A new report from Guidehouse Insights examines the market for cybersecurity for operational technology (OT) and industrial control systems (ICS) in the energy sector.
As utilities work to keep pace with digital transformation, a key challenge is ensuring the security of critical infrastructure. According to a new report from Guidehouse Insights, the total market for energy OT cybersecurity solutions is expected to grow from $1.5 billion in 2024 to $3.1 billion in 2033, at a compound annual growth rate (CAGR) of 8.1%.
“Adding connectivity to critical infrastructure has enabled utilities to implement green initiatives, improve resilience, and manage faults more easily. However, increased connectivity has also expanded the attack surface for malicious actors to steal data or wreck utilities’ equipment,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “As a result, operational technology organizations within utilities have had to follow their IT colleagues in implementing greater cybersecurity controls to reduce the damage from cyberattacks.”
While the proliferation of connected equipment enables initiatives to make the grid smarter, more efficient, and more resilient, the tradeoff is that this connectivity presents new areas for malicious actors to exploit, whether in the form of ransomware attacks or theft of sensitive financial or operational data, or as an alternative front in physical warfare. The convergence of IT and operational technology systems is driven by the need to optimize data collection from machines and infrastructure assets, improving information flows, automation of processes, and regulatory compliance, among other things. However, this connectivity means that one compromised component opens the entire network to attack, and attacks on physical infrastructure can damage equipment, harm the environment, or threaten employees’ and customers’ physical safety, according to the report.
The report, Energy OT Cybersecurity, focuses on cybersecurity in the energy OT sector, specifically in the areas of transmission automation, distribution automation, communications, and industrial control systems. It discusses the state of play in terms of technologies and tactics to prevent and mitigate cyberattacks, and presents analyses for energy OT cybersecurity spending in all world regions. An executive summary of the report is available for free download on the Guidehouse Insights website.
