Cybersecurity for the Digital Utility

Transmission Upgrades, Substation Automation, Distribution Automation, Smart Metering, and Smart Grid IT & Analytics: Global Market Analysis and Forecasts

Electric power systems around the globe are undergoing a radical evolution during the 21st century and are increasingly embracing transformative concepts like decentralization, automation, and digitization. This paradigm shift has led to the deployment of billions of networked sensing devices and a continued expansion of communications networking outwards to the grid edge. While this transition has led to unprecedented visibility and control for utility operators, it has also greatly expanded the potential surface area for cyber attack. Additionally, the exponential growth in the number of attacks and threat actors is shaping a business environment in which the question utilities now face is when an incident will occur—not if.

Although barriers remain, utilities are increasingly looking toward the bigger picture and are realizing the need for more comprehensive cybersecurity strategies. Moving beyond one-off, point-to-point solutions and toward more integrated, harmonious solutions is where the market is headed. Looking forward, the market for cybersecurity solutions is expected to show healthy growth as the related markets for automation, communications, and smart devices continue to mature. According to Navigant Research, global smart grid cybersecurity spending is expected to grow from $1.8 billion in 2017 to nearly $3.2 billion in 2026.

This Navigant Research report analyzes the global market for smart grid cybersecurity solutions, with a focus on five application areas: transmission upgrades, substation automation, distribution automation, smart metering, and smart grid IT & analytics. The study discusses significant market drivers and challenges related to smart grid cybersecurity and outlines important government and regulatory standards. Global market forecasts for revenue, broken out by segment and region, extend through 2026. The report also provides in-depth profiles of key providers of smart grid cybersecurity and examines significant security and technology issues associated with cybersecurity solutions.

Key Questions Addressed:
  • What are the primary security risks facing electric utilities today?
  • What factors are helping to drive the market for smart grid cybersecurity solutions?
  • What factors are inhibiting the market potential of smart grid cybersecurity solutions?
  • What are the most important trends in the smart grid cybersecurity space today?
  • How large will the market for smart grid cybersecurity grow?
  • Which global regions are experiencing the fastest growth in this market
Who needs this report?
  • Utilities and grid operators
  • Cybersecurity software vendors and service providers
  • Smart grid vendors and service providers
  • Systems integrators
  • Government agencies
  • Research community
  • Investor community

