Smart Grid Cybersecurity Market Size - By Solution, By Service, By Deployment Mode, By Subsystem, By Security Type, Growth Forecast, 2025 - 2034

Smart Grid Cybersecurity Market Size

The smart grid cybersecurity market was valued at USD 7.5 billion in 2024 and is projected to grow from USD 8.3 billion in 2025 to USD 22.7 billion by 2034, reflecting a 11.7% CAGR, according to Global Market Insights Inc.

• Rapid digitalization of power systems is widening the attack surface, from smart meters to DER and EV chargers, making cyber resilience a core procurement and design driver for smart grids. For instance, the International Energy Agency (IEA) in its 2023 commentary highlighted that electricity-sector cyberattacks have surged since 2018, urging governments and utilities to strengthen resilience measures as connectivity accelerates.
   
• Grid modernization and renewable integration require advanced digital controls, nudging operators to deploy secure telemetry, edge computing, and coordination platforms. For example, the IEA’s 2023 Electricity Grids and Secure Energy Transitions report emphasized that digital operations are essential to integrate variable renewables while sustaining reliability, calling for urgent upgrades not only to physical infrastructure but also to digital management systems.
   
• Policy and regulatory momentum is translating into specific security baselines and investments, stimulating global demand for smart-grid cybersecurity tools and services. For instance, in 2024, the U.S. Department of Energy announced a USD 30 million CESER funding opportunity to develop next-generation cybersecurity tools for clean energy delivery infrastructure, including DER and cloud environments, pushing utilities and vendors to harden inverter-based resources and field devices.
   
• North American utilities face tightening critical-infrastructure requirements, accelerating security upgrades for substation automation, EMS/DMS, and AMI. For example, in 2024, FERC proposed approving NERC’s new CIP-015-1 standard mandating Internal Network Security Monitoring for high/medium-impact BES Cyber Systems, expanding visibility inside OT zones. This complements ongoing CIP-003 updates to bolster low-impact supply-chain and remote-access controls, driving product and services uptake.
   
• EU regulatory overhaul is a strong demand signal for grid-cyber capabilities, from governance to detection and incident reporting. For instance, the EU’s NIS2 Directive (Directive (EU) 2022/2555) extends obligations to energy operators with stricter risk-management and supervision, elevating board-level accountability and cross-border cooperation, prompting DSOs and TSOs to align OT/IT controls and supplier due diligence. National transpositions through 2024–2025 are reinforcing compliance projects across utilities and vendors.
   
• Emerging market scale-up and distributed assets are spurring formal cybersecurity baselines. For example, India’s Central Electricity Authority issued Guidelines on Cyber Security in Power Sector in October 2021, mandating sector-wide controls, audits, and CERT coordination. Similarly, Japan’s METI updated cybersecurity guidance for energy resource aggregation and factory OT systems in 2022, reflecting DER growth and IoT risks.
   
• Regional frameworks are institutionalizing maturity assessment and CII protection, catalyzing spend on monitoring, incident readiness, and vendor assurance. For instance, Australia’s Energy Market Operator launched the Australian Energy Sector Cyber Security Framework (AESCSF) in 2023 to benchmark and guide investments, while Singapore’s Cybersecurity Code of Practice for CII, updated in 2022, set auditable controls across energy environments, tightening operator requirements.
   

Smart Grid Cybersecurity Market Trends

• Smart grid cybersecurity trends increasingly reflect the sophistication of threat actors targeting operational technology (OT) environments. Attackers now exploit supply-chain vulnerabilities and advanced persistent threats to compromise grid assets. For example, ENISA’s Threat Landscape 2024 report highlights ransomware and availability attacks as dominant threats, noting their growing complexity and impact on critical infrastructure, including energy systems. This evolution is driving utilities to adopt zero-trust architectures and continuous monitoring strategies.
   
• The proliferation of DERs—solar, storage, and EV chargers—has expanded the cyberattack surface, creating new vulnerabilities in aggregation platforms and inverter-based resources. For instance, the U.S. Department of Energy in 2024 introduced cybersecurity baselines tailored for electric distribution systems and DERs, aiming to standardize risk reduction practices across utilities and aggregators. This trend underscores the need for harmonized frameworks to secure decentralized assets.
   
• Utilities are increasingly leveraging AI-driven anomaly detection and automated incident response to counter evolving threats. These technologies enable predictive analytics for OT networks and real-time threat mitigation. However, automation introduces its own risks, such as adversarial AI attacks. Governments and agencies are emphasizing resilient AI frameworks to balance innovation with security, as seen in UK’s 2024 NCSC Annual Review, which flagged AI-related vulnerabilities as a growing concern for critical infrastructure.
   
