IoT Supply Chain Adoption in Energy Sector Drives Cloud Security Market: Report

by Ruth Seeley

New energy sector operational technologies mean physical processes across the oil and gas sectors can be easily monitored. Variable data, such as temperatures, pressures, levels, and valve positions, is readily available for analysis. But while this simplifies facilities management, it makes process control systems vulnerable to cyber attacks.

With the increased adoption of IoT and automation and industry 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.

While use of the cloud in the energy sector creates solutions by locating remote servers and using web-based technology to manage data and multiple applications, the data increasingly has to be secured from cyber attacks that can shut down a service or hamper critical documents.

A new report from Research and Markets identifies key market trends in cloud security for this sector. As part of a nation’s critical infrastructure, utilities and energy organizations are high-profile targets for cyber terrorists and hackers alike. 

Cyber-attacks have the potential to severely impact power grids, making multi-layered protection vital for securing the smart grid end-to-end. Regulatory compliance, new NIST, IEC, and ISO standards, and preparing for security audits are forcing extensive changes in the overall utility security framework.

Moreover, according to 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.

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 are 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 are 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.

The cloud security market in the energy sector is expected to register a CAGR of 11.2% between 2019 and 2024.

For more information about this report, click here.

Source: Research and Markets

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