As electric power systems around the world increasingly embrace transformative concepts such as decentralization, automation, and digitization, their efforts are also expanding the surface area for cyber attacks. More and more of today’s utilities are realizing the need for comprehensive cybersecurity strategies that move beyond one-off, point-to-point solutions and toward more integrated, harmonious methods. According to a new report from Navigant Research, global smart grid cybersecurity spending is expected to grow from $1.8 billion in 2017 to nearly $3.2 billion in 2026.
“The proliferation of the smart grid and Internet of Things (IoT) has led to the deployment of billions of networked sensing devices, increasingly further out to the grid edge,” says Michael Kelly, research analyst with Navigant Research. “While this paradigm shift has led to unprecedented data collection, network visibility, and situational awareness, it has also drastically increased utility vulnerability.”
Exponential growth in the number of attacks and threat actors is shaping a business environment in which the question utilities now face is when an incident will occur—not if. As a result, according to the report, the market for cybersecurity solutions is expected to show healthy growth as the related markets for automation, communications, and smart devices continue to mature.
The report, Cybersecurity for the Digital Utility, analyzes the global market for smart grid cybersecurity solutions, with a focus on five application areas: transmission upgrades, substation automation, distribution automation, smart metering, and smart grid IT & analytics. The study discusses significant market drivers and challenges related to smart grid cybersecurity and outlines important government and regulatory standards. Global market forecasts for revenue, broken out by segment and region, extend through 2026. The report also provides in-depth profiles of key providers of smart grid cybersecurity and examines significant security and technology issues associated with cybersecurity solutions. An Executive Summary of the report is available for free download on the Navigant Research website.