[December 10, 2012]

Cyber Security for Smart Grid Industrial Control Systems Will Surpass $600 Million in Market Value by 2020, Forecasts Pike Research

Smart grid industrial control systems (ICS) remain in a state of flux. Security is still viewed as a cost-limitation exercise by many utilities, and advances toward meaningful regulations remain halting. But the utility industry as a whole appears better informed of cyber risks to grids and substations, likely portending more cyber security deployments in the next one to two years. According to a new report from Pike Research, a part of Navigant's Energy Practice, the market for smart grid ICS cyber security will reach $369 million in 2012 and grow to $608 million by 2020.

"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," says senior research analyst Bob Lockhart. "Despite the improved awareness of potential threats and risks, many utilities remain reluctant to allocate security funding beyond that needed for compliance minimums. That will change as the technology improves, prices go down, and the cost of complacency becomes more apparent."

Technological innovation in this market is stagnant, according to the report, and security vendors do not share a consistent view of this market. While many general-purpose security vendors have not yet seen the growth they had expected, vendors that specialize in control systems security are receiving more requests for proposals than ever. Vendor approaches to the market also vary: some strategically propose a full cyber security solution for an entire control network, while others take a more tactical approach and propose only solving specific problems. Whether takin a strategic or a tactical approach, vendors must orient their discussions with utilities around solving operational and business problems, not technical concepts.

The report, "Industrial Control Systems Security", examines in detail the market dynamics and most important technology issues for the emerging smart grid control systems security sector. The report profiles key providers of control systems cyber security, and provides detailed analysis of the market by smart grid application, by region, and by type of control system technology, including human-machine interfaces, control consoles, telecommunications, and device controllers. Worldwide market forecasts for 2012 through 2020, segmented by application, by technology, and by region, are also presented. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research (News - Alert)

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, "Industrial Control Systems Security," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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