New reports estimate the smart grid security market to be worth $6.99bn by 2021, owing to the development of smart grids and increased sophistication of cyber attacks.According to a release, the Smart Grid Security Market is growing rapidly because of the growing security needs of Internet of Things (IoT) and digitization in energy sector and increased deployment of web and cloud-based business applications.
Encryption solutions are expected to grow at the highest CAGR from 2016 to 2021.
Furthermore, cybersecurity solutions are used to secure the data, network infrastructure and connected devices. The increasing adoption of smart grid has connected number of devices and applications through internet, which are susceptible to advanced persistent threats (APTs). The encryption solution is expected to witness the highest CAGR in the global smart grid security market during the period 2016-2021. North America is expected to account for the largest market share in 2016, due to heightened awareness of cybersecurity and early adoption of smart grid security in the region.
The report states that professional services segment will have the largest market size in 2016.
The smart grid security market is also segmented by professional and managed services, out of which the professional services segment is the largest contributor in the services segment. The energy and utility companies lack security experts and are outsourcing these services to security vendors. The demand for professional services is high due to the need to address emerging cyber-threats.
Smart grid cybersecurity
In a related report, Technavio states that efforts by governments in developing smart meter standards to avoid hacking of consumer data has paved way towards the development of technologies to protect smart meters form cyber-attackers.
Technavio said it believes such efforts "lead to an increase in the adoption of safety measures such as data authentication and encryption, thereby, driving the smart grid cyber security market.”
Sayani Roy, a lead analyst at Technavio, said: "A well- planned attack by hackers can cause outages in several regions causing monetary losses, and if the required infrastructure is not available for backup, it can cause national security issues.
“To avoid such situations cyber security measures have been gaining increasing attention and are driving the need for an end-to-end cyber-security solution in the power and utility sectors."