Global Smart Grid Security Market Assessment, By Solution [Antivirus and Antimalware, Firewall, Encryption, Security and Vulnerability Management, Others], By Service [Professional Services, Education and Training, Managed Services], By Deployment Mode [Cloud, On-Premises], By Security Type [Endpoint Security, Network Security, Application Security, Database Security], By Region, Opportunities and Forecast, 2018-2032F

Global smart grid security market is projected to witness a CAGR of 10.12% during the forecast period 2025-2032, growing from USD 9.03 billion in 2024 to USD 19.53 billion in 2032. The global market for smart grid security is growing due to various factors such as increasing cyberattacks, the incorporation of Internet of Things (IoT) and Artificial Intelligence (AI) coupled with government policies and standards. These are the driving factors creating the demand for security solutions that are dynamic, real-time, and scalable.

Report Attribute	Details
Base Year	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 10.12% between 2024 and 2032
Revenue Forecast in 2032	USD 19.53 billion

The global smart grid security market is currently experiencing a surge, driven by an increase in the adoption of digital technologies by power utilities, including smart meters, IoT devices, and cloud-based control systems. However, these technologies increase energy efficiency and online monitoring but also bring significant security risks. Consequently, there is an increasing need for next-generation security to defend critical infrastructure against threats such as data breaches, malware targeting ICS and grid manipulation. The implementation of strict regulations by governments worldwide and their investment in smart grid projects continue to propel market expansion. The market offers security solutions through identity and access management (IAM) systems as well as firewalls and encryption, along with anomaly detection capabilities and secure communication protocols. The market caters to utilities, along with energy providers and infrastructure operators.

For example, in February 2025, Cisco Systems, Inc. introduced a range of new security networking devices designed to provide secure access and security protection to a wide range of attached devices. Both switches, along with the early runner N9300 Smart Switch, reduce the number of devices required in the data center and integrate security into the network itself to enable a seamless combination of high-performance data center and network management.

Growing Integration of IoT and Advanced Technologies Drives Market Growth

Smart grid operation has dramatically changed by integrating IoT, AI, machine learning, and cloud computing. These include monitoring in real-time, predictive maintenance, intelligent load balancing and remote control of assets. IoT sensors and connected devices could offer an open surface for cyberattacks. Unlike traditional grid systems, which were closed off, modern smart grids are highly interconnected and data-driven, making them more vulnerable to data breaches, malware attacks, and unauthorized access. In addition to the complexity, as utilities leverage these new technologies to drive efficiency and minimize operational expenditure, they are required to monitor and secure their extended digital estate. This has created a need for smart grid cybersecurity solutions such as network segmentation, endpoint protection and encryption. Protecting these new digital components is essential not only for operational continuity but also for safeguarding sensitive consumer and grid data.

For example, in June 2025, Cisco Systems, Inc. launched its new generation of smart switches designed specifically for the growing demands of AI-driven organizations. This intelligent, high-speed network is capable of advanced automation, security, and data management. It was built to accommodate AI-based operations, complex digital ecosystems, and established systems integration, on-the-fly insights, and elastic performance.

Decentralization and Distributed Energy Resources (DERs) Drive Global Market Demand

The current global energy sector is transforming from centralized generation to distributed generation due to the growing utilization of Distributed Energy Resources (DERs) such as rooftop solar, wind turbines, microgrids and battery storage systems. It also provides environmental and operational advantages such as enhanced grid security, mitigated transmission losses and increased energy independence. But it also brings new cybersecurity vulnerabilities. Unlike centralized systems with a single point of control (just as the Internet now functions), DERs contain many endpoints, which must communicate with centralized control systems. Every single connection, if its security is insufficient, is potentially an attack vector that allows a bad actor to get into a network to force behavior in the grid and steal data. One of the most significant problems in this part is the challenges of secure communication, integrity of remote independent devices and grid operation reliability, as the DER installations continue to grow in number. Utilities and grid operators are therefore investing in advanced security solutions to manage the complex risk landscape that comes with distributed energy integration.

For example, in September 2024, AES Ohio, a subsidiary of The AES Corporation, reported the execution of a settlement agreement relating to Phase 2 of its smart grid program. Following the success of Phase 1, this phase continues to focus on the additional grid modernization needed to enable further decentralization and greater integration of distributed energy resources (DERs). The deal hopes to incentivize customer participation with rewards programs as the grid is modernized to better manage a more dynamic and resilient energy system.

