Grid Cybersecurity for Utilities Market Size (2026 – 2030)

In 2025, the Global Grid Cybersecurity for Utilities Market was valued at USD 8.89 billion and is projected to reach USD 18.35 billion by 2030, growing at a CAGR of 15.6% during 2026–2030.

The Grid Cybersecurity for Utilities Market addresses the growing need to protect critical energy infrastructure from cyber threats targeting operational technology environments. As power grids evolve into digitally connected, automated, and software-defined systems, utilities face increased exposure to cyber risks that can disrupt electricity supply, damage physical assets, and threaten public safety.

Historically, utility grids relied on isolated control systems with limited external connectivity. Today, smart grid technologies, advanced distribution management systems, remote monitoring, and cloud-based analytics have significantly expanded the attack surface. Cybersecurity solutions tailored for utilities focus on safeguarding industrial control systems, substations, SCADA networks, and field devices while ensuring compliance with strict regulatory frameworks. The market plays a foundational role in enabling secure grid modernization, renewable integration, and resilient energy delivery.

Key Market Insights

• Cyber threats against utilities are rising rapidly, with research showing that cyberattacks on utilities increased by nearly 70 % year-over-year in 2024, highlighting the urgent need for enhanced grid cybersecurity protections.

• According to PwC, utilities are prioritizing cybersecurity resilience as a strategic imperative, with leaders focusing on strengthening defenses to protect critical infrastructure and maintain service continuity.

• McKinsey has reported that utilities are actively addressing cybersecurity vulnerabilities and cross-sector collaboration to safeguard critical infrastructure, noting the importance of continuous monitoring and security programs across grid operations. McKinsey & Company

• Global cybersecurity risk sentiment is elevated, with 72 % of respondents in a global cybersecurity outlook survey reporting that cyber threats have increased over the past year, affirming broader risk awareness that also applies to utility and energy sectors.

• The Grid Cybersecurity Market itself is projected to grow strongly, with estimates suggesting it will expand in 2025 and continue rising at double-digit rates through the next decade, reflecting strong investment demand from utilities.

• Critical infrastructure, such as power grids face increasingly sophisticated threats. National labs note that grid operators must protect systems that are targeted by state-level and criminal actors seeking to disrupt service or damage assets.

Market Drivers

The primary driver of the Grid Cybersecurity for Utilities Market is the rapid digitalization of power grids and operational technology environments.

 Utilities are deploying smart meters, automated substations, remote monitoring systems, and advanced grid management software to improve efficiency and reliability. While these technologies deliver significant operational benefits, they also expose legacy OT systems to cyber risks that were not considered during their original design. Cybersecurity solutions specifically designed for OT environments enable utilities to monitor network activity, detect anomalies, and protect mission-critical assets without disrupting real-time operations. As grid automation accelerates, cybersecurity investment is becoming essential to maintain safe and reliable power delivery.

A second major driver is the tightening of regulatory and compliance requirements for critical infrastructure protection.

Governments and regulatory bodies are increasingly mandating cybersecurity controls for utilities to safeguard national energy systems. Frameworks such as NERC CIP in North America and IEC 62443 globally require utilities to implement access controls, continuous monitoring, incident response plans, and audit-ready security programs. Non-compliance can result in significant financial penalties and reputational damage, compelling utilities to invest in robust cybersecurity platforms aligned with regulatory standards.

Market Restraints

Despite strong demand, the market faces challenges related to legacy infrastructure and operational constraints. Many utilities operate decades-old control systems that were not designed with cybersecurity in mind. Integrating modern security solutions into these environments without affecting system availability or performance is complex. In addition, cybersecurity skills shortages within utility organizations can slow deployment and increase reliance on external service providers. These factors can lengthen implementation timelines and increase costs, particularly for smaller or publicly owned utilities.

