$2 Billion To be Spent On Smart Grid Security by 2016

According to research firm ABI Research an estimated $590 million was spent on smart grid security technologies in 2010. They are projecting that by 2016 the amount will surpass $2 billion. In 2011, security spending on transmission upgrades made up the largest portion of smart grid spending; approximately 54%. ABI expects security spending to maintain this trend over the next five years.

"There has been an enormous focus on smart grid security, particularly over the last two to three years. As well as providing security protection against physical and cyber-attacks on the smart grid, utilities are spending significant amounts of money on closed-circuit television (CCTV) surveillance and security software," said senior analyst Josh Flood.

Smart grid security covers identity management and access controls, threat and theft defense, industrial control system security, smart grid cellular communications, physical safety and security, and other security types.

The report identifies all the smart grid security risk types, current government and electric regulatory body legislations, and offers forecasts for the spending on key segments on the smart grid and risk types that support and enable the development of smart grids.

Of all the segments Electric vehicle (EV) charging stations are projected to see the highest security growth rates growing from $6 million this year to $150 million by 2016. Smart Meters are expected to face the similar security risk as EV charging stations, such as data protection and tampering. However, the biggest areas of development in the security arena will be EV authentication of vehicles and physical security features.

source: ABI Research