One year ago, Stuxnet had just been discovered. A year’s worth of analysis still has not unlocked all its secrets but it has had a profound influence upon the smart grid cyber security market. Utilities have – as many predicted – realized that their grids are no longer isolated or protected from attackers. Smart grids need intelligence or they are not smart. Adding that intelligence to grids will increase their attack surface and utilities know this.

Market drivers have appeared or gained importance during the past year. European smart metering deployments that were in early stages a year ago are into deployment phase, even if completion dates may stretch beyond 2020. The North American Electric Reliability Corporation (NERC) has begun issuing fines for non-compliance with its CIP reliability standards. Utilities believe that they will see greater benefits from Distribution Automation than from Advanced Metering Infrastructure (AMI) and Pike Research’s forecasts indicate greater spending in that area. Much has changed for the positive. Unfortunately, one thing has not changed. Cyber security is still way behind the attackers. Even where strong countermeasures exist, they are not consistently deployed. More sophisticated attackers look at smart grids from a systemic perspective while often the defenses have been installed in piecemeal fashion, without an architecture. This hands an enormous advantage to the attackers.

This Pike Research report assesses the threats and vulnerabilities that confront smart grid technologies, to arrive at an analysis of the most significant cyber security investments and market opportunities. The report includes a detailed examination of key market drivers and barriers, along with profiles of key industry players and global forecasts, segmented by region and application area, for smart grid cyber security revenue through 2018.

Key Questions Addressed:

• What are the key smart grid cyber security risks and vulnerabilities that are not adequately mitigated?
• What are the technologies mostly like to be purchased to improve the security of smart grids?
• How large is the smart grid cyber security market opportunity through 2018?
• Which areas of the smart grid have potential for the most cyber security revenue and the highest rates of growth?
• What are the most important technology issues for smart grid cyber security?
• What are the most important market issues for smart grid cyber security?
• What are the professional services opportunities for smart grid cyber security?

Who needs this report?

• Smart grid security vendors
• Smart grid hardware and software vendors
• Systems integrators
• Security systems service providers
• Utilities
• Government agencies
• Investor community

