Utility cyber security is in a state of near chaos. After years of vendors selling point solutions, utilities investing in compliance minimums rather than full security, and attackers having nearly free rein, the attackers clearly have the upper hand. Many attacks simply cannot be defended. Pike Research has observed a dawning awareness by utilities during the past 18 months of the importance of securing smart grids with architecturally sound solutions. There is hope.

However, cyber security solutions remain challenging to implement, especially as attackers gain awareness of the holes between point solutions. Security vendors have finally found time to focus on industrial control system (ICS) security, not only on advanced metering infrastructure (AMI) security – although a few security vendors have focused on ICS from the outset. The utility cyber security market will be characterized by a frantic race to gain the upper hand against the attackers, while at the same time strong competitors attempt to outdo each other.

This Pike Research white paper assesses seven key trends that will be prominent issues in the utility cyber security market in 2012 and beyond, as the industry deals with increased uncertainty associated with smart grid enhancements in combination with external threats. Analysis in this paper is drawn from the firm’s ongoing smart grid security research coverage, with forecasts, facts, and figures for key market sectors.

What does this report answer?

• What factors could drive smart grid cyber security investment?
• How important could industrial control system (ICS) security be?
• What has changed since Stuxnet was discovered?
• What is the effect of the lack of smart grid cyber security standards?
• What are the most promising smart grid cyber security technologies?

Who needs this report?

• Smart grid security vendors
• Smart grid hardware and software companies
• Systems integrators
• Utilities
• Government agencies
• Industry associations
• Investor community

Table of Contents

1.      Executive Summary

1.1   Seven Trends to Watch in Utility Cyber Security

2.      Seven Utility Cyber Security Trends To Watch

2.1   One Size Doesn’t Fit All: Cyber Security Investments will be Shaped by Regional Deployments

2.2   Industrial Control Systems, not Smart Meters, will be the Primary Cyber Security Focus

2.3   Assume Nothing: “Security by Obscurity” Will No Longer be Acceptable

2.4   Chaos Ahead?: The Lack of Standards Will Likely Hinder Action

2.5   Aging Infrastructure: Older Devices will Continue to Pose Challenges

2.6   System Implementation will be More Important than Component Security

2.7   The Top Five Most Promising Smart Grid Cyber Security Technologies

2.7.1     Multi-Factor Authentication

2.7.2     Control Network Isolation

2.7.3     Application Whitelisting

2.7.4     Data Encryption

2.7.5     Security Event Logging and Correlation

3.      Acronym and Abbreviation List
4.      Additional Reading
5.      Table of Contents
6.      Table of Charts and Figures
7.      Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, World Markets:  2011-2018
• Cumulative ICS Security Revenue by Region, World Markets:  2011-2018
• Paired-Firewall DMZ with Smartphone Directly Accessing SCADA Device