스마트 그리드 및 분산 에너지 자원용 사이버 보안 시장 : 점유율 분석, 업계 동향 및 통계, 성장 예측(2026-2031년)

According to Mordor Intelligence, the cybersecurity for smart grids and distributed energy resources market size was valued at USD 6.73 billion in 2025 and estimated to grow from USD 7.96 billion in 2026 to reach USD 18.41 billion by 2031, at a CAGR of 18.26% during the forecast period (2026-2031).

This report is Segmented by Component (Solutions, and Services), Deployment Mode (On-Premises, Cloud, and Hybrid), Security Type (Network Security, Endpoint and Device Security, and More ), Application (Grid Operations Security, and More), End User Industry (Electric Utilities, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Cybersecurity For Smart Grids and Distributed Energy Resources Market Trends and Insights

Rapid Smart Grid Digitization and DER Interconnection

The digitalization of transmission and distribution infrastructure is forcing security architectures in the cybersecurity for smart grids and distributed energy resources market to evolve faster than utility buying cycles can adjust. As substations add intelligent electronic devices, remote terminal units, and communication-enabled protection relays, the number of reachable points inside a single grid environment keeps rising. Palo Alto Networks reported that telemetry from more than 60,000 OT firewalls showed a 332% increase in internet-exposed OT devices between 2024 and 2026. The same analysis said AI-assisted attack cycles can reduce the time between vulnerability disclosure and exploitation from weeks to minutes. That mismatch matters because patching in live OT environments still takes far longer than exposure windows, which leaves each added device class as a possible lateral movement path.

Rising Grid-Targeted Ransomware and OT Intrusion Risk

Threat actors are targeting grid OT environments with the intent to disrupt operations, which is raising the urgency behind spending in the cybersecurity for smart grids and distributed energy resources market. In April 2026, the FBI, CISA, NSA, EPA, Department of Energy, and US Cyber Command confirmed that Iranian-affiliated actors had been disrupting PLCs across US energy sites since at least March 2026. The same advisory said victims in the energy and government sectors suffered operational disruption and financial loss through manipulated HMI and SCADA systems. In December 2025, the ELECTRUM threat group targeted 30 renewable energy sites across Poland's power grid and used wiper malware to disable OT equipment beyond repair. These incidents are making utilities treat OT cyber modernization as a continuity requirement rather than a discretionary upgrade cycle.

Legacy OT Systems With Limited Native Security Controls

Legacy OT equipment remains a structural limit on how quickly the cybersecurity for smart grids and distributed energy resources market can scale inside live grid environments. Many relays, PLCs, and substation automation systems were not built to support modern agents or frequent security updates without operational review. GE Vernova's February 2026 launch of GridBeats APS directly addressed the problem of applying cybersecurity software updates without revalidating protection functions in live substations. That reality keeps known exposures open longer than most enterprise cyber programs would accept and slows the speed of full fleet rollouts. Vendors can monitor and prioritize these risks, but closure still depends on controlled maintenance windows and long asset replacement cycles.

Other drivers and restraints analyzed in the detailed report include:

1. Regulatory Hardening of Critical Infrastructure Cybersecurity
2. Expansion of Cloud-Connected Utility Control Environments
3. High Integration Complexity Across Multi-Vendor Grid Environments

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Services are projected to grow at a 22.39% CAGR through 2031, which makes them the faster-expanding component in the cybersecurity for smart grids and distributed energy resources market. The shift reflects a practical utility response to workforce pressure, because operators without dedicated security operations centers are leaning on managed detection and response rather than building large in-house teams. SERC ranked shortage of required skillsets among the main reliability and security risks for the bulk electric system in its 2024-2026 regional risk work. That labor gap is changing the commercial model from software ownership toward monitored service delivery, continuous threat handling, and externally supported incident response. It also increases the appeal of vendors that can pair OT telemetry, compliance reporting, and response playbooks within one operating structure.

Solutions held 68.24% of the cybersecurity for smart grids and distributed energy resources market share in 2025, which shows that certified platforms still anchor utility buying behavior. Utilities continue to prefer integrated tools that can support NERC CIP audit preparation with documented evidence trails, stable controls, and clear ownership lines. Honeywell expanded its OT Cybersecurity Suite in June 2026 with five proactive protection capabilities aimed at critical infrastructure operators in energy and manufacturing. That move shows how incumbents are adding more intelligence, visibility, and compliance support before pure-play OT specialists consolidate a larger share of the analytics layer. In the smart grid cybersecurity industry, this keeps the solutions base large even as services gain faster momentum through the forecast period.