Market Opportunities

Significant opportunities exist in the convergence of OT and IT security platforms and the expansion of managed security services for utilities. As utilities seek unified visibility across corporate and operational networks, demand is growing for integrated platforms that provide end-to-end threat detection and response. Managed OT security services also present strong growth potential, allowing utilities to access specialized expertise and continuous monitoring without building large internal cybersecurity teams. The rise of AI-driven threat analytics further enhances the value proposition of advanced grid cybersecurity solutions.

GRID CYBERSECURITY FOR UTILITIES MARKET REPORT COVERAGE:

Grid Cybersecurity for Utilities Market Segmentation

Grid Cybersecurity for Utilities Market Segmentation by Security Type

• Operational Technology (OT) Security
• Information Technology (IT) Security

Operational Technology (OT) Security is the most dominant segment in the Grid Cybersecurity for Utilities Market. OT environments include critical infrastructure such as SCADA systems, substations, programmable logic controllers, intelligent electronic devices, and field-level sensors that directly control power generation, transmission, and distribution processes. Cyber incidents affecting these systems can lead to physical equipment damage, large-scale outages, safety risks, and prolonged service disruption. As a result, utilities prioritize OT security solutions that provide continuous network monitoring, anomaly detection, asset discovery, and intrusion prevention specifically designed for industrial environments. Unlike traditional IT security, OT security must operate without interrupting real-time processes, making specialized solutions essential and reinforcing their dominant position.

OT Security is also the fastest-growing segment in the market. Utilities are increasingly connecting operational assets to centralized control systems, cloud platforms, and remote monitoring tools to improve efficiency and reliability. This expanded connectivity has significantly increased the attack surface of critical infrastructure. At the same time, cyberattacks targeting industrial control systems have become more frequent and sophisticated. These factors are driving rapid adoption of OT-focused cybersecurity solutions across electric, gas, and water utilities. As grid automation and digitalization accelerate, demand for specialized OT protection is growing faster than traditional IT security solutions.

Grid Cybersecurity for Utilities Market Segmentation by Compliance Framework

• NERC CIP Alignment
• IEC 62443 Alignment

NERC CIP-aligned solutions dominate in North America, where compliance with the North American Electric Reliability Corporation Critical Infrastructure Protection standards is mandatory for bulk electric system operators. These regulations require utilities to implement stringent controls related to access management, system monitoring, incident response, and audit readiness. The risk of regulatory penalties and operational disruptions makes NERC CIP alignment a critical investment driver for utilities in the region.

IEC 62443-aligned solutions are the fastest-growing globally, particularly outside North America. As utilities worldwide modernize their infrastructure and adopt industrial automation technologies, IEC 62443 has emerged as a widely accepted international standard for securing industrial control systems. Utilities in Europe, Asia-Pacific, and emerging markets are increasingly adopting IEC-aligned cybersecurity frameworks to establish standardized, future-ready security architectures for operational environments.

Grid Cybersecurity for Utilities Market Segmentation by Utility Type

• Electric Utilities
• Gas Utilities
• Water Utilities

Electric utilities are the most dominant segment in the Grid Cybersecurity for Utilities Market. Electric grids are among the most digitally connected and operationally complex critical infrastructure systems, incorporating SCADA networks, substations, advanced metering infrastructure, and automated distribution and transmission systems. The consequences of cyber incidents in electric utilities are immediate and widespread, including large-scale power outages, equipment damage, and risks to public safety. As a result, electric utilities face the most stringent regulatory oversight and cybersecurity compliance requirements, particularly in regions governed by NERC CIP standards. These factors drive higher cybersecurity spending and make electric utilities the largest adopters of grid-focused cybersecurity solutions.

Electric utilities are also the fastest-growing segment in the market. Rapid grid modernization, increasing renewable integration, expansion of distributed energy resources, and deployment of advanced grid automation technologies are significantly expanding the attack surface of electric networks. As utilities digitize operations to improve reliability and efficiency, the need for robust OT security, continuous monitoring, and cyber resilience is growing at an accelerated pace. Compared to gas and water utilities, electric utilities are adopting advanced cybersecurity frameworks earlier and at larger scale, driving both dominance and the highest growth rate within the market.

