Global Smart Grid Security Market Size, Share & Trends Analysis Report By Services (Professional Services and Managed Services), By Deployment (Cloud and On-premises), By Application, By Enterprise Size, By Regional Outlook and Forecast, 2024 - 2031

Global Smart Grid Security Market Size, Share & Trends Analysis Report By Services (Professional Services and Managed Services), By Deployment (Cloud and On-premises), By Application, By Enterprise Size, By Regional Outlook and Forecast, 2024 - 2031

The Global Smart Grid Security Market size is expected to reach $42.8 billion by 2031, rising at a market growth of 29.1% CAGR during the forecast period.

The Government’s "Smart Grid 2030" strategy aims to integrate smart technologies across its energy grid to enhance efficiency and sustainability. In response to rising cybersecurity concerns, the South Korean Government has introduced new guidelines for protecting critical energy infrastructure, ensuring that smart grid technologies are secure. With an emphasis on building a resilient and secure grid, South Korea is investing heavily in smart grid technologies and the necessary security frameworks to support their deployment. Thus, the Asia Pacific region acquired 27% revenue share in the market 2023.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2024, Honeywell announced the partnership with Weatherford, a leading global energy service, to create an advanced emissions management solution for the energy sector. This partnership aims to combine Honeywell's emissions management suite with Weatherford's Cygnet SCADA platform, enabling effective monitoring, reporting, and reduction of greenhouse gas emissions and other hazardous gases.

Additionally, In December, 2023, Schneider Electric teamed up with Hailo Technologies, a supplier of artificial intelligence (AI) chip technology, to merge Hailo’s Hailo-8 AI processors into Schneider's devices. This collaboration would enhance industrial automation systems by using Hailo's low-power, high-accuracy processors for real-time data analysis at the edge, boosting system intelligence and efficiency.

Based on the Analysis presented in the KBV Cardinal matrix; Broadcom, Inc., Cisco Systems, Inc., Oracle Corporation, General Electric Company and Siemens AG are the forerunners in the Smart Grid Security Market. In June, 2024, Cisco Systems, Inc. announced a partnership with WALLIX, an access management solutions provider, to enhance industrial cybersecurity, integrating WALLIX’s PAM4OT OT. Security and Cisco Cyber Vision solutions. This partnership provides centralized, secure access management for OT environments, ensuring compliance and asset protection. Companies such as IBM Corporation, Schneider Electric SE and Honeywell International, Inc. are some of the key innovators in Smart Grid Security Market.

Market Growth Factors

Though the attack was thwarted, it highlighted the potential risks smart grid systems face as they integrate more connected devices. This incident underscored Israel's need to strengthen its cybersecurity frameworks around critical infrastructure, leading to increased investments in securing its smart grids against potential future threats.

Additionally, the Government’s “Cyber Defense Methodologies for Energy Infrastructure” mandates proactive monitoring, threat intelligence sharing, and real-time incident response capabilities. Therefore, these regulatory frameworks worldwide compel energy providers to adopt rigorous security measures, thus driving the demand for advanced smart grid security solutions.

Market Restraining Factors

Securing each of these connected devices with proper encryption, authentication, and threat-detection capabilities is both resource-intensive and expensive. Utility companies must often deploy cybersecurity measures across thousands of devices, requiring significant capital investment. Hence, high implementation costs remain a key factor impeding the rapid growth of smart grid security solutions.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are and Partnerships & Collaborations.

Security Type Outlook

Based on security type, the market is classified into application security, endpoint security, database security, and network security. The network security segment garnered 39% revenue share in the market in 2023. Smart grids involve interconnected devices and systems, such as advanced metering infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) systems, and other operational technology (OT) networks.

Services Outlook

On the basis of services, the market is bifurcated into professional services and managed services. The professional services segment acquired 63% revenue share in the market in 2023. This segment includes services like consulting, implementation, integration, and training provided by experts who assist utility companies in designing and deploying robust security solutions for their smart grid infrastructure.

Application Outlook

By application, the market is divided into smart meters, smart application, and others. The smart application segment garnered 48% revenue share in the market in 2023. Smart applications include software platforms that manage various grid operations, such as energy distribution, demand response, and grid automation.

Deployment Outlook

Based on deployment, the market is segmented into cloud and on-premises. The on-premises segment acquired 40% revenue share in the market in 2023. On-premises deployments provide utilities with direct oversight of their cybersecurity systems, allowing them to tailor their infrastructure to meet specific regulatory requirements or operational needs.

Enterprise Size Outlook

On the basis of enterprise size, the market is segmented into large enterprises and SMEs. The SMEs segment procured 33% revenue share in the market in 2023. Many SMEs are adopting smart grid solutions to optimize their operations and improve energy efficiency. However, this digitalization also exposes them to cyber risks, which encourages these companies to invest in scalable and affordable security solutions.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 30% revenue share in the market in 2023. Europe’s focus on sustainability, renewable energy integration, and digital transformation of its energy grids has led to substantial investments in smart grid technologies.

Market Competition and Attributes

The Market is characterized by intense competition among various players, driven by the increasing need for cybersecurity solutions in energy infrastructure. Key attributes influencing the market include the integration of advanced technologies like AI and machine learning for threat detection, regulatory compliance, and the demand for real-time monitoring systems. Additionally, the rise in cyber threats and the need for resilience against attacks are prompting investments in security solutions, fostering innovation and collaboration within the industry.

Recent Strategies Deployed in the Market

• Sep-2024: Siemens took over Trayer Engineering, a California-based leader in medium voltage switchgear for outdoor and underground applications. The acquisition enhances Siemens' Electrification and Automation portfolio.
• Sep-2024: Oracle released Oracle Energy and Water Data Intelligence, a data unification, analytics, and AI solution for utilities. It integrates Oracle and third-party data, offering pre-built insights and self-service AI/ML capabilities.
• Aug-2024: Hitachi Energy launched the Relion REF650, a multi-application protection and control relay for medium-voltage power grids. It offers modularity, enhanced security, and a user-friendly interface, addressing evolving power quality needs.
• Jun-2024: Cisco Systems, Inc. announced a partnership with WALLIX, an access management solutions provider, to enhance industrial cybersecurity, integrating WALLIX’s PAM4OT OT. Security and Cisco Cyber Vision solutions. This partnership provides centralized, secure access management for OT environments, ensuring compliance and asset protection.
• Jun-2024: IBM Corporation came into partnership with ID Data, an access management solutions provider, to integrate IBM Security Verify with ID Data's identity verification workflows. This partnership enhances identity access management (IAM) by providing seamless credential issuing, fraud prevention, and flexible identity-proofing workflows, offering joint customers improved security and streamlined user experiences.
• May-2024: IBM Corporation partnered with Palo Alto Networks, a cybersecurity company. The partnership aimed to enhance AI-powered cybersecurity solutions.

List of Key Companies Profiled

• Broadcom, Inc.
• Cisco Systems, Inc.
• IBM Corporation
• Siemens AG
• Oracle Corporation
• Honeywell International, Inc.
• ABB Group
• General Electric Company
• Schneider Electric SE
• Hitachi, Ltd.

Global Smart Grid Security Market Report Segmentation

By Services

• Professional Services
• Managed Services

By Deployment

• Cloud
• On-premises

By Application

• Smart Application
• Smart Meters
• Other Applications

By Enterprise Size

• Large Enterprises
• SMEs

By Security Type

• Network Security
• Application Security
• Endpoint Security
• Database Security

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA