Smart grid cyber security: Key market research findings
- Threat of security breaches fuels market growth
- The consumption segment accounts for a majority share of the market’s revenue
- Key vendors – BAE Systems, International Business Machines, IOActive, and Lockheed Martin
Technavio’s market research analysts predict the global smart grid cyber security market to grow at a CAGR of around 10% between 2016 and 2020. The growth of this market can be attributed to the high cost implications associated with security breaches. As more machines get connected to the grid, the dependency on the grid increases and the implementation of IT into the smart grid makes its vulnerable. Defending the grid from cyber-attacks is one the main challenges. Thus, the power utilities have adopted various security measures such as tamperproof security controllers to tackle such threats. In 2015, the global smart grid cyber security market was dominated by the Americas with a market share of over 41%. Increased number of physical and cyber-attacks targeted at power grids in the region will contribute to the growth of the smart grid cyber security market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the smart grid cyber security segments based on the application.
“Many organizations have been able to cut costs and centralize their resources because of availing cloud-based services. Consequently, there has been an increase in the number of utilities adopting cloud-based services. Many European-based utilities are now availing cloud-based services from smart grid vendors. As a consequence to this growing trend of cloud-based technology adoption, many security firms started providing services to protect the smart grids from cyber-attacks,” says Thanikachalam Chandrasekaran, Lead Analyst, Energy, Technavio Research.
In 2015, the consumption segment accounted for more than 37% of the overall market revenue to become the key revenue generating vertical in the global market. Smart grid and the related fields have been attacked on several occasions before and such hacking of smart meters is expected to impact a wide area of connections. As there are millions of smart meters that have been installed and as they form a part of the advanced metering infrastructure (AMI) system, any breach in the smart meters would allow the attackers to perform unauthorized actions where they intrude into the privacy of individuals and encroach upon their confidential details such as accessing their bank accounts details, consumption patterns, and more.
The key vendors in the global smart grid cyber security market include BAE Systems, International Business Machines, IOActive, and Lockheed Martin. In developed and developing countries, local or regional vendors continue to dominate the market, thereby triggering an increase in competition. The global smart grid cyber security market is expected to witness a steady growth in the future because of an increased need to avoid cyber threats in smart grids. It is also expected that an increase in the use of various applications will boost the growth of the market significantly during the forecast period. This, in turn, is expected to drive the competition in the global smart grid cyber security market.
A more detailed analysis is available in the Technavio report, Global Smart Grid Cyber Security Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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