Cloud deployment is projected to expand at a 22.86% CAGR through 2031, which makes it the fastest-growing mode in the cybersecurity for smart grids and distributed energy resources market. Forescout cited Microsoft Threat Intelligence data that showed a 26% rise in cloud and hybrid OT incidents in early 2025, yet that rise has not slowed adoption. Instead, it is pushing utilities toward cloud-native security architectures with stronger identity governance, remote session logging, and better oversight of vendor access. Greenfield utility programs in Asia-Pacific are especially relevant because they can adopt cloud-first grid management without a large installed on-premises security base to unwind. Hybrid deployment also remains a practical operating model because utilities want local control for core functions and cloud analytics for scale and visibility.

On-premises commanded 59.43% share of the cybersecurity for smart grids and distributed energy resources market size in 2025, which reflects how regulation still favors defined network boundaries. NERC Standards Compliance guidance tied to July 1, 2026 effective dates kept attention on Electronic Security Perimeters and documented communication protections across utility environments. Zero-trust approaches are gaining interest, but the practical utility question remains how to align identity-based access with boundary-oriented compliance expectations in operational settings. That keeps on-premises deployment relevant for high-impact entities even while cloud tools gain share in analytics, visibility, and vendor-managed monitoring. In the smart grid cybersecurity industry, deployment choices are therefore being shaped by compliance fit as much as by technology preference.

Complete Report Scope:

• By Component
  • Solutions
  • Services
• By Deployment Mode
  • On-Premises
  • Cloud
  • Hybrid
• By Security Type
  • Network Security
  • Endpoint and Device Security
  • Application Security
  • Data Security
  • Identity and Access Security
• By Application
  • Grid Operations Security (Generation, Transmission, Distribution)
  • Advanced Metering Infrastructure (AMI) Security
  • DER and Renewable Energy Security
  • Energy Management Systems (EMS) Security
  • SCADA and OT Systems Security
  • EV Charging Infrastructure Security
• By End User Industry
  • Electric Utilities
  • Renewable Energy Operators
  • Industrial Grid Operators
  • Commercial and Industrial Energy Users
  • Residential Prosumer Networks
  • Government and Public Energy Infrastructure
  • Other End User Industries
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia-Pacific
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Rest of Africa

Geography Analysis

North America held 38.15% of the cybersecurity for smart grids and distributed energy resources market in 2025, which made it the leading regional block. The region remains anchored by the strongest mandatory compliance structure for bulk electric system security, which keeps spending tied to enforceable controls rather than discretionary projects. In April 2026, federal agencies confirmed that Iranian-affiliated actors had been actively disrupting PLCs across US energy sector sites since at least March 2026. That advisory raised the urgency around monitoring, communications protection, and recovery planning because victims experienced operational disruption and financial loss. Canada and Mexico extend the regional demand base through growing grid modernization activity and the wider pull of North American compliance and interoperability expectations.

Europe ranked as the second-largest regional block in the cybersecurity for smart grids and distributed energy resources market in 2025. Security buying in the region accelerated after the December 2025 ELECTRUM attack on Poland's distributed power grid disabled OT equipment beyond repair at multiple renewable energy sites. Germany, France, and the United Kingdom continue to anchor the largest country demand pools because they combine mature utility infrastructure with broad digitization programs. Eastern and Central Europe are also drawing more attention as operators place higher value on resilience across distributed assets and cross-border energy systems. South America remains an emerging opportunity, while Saudi Arabia and the United Arab Emirates are advancing grid cybersecurity within wider national energy infrastructure programs, and Africa is still at an earlier adoption stage.

Asia-Pacific is projected to grow at a 23.77% CAGR through 2031, which makes it the fastest-growing region in the cybersecurity for smart grids and distributed energy resources market. The region is benefiting from rapid utility modernization, rising smart meter deployment, and a larger base of greenfield digital infrastructure. India is creating concentrated demand around AMI protection, while China is embedding cybersecurity expectations into grid automation procurement and localization requirements. Japan, South Korea, and Australia also support regional demand because utilities there are moving further into connected grid operations and managed security models.

1. Honeywell International Inc.
2. Fortinet, Inc.
3. Palo Alto Networks, Inc.
4. Schneider Electric SE
5. Siemens AG
6. Cisco Systems, Inc.
7. Claroty Ltd.
8. Eaton Corporation plc
9. ABB Ltd.
10. General Electric Company
11. Accenture plc
12. IBM Corporation
13. Leidos Holdings, Inc.
14. Advanced Micro Devices, Inc.
15. Rocket Software, Inc.
16. ATandT Inc.
17. BAE Systems plc
18. Thales Group
19. Toshiba Corporation
20. Verizon Communications Inc.
21. Dragos, Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

TABLE OF CONTENTS

1 INTRODUCTION

• 1.1 Study Assumptions and Market Definition
• 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