Table of Contents

1.      Executive Summary

1.1  Introduction

1.2  Market Landscape

1.3  What Has Changed in a Year

1.4  Key Technologies for Smart Grid Cyber Security

1.5  Market Forecast

2.      Market Issues

2.1  Introduction

2.2  Smart Grid Market Segments

2.3  Smart Grid Security Overview

2.4  Transmission Upgrades

2.4.1    Description

2.4.2    Market Drivers

2.4.3    Overview of Security Issues

2.5  Substation Automation

2.5.1    Description

2.5.2    Market Drivers

2.5.3    Overview of Security Issues

2.6  Distribution Automation

2.6.1    Description

2.6.2    Market Drivers

2.6.3    Overview of Security Issues

2.7  Advanced Metering Infrastructure

2.7.1    Description

2.7.2    Market Drivers

2.7.3    Overview of Security Issues

2.8  Electric Vehicle Management Systems

2.8.1    Description

2.8.2    Market Drivers

2.8.3    Overview of Security Issues

2.9  Approach to Assessing Smart Grid Cyber Security Risks

2.10 Important Government and Regulatory Standards

2.10.1  IT Security:  ISO27002:2005

2.10.1.1  ISO 27002:2005 Control Categories

2.10.2  ICS Security:  NIST 800-82

2.10.3  Smart Grid Security:  NERC CIP Standards

2.10.4  Defense-in-Depth:  U.S. CSSP Recommended Practices

2.10.5  Data Privacy:  NISTIR 7628 Volume 2

2.10.6  Lemnos

2.10.7  German Smart Metering Protection Profile

3.      Technology Issues

3.1  Introduction

3.2  SCADA and Industrial Control Risks

3.2.1    Introduction

3.2.2    Control Centers

3.2.3    Human-Machine Interfaces

3.2.4    Telecommunications

3.2.5    Device Controllers

3.3  Other Transmission, Distribution, and Substation Risks

3.3.1    Introduction

3.3.2    Communications and Operations Risk

3.3.3    Access Control

3.3.4    Asset Risks

3.3.5    Physical and Environment

3.4  Advanced Metering Infrastructure Risks

3.4.1    Privacy and Data Protection Risks

3.4.2    Communications and Operations Risks

3.4.3    Access Control Risks

3.4.4    Asset Risks

3.4.5    Physical and Environment Risks

3.5  Electric Vehicle Charging Systems Risks

3.5.1    Privacy and Data Protection

3.5.2    Communications and Operations

3.5.3    Access Control

3.5.4    Asset Risks

3.5.5    Physical and Environment

3.6  Human Resources Risks

3.6.1    Security Awareness Program

3.6.2    Social Engineering Attacks

3.6.3    Employee Separations

3.6.4    Third-Party/Subcontractor Risks

3.7  Governance and Regulatory Compliance Issues

3.7.1    Security Organizational Issues for Smart Meters

3.7.2    Security Assessment and Policies

3.7.3    Change Management

3.7.4    Third-Party Service Provider Risks

3.7.5    AMI Governance and Regulatory Compliance Issues

3.7.6    EV Governance and Regulatory Compliance Issues

3.8  Intellectual Property Risks

3.9  Security Incident Response

3.9.1    Readiness Issues

3.9.2    Reputation Risk

3.9.3    Investigations and Cyber Forensics

3.9.4    Third-Party Managed Services

3.10  Business Continuity

3.11  Smart Grid Security – Recap of Key Opportunities

3.11.1  Top Threats that Are Insufficiently Mitigated

4.      Key Industry Players

4.1  Introduction

4.2  AlertEnterprise

4.3  AlienVault

4.4  Atos S.A.

4.5  Byres Security Inc. (Tofino)

4.6  Cisco

4.7  CoreTrace

4.8  Computer Sciences Corporation

4.9  Digital Bond Inc.

4.10  Echelon Corporation

4.11  Elster Group

4.12  Energy Sector Security Consortium Inc.

4.13  EnerNex

4.14  GE Energy

4.15  Green Hills Software

4.16  IBM

4.17  Industrial Defender Inc.

4.18  InfoLawGroup LLP

4.19  Infrax Systems

4.20  Innominate Security Technologies AG

4.21  Itron Inc.

4.22  Landis+Gyr

4.23  McAfee Inc.

4.24  Mocana Corporation

4.25  N-Dimension Solutions

4.26  NitroSecurity Inc.

4.27  OSIsoft

4.28  Revere Security

4.29  RSA, the Security Division of EMC Corporation

4.30  SAIC

4.31  Schweitzer Engineering Labs Inc.

4.32  Sensus

4.33  Sophos Ltd.

4.34  Sourcefire Inc.

4.35  Symantec Corporation

4.36  Trilliant Incorporated

4.37  Ventyx

4.38  Verizon

4.39  Waterfall Security Solutions Ltd.

4.40  Wurldtech Security Technologies Inc.

5.      Market Forecasts

5.1  Introduction

5.2  Most Promising Smart Grid Risks to Address

5.3  Market Forecast Methodology

5.4  Total Smart Grid Security Market by Region

5.4.1    Annual Revenue by Region

5.4.2    Cumulative Revenue by Region

5.4.3    Year-on-Year Market Change, Percentage

5.4.4    Total Smart Grid Security Market by Segment

5.4.5    Annual Revenue by Region

5.4.6    Cumulative Revenue by Region

5.4.7    Year-on-Year Market Change, Percentage

5.5  Total Smart Grid Security Market by ICS or IT

5.5.1    Annual Revenue by ICS or IT

5.5.2    Cumulative Revenue by Segment

5.5.3    Year-on-Year Market Change, Percentage

5.6  Market Forecasts:  North America

5.6.1    North America Forecast by Segment

5.6.2    The United States versus Canada

5.7  Market Forecasts:  Latin America

5.8  Market Forecasts:  Western Europe

5.9  Market Forecasts:  Eastern Europe

5.10 Market Forecasts:  China

5.11 Market Forecasts:  Asia Pacific except China

5.12 Market Forecasts:  the Middle East & Africa

5.13 Summary of Professional Services Opportunities

6.      Company Directory
