According to a new market research report on the global utilities security market, the sector generated $7.3 billion in 2022 and is estimated to reach $31.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.9% over the forecast period.
The report, from Allied Market Research, says that a surge in evolving cyber-threats will drive the market growth.
The cybersecurity segment held the major share of this market in 2022, garnering more than two-fifths of the global utilities security market revenue and is expected to showcase the fastest CAGR of 17.9% during the forecast period.
Some of the leading market players highlighted by the report include Honeywell International, IBM, Thales, Fortinet, Johnson Controls and more.
The market research reveals that by region, North America garnered the highest share of the market in 2022, holding more than one-third of the global utilities security market revenue.
The region is predicted to retain its dominance by 2032, owing to the growing demand for strong security measures to safeguard vital infrastructure and assets in the utilities sector, such as power plants, substations, transmission lines and distribution networks.
The report also highlights that by deployment mode, the on-premise segment accounted for more than half of the global utilities security market share in 2022 and is projected to continue to rule the market by 2032.
This is due to the need to safeguard vital infrastructure and the ever-growing threat landscape that have forced utilities to implement on-premise security measures, which propels the market growth significantly.
However, the cloud segment is projected to display the fastest CAGR of 17.2% throughout the forecast period, owing to organizations having to quickly adjust to evolving security requirements and the scalability and flexibility of cloud-based solutions.
By end user, the oil and gas segment accounted for more than half of the global utilities security market share in 2022 and is expected to continue to dominate the market by 2032, the report highlights.
To ensure reduced risk and guaranteed timely and efficient reaction in case of a crisis, thorough risk assessments and emergency response plans are created, which propels market growth significantly.