• 4.1 Market Overview
• 4.2 Market Drivers
  • 4.2.1 Rapid Smart Grid Digitization and DER Interconnection
  • 4.2.2 Rising Grid-Targeted Ransomware and OT Intrusion Risk
  • 4.2.3 Regulatory Hardening of Critical Infrastructure Cybersecurity
  • 4.2.4 Expansion of Cloud-Connected Utility Control Environments
  • 4.2.5 DER Aggregation, Virtual Power Plants, and Prosumers Expanding Attack Surface
  • 4.2.6 Zero-Trust and Identity-Centric Access for OT-IT Convergence
• 4.3 Market Restraints
  • 4.3.1 Legacy OT Systems With Limited Native Security Controls
  • 4.3.2 High Integration Complexity Across Multi-Vendor Grid Environments
  • 4.3.3 Skilled Cybersecurity Talent Shortage in Utility OT Environments
  • 4.3.4 Budget Pressure and Long Utility Procurement Cycles
• 4.4 Industry Value-Chain Analysis
• 4.5 Regulatory Landscape
• 4.6 Technological Outlook
• 4.7 Porter's Five Forces Analysis
  • 4.7.1 Threat of New Entrants
  • 4.7.2 Bargaining Power of Suppliers
  • 4.7.3 Bargaining Power of Buyers
  • 4.7.4 Threat of Substitutes
  • 4.7.5 Intensity of Competitive Rivalry
• 4.8 Impact of Macroeconomic Factors on the Market

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

• 5.1 By Component
  • 5.1.1 Solutions
  • 5.1.2 Services
• 5.2 By Deployment Mode
  • 5.2.1 On-Premises
  • 5.2.2 Cloud
  • 5.2.3 Hybrid
• 5.3 By Security Type
  • 5.3.1 Network Security
  • 5.3.2 Endpoint and Device Security
  • 5.3.3 Application Security
  • 5.3.4 Data Security
  • 5.3.5 Identity and Access Security
• 5.4 By Application
  • 5.4.1 Grid Operations Security (Generation, Transmission, Distribution)
  • 5.4.2 Advanced Metering Infrastructure (AMI) Security
  • 5.4.3 DER and Renewable Energy Security
  • 5.4.4 Energy Management Systems (EMS) Security
  • 5.4.5 SCADA and OT Systems Security
  • 5.4.6 EV Charging Infrastructure Security
• 5.5 By End User Industry
  • 5.5.1 Electric Utilities
  • 5.5.2 Renewable Energy Operators
  • 5.5.3 Industrial Grid Operators
  • 5.5.4 Commercial and Industrial Energy Users
  • 5.5.5 Residential Prosumer Networks
  • 5.5.6 Government and Public Energy Infrastructure
  • 5.5.7 Other End User Industries
• 5.6 By Geography
  • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
  • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
  • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Russia
    • 5.6.3.7 Rest of Europe
  • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 India
    • 5.6.4.3 Japan
    • 5.6.4.4 South Korea
    • 5.6.4.5 Australia
    • 5.6.4.6 Rest of Asia-Pacific
  • 5.6.5 Middle East
    • 5.6.5.1 Saudi Arabia
    • 5.6.5.2 United Arab Emirates
    • 5.6.5.3 Turkey
    • 5.6.5.4 Israel
    • 5.6.5.5 Rest of Middle East
  • 5.6.6 Africa
    • 5.6.6.1 South Africa
    • 5.6.6.2 Egypt
    • 5.6.6.3 Rest of Africa

6 COMPETITIVE LANDSCAPE

• 6.1 Market Concentration
• 6.2 Strategic Moves
• 6.3 Market Share Analysis
• 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
  • 6.4.1 Honeywell International Inc.
  • 6.4.2 Fortinet, Inc.
  • 6.4.3 Palo Alto Networks, Inc.
  • 6.4.4 Schneider Electric SE
  • 6.4.5 Siemens AG
  • 6.4.6 Cisco Systems, Inc.
  • 6.4.7 Claroty Ltd.
  • 6.4.8 Eaton Corporation plc
  • 6.4.9 ABB Ltd.
  • 6.4.10 General Electric Company
  • 6.4.11 Accenture plc
  • 6.4.12 IBM Corporation
  • 6.4.13 Leidos Holdings, Inc.
  • 6.4.14 Advanced Micro Devices, Inc.
  • 6.4.15 Rocket Software, Inc.
  • 6.4.16 ATandT Inc.
  • 6.4.17 BAE Systems plc
  • 6.4.18 Thales Group
  • 6.4.19 Toshiba Corporation
  • 6.4.20 Verizon Communications Inc.
  • 6.4.21 Dragos, Inc.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

• 7.1 Adjacent Market Opportunities
• 7.2 Investment and Innovation Outlook