Market Overview

The cloud security market in energy sector is expected to register a CAGR of 11.2 %, during the forecast period 2020- 2025. The increase in adoption of IoT in the supply chain will drive the market in the forecast period.

  • The applications in the energy sector use operational technology to monitor and control the physical processes across the oil & gas sector, by means of acquiring process variable data, such as temperatures, pressures, levels, valve positions, etc., and further analyze this data, in order to automate processes. While their introduction has simplified the management of facilities, they have also made process control systems vulnerable to cyber attacks.
  • Major incidents, such as the shutdown of several Iranian nuclear centrifuges by Stuxnet malware in 2010, the Shamoon malware attacks in November 2016 and January 2017 against Gulf state organizations, have made security imperative for the energy sector.
  • With the increased adoption of IoT and automation, coupled with the industry’s value chains increasingly relying on complex and interconnected digital assets, as well as the constant exchange of data to carry out any operation, the energy sector is exposed to the risk of cyber attacks, mainly due to the dependence on connectivity.

Scope of the Report

The protection of data storage on the cloud, from content leakage, theft or deletion is cloud security. Cloud in the energy sector creates a solution or locates remote servers as well as web-based technology to manage data and multiple applications. Therefore it has to be secured from cyber attacks that can shut down a service, or hamper the critical documents.

Key Market Trends

Increasing Number of Cyber Attacks to Drive the Need for Cloud Security in the Energy sector

  • Utilities and energy organizations are part of the critical infrastructure of any nation, which makes them a high-profile target for cyber terrorists and hackers alike.
  • Owing to the rise in the developments in power grids, cyber-attacks have the potential to severely impact them, making multi-layered protection vital for securing the smart grid end-to-end. Compliance to regulations such as NERC CIP, as well as standards that include NIST, IEC, and ISO, and preparing for security audits are forcing extensive changes in the overall utility security framework.
  • Moreover, according to the Cisco Systems, IT security professionals are engaging and investing extra into energy and utilities as they have suffered more public security breaches in the sector. Owing to this, cloud security in the energy sector is gaining prominence in the market.

Europe is Expected to Witness the Highest Growth

  • Industry 4.0 witnessed increased adoption in the energy sector in Europe, with improved methods for producing, delivering, and consuming energy. These new policies and government regulations aimed at mitigating the threat of climate change, fluctuating energy prices, and supply concerns.
  • For instance, Germany launched a renewable-energy revolution, known as Energiewende, for solar, wind, and hydroelectric power, as well as smart grid operations. Nuclear energy is the primary source of electric energy in France.
  • These utilities have adopted automation to enhance their processes and plant efficiency, through plant-specific modification and upgrades with the latest digital technologies across their upstream, downstream, and midstream operations.
  • Digitalization of the energy sector in Europe is at the core of all significant commission initiatives, such as the Digital Single Market, the Energy Union package, and the Single Market strategy. These initiatives aimed at ensuring appropriate cybersecurity for operators, manufacturers, and end-users

Competitive Landscape

The major players include IBM Corporation, Intel Security- McAfee, Symantec Corporation, Cisco Systems, Inc., CA Technologies, CA Technologies, Nutanix, Netskope, Inc., and ProtectWise., amongst others. The market is fragmented as there is intense competition among players in the market to gain a competitive edge. Hence, market concentration will be low.

  • February 2019 - Working Group Two introduced cloud-managed mobile network with Cisco Ultra Packet Core on Amazon Web Services. Focusing on the demands and opportunities of the 5G era, the WG2 platform allows mobile operators and enterprises to create and monetize a new breed of business and consumer mobile services that control the network through a simple cloud-based API.

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