Energy Security Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Solution, Service), By Technology (Physical Security, Network Security), By Power Plant (Thermal and hydro, Nuclear, Oil and gas, Renewable Energy), By Region, By Competition, 2018-2028

Market Overview

Global Energy Security Market

Key Market Drivers

Energy security refers to protecting power plants and the sources of energy generation from physical as well as cyber-attacks for the smooth functioning of the power plants for power generation. Moreover, rapid deployment of renewable energy increased energy efficiency, and diversification of energy sources, energy retailers, and types of energy machines can all result in significant energy security and economic benefits.

Increased government pressure and security compliance and regulation and increase in threats from terrorist and cyber-attacks is boosting the growth of the global energy security market. In addition, the increase in physical attacks and insider threats is positively impacting the growth of the energy security market. However, lack of apprehension about security implementation by operators is hampering the energy security market growth. On the contrary, the rise of new energy markets in developing economies is expected to offer remunerative opportunities for expansion during the energy security market forecast.

Resource Connectivity

Energy infrastructure connects various regions to energy resources, whether they are fossil fuels like oil and natural gas or renewable sources such as wind and solar. This interconnectedness ensures that energy is accessible and can be transported to where it is needed. Robust energy infrastructure enhances the reliability of energy supply. It minimizes the risk of disruptions due to equipment failures, accidents, or natural disasters. Energy infrastructure facilitates the diversification of energy sources. For example, a well-developed electrical grid can incorporate power from multiple sources, reducing dependence on a single energy type. Efficient infrastructure reduces energy losses during transmission and distribution, thereby minimizing waste and optimizing resource utilization. Modern energy infrastructure is designed to be resilient against various threats, including cyberattacks, extreme weather events, and physical security breaches. This resilience is vital for maintaining energy security.

Components of Energy Infrastructure

Energy infrastructure encompasses a wide range of components, each contributing to the overall reliability and security of the energy supply chain. Key components includeThese facilities generate electricity from various sources, such as coal, natural gas, nuclear, and renewables. Power plants are strategically located to serve regional demand. High-voltage transmission lines transport electricity over long distances from power plants to substations, reducing energy losses during transport. These facilities step down the voltage of electricity from transmission lines to distribution levels for local delivery. Low-voltage distribution networks deliver electricity to homes, businesses, and industries. Gas pipelines serve a similar function for natural gas distribution.

Storage Facilities

Energy storage, including batteries and pumped hydro storage, provides a means to store excess energy for use during high-demand periods or emergencies. These pipelines transport crude oil, natural gas, and refined products from production sites to refineries and end-users. Facilities for importing and exporting energy resources, including oil and liquefied natural gas (LNG), are critical for global energy security. Solar farms, wind turbines, and hydroelectric plants are part of the infrastructure for harnessing renewable energy sources. Advanced electrical grids equipped with digital communication and control technologies help manage and optimize the flow of electricity, improving overall efficiency and reliability.

Energy Infrastructure and Global Energy Security Market

Energy infrastructure is intrinsically linked to the global energy security market. Here's how it influences and is influenced by this marketThe development, maintenance, and expansion of energy infrastructure present significant investment opportunities for governments, private companies, and international investors. These investments contribute to the overall growth of the energy security market. The transition to cleaner and more sustainable energy sources necessitates significant changes in infrastructure. Investments in renewable energy installations, smart grids, and energy storage are crucial for achieving energy security in a low-carbon future. Energy infrastructure is a fundamental component of the global energy security market, ensuring the reliable and resilient supply of energy resources to meet the world's growing demand. It connects various energy sources to end-users, enhances reliability, and supports the transition to cleaner energy options.

While energy infrastructure faces challenges such as aging systems, cybersecurity threats, and the need for resilience against extreme weather events, it also presents significant investment opportunities and plays a pivotal role in shaping the future of energy security. As the world continues to address the complexities of energy security, investments in modernizing and expanding.

The importance of energy security

Over the last few decades, the spotlight on energy security subsided as globalized markets provided a sense of secure energy supplies. Over the past two years, many governments have faced reevaluating their approach to energy security because of skyrocketing energy prices, the cost of living challenges that followed, and the geopolitical risk associated with securing a supply of energy sources. This reassessment acknowledges that to secure public support and prevent significant economic disruptions, with the potential political consequences that could follow, the energy transition needs to be grounded in energy security, with adequate and reasonably priced supplies.

Russian invasion of Ukraine

While the Russian invasion of Ukraine in February 2022 did not initiate the current crisis of energy supply, it raised attention to the ongoing issues. The current crisis of energy supply began in the summer of 2021 when the economic recovery that came with the ending of global COVID-19 lockdowns boosted global energy consumption. Energy prices increased as demand outstripped supply in the second half of 2021 for oil, natural gas, and coal markets. The US government announced the first release from its strategic petroleum reserve in November 2021, three months before Ukraine’s invasion. It is now clear that "preemptive underinvestment" constrained the development of sufficient new oil and gas resources. Government rules and regulations, investor concerns over climate and sustainability, low profits due to two price drops in seven years, and uncertainty over future demand are a few causes of upstream underinvestment. The shortfall in investment was “preemptive” because of what was mistakenly assumed—that sufficient alternatives to oil and gas would soon be in place at scale.

