Smart Grid Security Market Definition And Segments
Smart grid security refers to the security of digital assets, systems, and data within modern electric power grids, often known as smart grids. It is used to protect key infrastructure, prevent unauthorized access, and reduce cyber risks that could interrupt or jeopardize the grid's reliability, efficiency, and safety.
The main types of smart grid security include endpoint, network, application, and database. Endpoints refer to individual devices or systems connected to the smart grid network, such as meters or sensors, that collect and transmit data. Several layers of security are included, such as physical security, network security, application security, and data security. It can be deployed on-premise and in the cloud for several applications, such as consumption, generation, distribution, and control. It is used by numerous end-users, such as utilities, energy management, industrial, residential, and commercial.
The smart grid security market covered in this report is segmented –
1) By Type: Endpoint, Network, Application, Database
2) By Security Layers: Physical Security, Network Security, Application Security, Data Security
3) By Deployment Mode: On-Premise, Cloud
4) By Application: Consumption, Generation, Distribution And Control
5) By End-Users: Utilities, Energy Management, Industrial, Residential, Commercial
The smart grid security market size has grown rapidly in recent years. It will grow from $8.98 billion in 2023 to $10.12 billion in 2024 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to increasing cyber threats, regulatory requirements, integration of renewable energy, growing adoption of IoT devices, demand for grid resilience.
The smart grid security market size is expected to see rapid growth in the next few years. It will grow to $16.40 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to growing cyber threats, increasing adoption of IoT devices, stringent regulatory requirements, expanding smart grid deployments, rising investments in grid modernization. Major trends in the forecast period include integration of AI and machine learning for threat detection, adoption of blockchain for enhancing data security, cloud-based security solutions, emphasis on public-private partnerships for addressing security challenges, expansion of IoT devices and edge computing.
Growing Cybersecurity Risks Drive The Smart Grid Security Market Growth
The growing cybersecurity risks are expected to propel the smart grid security market going forward. Cybersecurity risks refer to potential threats and vulnerabilities in digital systems, networks, and data that can lead to unauthorized access, data breaches, or disruption of operations. Cybersecurity risks have been increasing due to several factors, such as the expansion of technology, the sophistication of cyberattacks, remote work and cloud adoption, and a lack of security awareness. Smart grid security solutions help to speed up incident response in the case of a cyber-attack or security breach by offering automated alerting mechanisms, incident management workflows, and response playbooks. Smart grid security systems also use threat intelligence feeds and data from cybersecurity research organizations to keep up with developing cyber threats and attack vectors. For instance, in February 2023, according to the Australian Cyber Security Centre, an Australia-based cyber security agency, the cybercrime reports received in 2022 were 76,000, up from 13% from the previous year. Therefore, the growing cybersecurity risks are driving the growth of the smart grid security market.
Major companies operating in the smart grid security market are Siemens AG, Lockheed Martin Corporation, HP Inc., International Business Machines Corporation, Cisco Systems Inc., N-Dimension Solutions, Schneider Electric SE, Broadcom Inc., ABB Ltd., BAE Systems Plc, Eaton Corporation plc, Leidos Holdings Inc., Entergy Corporation, Xylem Inc., Palo Alto Networks Inc., Fortinet Inc., Black & Veatch Holding Company, Landis+Gyr, FireEye Inc., Sophos Ltd., AlertEnterprise Inc., Trilliant Holdings Inc., IOActive, AT&T Cybersecurity, GE Grid Solutions LLC
Innovative Solutions Driving Smart Grid Security Market Growth
Major companies operating in the smart grid security market are focused on developing innovative solutions, such as advanced smart grid security platforms, to gain a competitive edge in the market. Advanced smart grid security platforms are sophisticated cybersecurity solutions specifically designed to protect modern electric power grids from cyber threats and vulnerabilities. For instance, in August 2022, Dubai Electricity and Water Authority (DEWA), a UAE-based public service infrastructure company, launched the Big Data and Analytics platform to integrate smart grid applications. These two advanced platforms were developed to enhance smart grid data security and management. This allows the processing of enormous amounts of data while also providing fact-based analytics and predictions for current and future initiatives. The platform helps improve the operation and management of assets and smart meters, boosting stakeholders' experiences and happiness. It also introduced the Smart Grid Data Governance platform, which ensures compliance with all data policies and processes. This assures best practices for accountability, decision-making framework, data management, and stewardship. The Smart Grid Data Governance platform treats data like an asset, defining and approving data strategies, policies, standards, processes, and measurements.
TE Connectivity Strengthens Smart Grid Security Portfolio With Kries Acquisition
In January 2023, TE Connectivity (TE), a Switzerland-based technology company, acquired Kries for an undisclosed amount. With this strategic acquisition, TE's energy business unit strengthens its position as a global leader in grid reliability solutions for utilities, power network owners, and renewable energy infrastructure. Kries is a Germany-based provider of smart grid security solutions as part of its smart distribution grid solutions.
North America was the largest region in the smart grid security market in 2023. The regions covered in the smart grid security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the smart grid security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The smart grid security market includes revenues earned by entities by providing services such as cybersecurity solutions, risk assessment, compliance management, and incident response. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The smart grid security market research report is one of a series of new reports from The Business Research Company that provides smart grid security market statistics, including smart grid security industry global market size, regional shares, competitors with a smart grid security market share, detailed smart grid security market segments, market trends and opportunities, and any further data you may need to thrive in the smart grid security industry. This smart grid security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.