Artificial Intelligence (AI)-Driven Smart Grid Intrusion Detection Market Report 2026

The artificial intelligence (ai)-driven smart grid intrusion detection market size has grown rapidly in recent years. It will grow from $2.11 billion in 2025 to $2.52 billion in 2026 at a compound annual growth rate (CAGR) of 19.4%. The growth in the historic period can be attributed to expansion of smart grid infrastructure, rising cyberattack incidents on utilities, adoption of digital substations, increasing connectivity of grid assets, early implementation of network security solutions.

The artificial intelligence (ai)-driven smart grid intrusion detection market size is expected to see rapid growth in the next few years. It will grow to $5.13 billion in 2030 at a compound annual growth rate (CAGR) of 19.4%. The growth in the forecast period can be attributed to increasing investments in critical infrastructure cybersecurity, rising adoption of ai-driven threat intelligence, expansion of distributed energy resources, growing regulatory focus on grid security compliance, increasing deployment of advanced analytics platforms. Major trends in the forecast period include increasing deployment of ai-based intrusion detection platforms, rising integration of real-time grid monitoring systems, growing adoption of cloud-based security analytics, expansion of machine learning threat detection models, enhanced focus on grid cyber resilience.

The rising cybersecurity threats are expected to drive the growth of the artificial intelligence (AI)-driven smart grid intrusion detection market in the coming years. Cybersecurity threats are malicious actions or events aimed at compromising the confidentiality, integrity, or availability of digital systems, networks, or data. The increase in these threats is largely due to greater digitalization, which expands the attack surface by placing more data, systems, and services online, making them vulnerable to malicious actors. AI-driven smart grid intrusion detection helps address these threats by continuously monitoring the grid, detecting anomalies in real time, and preventing potential attacks before they disrupt critical infrastructure. For example, in November 2023, the Australian Signals Directorate reported that nearly 94,000 cybercrime reports were submitted during the 2022-23 financial year, marking a 23% increase from the previous year, with an average of one report received every six minutes. This surge in cybersecurity threats is thus propelling the market growth.

The rising number of connected devices is anticipated to drive the expansion of the artificial intelligence (AI)-driven smart grid intrusion detection market in the coming years. Connected devices are physical objects equipped with sensors, software, and other technologies that allow them to gather and share data over the internet. The growth of connected devices is mainly fueled by advancements in communication technologies, enabling faster, more reliable, and seamless data transfer across networks. AI-driven smart grid intrusion detection supports connected devices by continuously monitoring network activity to detect and respond to potential security threats in real time, ensuring safe and reliable operation. For example, in July 2025, the European Commission, a Belgium-based governing body, reported that in 2023, approximately 40 billion IoT-connected devices were installed, with projections reaching 49 billion by 2026, indicating an annual growth rate of 7%. Thus, the increasing number of connected devices is driving the growth of the AI-driven smart grid intrusion detection market.

The rising energy demand is anticipated to drive the expansion of the artificial intelligence (AI)-driven smart grid intrusion detection market in the coming years. Energy is the capacity to perform work or generate power, sourced from electricity, fossil fuels, or renewable resources, and is used to operate homes, industries, transportation, and technology. The increase in energy demand is driven by population growth, as a larger population requires more electricity, heating, transportation, and industrial services, which collectively boost overall energy consumption. Higher energy demand adds complexity and scale to power grids, making AI-driven smart grid intrusion detection crucial for real-time monitoring, analysis, and protection against potential threats. For example, in March 2025, the International Energy Agency (IEA), a France-based intergovernmental energy organization, reported that global energy demand rose by 2.2% in 2024, continuing a decade-long average growth of approximately 1.3% per year, while electricity consumption increased by nearly 4.3%, representing the largest absolute rise on record. Consequently, the increasing energy demand is fueling the growth of the artificial intelligence (AI)-driven smart grid intrusion detection market.

Major companies operating in the artificial intelligence (ai)-driven smart grid intrusion detection market are Siemens AG, Hitachi Energy Ltd, IBM Corporation, Cisco Systems Inc, ABB Ltd, BAE Systems plc, Palo Alto Networks Inc, Fortinet Inc, Splunk Inc, Trend Micro Incorporated, Tenable Holdings Inc, Honeywell International Inc, Darktrace plc, Dragos Inc, Nozomi Networks Inc, Claroty Ltd, Trellix, Schneider Electric SE, Mitsubishi Electric Corporation, ReliaQuest.

North America was the largest region in the artificial intelligence-driven smart grid intrusion detection market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai)-driven smart grid intrusion detection market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai)-driven smart grid intrusion detection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-driven smart grid intrusion detection market consists of revenues earned by entities by providing services such as consulting and professional services, integration services, managed security services, training and support services, and bundled end-to-end services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI)-driven smart grid intrusion detection market also includes sales of antivirus and antimalware solutions, firewall solutions, identity and access management systems, security and vulnerability management tools, and distributed denial-of-service (DDoS) protection solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.