Global Energy Security Market Size, Share & Industry Trends Analysis Report By Component (Solution, and Services), By Technology (Physical Security, and Network Security), By Power Plant, By Regional Outlook and Forecast, 2022 - 2028

Analysis of Market Size & Trends

The Global Energy Security Market size is expected to reach $30.6 billion by 2028, rising at a market growth of 10.2% CAGR during the forecast period.

Energy security refers to the protection of power plants and the sources of energy generation from physical and cyber-attacks to ensure the uninterrupted operation of the power plants for energy generation. Additionally, rapid deployment of renewable energy, diversification of energy sources, enhanced energy efficiency, energy depots, and machine-usable energy types result in substantial energy security and economic benefits. Increasing pressure from the government and security compliance and regulation, as well as rising terrorism and cyber-attack threats, are driving the expansion of the energy security market.

In addition, the expansion of the energy security market is positively impacted by the rise of physical attacks and insider threats. The emergence of a new energy sector in emerging economies would create lucrative expansion prospects for the energy security market. The energy supply is vital for households and businesses. In addition, the energy supply must be inexpensive, sustainable, reliable, and secure, making energy systems a difficult task.

Digital energy systems are an evolving area that employs potent digital tools and diverse digital models to solve and manage the increasingly complex energy systems of the twenty-first century. Within the field, digital tools and models like blockchain technology and artificial intelligence are used to analyze data from various energy systems and sources to drive new control and operational strategies and business models and support critical goals such as achieving Net Zero emissions.

In addition, cloud computing enables energy applications to request access to a common pool of computing resources. It consists of social and networked enhancements to corporate intranets and other traditional software platforms large corporations use to organize communication. In contrast to conventional enterprise software, which imposes structure before encouraging usage, enterprise social software tends to encourage use before imposing structure.

COVID-19 Impact Analysis

The effects of COVID-19 have also emphasized the need for improved risk management, increased preparedness, and higher resilience. The pandemic was a significant disruptor that provided both obstacles and possibilities for the industry. As a result of containment measures, the electricity demand decreased rapidly in numerous places. Hence, the decline in electricity demand in the initial phase of the pandemic negatively impacted the market due to the reduced utilization of the energy security solutions, but it is expected to increase with ease in restriction and demand for electricity increasing.

Market Growth Factors

Rise in regulations for safeguarding power plants

Several government authorities and power plant owners are implementing network and physical solutions such as a perimeter, microwave intrusion detection, secured communications, surveillance systems, access control systems, and detectors. These solutions are intended to thwart potential threats. In addition, network systems such as antivirus, firewall, SCADA systems, and IPS/IDS systems are implemented to prevent cybercriminals from attacking the network power plant network. The government's effort to implement security solutions to safeguard power plants from threats is projected to propel energy security adoption and market growth.

Accelerated threat of terrorists and cyber attacks

Security professionals view reputable energy security suppliers as important partners that can assist them with crucial energy security choices. When sensitive content is identified in or leading up to the cloud, energy security allows IT teams to manage potential violations on their local networks for more investigation. In addition, an extensive study on threat observations supports a business in recognizing and halting harmful conduct before it worsens. These reasons are driving the market for energy security forward.

Market Restraining Factor

Lack of sufficient funding among SMEs

The lack of financial resources hinders the adoption of new technologies and corporate security solutions by these organizations, resulting in an inadequate IT security architecture. In addition, small firms are burdened with the management of budgeted finances for a variety of operational issues and business continuity planning, leaving them with less time and resources to implement security solutions. Thus, due to the lack of capital among SMBs and startups, the market for security solutions in the energy sector may suffer slowed growth throughout the projected period.

Component Outlook

Based on component, the energy security market is segmented into solution and service. The solution segment held the highest revenue share in the energy security market in 2021. This is because preserving and enhancing the energy sector's resilience in the face of both man-made and natural disasters is an ongoing process that involves continued vigilance, contingency planning, and training which can be attained with an energy security solution. Many programs funded by governmental and private groups support the energy sector's security vision and objectives.

Technology Outlook

On the basis of technology, the energy security market is divided into physical security and network security. The network security segment procured a significant revenue share in the energy security market in 2021. This is owing to the weaknesses in the IT systems, OT infrastructure, and supply chain partners, which exposes energy firms to cyber risk. IT systems consist of the software, hardware, and technologies used to collect and process data for the enterprise's business operations. OT infrastructure comprises the software, hardware, and technologies necessary to control physical equipment like pumps, motors, valves, and switches.

Power Plant Outlook

By power plant, the energy security market is classified into thermal & hydro, nuclear, oil & gas and renewable energy. The thermal & hydro segment registered the highest revenue share in the energy security market in 2021. This is due to the fact that hydropower plays a crucial role in the transition to clean energy, not just because it generates vast quantities of low-carbon electricity. Also, it has unparalleled flexibility and storage capacity. Compared to nuclear, coal, and natural gas power plants, many hydropower plants can quickly scale up and down their electricity production.

