As the world transitions towards smarter and more efficient energy systems, the Smart Grid Security Market has become integral in safeguarding critical infrastructure. The convergence of information technology and energy networks has opened avenues for cyber threats, making robust security solutions imperative. This market addresses the challenges of protecting smart grids from cyber-attacks, ensuring the reliability and resilience of the modern energy landscape.
Competitive Landscape of Smart Grid Security Market:
The competitive landscape of the Smart Grid Security Market is marked by a dynamic interplay of key players, each striving to gain a significant foothold in this rapidly evolving sector. As the global demand for smart grid solutions continues to rise, the emphasis on securing these networks against cyber threats has become paramount, driving a robust market for smart grid security solutions.
Key Players:
Strategies Adopted:
Factors for Market Share Analysis:
New and Emerging Companies:
Current Company Investment Trends:
Latest Company Updates:
October 26, 2023:Â The White House releases a new cybersecurity strategy that includes a focus on protecting the nation's critical infrastructure, including the power grid.
November 15, 2023:Â The Cybersecurity and Infrastructure Security Agency (CISA) releases a new report on the top cyber threats to the power grid.
December 12, 2023:Â The Federal Energy Regulatory Commission (FERC) proposes new cybersecurity regulations for the power grid.
January 8, 2024:Â A group of hackers attempts to attack a major power utility in the United States, but the attack is unsuccessful.
Â
The smart grid security market size was valued at USD 6.9 Billion in 2022. The smart grid security industry is projected to grow from USD 7.57 Billion in 2023 to USD 16.00 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.80% during the forecast period (2023 - 2032). The increase in demand for energy, current advancements in technologies of power grids, and growing demand for smart meters that are used to read the power consumption rates are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Ongoing smart city projects in developing countries are driving market growth.
Market CAGR for smart grid security is driven by the rising number of smart city projects. Smart cities are developed urban areas that create sustainable economic growth and high quality of life by excelling in several fields, such as technology, mobility, environment, living standard, and government regulations. More than 100 smart city projects are happening worldwide, presenting a huge opportunity for technology companies, utility providers, and consulting service providers. In smart cities, key services about utilities, safety, transportation, and healthcare segments are managed more efficiently and intelligently with proper utilization of resources and the adoption of advanced technologies such as loT and smart energy meters. Traditional power grid models cannot provide the same efficiency level to citizens and find it difficult to meet the requirements for energy monitoring, real-time data gathering, and smart billing generated due to modernization.
Additionally, the growing demand for efficient power utilization and renewable energy resources worldwide are among the key factors driving the market. Constant development and integration of creative novel and networking technologies enhance security measures. Considering the complexity involved with smart grids due to complex networks, there is an expansion in risk factors, including data confidentiality, security, and vulnerabilities. This could result in an enhanced attack by penetrating the network, gaining access to the software, and modifying load conditions to disrupt the grid, resulting in an expansion in demand for smart grid security solutions.
Smart grid security is a digital infrastructure that helps observe energy consumption, grid conditions, and generation and automate various operations. A safe and secure smart grid system renders protective approaches to enhance security from cyber-attacks, such as distributed denial-of-service attacks. The IP standards used in smart grids give an extensively preferred connection standpoint between several framework segments. Expanding the utilization of IP for associated devices is expected to influence Intelligent Network security showcase demand. The adoption of cloud-based applications is expected to be one of the essential trends that will augment the smart grid security market revenue.
The rising demand for quality, secure, and reliable power supply is expected to ensure significant growth in the market. Growing concerns regarding carbon footprint and the need to replace aging infrastructure are shaping the global smart grid market. In addition, there is a need for centralized grid distribution management and control. The high demand for smart grids from several economies and the surge in ICT spending will also aid the market's growth. Additionally, a growing requirement by power utility firms to upgrade and update their transmission and distribution (T&D) networks due to the emergence of new utility-scale and generated renewable capacity.
The global smart grid security market segmentation, based on security type, includes endpoint, network, application, and database. The database segment dominated the market, accounting for 35% of market revenue (2.65 Billion). In developing economies, category growth is driven by growing cyber-attacks and other threats to critical infrastructure. The technology advancement and research & development in each part are being performed in the market. However, application is the fastest-growing category owing to the growing trends of adoption of smart grids, the Internet of Things, and connected devices.
