Smart grid industrial control systems (ICS) remain in a state of flux.
Security is still viewed as a cost-limitation exercise by many
utilities, and advances toward meaningful regulations remain halting.
But the utility industry as a whole appears better informed of cyber
risks to grids and substations, likely portending more cyber security
deployments in the next one to two years. According to a new report from Pike
Research, a part of Navigant's Energy Practice, the market for smart
grid ICS cyber security will reach $369 million in 2012 and grow to $608
million by 2020.
"The shallow growth curve for ICS cyber security through the remainder
of the decade reflects utilities' historically measured approach to
technology upgrades-the focus on reliability trumps any abrupt shift to
the next great thing," says senior research analyst Bob Lockhart.
"Despite the improved awareness of potential threats and risks, many
utilities remain reluctant to allocate security funding beyond that
needed for compliance minimums. That will change as the technology
improves, prices go down, and the cost of complacency becomes more
Technological innovation in this market is stagnant, according to the
report, and security vendors do not share a consistent view of this
market. While many general-purpose security vendors have not yet seen
the growth they had expected, vendors that specialize in control systems
security are receiving more requests for proposals than ever. Vendor
approaches to the market also vary: some strategically propose a full
cyber security solution for an entire control network, while others take
a more tactical approach and propose only solving specific problems.
Whether takin a strategic or a tactical approach, vendors must orient
their discussions with utilities around solving operational and business
problems, not technical concepts.
The report, "Industrial
Control Systems Security", examines in detail the market dynamics
and most important technology issues for the emerging smart grid control
systems security sector. The report profiles key providers of control
systems cyber security, and provides detailed analysis of the market by
smart grid application, by region, and by type of control system
technology, including human-machine interfaces, control consoles,
telecommunications, and device controllers. Worldwide market forecasts
for 2012 through 2020, segmented by application, by technology, and by
region, are also presented. An Executive Summary of the report is
available for free download on the Pike
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1,
2012, provides in-depth analysis of global clean technology markets. The
team's research methodology combines supply-side industry analysis,
end-user primary research and demand assessment, and deep examination of
technology trends to provide a comprehensive view of the Smart Energy,
Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings
sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm
dedicated to assisting clients in creating and protecting value in the
face of critical business risks and opportunities. Through senior level
engagement with clients, Navigant professionals combine technical
expertise in Disputes and Investigations, Economics, Financial Advisory
and Management Consulting, with business pragmatism in the highly
regulated Construction, Energy, Financial Services and Healthcare
industries to support clients in addressing their most critical business
needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the
report, "Industrial Control Systems Security," is a summary and
reflects Pike Research's current expectations based on market data and
trend analysis. Market predictions and expectations are inherently
uncertain and actual results may differ materially from those contained
in this press release or the report. Please refer to the full report for
a complete understanding of the assumptions underlying the report's
conclusions and the methodologies used to create the report. Neither
Pike Research nor Navigant undertakes any obligation to update any of
the information contained in this press release or the report.
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