Cloud Security Market in Energy Sector Market Size

Energy Sector Cloud Security Market Analysis

The Cloud Security Market in Energy is expected to grow from USD 1.36 billion in 2024 to USD 2.19 billion by 2029, at a CAGR of 10% during the forecast period (2024-2029).

Considering that nations want to reduce their carbon impact and switch to renewable energy sources, the energy sector is in the midst of a major transformation. The need to reduce greenhouse gas emissions, the falling cost of renewables, and the adoption of new technologies, such as smart grids, have increased the demand for storing, managing, and analyzing data. Energy firms have greatly benefited from using cloud technology to collect and utilize this data. Utility companies are collaborating with various cloud computing firms to provide security for this important data.

• According to Gartner, by 2024, cloud computing will account for more than 45% of IT spending on system infrastructure, infrastructure software, application software, and business process outsourcing. According to a recent Deloitte report, 83% of energy and utility companies either use cloud services or want to do so within the next two years. Many variables, such as greater agility and flexibility, lower capital expenditure (CapEx) costs, and enhanced operational efficiency, drive the use of clouds in the energy and utilities sector.
• Security becomes paramount when the systems are accessed outside the office premises. Legacy equipment is one of the main challenges of the energy sector. Operational Technology (OT) networks are becoming more connected because they are typically constructed using equipment over 15 years old. Security issues arise due to the fusion of the IT (Information Technology) and OT environments.
• The Covid-19 pandemic was the most important time for Cloud Storage as a revolutionary technology, further driving the demand for cloud security services. For power plants accessing the systems securely from remote locations became essential. Some companies switched to digital solutions like Zero Trust architecture, which provided security teams with greater contextual information by combining feeds from various places on a single dashboard in real time.
• April 2022 - Bharat Petroleum Corporation (BPCL) signed a contract with Microsoft that will give BPCL the intelligence to revamp its operations, create smarter supply chains, and boost customer engagement. Microsoft will provide network and security services to the organization in this seven year deal.