Cloud Security in Energy Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Solution Type (Identity and Access Management, Data Loss Prevention, IDS/IPS), By Security Type (Application, Security, Database Security, Endpoint Security, Network Security, Web & Email Security), By Service Model (IaaS, PaaS, SaaS), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By Region, By Competition. 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.31 Billion
CAGR (2026-2031)	11.07%
Fastest Growing Segment	Database Security
Largest Market	North America
Market Size (2031)	USD 2.46 Billion

Market Overview

The Global Cloud Security in Energy Market will grow from USD 1.31 Billion in 2025 to USD 2.46 Billion by 2031 at a 11.07% CAGR. Cloud security in the energy sector encompasses the technologies and policies deployed to protect cloud infrastructure, applications, and data across oil, gas, and utility operations. The primary drivers supporting market growth include the rapid digitalization of power grids and the increasing requirement for remote management of distributed renewable energy assets. Additionally, stringent regulatory mandates for critical infrastructure protection compel organizations to adopt resilient cloud defense measures. According to the International Energy Agency, in 2024, the frequency of cyberattacks against energy utilities had tripled over the previous four years, highlighting the urgent need for enhanced security protocols.

A significant challenge impeding market expansion involves the difficulty of integrating modern cloud security solutions with legacy operational technology. Energy providers often utilize aging industrial control systems that are not natively compatible with cloud environments, leading to potential security gaps and operational instability during migration. This interoperability issue, combined with rigorous data sovereignty requirements, often causes hesitation and delays the comprehensive adoption of cloud security frameworks within the industry.

Key Market Drivers

Escalating frequency and sophistication of cyberattacks on critical energy infrastructure is a primary catalyst propelling the global cloud security in energy market. As energy providers digitize their operations, they expose previously isolated operational technology (OT) to diverse web-based threats, making them attractive targets for ransomware and state-sponsored espionage. This intensified threat landscape forces utilities to implement robust cloud-based defense mechanisms capable of protecting interconnected assets. The scale of this vulnerability is evident in recent data; according to Zscaler, July 2025, in the 'ThreatLabz 2025 Ransomware Report', ransomware attacks specifically targeting the oil and gas industry surged by 935.3% year-over-year. Such alarming statistics underscore the immediate necessity for advanced security postures, as the broader industrial sector also faces heightened risks. According to Dragos, in 2025, ransomware incidents targeting industrial organizations increased by 87% during the previous year, further validating the urgent market demand for comprehensive protection.

The adoption of AI-driven threat detection and automated incident response systems is another pivotal factor shaping market dynamics. To counter high-velocity cyber threats, energy companies are increasingly integrating artificial intelligence into their cloud security architectures to enable real-time anomaly detection and predictive maintenance. These technologies allow operators to monitor vast amounts of data from smart grids and IoT devices, identifying potential breaches before they cause physical disruption. This technological shift is reflected in strategic spending priorities; according to DNV, January 2025, in the 'Energy Cyber Priority 2025' report, 80% of energy professionals now identify artificial intelligence and machine learning as key opportunities for investment over the next three years. This trend highlights a sector-wide transition from reactive measures to proactive, automated defense strategies powered by secure cloud platforms.

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Key Market Challenges

The integration of modern cloud security solutions with legacy operational technology presents a formidable barrier to the growth of the Global Cloud Security in Energy Market. Energy providers frequently operate on aging industrial control systems designed decades ago, which lack native compatibility with contemporary cloud environments. This fundamental mismatch creates significant interoperability issues, leading to potential operational instability and critical security gaps during migration efforts. Consequently, organizations often delay transitioning to the cloud, fearing that retrofitting these brittle legacy systems will disrupt essential power generation and distribution services.

According to the SANS Institute, in 2024, 65% of respondents identified the technical integration of aging ICS/OT technology with modern IT systems as a significant hurdle. This statistic underscores the magnitude of the problem, as the complexity of bridging the gap between antiquated hardware and advanced cloud protocols stalls the deployment of comprehensive security frameworks. As a result, the energy sector experiences slower adoption rates for cloud security compared to other industries, directly hampering the overall expansion of the market.

Key Market Trends

Increased focus on software supply chain risk management is fundamentally reshaping security strategies within the energy sector, as organizations recognize that their defenses are only as strong as their most vulnerable vendor. Energy providers are aggressively implementing rigorous third-party assessment protocols to mitigate the risks posed by compromised software updates and external IT service providers, which have become preferred vectors for indirect attacks on critical infrastructure. This strategic pivot addresses the growing reality that adversaries are bypassing direct perimeter defenses by exploiting trusted supplier connections. The scale of this dependency risk is highlighted by recent industry findings; according to SecurityScorecard, October 2024, in the 'Quantitative Analysis of Cyber Risks in the U.S. Energy Supply Chain' report, 67% of third-party breaches in the energy sector were attributed to software and IT vendors, a figure significantly higher than the global average.