Energy Security Market Report Coverage

Report Attribute	Details
Market size value in 2021	USD 15.7 Billion
Market size forecast in 2028	USD 30.6 Billion
Base Year	2021
Historical Period	2018 to 2020
Forecast Period	2022 to 2028
Revenue Growth Rate	CAGR of 10.2% from 2022 to 2028
Number of Pages	203
Number of Table	340
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling
Segments covered	Component, Technology, Power Plant, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Rise in regulations for safeguarding power plants Accelerated threat of terrorists and cyber attacks
Restraints	Lack of sufficient funding among SMEs

Regional Outlook

Region-wise, the energy security market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region led the energy security market by generating the maximum revenue share in 2021. This is due to the rising industrialization and urbanization, which are anticipated to fuel the North American power industry. In addition, throughout North America, the installation of renewable energy facilities has increased as a result of the rules for reducing countries' carbon footprints. This element will give rise to the more renewable energy sources which in turn will increase the demand for energy security solutions, providing future prospects for the energy security market in North America in the projected period.

Free Valuable Insights: Global Energy Security Market size to reach USD 30.6 Billion by 2028

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, Teledyne FLIR LLC (Teledyne Technologies Incorporated), ABB Ltd., Honeywell International, Inc., BAE Systems PLC, Elbit Systems Ltd., Thales Group S.A., Hexagon AB, Lockheed Martin Corporation and AEGIS Security & Investigations Inc.

Recent Strategies Deployed in Energy Security Market

• Dec-2022: Hexagon took over Qognify, a company that provides physical security and enterprise incident management software solutions. The acquisition reinforced Hexagon's physical security and incident management capabilities as well as expanded its real-time monitoring and security foothold in new markets. In addition, the acquisition opened up cross-selling opportunities for its Leica BLK Series of reality capture sensors.
• Nov-2022: Honeywell launched its new operational technology Cybersecurity solutions. These solutions have been created for helping customers in defending the reliability, availability, and safety of industrial control systems and operations. The offerings comprise an Advanced Monitoring and Incident Response (AMIR) dashboard and updated cyber app controls. These offerings would empower the organizations with 24/7 intelligent threat detection throughout the growing attack surface of their industrial control systems.
• Mar-2022: Teledyne FLIR Defense, a part of Teledyne Technologies, introduced a new Lightweight Vehicle Surveillance System (LVSS) with revolutionary air domain awareness (ADA) and advanced counter-unmanned aerial system (C-UAS) capabilities. The LVSS ADA C-UAS is an improved version of the field-tested LVSS platform from Teledyne FLIR that uses cutting-edge technology to detect and reduce the growing threat posed by tiny drones. To give early warning alerts and recognition, the new system makes use of a potent combination of 3D radar, EO/IR camera, and RF detection and mitigation sensors. Threats are identified and displayed concurrently, with all radar tracks' positions and elevations displayed. The most potent mobile surveillance device on the market for fending off these threats is the LVSS C-UAS, which combines powerful counter-drone technologies and countermeasures.
• Sep-2021: Teledyne FLIR, a part of Teledyne Technologies, made additions to its Elara R-Series Commercial Ground Security Radars and the FH-Series Multispectral Fixed Cameras, its perimeter security suite. The Elara R-Series operates as an ideal commercial radar system for industrial commercial applications whereas the FH-Series offers both video verification and intrusion detection through its high-resolution thermal and visible imaging capabilities. These features and the capacity to capture crucial details utilizing 4K imagery, greatly enhancing response times enable security professionals to accurately identify and assess situations.
• May-2021: Teledyne Technologies acquired FLIR Systems, a company engaged in designing, developing, manufacturing, marketing, and distribution of technologies that enhance perception and awareness. Following the combination, Teledyne FLIR offers a broad range of imaging technologies and products, from components to whole imaging systems, ranging from X-ray to infrared. Moreover, Teledyne FLIR offers a full selection of unmanned systems and imaging payloads for use in all environments, from deep space to Deep Ocean.
• May-2021: Siemens Energy came into collaboration with ServiceNow, a company that develops a cloud computing platform for helping the organization in managing digital workflows for enterprise operations. The collaboration was aimed to develop a unified software service product that enables energy companies for monitoring, detect, and respond to cyber threats targeting digitally connected critical infrastructure.
• Apr-2021: Thales together with Ericsson announced a partnership with EDF for bringing mobile broadband connectivity to nuclear facilities in France, both in production and under construction. The companies have partnered on CONNECT, a project to provide secure cellular connectivity to all of EDF's nuclear energy sites. The new network infrastructure was created specifically for EDF, making sure that its requirements for scalability, flexibility, and Cybersecurity are fulfilled.
• Nov-2020: Hexagon AB announced the acquisition of PAS Global, an industrial control system Cybersecurity company. Following the acquisition, PAS merged with Hexagon's PPM division for creating a new Cybersecurity-focused business segment in Hexagon's existing business, together with providing over 500 customers throughout 1450 sites in 70 countries. The acquisition expanded Hexagon's footprints and enlarged its capabilities by extending the solutions to operational technology Cybersecurity and operational risk management.
• May-2019: Siemens collaborated with Chronicle for protecting the critical infrastructure of the energy sector from rising sophisticated and malicious industrial cyber threats. The cutting-edge managed service delivers new levels of protection against potential operational, commercial, and safety risks, and unlocks the analytics ecosystem.

Scope of the Study

Market Segments Covered in the Report:

By Component

• Solution
• Services

By Technology

• Physical Security
• Network Security

By Power Plant

• Thermal & Hydro
• Renewable Energy
• Oil & Gas
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Siemens AG
• Teledyne FLIR LLC (Teledyne Technologies Incorporated)
• ABB Ltd.
• Honeywell International, Inc.
• BAE Systems PLC
• Elbit Sytems Ltd.
• Thales Group S.A.
• Hexagon AB
• Lockheed Martin Corporation
• AEGIS Security & Investigations Inc.