• Global regulatory bodies are embedding cybersecurity into grid modernization mandates. The EU’s NIS2 Directive and similar frameworks worldwide are shaping compliance-driven investments. In Asia-Pacific, Japan’s METI hosted the JP-US-EU Industrial Control Systems Cybersecurity Week in 2023, focusing on collaborative OT security exercises and policy alignment. Such initiatives reflect a trend toward international cooperation and harmonized standards to address cross-border cyber risks in energy systems.
   
• The integration of IT and OT systems for advanced grid management is blurring traditional security boundaries, creating hybrid vulnerabilities. Utilities are adopting unified security operations centers (SOCs) and layered defense models to manage these risks. This convergence trend is reinforced by DOE’s 2025 interim guidance for implementing cybersecurity baselines, which prioritizes critical distribution assets and DERs to mitigate systemic threats across interconnected domains.
   
• Digital twins are emerging as a key trend for predictive maintenance and cyber risk simulation in smart grids. Singapore’s Energy Market Authority announced progress on its Grid Digital Twin project in 2023, designed to enhance resilience and reliability through real-time monitoring and AI-driven analytics. This approach enables proactive identification of vulnerabilities and supports secure integration of distributed resources, marking a shift toward cyber-informed engineering in grid planning.
   
• Supply chain integrity is becoming a focal point as utilities deploy IoT-enabled devices and advanced grid components. Governments are issuing guidelines to mitigate risks from compromised firmware and malicious updates. Japan’s METI revised its cybersecurity guidelines for energy resource aggregation businesses in 2025, emphasizing secure lifecycle management and vendor accountability. This trend reflects growing recognition that supply chain resilience is critical for smart grid security.
   
• Cross-border collaboration is gaining traction as nations confront shared cyber threats to energy infrastructure. ASEAN-Japan cybersecurity policy meetings in 2023 reaffirmed commitments to joint exercises, information sharing, and capacity building for critical infrastructure protection. These efforts highlight a trend toward regional alliances to strengthen cyber resilience, particularly in the face of escalating geopolitical tensions and sophisticated state-sponsored attacks targeting energy systems.
   

Smart Grid Cybersecurity Market Analysis

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• Based on deployment mode, the cloud-based solutions was valued at USD 6.1 billion in 2022, grew to USD 6.8 billion in 2023, and reached USD 7.5 billion in 2024. This growth is driven by increasing digitalization of grid infrastructure and rising cyber threats targeting operational technology. Utilities and regulators are prioritizing robust security frameworks to safeguard distributed energy resources and advanced metering systems, fueling demand for both deployment models.
   
• On-premises solutions remain critical for utilities seeking full control over sensitive operational data and compliance with stringent regulatory mandates. For example, India’s Central Electricity Authority in 2023 reinforced cybersecurity norms for power utilities, emphasizing localized security controls and dedicated infrastructure to mitigate risks from remote access and supply chain vulnerabilities. These measures encourage utilities to invest in on-premises systems for enhanced governance and resilience.
   
• On-premises deployments are trending toward hybrid architectures that integrate legacy SCADA and EMS systems with modern security layers. Utilities are adopting advanced intrusion detection and network segmentation to protect aging assets without full-scale replacement. This approach addresses cost constraints while ensuring compliance with evolving cybersecurity standards, particularly in regions where modernization budgets are limited.
   
• Utilities are embedding cybersecurity into engineering practices for physical grid assets, a trend strongly aligned with on-premises deployments. Cyber-informed engineering ensures that substations, transformers, and control centers incorporate hardened configurations and secure firmware updates. This proactive approach reduces vulnerabilities in critical infrastructure and supports resilience against sophisticated attacks targeting operational environments.
   
• Cloud-based solutions are gaining traction due to their scalability and ability to manage distributed energy resources (DERs) efficiently. For instance, the U.S. Department of Energy in 2023 allocated USD 39 million to projects leveraging cloud-based software and AI systems for grid cybersecurity, aiming to secure DER aggregations and virtual power plants. This funding underscores the role of cloud platforms in enabling flexible, secure grid operations.
   
• Cloud deployments increasingly incorporate AI-driven analytics for real-time anomaly detection and predictive threat modeling. These capabilities allow utilities to identify and neutralize cyber risks faster than traditional methods. The convergence of AI and cloud infrastructure is shaping next-generation cybersecurity strategies, particularly for dynamic grid environments with high DER penetration.
   