Simultaneously, the convergence of IT and operational technology (OT) security environments has emerged as a critical trend to eliminate visibility gaps between corporate networks and industrial control systems. As operational assets become increasingly connected to the cloud for efficiency, energy companies are moving beyond siloed monitoring to establish unified security operations centers capable of tracking threats across both environments. This holistic approach is essential to prevent lateral movement by attackers who exploit the expanding connectivity between administrative and control layers. The urgency of this integration is driven by heightened industry awareness of physical risks; according to DNV, January 2025, in the 'Energy Cyber Priority 2025' report, 71% of energy professionals now acknowledge that their organizations are more vulnerable to operational technology cyber events than ever before.

Segmental Insights

Based on recent market research, the Database Security segment is recognized as the fastest-growing category within the Global Cloud Security in Energy Market. This rapid expansion is primarily driven by the energy sector's aggressive digital transformation, specifically the exponential increase in data generated by smart grids, IoT devices, and advanced metering infrastructure. As energy organizations migrate these massive, critical datasets to cloud environments, securing the underlying databases against sophisticated cyber threats becomes a top priority. Furthermore, stringent compliance mandates from regulatory bodies such as the North American Electric Reliability Corporation (NERC) compel utility providers to implement robust database protection measures to safeguard sensitive operational and customer information.

Regional Insights

North America maintains a dominant position in the Global Cloud Security in Energy Market, primarily driven by the region's accelerated digital transformation and stringent regulatory landscape. Energy utilities across the United States and Canada are actively modernizing infrastructure through smart grids and IoT integration, which necessitates robust cloud-based protection. This adoption is heavily reinforced by mandatory compliance frameworks, most notably the Critical Infrastructure Protection standards established by the North American Electric Reliability Corporation (NERC). These regulations compel energy providers to invest in advanced security architectures, ensuring the resilience of the bulk power system against evolving cyber threats.

Recent Developments

• In December 2025, NextEra Energy and Google Cloud announced a strategic partnership to accelerate the deployment of artificial intelligence and cloud technologies across the energy sector. The collaboration involves developing gigawatt-scale data center campuses supported by new renewable energy capacity. The companies also plan to transform NextEra Energy's operations by utilizing Google Cloud's AI infrastructure and data analytics to optimize grid management and field operations. This initiative aims to enhance the reliability and resilience of the electric grid while supporting the growing power demands of AI technologies. The partnership highlights the increasing convergence of the energy and technology sectors to drive digital transformation and sustainability.
• In November 2024, GE Vernova expanded its strategic collaboration with Amazon Web Services (AWS) to deliver its Asset Performance Management and emissions data management software via the cloud. This multi-year agreement allows energy companies to leverage AWS’s secure cloud infrastructure to monitor assets, predict equipment failures, and optimize operations for better efficiency. By migrating these critical industrial applications to the cloud, GE Vernova aims to help utilities and power producers accelerate their digital transformation and decarbonization goals. The partnership underscores the importance of secure, scalable cloud solutions in managing the complex data requirements of the modern energy grid and facilitating the transition to renewable energy sources.
• In August 2024, Palo Alto Networks and SLB entered into a significant partnership to strengthen cybersecurity defenses within the energy sector. The collaboration integrates Palo Alto Networks’ cybersecurity platforms with SLB’s cloud and edge technologies to provide robust protection for digital infrastructure in the oil and gas industry. By adopting these advanced security solutions, SLB aims to secure its digital ecosystem, including the Delfi digital platform, against evolving cyber threats. The initiative addresses the critical need for comprehensive security measures as energy companies increasingly digitize their operations. This alliance demonstrates a proactive approach to safeguarding critical energy assets and data from sophisticated cyberattacks.
• In June 2024, Claroty launched the next evolution of its cyber-physical systems protection platform, offering enhanced visibility and threat detection capabilities for industrial environments. The updated platform includes the cloud-based xDome solution, which is designed to secure mission-critical infrastructure by managing exposure and protecting networks against cyber risks. This launch addresses the growing challenge of securing connected devices in the energy and industrial sectors, where the convergence of IT and operational technology creates new vulnerabilities. The platform empowers organizations to operationalize in-depth insights about their environments, enabling them to identify and mitigate risks effectively. This development reflects the market's shift towards holistic, cloud-supported security strategies for protecting cyber-physical systems.

Key Market Players

• Microsoft Corporation
• Cisco Systems, Inc.
• International Business Machines Corporation
• Symantec Corporation
• McAfee, LLC
• Palo Alto Networks, Inc.
• Fortinet, Inc.
• Trend Micro Incorporated
• Check Point Software Technologies Ltd.
• Sophos Ltd.

By Security Type	By Service Model	By Deployment Type	By Region
Application Security Database Security Endpoint Security Network Security Web & Email Security	IaaS PaaS SaaS	Public Cloud Private Cloud Hybrid Cloud	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cloud Security in Energy Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cloud Security in Energy Market, By Security Type:

• Application
• Security
• Database Security
• Endpoint Security
• Network Security
• Web & Email Security

• Cloud Security in Energy Market, By Service Model:

• IaaS
• PaaS
• SaaS

• Cloud Security in Energy Market, By Deployment Type:

• Public Cloud
• Private Cloud
• Hybrid Cloud

• Cloud Security in Energy Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE