Global Utilities Security Market Size, Decision-Making Report By Component (Solutions (Encryption & IAM, Surveillance Systems, AI/ML Threat Detection, Managed Security Services, Others), Services), By Security Type (Cybersecurity, Physical Security, Operational Security), By Utility Type (Energy (Power Grids), Water & Wastewater, Oil & Gas, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global Utilities Security Market size is expected to be worth around USD 36.51 billion by 2034, from USD 17.88 billion in 2024, growing at a CAGR of 7.4% during the forecast period from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 40% share, holding USD 7.1 Billion in revenue.

Utilities security refers to the comprehensive measures implemented to protect critical infrastructure sectors such as electricity, water, gas, and oil. These measures encompass both physical security – like surveillance systems and access controls and cybersecurity protocols designed to safeguard operational technologies and information systems.

The primary objective is to ensure the uninterrupted delivery of essential services, protect against unauthorized access, and mitigate risks associated with both physical breaches and cyberattacks. The utilities security market has been experiencing significant growth, driven by the escalating need to protect vital infrastructure from evolving threats.

Top driving factors include the surge in cyberattacks targeting utility infrastructures, necessitating robust security frameworks. The adoption of smart grid technologies and the Internet of Things (IoT) has expanded the attack surface, making utilities more susceptible to breaches. Additionally, regulatory bodies are enforcing stricter compliance requirements, compelling utilities to invest in comprehensive security solutions.

For instance, in April 2025, Talkdesk introduced the Utilities Experience Cloud, an AI-powered platform designed to enhance customer service for utility companies. By integrating agentic AI, it enables contact centers to offer self-service and live agent support across multiple channels. The system assists customers with outages, billing, and account management, helping to significantly reduce wait times.

The increasing adoption of technologies such as artificial intelligence (AI), machine learning, and advanced analytics is transforming utilities security. These technologies enable predictive maintenance, anomaly detection, and automated threat responses, enhancing the overall resilience of utility systems. Key reasons for adopting these technologies include the need for proactive threat detection, improved operational efficiency, and compliance with regulatory standards.

Key Takeaways

• In 2024, the Solutions segment led the market, capturing a commanding 72% share, driven by the increasing demand for integrated security systems across utility infrastructures.
• The Cybersecurity segment emerged as the top technology focus, accounting for 48% of the total market share in 2024, as utility providers prioritized protection against digital threats, ransomware, and operational disruptions.
• Among end-use applications, the Energy (Power Grids) segment held a leading 42% share in 2024, attributed to rising investments in grid modernization and the urgent need to secure critical national infrastructure.
• The U.S. Utilities Security Market was valued at approximately USD 6.77 billion in 2024, supported by large-scale smart grid deployments and federal mandates for utility cybersecurity. The market is projected to grow at a solid CAGR of 5.8% through the forecast period.
• North America retained its leadership in the global market, securing more than 40% of the total revenue share in 2024, due to a mature utility sector, high regulatory focus, and advanced security technology adoption.

Role of AI

Artificial Intelligence (AI) is increasingly becoming a cornerstone in enhancing the security of utility infrastructures. With the utilities sector facing escalating cyber threats and operational complexities, AI offers advanced solutions to safeguard critical assets.

AI enhances utilities security by enabling real-time monitoring and predictive analytics. For instance, AI-driven systems can analyze vast datasets to identify anomalies, predict potential failures, and automate responses to security incidents. This not only improves the resilience of utility operations but also ensures compliance with stringent regulatory standards.

Moreover, the adoption of AI in utilities security is facilitating the transition towards more sustainable and efficient energy systems. By optimizing energy distribution and consumption, AI contributes to reducing operational costs and environmental impact.

US Market Expansion

The market for Utilities Security Market within the U.S. is growing tremendously and is currently valued at USD 6.77 billion and the market is projected CAGR of 5.8%. The U.S. utilities security market is experiencing significant growth due to the increasing complexity of energy infrastructure and the rising threat of cyberattacks.