• Cloud adoption is accelerating as regulators clarify shared responsibility models for cybersecurity. Frameworks now mandate robust encryption, identity management, and continuous monitoring in cloud-hosted environments. This trend reflects growing confidence in cloud security standards and collaborative governance between utilities, cloud providers, and regulators, paving the way for broader adoption in critical infrastructure.
   

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• Based on security type, the smart grid cybersecurity market is segmented into endpoint, network, application and database security, with network security dominating the market with 35.7% share across the globe, in 2024. This dominance is driven by the growing need to secure interconnected communication channels against sophisticated attacks. Increasing adoption of advanced metering infrastructure and distributed energy resources has amplified network exposure, making robust perimeter and internal network defenses essential for utilities seeking resilience and compliance with evolving global cybersecurity regulations.
   
• As grids become more interconnected through IoT devices and DER integration, network security is critical to prevent lateral movement of threats. Utilities are prioritizing encrypted communication, segmentation, and intrusion detection systems to safeguard operational networks. For example, Canada’s Natural Resources Canada in 2024 emphasized network segmentation and encrypted protocols in its energy cybersecurity guidance, reflecting the urgency to secure transmission and distribution networks against evolving attack vectors and ransomware campaigns targeting critical infrastructure.
   
• Zero-trust principles are gaining traction in network security strategies, requiring continuous authentication and micro-segmentation across grid environments. This approach mitigates risks from remote access and cloud integration, ensuring every device and user is verified before granting privileges. Utilities are deploying identity-based access controls and behavioral analytics to strengthen defenses. The trend reflects a shift from perimeter-based security to dynamic, context-aware models, aligning with regulatory mandates and the growing complexity of hybrid IT-OT ecosystems in modern grids.
   
• The surge in smart meters, sensors, and IoT-enabled grid components has expanded the endpoint attack surface significantly. Utilities are deploying hardened firmware, secure boot mechanisms, and patch management to protect these devices from exploitation. For instance, Japan’s METI in 2024 issued updated guidelines for securing distributed energy resource endpoints, stressing lifecycle security and vendor accountability. These measures aim to reduce vulnerabilities in edge devices, which are increasingly targeted by attackers seeking entry into critical operational networks.
   
• Endpoint security solutions now incorporate behavioral analytics to detect anomalies in device activity and prevent insider threats. This trend enables early identification of compromised endpoints, reducing the risk of cascading failures across grid systems. Utilities are integrating AI-driven monitoring tools to track deviations from normal operational patterns, ensuring rapid response to potential breaches. Behavioral monitoring is particularly relevant for substations and DER aggregators, where compromised endpoints can disrupt grid stability and lead to widespread outages.
   
• Grid management applications, including SCADA and EMS platforms, are prime targets for attackers seeking operational disruption. Governments are mandating secure coding practices, vulnerability assessments, and patching protocols for these applications. For example, Singapore’s Energy Market Authority in 2023 reinforced application security requirements in its Cybersecurity Code of Practice for CII, focusing on secure development lifecycles and timely updates. These measures aim to prevent exploitation of software flaws that could compromise grid reliability and critical infrastructure operations.
   
• As utilities adopt modular applications and third-party APIs for grid analytics, secure API integration is emerging as a critical trend. Encryption, token-based authentication, and continuous API monitoring are being prioritized to prevent exploitation of application interfaces. This trend reflects the growing reliance on interconnected applications for real-time grid management and predictive analytics, making API security essential to maintain operational integrity and protect sensitive data from unauthorized access or manipulation.
   
• Smart grids generate vast amounts of operational and consumer data, making databases a high-value target for cyberattacks. Utilities are investing in encryption-at-rest, role-based access controls, and continuous vulnerability scanning to safeguard this data. For instance, Australia’s AEMO in 2023 highlighted database security as part of its AESCSF maturity framework, urging operators to implement strong cryptographic measures and audit trails for critical data repositories. These practices ensure compliance and resilience against ransomware and data exfiltration threats.
   
• Immutable storage solutions are gaining traction to protect grid data from ransomware and unauthorized alterations. This trend ensures that historical operational data remains tamper-proof, supporting forensic analysis and regulatory compliance. Utilities are integrating immutable backups with advanced recovery protocols to maintain business continuity during cyber incidents. The adoption of such technologies reflects a proactive approach to safeguarding critical grid information against increasingly sophisticated attacks targeting data integrity and availability.
   