7.      Acronym and Abbreviation List
8.      Table of Contents
9.      Table of Charts and Figures
10.    Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• SCADA System General Layout
• Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Cumulative Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Change by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, World Markets:  2011-2018
• Cumulative Smart Grid Cyber Security Revenue by Segment World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Growth by Segment, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, World Markets: 2011-2018
• Cumulative Smart Grid Cyber Security Revenue by IT or ICS, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Growth by IT or ICS, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, North America:  2011-2018
• Smart Grid Cyber Security Revenue, United States and Canada: 2011-2018
• Smart Grid Cyber Security Revenue by Segment, Latin America:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Western Europe:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Eastern Europe:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, China:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Asia Pacific except China:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Middle East & Africa:  2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, North America: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, Latin America: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, Western Europe: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, Eastern Europe: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, China: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, Asia Pacific except China: 2011-2018
• Smart Grid Cyber Security Revenue by IT and ICS, Middle East & Africa: 2011-2018

List of Tables

• Comparison of IT and ICS Security Requirements
• Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Cumulative Smart Grid Cyber Security Revenue by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Change by Region, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, World Markets:  2011-2018
• Cumulative Smart Grid Cyber Security Revenue by Segment, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Growth by Segment, World Markets:  2011-2018
• Allocation of Revenue to ICS or IT by Segment
• Smart Grid Cyber Security Revenue by IT or ICS, World Markets:  2011-2018
• Cumulative Smart Grid Cyber Security Revenue by IT or ICS, World Markets:  2011-2018
• Smart Grid Cyber Security Revenue Growth by IT or ICS, World Markets:  2011-2018
• Smart Grid Revenue by Segment, North America:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, North America:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, North America:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, North America:  2011-2018
• Smart Grid Revenue by Segment, United States:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, United States:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, United States:  2011-2018
• Smart Grid Revenue by Segment, Canada:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Canada:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Canada:  2011-2018
• Smart Grid Revenue by Segment, Latin America:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, Latin America:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Latin America:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Latin America:  2011-2018
• Smart Grid Revenue by Segment, Western Europe:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, Western Europe:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Western Europe:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Western Europe:  2011-2018
• Smart Grid Revenue by Segment, Eastern Europe:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, Eastern Europe:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Eastern Europe:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Eastern Europe:  2011-2018
• Smart Grid Revenue by Segment, China:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, China:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, China:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, China:  2011-2018
• Smart Grid Revenue by Segment, Asia Pacific except China:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, Asia Pacific except China:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Asia Pacific except China:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Asia Pacific except China:  2011-2018
• Smart Grid Revenue by Segment, Middle East & Africa:  2011-2018
• Smart Grid Cyber Security Revenue Share by Segment, Middle East & Africa:  2011-2018
• Smart Grid Cyber Security Revenue by Segment, Middle East & Africa:  2011-2018
• Smart Grid Cyber Security Revenue by IT or ICS, Middle East & Africa:  2011-2018
• Smart Grid Revenue Share, United States as a Percentage of North America:  2011-2018
• Smart Grid Revenue by Segment, Europe:  2011-2018
• Smart Grid Revenue Share, Western Europe as a Percentage of Europe:  2011-2018
• Smart Grid Revenue by Segment, Asia Pacific:  2011-2018
• Smart Grid Revenue Share, China as a Percentage of Asia Pacific:  2011-2018