As utilities expand their use of digital technologies, including smart grids and industrial IoT devices, the potential for cyber vulnerabilities increases. This has led to heightened demand for advanced cybersecurity solutions to protect critical assets and ensure service continuity. Additionally, regulatory pressures are compelling utilities to adopt robust security measures to comply with evolving standards and safeguard public safety.

For instance, in March 2025, the U.S. Department of Energy (DOE) announced nearly $23 billion in funding for ten projects focused on boosting the security and resilience of the nation’s energy systems. These projects aim to advance tools and technologies that enhance cybersecurity within clean energy infrastructure, highlighting the government’s effort to address rising digital threats and ensure energy security.

North America Growth

In 2024, North America held a dominant market position in the global utilities security market, capturing more than a 40% share and generating approximately USD 7.1 billion in revenue. This leadership is primarily attributed to the region’s advanced infrastructure, stringent regulatory frameworks, and significant investments in cybersecurity measures.

The United States, in particular, has been proactive in enhancing the security of its utility sectors, focusing on both physical and cyber threats. Collaborations between utility companies and federal agencies, such as the Department of Homeland Security and the North American Electric Reliability Corporation, have been instrumental in developing comprehensive security standards and practices.

By Component Analysis

In 2024, the Solutions segment held a dominant position in the utilities security market, capturing more than 72% of the total market share. This prominence is largely attributed to the escalating need for comprehensive security measures that address both physical and cyber threats to critical infrastructure.

Utilities are increasingly investing in advanced solutions such as encryption and identity access management (IAM), surveillance systems, AI/ML-based threat detection, and managed security services. These technologies offer proactive protection, real-time monitoring, and rapid response capabilities, which are essential in mitigating risks associated with the growing complexity of utility networks.

The surge in adoption of these solutions is driven by the integration of smart grid technologies, IoT devices, and the digitization of utility operations. As utilities modernize their infrastructure, the attack surface expands, necessitating robust security frameworks.

The implementation of AI and machine learning enhances threat detection and response times, providing utilities with the tools to anticipate and neutralize potential threats effectively. Moreover, regulatory mandates and compliance requirements compel utilities to adopt these advanced solutions to ensure the security and reliability of essential services.

By Security Type Analysis

In 2024, the Cybersecurity segment held a dominant position in the global utilities security market, capturing more than 48% of the total market share. This leadership is primarily driven by the increasing digitization of utility infrastructures and the rising frequency of cyber threats targeting critical services.

As utilities integrate advanced technologies like smart grids and IoT devices, the attack surface expands, necessitating robust cybersecurity measures to protect sensitive data and ensure uninterrupted service delivery. The prominence of cybersecurity in the utilities sector is further reinforced by stringent regulatory requirements and the need for compliance with standards aimed at safeguarding critical infrastructure.

Utilities are investing heavily in cybersecurity solutions, including intrusion detection systems, firewalls, and advanced threat intelligence platforms, to proactively identify and mitigate potential risks. This proactive approach not only enhances the resilience of utility services but also fosters trust among consumers and stakeholders, solidifying cybersecurity’s leading role in the utilities security market.

For instance, in October 2024, Torus unveiled its integrated energy storage and AI-powered cybersecurity solutions at the 47G Zero Gravity Summit in Salt Lake City, Utah. The launch featured the Torus Nova Spin™, a Flywheel Energy Storage System (FESS) designed for rapid response and grid stability, along with the Torus Nova Shield™, an AI-driven security appliance built to protect energy infrastructure from emerging cyber threats.

By Utility Type Analysis

In 2024, the Energy (Power Grids) segment held a dominant position in the global utilities security market, capturing more than 42% of the total market share. This leadership is primarily driven by the increasing complexity and interconnectivity of power grid infrastructures, which necessitate robust security measures to ensure reliable and uninterrupted electricity supply.

The integration of renewable energy sources, such as solar and wind, into the grid has introduced new vulnerabilities, making it imperative to adopt advanced security solutions. Furthermore, the rise in cyber threats targeting critical energy infrastructure has compelled utilities to invest heavily in both physical and cybersecurity measures to protect against potential disruptions.

The prominence of the Energy (Power Grids) segment is further reinforced by significant investments in grid modernization initiatives. Governments and utility companies worldwide are focusing on upgrading aging infrastructure, implementing smart grid technologies, and enhancing real-time monitoring capabilities. These efforts aim to improve grid resilience, optimize energy distribution, and facilitate rapid response to potential threats.

For instance, in May 2025, Huawei Digital Power launched its Smart String & Grid Forming Energy Storage System (ESS), marking a significant step in renewable energy infrastructure. This advanced ESS platform combines modern power electronics with digital technologies to improve grid stability and energy storage efficiency.

Key Market Segments

By Component

• Solutions
  • Encryption & IAM
  • Surveillance Systems
  • AI/ML Threat Detection
  • Managed Security Services
  • Others
• Services

By Security Type

• Cybersecurity
• Physical Security
• Operational Security

By Utility Type

• Energy (Power Grids)
• Water & Wastewater
• Oil & Gas
• Others

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Driver

Escalating Cyber Threats to Critical Infrastructure

The utilities sector has become a prime target for cyberattacks, with threat actors increasingly focusing on critical infrastructure. Nation-state actors, hacktivists, and ransomware groups have intensified their efforts, exploiting vulnerabilities in energy installations across North America, Asia, and the European Union. These attacks not only disrupt services but also pose significant risks to national security and public safety.

The growing frequency and sophistication of these cyber threats have compelled utility companies to invest heavily in advanced security measures to safeguard their operations and infrastructure. This heightened threat landscape has led to a surge in demand for robust cybersecurity solutions within the utilities sector.

Companies are prioritizing the implementation of comprehensive security frameworks, including intrusion detection systems, real-time monitoring, and incident response strategies. The urgency to fortify defenses against potential cyber intrusions is further amplified by regulatory pressures and the critical nature of utility services, making cybersecurity a top priority for stakeholders in the industry.

For Instance, In April 2025, A Semperis report found that over two-thirds of U.S. and UK utility companies were targeted by cyberattacks in the past year, with 80% experiencing multiple attacks. More than half of the respondents reported permanent data or system failure. A public utility in Littleton, Massachusetts is breached by the Volt Typhoon group, which is associated with the Chinese government

Restraint

High Implementation Costs of Advanced Security Solutions

While the need for enhanced security in the utilities sector is undeniable, the high costs associated with implementing advanced security solutions pose a significant barrier. The deployment of comprehensive cybersecurity measures, such as data encryption, access control systems, and authentication protocols, requires substantial financial investment.

These costs can be particularly burdensome for smaller utility companies with limited budgets, hindering their ability to adopt necessary security enhancements. Additionally, the integration of new security technologies often necessitates upgrades to existing infrastructure, further escalating expenses.

The financial strain associated with these implementations can lead to delays or compromises in adopting essential security measures, leaving utilities vulnerable to cyber threats. Balancing the imperative for robust security with budgetary constraints remains a critical challenge for the sector.

Opportunity

Integration of Smart Grid Technologies

The adoption of smart grid technologies presents a significant opportunity for enhancing security within the utilities sector. Smart grids enable real-time monitoring and management of energy distribution, allowing for rapid detection and response to anomalies or threats. The integration of advanced data analytics and automation within these systems facilitates proactive security measures, improving the resilience of utility infrastructure against cyberattacks.

Moreover, smart grids support the incorporation of renewable energy sources and decentralized energy production, contributing to a more sustainable and efficient energy ecosystem. The modernization of utility infrastructure through smart grid implementation not only enhances operational efficiency but also strengthens the overall security posture of the sector, making it a strategic focus for future investments.

