Utility Industrial Control System Security Revenue Expected to Experience 7% CAGR from 2020 to 2029
A key challenge utilities face as they work to keep pace with digital transformation is protecting critical infrastructure. While utilities are developing more interconnected systems that make the grid smarter, more efficient, and more dynamic, these systems also introduce cybersecurity vulnerabilities that bad actors might exploit. Although IT security is well understood among electric utilities, OT security—including ICSs, which sit at the heart of utility OT environments— is a relatively new paradigm facing the industry.
According to a new report, global ICS cybersecurity revenue is expected to grow from $964.5 million in 2020 to $1.8 billion in 2029 at a compound annual growth rate (CAGR) of 7%.
“Utilities have traditionally viewed ICS and OT security as a cost-limitation exercise,” says Michael Kelly, research analyst with Guidehouse Insights. “However, the growing surface area for cyberattacks, along with an increase in the number of threat actors, is motivating utilities to expand beyond traditional, compliance-based management practices and proactively address cybersecurity.”
According to the report, the ICS market is headed beyond one-off, point-to-point solutions and toward more integrated, harmonious solutions. In the future, the market for cybersecurity solutions is expected to show healthy growth as the related markets for automation, communications, and smart devices continue to mature.