US Smart Grid Security Market Analysis & Forecast (2020-2035)
The US smart grid security market is rapidly evolving as utilities and energy companies leverage advanced digital technologies to manage and modernize the nation’s power infrastructure. As the grid becomes smarter and more connected, the need for robust cybersecurity solutions has grown, driven by the expanding attack surface and the proliferation of IoT devices. Market players are investing in next-generation security tools to safeguard against rising cyber threats, while increasing adoption of cloud-based platforms and regulatory compliance requirements further strengthen the market dynamics. By 2025, the US market is poised for robust growth, supported by innovations in energy management, distributed energy resources, and large-scale smart meter deployments.
Latest Market Dynamics
Key Drivers
Rising threat of cyber-attacks against grid infrastructure: In 2025, the proliferation of ransomware and state-sponsored cyberattacks continues to elevate the urgency to adopt advanced security protocols; major players like Siemens AG have expanded their grid resilience portfolios with AI-driven detection and response solutions.
Regulatory mandates for critical infrastructure protection: Stringent guidelines from US federal agencies, including NERC CIP requirements, compel utilities to invest in comprehensive cybersecurity frameworks, with ABB Ltd incorporating compliance-centric security features in their latest offerings.
Key Trends
AI and ML in grid security: The integration of artificial intelligence and machine learning is enabling early threat detection and automated defenses, with IBM Corporation’s 2024 launch of grid-focused AI cybersecurity platforms leading sector innovation.
Cloud-based security solutions: Migration of grid management applications to the cloud continues, as General Electric Company and Cisco Systems Inc. roll out scalable, secure cloud-native solutions designed specifically for distributed utility networks.
Key Opportunities
Investment in advanced endpoint and IoT security: Growing numbers of smart meters, sensors, and field devices create vast opportunities for companies like Honeywell International Inc., which is pioneering endpoint protection technologies purpose-built for smart grid applications.
Expansion in energy management and home automation: Schneider Electric SE and Leidos Holdings, Inc. are accelerating the integration of security in home energy management and distributed grid architectures, capturing emerging market demand for decentralized protection.
Key Challenges
Complexity of integrating legacy and modern systems: Utilities face persistent challenges in securing mixed-technology environments, as Symantec and McAfee focus on hybrid frameworks to bridge legacy and digital assets.
Shortage of skilled cybersecurity professionals: The sector grapples with a talent gap, prompting BAE Systems plc and IBM to expand training and managed security service offerings tailored for the utility sector.
Key Restraints
High costs of deployment and maintenance: Smaller utilities and municipal providers cite budgetary constraints, as N-Dimension Solutions and AlertEnterprise aim to deliver cost-effective, modular solutions.
Fragmented vendor landscape and interoperability issues: Multiple proprietary systems hinder seamless integration, prompting efforts among vendors like Darktrace and IOActive to champion open standards and collaborative security ecosystems.
In 2025, Network Security dominates the US smart grid security landscape, accounting for the largest market share due to the increasing need to protect critical communications and secure data transmission in distributed energy networks. Endpoint Security follows, fueled by the surge in connected devices from advanced metering infrastructure and field automation. Application Security’s importance grows, reflecting investments in protection of grid management applications and real-time SCADA controls. Database Security and Other types round out the market, as utilities expand data protection efforts and adopt specialized solutions for unique operational challenges.
US Smart Grid Security Market Share by Applications, 2025
Energy Management Systems hold the highest market share in application segments, given utilities’ focus on operational optimization and grid reliability. Smart Metering is a close second due to the exponential growth in AMI deployment nationwide. Substation Automation and Smart Distribution Management continue to gain traction, reflecting the need to secure critical nodes and ensure visibility across grid layers. Home Energy Management and Others constitute emerging opportunities, as increased consumer engagement and smart home integrations drive fresh demand for application-centric security.
