Industrial operators are facing mounting cybersecurity risks as limited in-house expertise and growing volumes of threat alerts strain their ability to respond effectively, according to findings cited in a recent industry report that names Honeywell among the leading providers of operational technology security services.

The assessment, published by Omdia in its 2025–26 Operational Technology Cybersecurity Services Report, reflects increasing pressure on organizations managing industrial systems such as manufacturing plants, refineries and building control environments. The report draws on a survey of 220 cybersecurity professionals and highlights a widening gap between threat exposure and organizational readiness.

According to the findings, only 36% of respondents consider their internal operational technology security teams to be “very prepared” to handle current risks. Respondents also identified alert fatigue and the challenge of filtering high volumes of security notifications as key operational constraints, raising concerns about the ability to detect early-stage cyber threats.

Omdia ranked Honeywell as a market leader in OT cybersecurity services based on customer evaluations of service quality and likelihood to recommend. The rankings were derived from feedback provided by organizations that have directly engaged with vendors, rather than from theoretical benchmarking.

Honeywell received top-tier scores across multiple performance categories, including managed security services for operational technology, breadth of solutions, strategic direction and innovation, as well as overall market momentum. The company also recorded strong performance in platform capabilities and execution, placing it among the highest-rated providers in the report.

The recognition comes amid growing convergence between information technology and operational technology systems, a shift that has expanded the attack surface for industrial enterprises. Cybersecurity strategies are increasingly required to address both IT and OT environments simultaneously, particularly in sectors where operational disruption can have safety and economic consequences.

Honeywell states that its cybersecurity portfolio is designed to operate across diverse industrial environments without disrupting ongoing operations. Its offerings include asset discovery, network monitoring and intrusion detection systems, alongside artificial intelligence-driven threat analysis and continuous monitoring frameworks.

The company also provides enterprise-level compliance visibility and mechanisms for controlling removable media such as USB devices, which are often identified as potential vectors for cyber intrusion.In addition to technology solutions, Honeywell offers more than 30 professional services tailored to operational technology security.

These include system assessments, penetration testing, network architecture design, remediation planning and workforce training programmes. Such services are intended to address both technical vulnerabilities and organizational preparedness, which analysts say are equally critical in managing cyber risk.

The report underscores the importance of regulatory alignment as cybersecurity requirements evolve across jurisdictions. Organizations operating in industrial sectors are increasingly required to comply with sector-specific regulations, particularly in critical infrastructure domains.

External service providers are often relied upon to interpret and implement these frameworks, especially where internal expertise is limited.Another factor highlighted in the report is the role of partnerships in bridging the gap between IT and OT functions. As industrial systems become more interconnected, cybersecurity responsibilities are no longer confined to isolated teams, requiring coordinated approaches across enterprise structures.

The findings reflect broader trends in the cybersecurity market, where demand for specialized services is rising alongside the complexity of threat landscapes. Industrial environments, traditionally considered isolated from external networks, are now more frequently targeted due to increased connectivity and digitalization.

Omdia’s evaluation suggests that vendors offering integrated solutions and domain-specific expertise are better positioned to meet these challenges. Honeywell’s ranking in the report is attributed to the scale of its service portfolio, its experience in industrial sectors and its ability to deploy solutions globally.

The report does not provide forward projections but indicates that current gaps in preparedness, combined with escalating cyber risks, are likely to sustain demand for managed security services in operational technology environments.

Over 70 teams—almost five times the number in 2025—are set to participate in the event, which will feature a more demanding course including paved slopes and parkland terrain designed to test improvements in durability, balance and battery performance.“It will certainly be interesting to see the progress in durability of components and battery lifetime compared to last year,” said Georg Stieler, Asia managing director at a technology consultancy.

He added that manufacturers continue to face pressure to balance product quality with cost as the technology evolves.Organizers said the race marks a shift from last year, when all participating robots were remotely controlled. In contrast, a significant share of entrants this year will rely on onboard sensors and algorithms to complete the course independently, highlighting gains in perception and decision-making systems.

Among the contenders is Tiangong Ultra, developed by the Beijing Innovation Center of Humanoid Robotics in collaboration with UBTech. The robot, which won last year’s race in 2 hours and 40 minutes, is expected to run fully autonomously this time, using sensor-based navigation and data-driven gait modeling.

Developers said achieving human-like running speeds presents significant technical challenges due to the limited time available for real-time perception and response. Training footage shared on Chinese social media shows some robots reaching speeds of up to 14 km per hour, though others displayed instability, with occasional falls and collisions.

China remains the dominant player in humanoid robotics deployment, accounting for more than 80% of the roughly 16,000 units installed globally in 2025, according to Counterpoint Research. By comparison, U.S.-based Tesla held about 5% of installations.

