Smart Grid Security Market size is poised to generate significant proceeds through 2027. This can be ascribed to the ongoing development of smart grids and a surge in cyberattacks, along with increasing use of IoT and next-gen technologies.
Smart grid security refers to different services and solutions that are used to secure smart power grids, IT, and communications systems. These solutions ensure that there is reliable, effective, cost-effective, and clean distribution of energy throughout the grid. The security systems consist of advanced components and control methods and are deployed with communication systems with enhanced interfaces for sensing and measurement.
Consistent rise in need for the energy required to suffice the growing energy demand for the urban population and latest advancements in the technology of power grids are stimulating the demand for smart grid security systems globally over 2021-2027. Furthermore, the existence of security standards for ensuring data protection and privacy of users, amplified sophistication of cyber-attacks, and government regulations to maintain effective energy consumption is accelerating the smart grid security industry statistics through 2027.
Lack of skilled labor and increased cost of smart grid security and services will potentially challenge the market growth through the analysis time frame.
The smart grid security market consists of services and solutions that are delivered to secure the critical infrastructure of a smart grid. Introduction of advanced technologies and applications like smart metering, SCADA, advanced metering infrastructure (AMI), also demand the home energy management and response management systems to develop the transmission and distribution process while simultaneously reducing the energy consumption.
Based on the security type, database security segment is projected to grow at an appreciable pace, owing to expanding cyber-attacks and other similar threats on the critical infrastructure. Meanwhile, application security would record substantial gains through 2027, driven by the rising trends of IoT, connected devices, and smart grid.
Considering the deployment type, cloud-based smart grid security market would expand over the foreseeable timeframe. These systems offer an increased degree of security and level of control. Apparently, the cloud services allow effective management of a huge number of customers from a single location source, providing essential benefits to the utility company.
North America smart grid security market is estimated to register substantial growth by 2027 end, ascribing to the robust technological developments, expanding digitalization of grid systems, and use of these systems for commercial purposes. Besides, various initiatives by central governments to develop and refurbish grid infrastructure across the region would further strengthen the market growth. For instance, the U.S DOE, had in 2020, announced funding USD 65 million through its Connected Communities funding opportunity to expand its network of grid-interactive effective building communities in the country.
The global smart grid security industry is highly concentrated and boasts of the presence of various participants including Hitachi ABB, IBM Corporation, BAE Systems PLC., Siemens AG, Mitsubishi Electric, Intel Corporation, Symantec Corporations (now known as NortonLifeLock Inc.), and others.
These players have been relentlessly working towards development of novel products and engaging in acquisitions, collaborations, and partnerships.
For example, Mitsubishi Electric Corporation had in August 2021, announced acquisition of Smart Grid Solutions (SGS) to bolster its distributed energy resources management solutions.
Likewise, in June 2021, Hitachi ABB Power Grids entered a 450 MHz partnership to develop critical communications solutions to ensure reliable connectivity for client’s mission-critical applications.
The coronavirus pandemic has had a significant impact on the global smart grid security market outlook given the increased rollout of smart meters during 2020. An upsurge in the demand for smart meters and growing refurbishment of smart grid networks worldwide would potentially augment the industry growth.