in the era of connected manufacturing.

FAQs

How can smart manufacturing protect sensitive data from ransomware and other cyber threats?

Start by segmenting IT and OT networks to limit lateral movement and protect sensitive data. Utilize multi-factor authentication, continuous monitoring, and strict access controls, informed by NIST SP 800-82 best practices. Keystone helps organizations implement these safeguards across IT and OT environments to maintain security and uptime.

What cybersecurity measures should automotive manufacturers take as advanced technologies expand connectivity?

Automotive plants should apply Zero Trust principles and IEC 62443 segmentation to secure connected robots, sensors, and vehicles. Regular firmware updates and vendor risk reviews prevent backdoor entry into production systems. Keystone helps manufacturers apply these frameworks to keep advanced technologies efficient and secure.

Why is cybersecurity critical for healthcare manufacturers using innovative factory systems?

Cybersecurity protects patient-related and device production data that qualify as sensitive data under healthcare regulations. Encryption, role-based access, and continuous monitoring aligned with ISO 27001 help maintain compliance and operational trust. Keystone supports healthcare manufacturers in building unified, standards-based defenses that protect both innovation and compliance integrity.

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