Gas and water utilities represent steadily growing segments, as pipeline monitoring, remote control systems, and smart water infrastructure increase connectivity. However, adoption typically follows electric utilities, reflecting differences in regulatory pressure, digital maturity, and perceived cyber risk.

Grid Cybersecurity for Utilities Market  Segmentation: Regional Analysis

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

North America leads the Grid Cybersecurity for Utilities Market, supported by strict regulatory enforcement, high levels of cybersecurity spending, and early adoption of smart grid and automation technologies. Utilities in the region face elevated cyber risk exposure due to advanced digitalization and interconnected infrastructure, driving continuous investment in OT security platforms and compliance-aligned solutions.

Asia-Pacific is the fastest-growing region, driven by rapid grid expansion, rising electricity demand, and large-scale infrastructure modernization initiatives across China, India, Japan, and Southeast Asia. Governments and utilities in the region are increasingly recognizing cybersecurity as a foundational requirement for grid reliability and national energy security, accelerating adoption of OT-focused protection solutions.

Grid Cybersecurity for Utilities Market COVID-19 Impact Analysis

The COVID-19 pandemic significantly accelerated cybersecurity risks for utilities as organizations reduced on-site staffing and expanded remote access to operational systems. Utilities relied more heavily on digital tools, remote monitoring, and automated control systems to maintain grid operations during lockdowns. This rapid shift exposed vulnerabilities in legacy security architectures that were not designed for remote access or expanded connectivity. As a result, utilities increased investments in OT security, network visibility, and continuous monitoring solutions. The pandemic reinforced the importance of cyber resilience and has had a lasting impact on cybersecurity strategies across the utility sector.

Latest Trends and Developments

Key trends in the Grid Cybersecurity for Utilities Market include the growing adoption of AI-driven threat detection and behavioral analytics to identify anomalies in operational networks. Utilities are also implementing zero-trust principles within OT environments to limit lateral movement and reduce attack surfaces. Another major trend is the convergence of IT and OT security operations, enabling unified visibility, faster incident response, and improved coordination across teams. Additionally, utilities are investing in cybersecurity platforms that support regulatory reporting, automated incident response, and supply-chain risk management. Cyber resilience, recovery planning, and system restoration capabilities are becoming as critical as threat prevention.

Latest Market News

October 2025 — Palo Alto Networks Introduces New Security Solutions for Post-Quantum Readiness
In August 2025, Palo Alto Networks announced two new advanced security solutions designed to help organizations prepare for future cyber threats, including a quantum readiness dashboard and next-generation firewall models optimized for post-quantum cryptography, strengthening cybersecurity for critical infrastructure environments.

December 2025 — Critical Infrastructure Cybersecurity Gains Policy Attention in India
On December 14, 2025, Indian policymakers highlighted the importance of power grid infrastructure cybersecurity during a parliament session, emphasizing procurement of next-generation firewalls, multi-layer security, and international compliance frameworks, reinforcing government-level focus on grid protection.

November 2025 — Utilities Prioritize Cybersecurity Training Over Tools
November 4, 2025 — A major industry report from Black & Veatch revealed that utilities are increasingly prioritizing cybersecurity workforce training to tackle digital grid threats, reflecting a strategic shift toward human capital and advanced threat awareness as part of broader grid cyber risk management.

January 2025 — Increase in OT Security Focus as Remote Grid Risks Rise
Throughout 2025, utility cybersecurity experts have emphasized the escalation of OT cybersecurity risks as grid digitalization increases and attackers evolve their tactics, prompting investments in operational threat detection and secure control systems across utilities.

Key Players

1. Palo Alto Networks
2. Fortinet
3. Cisco
4. Schneider Electric
5. Siemens
6. ABB
7. Nozomi Networks
8. Claroty
9. Dragos
10. Tenable