The global smart grid security market segmentation, based on application, includes consumption, generation, and distribution & control. The consumption category generated the most income (70.4%). This is due to a need for more security experts in energy & utility companies and the urgent need to address smart grid security threats. However, generation is the fastest-growing category due to the growing requirement for electricity and power generation in developed and developing countries.
The global smart grid security market segmentation, based on deployment mode, includes on-premise and cloud. The cloud category generated the most income owing to a high degree of security and level of control. Cloud services enable effective management of a huge number of customers from a single location, which benefits the utility company. However, on-premise is the fastest-growing category as it offers features such as data ownership, data security and customization regarding storage capacity.
Figure 1: Global Smart Grid Security Market, by Deployment Mode, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study delivers market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American smart grid security market will dominate due to the high availability of both conventional and renewable energy resources, and numerous countries in the region are executing community-based micro smart grid security systems in their rural areas will boost the market growth in this region. Further, the US smart grid security market held the largest market share, and the Canada smart grid security market was the fastest growing market in the North American region.
Further, the prominent countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GLOBAL SMART GRID SECURITY MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's smart grid security market accounts for the second-largest market share due to rising technological development in the grid systems, and security systems are boosting the market growth in this region. Further, the German smart grid security market held the largest market share, and the UK smart grid security market was the fastest-growing market in the European region.
The Asia-Pacific smart grid security market is expected to grow at the fastest CAGR from 2023 to 2032. This is due growing trend of adoption of smart grid and mobile-based business applications in this region. Moreover, China’s smart grid security market held the largest market share, and the Indian smart grid security market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the smart grid security market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the smart grid security industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global smart grid security industry to benefit clients and increase the market sector. Major players in the smart grid security market, including BAE Systems Plc (United Kingdom), IBM (United States), IOActive (United States), Lockheed Martin Corporation (United States), AlertEnterprise (United States), and others, are attempting to increase market demand by investing in research and development operations.
Siemens Energy AG is an energy technology firm. It develops, produces, markets, and installs multi-megawatt wind turbines, gas turbines, steam turbines, gas engines and complete systems. The firm delivers a range of products and services for power generation, power transmission, renewable energy, power distribution, smart grid, automation, compression and expansion, and mechanical drives. It also delivers solutions related to the conversion, production, and transportation of primary fuels and oil and gas. Siemens Energy also operates integrated hydrogen power plants. The firm serves various industries such as air separation, ceramics, chemicals and pharmaceuticals, food and beverage, manufacturing, marine, metals, power, oil and gas, pulp and paper, sugar, and textiles. In September 2020, Siemens Energy launched its new Unified Power Flow Controller (UPFC) PLUS and expanded the options for grid stabilization. The UPFC PLUS helps the system works to stabilize the grid by dynamically controlling the load flow in alternating-current grids.
Schneider Electric SE is an energy management and automation firm that develops related technologies and solutions for electricity distribution. Its prominent products such as automation and control products, solar and energy storage, medium voltage distribution and grid automation, low voltage products and systems, critical power, cooling, and racks. The company also offers energy and sustainability services, field and automation, cloud, consulting and training services. The firm serves numerous industries, including healthcare, life sciences, marine, metals, food and beverage, minerals and cement, mining, oil and gas, retail, automotive and mobility. In January 2021, Schneider Electric acquired DC Systems BV, a major smart system supplier. This has helped the firm in advancing innovations in electrical distribution.
BAE Systems Plc (United Kingdom)
IBM (United States)
IOActive (United States)
Lockheed Martin Corporation (United States)
AlertEnterprise (United States)
AlienVault Inc. (United States)
Black and Veatch (United States)
Cisco Systems Inc. (United States)
McAfee-Intel (United States)
Honeywell (Elster) (United States)
Entergy (United States), HP (United States)
N-Dimension Solutions (Canada)
May 2021: Thailand- grounded energy company Impact Solar partnered with Hitachi ABB Power Grids to provide an energy storehouse system for the country's largest private-possessed microgrid.
January 2021: Schneider Electric has acquired DC Systems BV, a major smart system supplier. This has assisted the firm in advancing innovations in electrical distribution.
Endpoint
Network
Application
Database
Consumption
Generation
Distribution & Control
On-Premise
Cloud
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
Smart Grid Security Market Highlights:
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)