As nation-state threats escalate and cyber-physical systems (CPS) become mission-critical across the federal landscape, new research from MeriTalk and Claroty reveals a troubling disconnect. While 100% of federal agencies launched new CPS security initiatives in the past year, only 36% have achieved full asset visibility, and more than 60% report gaps in in-house CPS expertise – leaving operational environments dangerously exposed.
The new study, “Guardians of Government, Vol. 2: Fortifying the cyber-physical frontier,” builds on MeriTalk and Claroty’s 2024 research and offers a sharper year-over-year view into federal CPS resilience. Based on a survey of 100 federal civilian and Department of Defense (DOD) operational technology (OT)/CPS security leaders, the research highlights growing urgency amid geopolitical instability, new mandates, and surging IT/OT convergence.
According to the study, 91% of respondents say the evolving geopolitical threat landscape has intensified their focus on OT and broader CPS security, and 100% launched at least one new security initiative in the past year. The DOD, in particular, has embraced network isolation, with 87% of leaders increasing air-gapped systems. Meanwhile, agencies across the board are advancing investments in Internet of Things (IoT), medical device security, and governance frameworks. Yet, the majority still face significant operational blind spots. More than two-thirds of federal OT leaders anticipate a disruptive cyber-physical incident in the next 12 months – most likely impacting IoT devices and/or facility-related systems. Despite a push to modernize, 60% remain concerned about end-of-life, internet-facing OT assets, and 61% say budget constraints delayed critical improvements. The CPS/IT collaboration gap also widened, with 45% now citing poor cross-team coordination as a barrier – up from 30% last year.
The research points to a clear divide: agencies that avoided cyber incidents over the past year are far more likely to have dedicated CPS leadership, modern access controls, and reduced legacy infrastructure. Those that experienced incidents were more likely to cite staffing shortages, segmentation gaps, and delayed modernization efforts due to budget constraints.
“The cyber-physical threat landscape is evolving faster than many agencies can adapt,” said Heather Young, Regional Vice President, Claroty, U.S. Federal. “Agencies that build around smart segmentation, continuous monitoring, and deep visibility are not only better positioned to defend themselves – they’re better equipped to sustain mission delivery in the face of disruption.”
The report outlines a roadmap for resilience, urging federal leaders to invest in complete asset visibility, accelerate vulnerability assessments from quarterly to continuous, and fortify legacy systems through segmentation and access control. The findings also underscore the value of external partnerships and portable security tools to extend capacity without overburdening limited internal resources.
The report is based on a survey of 100 federal security administrators and managers overseeing OT and/or CPS environments across civilian and DOD agencies in June and July 2025. The research has a margin of error of ±9.78% at a 95% confidence level.