Network Security Segment Holds the Largest Global Smart Grid Security Market Share

Network security is the leading segment in the global smart grid security market, as this is among the most important aspects of protecting how data travels within the grid. Smart grids work by coordinating communications among various parts of smart meters, control systems and substations. Such communications take place on digital networks, which can be cyberattacked. Cybersecurity tools can help halt hackers from getting inside the system, stealing data and causing blackouts. This segment consists of tools such as firewalls, intrusion detectors and secure communication mechanisms. As the use of internet-connected devices and remote monitoring increases, power companies are exposed to more risks. To combat these challenges, they are spending more on robust network security. Security for the network helps assure the safe flow of power and the protection of mission-critical data due to the critical mission of the overall smart grid defense.

For example, in November 2024, GE Vernova Inc. unveiled a new, multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to deliver its APM and CERius software solutions through the AWS Cloud. The collaboration helps energy businesses use innovative digital solutions to better control assets and emission data in their transition plan towards sustainable energy. And because these businesses are running these operations through interconnected cloud services, secure data transfer would be necessary.

North America Dominates Global Smart Grid Security Market Size

North America is currently the leading region in the smart grid security market globally, that is because of its early uptake of smart grid solutions and the high emphasis on cybersecurity. Countries such as the U.S. and Canada have spent big on updating their power grid infrastructure, including the smart meters, enhanced control systems and the integration of renewables. Those advances also build a dependence on strong security to defend against cyberattacks. In addition, the support from government authorities, along with mandating users to comply with the regulations and several smart grid projects at utility scale, are key factors for driving the market in this region. Bodies such as NERC, the North American Electric Reliability Corporation, oversee and regulate the security standards for these energy systems, which fosters the proliferation of cybersecurity innovation among utilities. Also, North America is seeing cyber threats to its critical infrastructure regularly, which drives companies to spend money on things such as network security, encryption and monitoring technologies. With its strong technology base, regulatory policies, and large-scale deployments, North America leads the market in smart grid security solutions and innovation.

For example, in August 2024, Honeywell International Inc. announced a new, easy-to-use energy management system that aims to help boost energy savings in mid-market hotels through automation. This launch follows Honeywell's strategic focus on three global mega trends of automation, energy transition, and sustainability through introducing smart and efficient solutions that meet shifting market requirements.

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Impact of U.S. Tariffs on Global Smart Grid Security Market

US tariffs have increased the cost of the smart grid components such as transformers, sensors and communication devices, making infrastructure upgrades more expensive. Because of these cost escalations have led to project delays, extending the period of obsolescence and vulnerability to unauthorized access and cyberattacks. Tariffs have disrupted supply chains, particularly with China  and made certain critical hardware hard to come by. Utilities are reacting by turning to software-centric security systems and AI-backed monitoring that are less dependent on imported equipment. Additionally, there is growing support for domestic manufacturing to reduce dependency and improve long-term grid security resilience.

Report Scope

“Global Smart Grid Security Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global smart grid security market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Solution, Service, Deployment Mode, Security Type
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	BAE Systems plc, IBM Corporation, Cisco Systems, Inc., Intel Corporation, Siemens AG, Broadcom Inc., Duke Energy Corporation, Fortinet, Inc., Alert Enterprise, Inc., Palo Alto Networks, Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global smart grid security market, has been segmented into the following categories:

• By Solution
  • Antivirus and Antimalware
  • Firewall
  • Encryption
  • Security and Vulnerability Management
  • Others
• By Service
  • Professional Services
  • Education and Training
  • Managed Services
• By Deployment Mode
  • Cloud
  • On-Premises
• By Security Type
  • Endpoint Security
  • Network Security
  • Application Security
  • Database Security
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

The global smart grid security market is expanding at a fast pace because of its increasing requirement to shield smart grid power systems from cyber threats. As more utilities deploy smart technology, which might include IoT devices, AI and cloud-based systems, grid operations grow even more complex and susceptible to attack. This evolution has resulted in an increasing demand for converged security solutions across the network, endpoint, and application layers. The market is witnessing constant investment in emerging advanced threat detection, real-time monitoring and secure communication frameworks. In the future, the market is expected to witness robust growth as backed by government regulations, the digitization of the energy industry and an increase in decentralized energy resources (DERs). The market continues to be optimistic, looking to innovations, diversity and policy-driven security standards as the future for global energy security.

For instance, in January 2025, Škoda Transportation a.s. joined forces with ABB Ltd. to install Pro battery systems on its electric Regio Panter trains. The partnership between Skoda and ABB demonstrated the company’s dedication to developing environmentally friendly solutions for railway transportation.

Key Players Operating in Global Smart Grid Security Market are:

• BAE Systems plc
• IBM Corporation
• Cisco Systems, Inc.
• Intel Corporation
• Siemens AG
• Broadcom Inc.
• Duke Energy Corporation
• Fortinet, Inc.
• Alert Enterprise, Inc.
• Palo Alto Networks, Inc.

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