With growing risk of cyber attack on grids and substations, the market for smart grid ICS cyber security is expected to reach $608m by 2020 rising from $369m in 2012, according to a new report by Pike Research.
According to the report the smart grid industrial control systems (ICS) remain in a state of flux and security of the system is considered by utilities a cost-limitation exercise.
But the report revealed that the utilities are now seems to be better informed about risks of cyber security and expected to invest in security infrastructure in the next one to two years.
Pike Research senior research analyst Bob Lockhart said the shallow growth curve for ICS cyber security through the remainder of the decade reflects utilities' historically measured approach to technology upgrades -- the focus on reliability trumps any abrupt shift to the next great thing.
"Despite the improved awareness of potential threats and risks, many utilities remain reluctant to allocate security funding beyond that needed for compliance minimums," Bob Lockhart said.
"That will change as the technology improves, prices go down, and the cost of complacency becomes more apparent."
According to the report, the technological innovation in this market is stagnant and the vendors operating in the market do not share a consistent view of this market.