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• The U.S. smart grid cybersecurity market grew steadily from USD 1.5 billion in 2022 to USD 1.7 billion in 2023, reaching USD 1.8 billion in 2024 and accounting for nearly 81.5% of North America’s share. This growth is driven by federal initiatives promoting cyber resilience in critical infrastructure. Increasing adoption of advanced metering and distributed energy resources has amplified vulnerabilities, prompting utilities to invest in robust security frameworks aligned with DOE and NERC standards for operational technology protection.
   
• North America’s smart grid cybersecurity market is shaped by stringent regulatory frameworks and high DER penetration. Utilities are prioritizing compliance with NERC CIP standards and DOE cybersecurity baselines to mitigate systemic risks. The region’s focus on modernizing grid infrastructure and integrating renewable energy has accelerated investments in network and endpoint security. Collaborative programs between utilities and federal agencies underscore a trend toward proactive threat detection and resilience planning across transmission and distribution networks.
   
• Europe’s smart grid cybersecurity market is driven by regulatory mandates such as the NIS2 Directive, which enforces strict risk management and incident reporting requirements for energy operators. The region is witnessing rapid adoption of zero-trust architectures and secure cloud deployments to support digital grid transformation. Utilities are investing in advanced monitoring tools and encryption technologies to comply with EU cybersecurity standards. Cross-border collaboration initiatives further strengthen resilience, addressing growing threats from ransomware and supply-chain vulnerabilities in interconnected energy systems.
   
• Asia-Pacific is experiencing strong growth in smart grid cybersecurity due to large-scale grid modernization and DER integration. Countries like Japan and Australia are implementing national frameworks to secure operational technology and cloud-based platforms. Utilities are adopting AI-driven threat detection and secure lifecycle management for IoT-enabled devices. Regional collaboration, such as ASEAN cybersecurity programs, is fostering knowledge sharing and capacity building, ensuring that emerging economies can address evolving cyber risks while scaling renewable energy adoption.
   
• The Middle East and Africa are gradually embracing smart grid cybersecurity as utilities digitize infrastructure and integrate renewable projects. Governments are issuing guidelines for critical infrastructure protection, focusing on endpoint and network security. Investments are concentrated in securing SCADA systems and deploying intrusion detection solutions to counter rising cyber threats. Regional utilities are partnering with global technology providers to implement best practices, reflecting a trend toward strengthening resilience in energy systems amid geopolitical and cyber risk challenges.
   
• Latin America’s smart grid cybersecurity market growth is supported by increasing deployment of smart meters and distributed generation assets. Utilities are prioritizing cybersecurity to protect grid reliability and consumer data. National energy agencies are promoting frameworks for secure application development and database protection, addressing vulnerabilities in legacy systems. The region is also witnessing pilot projects for cloud-based security solutions, enabling scalability and cost efficiency. These initiatives highlight a growing commitment to cyber resilience as digitalization accelerates across power networks.
   

Smart Grid Cybersecurity Market Share

• Global leaders in the smart grid cybersecurity industry include IBM, Siemens, Cisco Systems, BAE Systems PLC, and Symantec Corporation, collectively holding over 40% of market share in 2024. Their dominance is driven by strong portfolios in network and endpoint security, strategic partnerships with utilities, and compliance-focused solutions. These companies leverage advanced technologies and global presence to address evolving threats, positioning themselves as trusted partners for securing critical infrastructure in increasingly digitalized power grids.
   
• IBM stands out for its integration of AI-driven threat detection and cloud-native security solutions tailored for smart grids. Its expertise in hybrid cloud environments enables utilities to secure distributed energy resources and advanced metering systems effectively. IBM’s strong research capabilities and partnerships with energy operators allow it to deliver predictive analytics and automated incident response, reducing downtime and operational risks. This combination of innovation and scalability reinforces IBM’s leadership in critical infrastructure cybersecurity.
   
• Siemens leverages its deep operational technology (OT) expertise and global footprint in grid automation to offer end-to-end cybersecurity solutions. Its portfolio includes secure SCADA systems, intrusion detection for substations, and compliance-driven frameworks aligned with international standards. Siemens integrates cybersecurity into grid modernization projects, ensuring resilience from design to deployment. This ability to combine engineering excellence with advanced security technologies positions Siemens as a preferred partner for utilities undergoing digital transformation.
   
• Cisco Systems excels in network security for smart grids, offering robust solutions such as zero-trust architectures, encrypted communication protocols, and advanced intrusion prevention systems. Its leadership in secure networking hardware and software enables utilities to protect interconnected grid environments against sophisticated attacks. Cisco’s strong focus on interoperability and cloud security further supports utilities adopting hybrid architectures. These capabilities, combined with global service support, make Cisco a dominant player in securing critical energy networks.
   