For instance, In September 2024, The U.S. Department of Energy (DOE) committed to investing nearly $23 billion in ten projects that aim to enhance the energy systems’ security, resilience, and dependability. Cybersecurity, Energy Security, and Emergency Response (CESER) project aims to create cutting-edge tools and technologies that can safeguard energy systems from cyber, physical, or natural hazards.

Challenge

Integration of Legacy Systems with Modern Security Frameworks

A significant challenge in bolstering utilities security lies in the integration of legacy systems with modern security frameworks. Many utility companies operate with outdated infrastructure that lacks compatibility with contemporary cybersecurity solutions.

These legacy systems often have limited processing capabilities and are not designed to support advanced security protocols, making them susceptible to cyber threats. The process of upgrading or replacing these systems is complex and resource-intensive, often requiring substantial financial investment and operational downtime.

Furthermore, the scarcity of skilled professionals familiar with both legacy and modern systems exacerbates the integration challenge. Addressing this issue necessitates a strategic approach that balances the need for enhanced security with the practicalities of system modernization.

Emerging Trends

The utilities sector is undergoing a significant transformation, driven by the integration of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and smart grid systems. These innovations are enhancing operational efficiency and enabling real-time monitoring, predictive maintenance, and improved decision-making processes.

For instance, AI-powered analytics are being utilized to optimize energy distribution and detect anomalies that may indicate security threats, thereby strengthening the resilience of utility infrastructures. Additionally, the adoption of decentralized energy resources and digital twins is reshaping the utilities landscape.

Decentralized systems, including microgrids and distributed energy resources, offer greater flexibility and reliability but also introduce new security challenges that require robust cybersecurity measures. Digital twins – virtual replicas of physical assets – are being employed to simulate and analyze system behaviors, allowing for proactive identification and mitigation of potential vulnerabilities .

Business Benefits

Implementing comprehensive security measures in the utilities sector yields significant business advantages, particularly in ensuring operational continuity and safeguarding critical infrastructure. Robust cybersecurity frameworks enable utilities to promptly detect and respond to threats, minimizing downtime and maintaining consistent service delivery. This resilience not only protects revenue streams but also enhances customer trust and satisfaction .

Moreover, advanced security protocols facilitate compliance with regulatory standards and reduce the risk of penalties associated with data breaches or service disruptions. By investing in state-of-the-art security solutions, utilities can also achieve cost savings through the prevention of cyber incidents and the optimization of maintenance operations.

Key Player Analysis

ABB Ltd has strategically expanded its offerings in the utilities sector through recent acquisitions. In December 2024, ABB agreed to acquire the power electronics unit of Gamesa Electric, aiming to strengthen its position in renewable power conversion technology.

Earlier, in August 2024, ABB finalized the acquisition of SEAM Group, a U.S.-based provider of energized asset management and advisory services. These acquisitions enhance ABB’s capabilities in delivering comprehensive solutions for energy management and electrification services.

Schneider Electric SE has focused on expanding its digital and sustainability offerings. In November 2023, the company finalized the acquisition of EcoAct SAS, a leader in climate consulting and net-zero solutions. This acquisition complements Schneider Electric’s earlier integration of AVEVA, completed in January 2023, enhancing its industrial software capabilities.

Top Key Players Covered

• Siemens AG
• ABB Ltd
• Schneider Electric SE
• Honeywell International Inc.
• General Electric Company
• Cisco Systems, Inc.
• IBM Corporation
• BAE Systems plc
• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• Others

Recent Developments

• In May 2025, ABB announced its acquisition of BrightLoop, a French firm specializing in advanced power electronics and semiconductor technologies. This strategic move is aimed at solidifying ABB’s leadership in the global energy infrastructure market, particularly in enhancing the security and efficiency of utility systems.
• In October 2024, Siemens signed an agreement to acquire Altair Engineering Inc., a leading provider of industrial simulation and analysis software, for approximately $10.6 billion. This acquisition aims to strengthen Siemens’ position in industrial software and AI, enhancing its capabilities in the utilities sector.

Report Scope