US Smart Grid Security Market Revenue (USD Million), 2020-2035
The US smart grid security market is witnessing robust revenue growth over the forecast period, rising from $1,140 million in 2020 to an estimated $2,730 million in 2025, and projected to reach $5,950 million by 2035. This trajectory reflects heightened investment in cybersecurity infrastructure, regular upgrades to meet compliance, and steady adoption of advanced technologies such as AI, cloud, and IoT across utility and distributed grid environments. Revenue momentum is further stimulated by evolving regulatory requirements, public-private partnerships, and increased attention to protecting both legacy and next-generation grid assets.
US Smart Grid Security Market Year-on-Year Growth (%), 2020-2035
Year-on-year growth for the US smart grid security market remains healthy, averaging 13.2% between 2020 and 2025 before moderating to 10.4% by 2030 and reaching 8.6% in 2035. Early high growth rates are driven by accelerated grid modernization and cybersecurity investments, with subsequent stabilization as the market matures and base sizes increase. Cyclical surges align with regulatory updates, rollout of key infrastructure projects, and technological breakthroughs, cementing the market’s role in supporting the nation’s critical energy resilience.
US Smart Grid Security Market Share by Region, 2025
The Northeast region leads in market share of US smart grid security, accounting for 34% in 2025, due to aggressive utility investment, high grid digitization, and adoption of stringent cybersecurity frameworks. The West region attributes to 28%, propelled by California and the Pacific Northwest’s grid modernization efforts and clean energy transition. The South and Midwest contribute 21% and 17%, respectively, driven by smart metering initiatives and the growing importance of resilience against natural disasters and grid threats in these regions.
US Smart Grid Security Market Share by Major Players, 2025
Siemens AG continues as the market leader with 18% of the US smart grid security share, thanks to its comprehensive end-to-end grid resilience suites and extensive partnerships with US utilities. ABB Ltd and General Electric Company both command 15% and 12% respectively, driven by their advanced threat detection, automation, and cloud-based security platforms. Cisco Systems Inc. and IBM Corporation capture 10% and 9% respectively, by delivering robust network defenses and AI-powered grid security analytics. Other notable players together occupy the remaining 36%, including Honeywell, Schneider Electric, Leidos, and Darktrace.
US Smart Grid Security Market Share by Buyers, 2025
Large utilities make up the largest buyer segment in the US smart grid security market for 2025, holding nearly 42% share as they lead nationwide deployments of advanced grid and security systems. Municipals and cooperatives account for 24%, leveraging federal grants and partnerships for modernization. Independent power producers and grid operators contribute to 20% and 9% respectively, while home energy management and others comprise the final 5%. This distribution highlights the market’s bias toward large-scale and regulated grid operators as the prime adopters of comprehensive security measures.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
USD Million
Regions
Northeast, West, South, Midwest
Segments
Type: Network Security, Endpoint Security, Application Security, Database Security, Others; Application: Energy Management Systems, Smart Metering, Smart Distribution Management, Substation Automation, Home Energy Management, Others
June 2024: IBM Corporation introduced a new AI-powered threat detection module specifically designed for utility grids, enabling automated incident response and real-time anomaly identification.
July 2024: Siemens AG completed a partnership with a major US utility to deploy its next-generation grid security analytics platform across multiple states, enhancing situational awareness and risk response.
August 2024: Honeywell International Inc. launched a new endpoint security solution targeting AMI and field devices, improving protection from ransomware and remote intrusion attempts.
September 2024: Cisco Systems Inc. announced the rollout of its cloud-native security suite for distributed energy providers, streamlining integration with both legacy and modern grid infrastructure.
October 2024: ABB Ltd integrated advanced regulatory compliance features into its smart grid security solutions, addressing new NERC CIP mandates and streamlining audits for large US utilities.
Frequently Asked Questions
About the Author
Ankita R
Lead Industry Analyst
Ankita R is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Automotive & Transportation. Ankita R brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankita R has helped organizations translate data into actionable growth strategies.
