Embracing Network Segmentation for Warehouse Cybersecurity

Summary

While the industrial Internet of Things provides numerous benefits, cybercriminals exploit the security vulnerabilities introduced by rapid, widespread warehouse automation. The convergence of information technology (IT) and operational technology (OT) systems makes facilities vulnerable to cyberthreats. Is network segmentation the solution?

What is network segmentation?

Network segmentation is a security approach that divides the industrial network into smaller, solitary zones. Each acts as its own, distinct subnetwork, which limits access to devices or data and restricts or blocks data packets’ movements between networks altogether. Isolating critical assets and information enhances IT and OT security.
 
Microsegmentation is more granular. It divides the network into separate segments at the application layer, which defines how two or more devices can send and receive data over a network at the highest level of the Open Systems Interconnection model. It helps protect OT network layers.
 
John Adams, Mission Secure’s CEO, thinks facilities should scrutinize their operations’ traffic requirements. They can control and restrict access to sensitive data by deploying firewalls to filter traffic between defined network segments, he said. However, he believes they should not count on network segmentation alone to respond to cyberthreats. It mainly slows attackers or limits the attack’s impact. It may not be a silver bullet, but it is a powerful, effective tool.

How does network segmentation work?

Warehouse managers can segment their network with traditional technologies like firewalls, an access control list or a virtual local area network (VLAN). Modern software-defined access technology groups network traffic to enforce segmentation policies directly.

Why should warehouses use it?

In 2025, experts valued the warehouse automation market at an estimated $24.09 billion—up from $21.42 billion the year prior. Its ample advantages have fueled its rapid growth. This technology can decrease errors by 99%, optimize labor costs by 60% and increase productivity by 30%.
 
As warehouse automation adoption spreads, more critical systems become vulnerable to cyberthreats. Detecting them manually becomes more difficult as network traffic volume increases. Cybercriminals have taken notice and are targeting the industry. The uptick in cyberattacks indicates security posture improvements are in order.

The benefits of segmenting networks

Since network segmentation can prevent lateral movement, attackers cannot easily access various IT or OT systems even if they successfully compromise one. In addition to improving security, this approach optimizes performance and helps ensure business continuity during a cyberattack.
 
By tailoring security controls based on device function and risk level, industry professionals can guarantee maximum protection in critical areas while streamlining operations in others. Network segmentation balances protection with ease of use by isolating high-priority traffic, which prevents congestion. It was not purpose-built for industrial networks, but it is ideal for addressing the risks of IT/OT convergence without creating bottlenecks in essential operations.

Segmenting industrial networks

With the right strategy and tool set, warehouse managers can segment their industrial networks in three steps.

1. Map the network and data flow
After classifying critical assets, professionals should map all devices on the network. Where are they located? What kind of information do they exchange? Understanding how they are interlinked is essential for developing an effective network segmentation strategy.

2. Define the network segmentation strategy
Decision-makers can segment by device type, data sensitivity, asset criticality or department function. Manual segmentation involves assigning devices to VLANs or firewalls by hand. They must configure each switch port to a specific VLAN to place everything in the correct segment. Dynamic segmentation automates this process via a network access control system, which can save time but requires a substantial investment in compatible networking infrastructure.
 
A software-defined approach uses software-based controllers or application programming interfaces to enforce strict data exchange policies automatically. An adaptive solution can respond to changes in device security posture or user risk score, but implementation costs can be high, and the centralized controller creates a weak spot. A 2022 Microsoft cyberthreat intelligence brief revealed 75% of standard industrial controllers in OT networks had unpatched, high-severity vulnerabilities.

3. Implement and monitor controls
Network segmentation is not a one-and-done process. It requires robust management and occasional audits to provide maximum protection. If warehouse managers lack the time or resources for continuous monitoring, they should consider streamlining oversight with artificial intelligence or robotic process automation.

Improve the facility’s security posture

As more warehouses embrace automation, cybersecurity will become a bigger issue. In recent years, financial and health care professionals have seen this play out in real time. Network segmentation is not a silver bullet, but it can improve a facility’s security posture by minimizing the impact of cyberattacks.