Cyber Security In Energy Market Expected to Reach $21.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cyber Security In Energy Market," The cyber security in energy market was valued at $8.6 billion in 2022, and is estimated to reach $21.8 billion by 2031, growing at a CAGR of 11.3% from 2023 to 2031.

The global cyber security in energy market forecast is influenced by a number of factors such as increase in malware & phishing threats among energy & utility providers, high adoption of cyber security among energy providing organizations, and strong inclination toward cloud-based solutions. Furthermore, constant need to conform to industry standards & regulations in the device security is expected to affect the market growth. Furthermore, surge in adoption of cyber security solutions by organizations aligned to strategic business activities to minimize the damage of IT resources is the major factor expected to provide opportunities for the market growth. Thus, each of these factors is anticipated to have a definite impact on the growth of the global cyber security in energy market during the forecast period.

Moreover, as the risk of cyber threats has increased at an alarming rate, security solutions have increasingly progressed. Solutions, such as antivirus software & firewalls, have grown in complexity and have proven to be effective at preventing threats and attacks, such as malware, Trojans, and phishing. The success of these solutions has led to the rapid development of the cyber security in energy industry, as implementing technical defenses has become a standard best practice in every industry vertical.

Furthermore, the key players in the market are increasingly collaborating with the IT giants to develop and launch innovative and advanced products to mitigate the risk of cyber-attacks. For instance, in December 2020, the North American Electric Reliability Corporation's Electricity Information Sharing and Analysis Center (E-ISAC) and the Office of Cybersecurity, Energy Security, and Emergency Response (CESER) of the Department of Energy partnered to pilot improvements in the energy sector's information sharing capabilities and quickly identify security threats to utilities across the country. In December 2020, The CRISP Essence Integration Pilot, a combined operational technology (OT) pilot with the Cybersecurity Risk Information Sharing Program, has been launched by CESER in cooperation with E-ISAC (CRISP). CRISP gathers, analyzes, and disseminates actionable threat information to the energy sector by utilizing DOE's specialized intelligence capabilities, expertise, and innovative threat detection technology. By gathering unprocessed or processed operational technology (OT) data and combining it with information technology (IT) data from CRISP, the pilot is anticipated to aid in identifying possible cyber risks to utilities' industrial control systems. Essence is an OT sensor platform that can identify irregularities in industrial control systems (ICS) and online threats, thanks to its sophisticated deep packet inspection and distinctive grid physics determination capabilities.

Moreover, in January 2020, Thales and GE Steam Power established a collaboration to deliver a suite of cybersecurity solutions to power plant operators. Through the provision of threat intelligence, joint training, and a combined portfolio of cyber solutions, this agreement, which was signed at the International Cybersecurity Forum (France), combined the cyber expertise of Thales and the power generation industry expertise of GE to assist in protecting customers from cyber risks.

By enterprise size, the large enterprises segment acquired the major cyber security in energy market size in 2021. This is attributed to the fact that large enterprises in energy & utility sector focused on implementing effective security solutions such as user access management, identity & access management, and security incident management due to increase in instances of cyberattacks in recent years.

By region, the North America dominated the cyber security in energy market share in 2021. This is attributed to the increase in cloud-enabled activities and growth in cloud marketplace trends such as adoption of multi & hybrid cloud environment and private cloud repatriation in North American energy & utility sector.

The global cyber security in energy market has witnessed growth but it was moderate in early forecast period till 2021–2022 and exhibited growing trend in the following years. Further, rise in COVID-19-related phishing and ransomware attacks as attackers were using COVID-19 as bait to impersonate brands, which mislead employees and customers, has proliferated the demand for cyber security, thus supporting the growth of the market. This, in turn, boosted the growth of cyber security in energy industry during the pandemic.

Key findings of the study

• By end user, the commercial segment accounted for the highest cyber security in energy market share in 2022.
• By component, the solution segment accounted for the highest share in cyber security in energy market in 2022.
• By region, North America generated the highest revenue in 2022.

The key players profiled in the cyber security in energy market analysis are Accenture, IBM Corporation, General Electric, Vestas, Mitsubishi Power, Hitachi Energy Ltd, Nordex, Ansaldo Energia, Baker Hughes, and Elliot Ebara. These players have adopted various strategies to increase their market penetration and strengthen their position in cyber security in energy market.