Cumulative investment in the security sector to projected to reach $21bn between 2010 and 2015, with annual revenue reaching $3.7bn by 2015, according to a report from market research and consulting firm Pike Research.
The firm said that the need for security has been increasing as governments and utilities invest in smart grid deployments. The reports that would-be saboteurs have attempted to disrupt the security of the electrical power supply in the US have added to the urgency for cyber security for the emerging smart grid.
Other motivators included, the condition set to the awardees of the last year smart grid funding, was to incorporate strong security into their smart grid initiatives.
The cleantech market intelligence firm expects spending on cyber security to represent approximately 15% of total smart grid capital investment between now and 2015,
According to ‘Smart Grid Cyber Security’ report, North America region will account for the largest share of the market in the year 2015, with revenue of $1.5bn. Other regions are also expected to experience rapid growth, including Asia Pacific ($1.2bn) and Europe ($784m).
Bob Gohn, senior analyst at Pike Research, said: "The electrical grid is being modernised and transformed into a smart grid. but industry players have recognised that you can’t have a smart grid without smart security. That’s why total investment in these critical technology upgrades will grow at a rapid pace within the next few years."
