Cloud Security Market in Energy Sector Market Trends

Market Trends of Cloud Security Industry in Energy Sector

Increasing Number of Cyber Attacks to Drive the Need for Cloud Security in the Energy Sector

• Companies in the energy sector frequently have to manage thousands of different suppliers, operate in many locations, and source their products from other continents. This makes them a prominent target for both hackers and cyber terrorists. To ensure the appropriate level of security, companies must monitor the vulnerabilities in their products during their entire lifecycle and adhere to the most recent standards and regulations.
• A cyber attack can cost a lot of money and lead to power disruptions or the leaking of confidential customer data. This could significantly affect the company's business operations and those who depend on its services. By hiring a cybersecurity company, Energy firms can encrypt sensitive data and train employees on how to protect from malicious attacks.
• In february 2022, the disruption at Oiltanking in Germany, SEA-Invest in Belgium, and Evos in the Netherlands affected dozens of terminals with oil storage and transport worldwide. These cyber-attacks compel companies to operate at a limited capacity, giving rise to supply chain issues.
• Further, in April 2022 - Oil India suffered a cyberattack disrupting its operations in Assam. The cyberattack occurred at one of the workstations of OIL's Geological and Reservoir department (Oil India Ltd.). The cyberattacker demanded USD 7.5 million as a ransom through a note from the infected PC. However, the drilling and production work was unaffected. Source: https://www.mordorintelligence.com/industry-reports/cloud-security-in-energy-sector-industry
• Moreover, in November 2023, Nasuni, one of the leading hybrid cloud storage solutions, announced a strategic partnership with Cegal, one of the global leaders of digital solutions for the energy industry. Energy Organizations Increasingly Rely on Nasuni for Accelerating Cloud Transformations, Modernizing File Data Architectures and Enhanced Cyber Resiliency Nasuni and Cegal are assisting organizations to accelerate their cloud transformations by providing the technology infrastructure and expertise needed to manage and protect data at scale from any location.

Europe is Expected to Witness the Highest Growth

• Public agencies and the European government had to adapt their organizations to meet the increased demand for online services. This created a demand for cloud computing technologies that led infrastructure and services essential for staying competitive in a hypercomplex global economy.
• The European energy system needs to undergo a significant transition, with digitalization playing a pivotal role, in addressing the climate issue and reduce the EU's reliance on Russian fossil fuels. To support these developments, European Union formed a Smart Energy Expert Group to support the development and rolling out of a common European data space for energy.
• 51% of all EU households and SMEs are equipped with smart electricity meters, and various policies have been introduced to guide the digitalization of energy as issues like security, privacy, and consumer protection. In consultation with Network and Information Security Group (NIS), the Commission will identify the specific ICT services, systems, and products that might be subjected to coordinated risk assessments with priority.
• The UK experienced the warmest summer in 2022, and the extreme weather caused temporary failures at Oracle and Google Cloud's data centers in London. Water scarcity and energy insecurity made data center operators uneasy, which affected cloud computing operations. To overcome these uncertainties, EC plans an investment of USD 620 billion in the electricity grid, including USD 180.4 billion in digitalization.