Smart Grid Cybersecurity Market Companies

Major players operating in the smart grid cybersecurity industry are:

• ABB
• AlertEnterprise
• AlienVault
• BAE Systems
• Black & Veatch
• Check Point Software Technologies
• Cisco Systems
• CyberArk
• Entergy
• Fortinet
• GE Vernova
• Honeywell
• Hewlett Packard
• IBM
• IOActive
• Itron
• Kaspersky Lab
• Lockheed Martin
• McAfee
• Palo Alto Networks
• Schneider Electric
• Siemens
• Symantec
• Trend Micro
   
• ABB offers the ABB Ability Cyber Security Services, which provide end-to-end protection for industrial automation and smart grid environments. These services include threat detection, compliance automation, and incident response tailored for operational technology (OT) systems. ABB’s advantage lies in its deep integration with distributed control systems (DCS) and substation automation, ensuring security without compromising grid reliability. Its scalable architecture supports utilities in meeting global standards while minimizing downtime during cyber incidents.
   
• AlertEnterprise delivers Enterprise Guardian and Sentry, a converged cyber-physical security platform for utilities and critical infrastructure. These solutions unify identity governance, access control, and compliance enforcement across IT, OT, and physical domains. The competitive edge lies in real-time integration with HR systems and NERC CIP compliance capabilities, enabling automated onboarding and granular OT access control. This holistic approach reduces insider threats and streamlines security operations for smart grid environments.
   
• BAE Systems offers XTS Guard and XTS Diode, advanced cross-domain solutions designed to protect critical infrastructure like smart grids. These products enable secure one-way and bi-directional data transfers between networks of different trust levels, meeting NSA Raise-The-Bar (RTB) and NCDSMO standards. Their advantage lies in ultra-secure operating systems and FPGA-based architectures, which provide unmatched assurance against zero-day attacks and compliance with defense-grade cybersecurity requirements.
   

Smart Grid Cybersecurity Industry News

• In September 2025, ABB published an article emphasizing the impact of mandatory cybersecurity requirements for energy infrastructure under NERC-CIP standards. The update extends compliance obligations to previously exempt assets, including intermediate systems and certain DERs. ABB notes that utilities failing to implement multi-factor authentication and network segmentation risk penalties of up to USD 1 million per day. The move reflects growing regulatory pressure to secure operational technology amid escalating cyberattacks on critical infrastructure.
   
• In October 2024, Cisco announced its collaboration with CPFL Energia, one of Brazil’s largest energy suppliers, to enhance cybersecurity for its digitized grid infrastructure. The partnership focuses on implementing secure networking solutions and zero-trust architectures to protect against sophisticated cyber threats. This move comes amid rising regulatory requirements in Brazil and growing risks to critical infrastructure. Cisco’s solutions aim to improve operational visibility and resilience while supporting the country’s clean energy transition.
   
• In June 2024, the DOE’s Office of Electricity awarded USD 2.4 million to Southern Company Services for a project focused on advanced distribution communication and control technologies. The initiative leverages digital twin technology to improve grid security and resilience, enabling utilities to detect vulnerabilities and respond to disruptions effectively. Partners include GE Research and Virginia Tech, highlighting collaborative efforts to modernize grid infrastructure and integrate cybersecurity into next-generation smart grid systems.
   
• In January 2024, the U.S. Department of Energy introduced new cybersecurity baselines for electric distribution systems and distributed energy resources (DER). These guidelines aim to strengthen resilience against growing cyber threats targeting critical infrastructure. Developed with input from regulators and industry experts, the baselines provide actionable measures for utilities and DER operators to reduce risks and improve compliance. This initiative aligns with the National Cybersecurity Strategy to enhance grid security nationwide.
   

The smart grid cybersecurity market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Solution

• Identity and Access Management (IAM)
• Firewalls & network security
• Intrusion Detection/Prevention Systems (IDS/IPS)
• Encryption solutions
• Security Information and Event Management (SIEM)
• Endpoint protection
• Others

Market, By Service

• Consulting
• Integration & deployment
• Support and maintenance

Market, By Deployment Mode

• On-premises
• Cloud

Market, By Subsystem

• SCADA/ICS
• AMI (Advanced Metering Infrastructure)
• Demand response systems
• Home energy management
• Others

Market, By Security Type

• Endpoint security
• Network security
• Application security
• Database security

The above information has been provided for the following region and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Spain
  • Italy
• Asia Pacific
  • China
  • Australia
  • Japan
  • South Korea
  • India
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Chile