Energy security market seen hitting $42 billion by 2031

Allied Market Research says the global energy security market was worth $15.6 billion in 2021 and is projected to reach $42 billion by 2031. The forecast points to rising cyber and physical threats, tighter regulation and faster adoption of security systems across energy infrastructure. Why it matters: - Energy security is becoming a bigger priority as utilities and energy operators face cyberattacks, physical attacks and insider threats. - The market forecast signals growing spending on systems designed to protect energy infrastructure and help manage sudden shifts in supply and demand. - The report projects a 10.5% compound annual growth rate from 2022 to 2031. What happened: - Allied Market Research released a report on the global energy security market. - The report values the market at $15.6 billion in 2021. - The report forecasts the market will reach $42 billion by 2031. - The report covers technology trends, regional demand and key competitors in the sector. - A sample of the report is available here . The details: - Energy security is described as a cybersecurity defense practice that uses traps and decoys to imitate real assets and mislead attackers inside a network. - The goal is to stop intruders from causing major damage after they enter a system. - The market is also tied to tools that help energy systems respond quickly to changes in supply and demand. - Government pressure, security compliance rules and regulations are supporting market growth. - Rising threats from terrorist attacks and cyberattacks are also supporting demand. - Physical attacks and insider threats are adding to adoption. - A lack of awareness among operators about security implementation is limiting growth. - New energy markets in developing economies are creating expansion opportunities. - By technology, physical security held the largest share in 2021 because of strong demand and fast adoption of physical security systems. - Network security is expected to grow the fastest during the forecast period because current threats can create cyber risk. - By region, North America led the market in 2021 and is expected to keep that lead. - Asia-Pacific is expected to post strong growth because of infrastructure upgrades and changes to export policies. - The report says the COVID-19 outbreak hurt market growth, but the industry is expected to recover by the third quarter of 2022. - The recovery is linked to investment in IoT, smart technologies and government smart city programs in Asia-Pacific, including China and India. - The report also points to broader adoption of cloud, artificial intelligence and IoT. - Retail, manufacturing and automotive sectors are expected to increase investment as energy security becomes more important across business functions. - Public and private entities are expected to build shared data ecosystems under a common regulatory and cybersecurity framework. - The report lists thermal and hydro power plants as the highest-revenue segment in 2021. - Complete purchasing information is available here . - More details are available through a purchase inquiry here . Between the lines: - The forecast suggests energy security is moving from a niche safeguard to a broader infrastructure spending category. - The strongest growth appears to be coming from network defenses, which track the expanding attack surface across connected energy systems. - North America’s lead and Asia-Pacific’s growth outlook point to a market split between mature infrastructure and faster modernization. What’s next: - The report expects developing economies and digital infrastructure upgrades to support future market expansion. - Wider use of cloud, AI and IoT should keep security needs tied closely to energy modernization. - Competition among major consulting, software and industrial technology firms is likely to stay active as the market scales.