Optimizing The Speed of Transition

If energy security is the first challenge of the energy transition, timing is the second. How quickly can the energy transition proceed? There is intense pressure to move a significant part of the 2050 carbon emission target of the Paris Agreement on climate change to 2030, but the scale of the change should not be underestimated.

All previous energy transitions were not a product of policy initiatives, but economic and technological advantages of new sources of energy. Each of the preceding energy transitions unfolded over a century or more, and none were the type of transition currently envisioned. This transition's goal is to completely alter the energy foundations of the current USD 100 trillion global economy in less than 25 years. Further research is necessary to fully understand the macroeconomic impact of a change of this size and scope

Key Market Challenges

Lack of Technical Expertise

Challenges Facing Energy Infrastructure

Despite its importance, energy infrastructure faces various challenges that can impact energy securityMany countries have aging energy infrastructure that requires significant upgrades and maintenance to ensure reliability and safety. As energy infrastructure becomes more connected and digitalized, it becomes vulnerable to cyberattacks. Protecting critical infrastructure from cyber threats is a top priority. Increasingly frequent and severe weather events, such as hurricanes and wildfires, pose risks to energy infrastructure. Resilience planning is essential to mitigate these threats. Changes in government policies and regulations can affect the planning and financing of energy infrastructure projects, impacting their feasibility and profitability.

Fossil Fuel Dependency

Many regions still heavily rely on fossil fuels, making them vulnerable to price fluctuations and supply disruptions. Transitioning to renewable energy sources often requires significant investments in new infrastructure, such as transmission lines and storage facilities. Infrastructure projects, especially those related to fossil fuels, face opposition from environmental groups, which can lead to delays and increased costs.

Key Market Trends

Increasing focus on renewable energy

Renewable Energy TransitionA significant trend in the energy security market is the transition towards renewable energy sources. Governments and industries worldwide are investing heavily in wind, solar, hydro, and other renewables to reduce dependence on fossil fuels. This transition enhances energy security by diversifying energy sources and reducing greenhouse gas emissions.

Decentralization and Distributed Energy Resources

The rise of decentralized energy systems, including microgrids and distributed energy resources like rooftop solar panels, is increasing energy resilience. These systems allow local generation and distribution, reducing vulnerability to centralized grid failures and enhancing energy security.

Resilience and Grid Modernization

Resilience planning and grid modernization efforts are increasing to mitigate the impact of extreme weather events, cyberattacks, and physical security threats on energy infrastructure. Enhanced resilience measures are integral to energy security. Energy efficiency remains a key trend in the energy security market. Improving the efficiency of industries, buildings, and transportation reduces energy consumption and dependency on external energy sources, enhancing overall security.

Geopolitical Shifts

Geopolitical dynamics continue to impact global energy security. The diversification of energy sources, reducing reliance on politically unstable regions, and diplomatic efforts to secure energy resources are ongoing trends in this context. Addressing climate change concerns is intrinsically linked to energy security. Policies and initiatives aimed at reducing carbon emissions through cleaner energy sources and technologies are shaping the market's direction.

International Collaboration

Collaborative efforts among nations, such as joint ventures in energy projects, cross-border energy infrastructure, and international energy agreements, are strengthening global energy security by ensuring stable resource supplies. Ensuring equitable access to energy resources, particularly in underserved regions, is a growing trend. Expanding access to reliable and affordable energy contributes to global energy security and economic development.

Energy Storage Revolution

Segmental Insights

Component Insights

On the basis of component, the market is categorized into solution and service. On the basis of technology, the market is fragmented into physical security, and network security. On the basis of power plant, it is classified into thermal and hydro, nuclear, oil and gas, and renewable energy. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Regional Insights

The North America region has established itself as the leader in the Global Energy Security Market with a significant revenue share in 2022

Energy infrastructure is a fundamental component of the global energy security market, ensuring the reliable and resilient supply of energy resources to meet the world's growing demand. It connects various energy sources to end-users, enhances reliability, and supports the transition to cleaner energy options. While energy infrastructure faces challenges such as aging systems, cybersecurity threats, and the need for resilience against extreme weather events, it also presents significant investment opportunities and plays a pivotal role in shaping the future of energy security. As the world continues to address the complexities of energy security, investments in modernizing and expanding.

Recent Developments

• In January 2020, the government of California launched Consumer Privacy Act, and additional governments across the world formalized requirements for how businesses can collect data from visitors on their digital products. As a result, marketers are having to do more personalization with less personal data. In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that participate in their operations.
• The Massachusetts Data Security regulations are majorly focused on security purpose and increasing the privacy of big data analytics. Europe is set to take the advantage of AI for providing data protection facilities to different organizations. For instance, the European Government adopted the new General Data Protection Regulation (GDPR). The act seeks to regulate the collection, storage, and processing of information about individuals.

Key Market Players

• Siemens AG
• Lockheed Martin Corporation
• Thales
• Teledyne FLIR LLC
• AEGIS Security & Investigations
• BAE Systems plc
• Honeywell International Inc
• Hexagon ab