Domestic firms including AgiBot and Unitree each shipped over 5,000 units last year, with Unitree planning to scale annual production capacity to 75,000 robots.Despite rapid growth, industry experts say humanoid robots remain far from widespread commercial adoption in industrial environments, where precision, adaptability and complex task execution are required.

Current applications are largely limited to research, demonstrations and service roles such as interactive guides.“The reason our applications aren’t taking off is that the robots’ IQ is too low. The models are poor, their success rates are low,” said Tang Wenbin, founder of embodied intelligence startup Yuanli Lingji, speaking at a recent Beijing forum.

The Chinese government has identified embodied intelligence, or physical AI, as a strategic sector to enhance productivity and modernize manufacturing. Companies are investing heavily in data collection and machine learning, often using human workers equipped with sensors to train robotic systems.

UBTech said it expanded the number of humanoid robots deployed in factories from fewer than 10 in 2024 to more than 1,000 last year, and aims to launch 10,000 full-size units in 2026, including models tailored for commercial use, according to its chief business officer Michael Tam.

The potential takeover of PSI Software by Warburg Pincus highlights renewed investor confidence in Europe’s innovation economy, strengthening Germany’s standing in global digital infrastructure.

In a move that underscores growing investor optimism about Europe’s digital transformation, global private equity giant Warburg Pincus is reportedly nearing a landmark deal to acquire Germany’s PSI Software AG for over €700 million ($813 million).

The acquisition, if finalized, would mark one of the largest technology sector investments in Germany this year — a signal of renewed global interest in Europe’s advanced software and energy management capabilities.

According to sources familiar with the matter, the agreement would value PSI Software at €45 per share, representing a premium of more than 35% over the company’s closing stock price on Friday.

This valuation underscores the strong confidence investors have in PSI’s growth potential and its central role in powering energy networks and industrial automation systems across Europe.

The deal, expected to be announced as early as Monday, is still being finalized, but insiders suggest negotiations are in their final phase. Goldman Sachs is leading the sales process, with Warburg Pincus, a global leader in growth investing, emerging as the frontrunner.

Both PSI and Goldman Sachs declined to comment, in line with standard confidentiality practices before deal closure.

Warburg Pincus’ interest in PSI Software aligns with the firm’s strategic push toward digital infrastructure and sustainability-driven technologies, two areas of increasing global significance.

PSI’s software solutions play a vital role in managing energy grids, optimizing industrial systems, and supporting utilities in transitioning toward smarter, more sustainable operations.

Industry analysts have welcomed the development, noting that such a high-value investment into a European software firm reflects long-term confidence in the EU’s technology innovation landscape.

“This deal signals more than just a financial transaction,” said Berlin-based analyst Claudia Meier. “It represents a clear vote of confidence in Europe’s digital transformation, especially as the continent accelerates its shift toward renewable energy and smart technology integration.”

In recent years, PSI Software has positioned itself as a key technology enabler for energy and industrial sectors. Its platforms help manage power distribution networks, automate industrial production, and improve efficiency across utilities — sectors that are becoming increasingly crucial as Europe advances its green energy transition goals.

The acquisition comes at a time when global investors are showing strong appetite for European tech, viewing it as a resilient and innovative ecosystem. Warburg Pincus, known for its investments in growth-oriented companies, has a long track record of nurturing digital transformation projects, particularly in the U.S. and Asia.

Expanding its European footprint through PSI could further strengthen the continent’s tech competitiveness.

Adding to the transaction’s strategic weight, German energy giant E.ON, PSI’s second-largest shareholder with roughly 18% of shares, has indicated it will retain its stake.

The decision signals E.ON’s continued confidence in PSI’s long-term growth trajectory and its essential role in energy digitalization.

If completed, the acquisition could provide PSI Software with the capital and global reach needed to expand its R&D capabilities and accelerate its international expansion. For Warburg Pincus, the deal represents a key foothold in the European software market at a time when digital resilience, cybersecurity, and sustainable infrastructure are at the forefront of global priorities.

Analysts suggest the timing is particularly favorable, as European tech valuations are stabilizing and investors seek quality assets in sectors linked to sustainability and digital efficiency.

“Warburg’s move into PSI is smart and timely,” said Meier. “It’s a bet on digital energy systems — one of the fastest-growing and most future-proof industries in Europe.”

The partnership could also bolster Germany’s reputation as a hub for cutting-edge industrial software, combining PSI’s engineering heritage with Warburg’s international investment expertise.

The collaboration may lead to greater innovation, job creation, and technology exports — driving both local and continental growth.

As the world’s economies lean heavily on technology-driven sustainability, this acquisition could mark a pivotal moment for Germany’s software sector, positioning it at the center of Europe’s digital renaissance.

If confirmed, the Warburg Pincus–PSI Software deal won’t just represent a major financial transaction — it will symbolize a powerful convergence of innovation, sustainability, and global investment confidence.