Table of Contents

1. Executive Summary

1.1   Introduction

1.2   Key Technologies for Smart Grid Cybersecurity

1.3   Market Forecast

2. Market Issues

2.1   Introduction

2.2   Market Segmentation

2.3   Smart Grid Cybersecurity Overview

2.4   Market Drivers

2.4.1   Growing Surface Area for Potential Attacks

2.4.1.1   Smart Meters

2.4.2   Concerns over Consumer Privacy

2.4.3   Vulnerability of the Electric Sector

2.4.3.1   Ukraine Power Grid Attack

2.4.3.2   Burlington Electric Department, Vermont

2.4.3.3   WannaCry Ransomware

2.5   Market Challenges

2.5.1   Lack of Sufficient Regulation

2.5.2   Potential for Insider Attack

2.5.3   Insufficient IT Staff

2.6   Important Government and Regulatory Standards

2.6.1   NERC CIP V5/V6

2.6.2   Executive Order 13636 on Improving Critical Infrastructure Cybersecurity

2.6.2.1   NIST Cybersecurity Framework

2.6.2.2   ISO 27001

2.6.3   Germany: Smart Meter Privacy

2.6.4   2017 EO: Strengthening Cybersecurity

2.7   AMI

2.7.1   Security Issues

2.8   DA

2.8.1   Security Issues

2.9   SA

2.9.1   Security Issues

2.10   Transmission System

2.10.1   Security Issues

2.11   Smart Grid IT & Analytics

2.11.1   Security Issues

3. Technology Issues

3.1   Introduction

3.2   Technology Overview

3.2.1   Antivirus Software

3.2.1.1   Whitelisting

3.2.1.2   Sandboxing

3.2.2   Network Firewalls

3.2.3   Data Encryption

3.2.4   Network Intrusion Detection System

3.3   SCADA/ICS Risks

3.3.1   Control Software and Systems

3.3.2   HMIs

3.3.3   Telecommunications

3.3.4   Device Controllers

3.4   Transmission, DA, SA, and IT Risks

3.4.1   Communications and Operations Risk

3.4.2   Access Control

3.4.3   Asset Risks

3.4.4   Physical and Environment

3.5   AMI Risks

3.5.1   Privacy and Data Protection Risks

3.5.2   Communications and Operations Risks

3.5.3   Access Control

3.5.4   Asset Risks

3.5.5   Physical and Environment

3.6   Human Resources Risks

3.6.1   Security Awareness Program

3.6.2   Social Engineering Attacks

3.6.3   Employee Separations

3.6.4   Third-Party/Subcontractor Risks

3.7   Governance and Regulatory Compliance Issues

3.7.1   Security Assessment and Policies

3.7.2   Change Management

3.7.3   Third-Party Service Provider Risks

3.7.4   AMI Governance and Regulatory Compliance Issues

3.8   Security Incident Response

3.8.1   Readiness Issues

3.8.2   Reputational Risk

3.8.3   Investigations and Cyber Forensics

3.8.4   Managed Services

3.9   Business Continuity

4. Key Industry Players

4.1   Introduction

4.2   AlertEnterprise

4.3   AlienVault

4.4   Belden

4.5   Cisco

4.6   ECI

4.7   FireEye

4.8   GE

4.9   IBM

4.10   IOActive Inc.

4.11   Honeywell

4.12   Leidos Cyber Inc.

4.13   McAfee

4.14   Mocana

4.15   N-Dimension

4.16   RAD

4.17   Schneider Electric

4.18   Siemens

4.19   Sophos

4.20   Symantec

4.21   Waterfall Security

4.22   Wurldtech

5. Market Forecasts

5.1   Introduction

5.2   Forecast Methodology

5.3   North America

5.4   Europe

5.5   Asia Pacific

5.6   Latin America

5.7   Middle East & Africa

5.8   Conclusions and Recommendations

6. Acronym and Abbreviation List
7. Table of Contents
8. Table of Charts and Figures
9. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • SCADA System General Layout
  • Smart Grid Cybersecurity Revenue by Region, World Markets: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, North America: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Europe: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Asia Pacific: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Latin America: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Middle East & Africa: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, World Markets: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Region, World Markets: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, World Markets: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, North America: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Europe: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Asia Pacific: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Latin America: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Middle East & Africa: 2017-2026

List of Tables

  • Smart Grid Cybersecurity Revenue by Region, World Markets: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, World Markets: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Region, World Markets: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, World Markets: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, World Markets: 2017-2026
  • Total Smart Grid Revenue by Region, World Markets: 2017-2026
  • Total Smart Grid Revenue by Segment, World Markets: 2017-2026
  • Total Smart Grid Revenue by Segment, North America: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, North America: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, North America: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, North America: 2017-2026
  • Total Smart Grid Revenue by Segment, Europe: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, Europe: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Europe: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Europe: 2017-2026
  • Total Smart Grid Revenue by Segment, Asia Pacific: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, Asia Pacific: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Asia Pacific: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Asia Pacific: 2017-2026
  • Total Smart Grid Revenue by Segment, Latin America: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, Latin America: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Latin America: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Latin America: 2017-2026
  • Total Smart Grid Revenue by Segment, Middle East & Africa: 2017-2026
  • Smart Grid Cybersecurity Revenue Share by Segment, Middle East & Africa: 2017-2026
  • Smart Grid Cybersecurity Revenue by Segment, Middle East & Africa: 2017-2026
  • Cumulative Smart Grid Cybersecurity Revenue by Segment, Middle East & Africa: 2017-2026

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