Cyber Security in Energy

Global Cyber Security in Energy Market to Reach US$17.2 Billion by 2030

The global market for Cyber Security in Energy estimated at US$10.0 Billion in the year 2024, is expected to reach US$17.2 Billion by 2030, growing at a CAGR of 9.5% over the analysis period 2024-2030. Solutions, one of the segments analyzed in the report, is expected to record a 8.3% CAGR and reach US$11.2 Billion by the end of the analysis period. Growth in the Services segment is estimated at 12.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.7 Billion While China is Forecast to Grow at 12.8% CAGR

The Cyber Security in Energy market in the U.S. is estimated at US$2.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.5 Billion by the year 2030 trailing a CAGR of 12.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.9% and 8.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.4% CAGR.

Global Cyber Security in Energy Market – Key Trends & Drivers Summarized

Why Is Cyber Security Becoming Mission-Critical for the Resilience of the Global Energy Sector?

Cyber security in the energy sector has emerged as a strategic imperative, driven by escalating threats to critical infrastructure, digital transformation of energy systems, and geopolitical instability. Energy assets—including power grids, oil refineries, LNG terminals, renewable farms, and pipeline control systems—are increasingly being targeted by nation-state actors, ransomware groups, and hacktivist collectives. As these systems become more interconnected through IoT sensors, SCADA networks, cloud analytics, and edge computing, their exposure to cyber vulnerabilities rises significantly.

The energy sector’s role as the backbone of economic activity and national security makes it a high-value target for sabotage, extortion, and espionage. Disruptions to electricity distribution, pipeline operations, or refinery processes can have cascading effects across industries, emergency services, and civilian life. In this context, cyber resilience is no longer confined to IT departments; it is a board-level priority requiring sector-specific strategies, regulatory compliance, and real-time threat intelligence.

What Technologies and Frameworks Are Advancing Cyber Security Across Energy Value Chains?

Advanced cybersecurity architectures are being deployed across the energy value chain—from generation and transmission to distribution and retail—to address operational technology (OT) and IT convergence risks. Intrusion detection systems (IDS), threat intelligence platforms, and behavioral analytics are now standard across control centers and field devices. AI and machine learning algorithms are used to detect anomalous behavior in power loads, network traffic, and device telemetry, enabling rapid isolation of threats.

Zero Trust Architecture (ZTA), which enforces continuous identity verification and minimal access privileges, is being adopted to protect mission-critical energy systems from lateral movement and insider threats. Endpoint detection and response (EDR), network segmentation, and micro-segmentation are being used to isolate OT systems from enterprise IT and cloud environments. Cybersecurity Information Sharing Partnerships (CISPs) between government agencies, grid operators, and energy firms are improving situational awareness and coordinated defense responses.

Moreover, regulatory compliance frameworks such as NERC-CIP (North American Electric Reliability Corporation – Critical Infrastructure Protection), IEC 62443, and the EU NIS Directive are setting minimum security baselines and audit requirements for energy operators. Cyber-physical security integration—combining surveillance, access control, and network security—is emerging as a best practice in substation protection, remote site monitoring, and distributed energy resource (DER) management.

Who Are the Key Stakeholders and How Are Cybersecurity Strategies Varying Across Energy Segments?

The cybersecurity ecosystem in energy involves utilities, oil and gas majors, renewable energy operators, transmission system operators (TSOs), industrial automation vendors, cybersecurity solution providers, and national security agencies. Electric utilities, with their wide-area SCADA systems and smart meter networks, face challenges related to grid edge device security, data integrity, and third-party software risks. Oil and gas companies are prioritizing protection of drilling control systems, compressor stations, and pipeline integrity monitoring tools from both physical and cyber sabotage.

Renewable energy operators, especially those managing large wind and solar farms, are adopting cyber risk management practices to secure inverter systems, distributed control systems (DCS), and remote monitoring interfaces. As virtual power plants and peer-to-peer energy trading platforms emerge, the cyber threat surface is expanding into decentralized platforms and consumer-facing applications. Energy trading desks and market platforms are also facing phishing, fraud, and insider risk threats, requiring financial-grade security protocols.

Regionally, North America leads in regulatory compliance and cyber defense maturity, supported by federal and industry initiatives such as the Cybersecurity & Infrastructure Security Agency (CISA) and the Electricity Information Sharing and Analysis Center (E-ISAC). Europe is advancing rapidly under the EU Cybersecurity Act and the Digital Operational Resilience Act (DORA). In Asia-Pacific, countries like Japan, South Korea, and Singapore are investing in grid cybersecurity, while emerging economies are adopting cloud-native and managed security service models to address capability gaps.

What Is Driving the Rapid Global Expansion of Cyber Security in the Energy Sector?

The growth in the cyber security in energy market is driven by the rising digitization of energy infrastructure, frequency of cyberattacks on mission-critical systems, and evolving compliance mandates. As the industry transitions to smart grids, connected substations, digital twins, and automated demand response, the attack surface is widening and requiring real-time, AI-assisted threat management tools. Cyberattacks such as the Colonial Pipeline ransomware incident and attacks on Ukrainian power infrastructure have served as catalysts for multi-billion-dollar cyber defense investments.

Decentralized energy systems, including rooftop solar, battery storage, and EV charging networks, introduce new endpoint risks that require scalable and adaptive security controls. The convergence of IT and OT, cloud migration, and third-party vendor ecosystems are making traditional perimeter-based security models obsolete—necessitating architecture-wide redesign and real-time visibility.

Investment in proactive resilience strategies, red teaming, employee training, and incident response planning is becoming the norm among forward-looking energy firms. Government grants, public-private partnerships, and regional cybersecurity hubs are supporting innovation and upskilling in the sector. As clean energy transitions accelerate and digital control systems proliferate, cyber security is emerging not just as a compliance requirement but as an enabler of operational trust, investor confidence, and national energy reliability.

SCOPE OF STUDY:

The report analyzes the Cyber Security in Energy market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions, Services); Deployment (On-Premise, Cloud); End-User (Industrial, Commercial, Residential)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• ABB
• Accenture PLC
• Baker Hughes Company
• Cisco Systems, Inc.
• Claroty
• Dragos, Inc.
• Fortinet, Inc.
• General Electric Company (GE)
• Hitachi Energy
• Honeywell International Inc.
• IBM Corporation
• Indegy (CyberX by Microsoft)
• Kaspersky Lab
• Mitsubishi Power
• Nozomi Networks
• Palo Alto Networks, Inc.
• Radiflow
• Schneider Electric SE
• Siemens AG
• Tenable, Inc.

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