China's intense focus on national smart grid development will drive huge revenue growth in the supervisory control and data acquisition (SCADA) systems market in the coming years, says research and consulting firm GlobalData.
The company's latest report* predicts that the Chinese SCADA market will soar in value in the coming years, from USD 3 billion in 2012 to USD 20 billion by 2020, climbing at a compound annual growth rate (CAGR) of 27%. Such a growth rate will result in China's increasing its proportion of the global market from 45% in 2012 to 61% by the end of the decade.
China's aim to become the world leader in smart grid technology will prove the key driving force in SCADA revenue growth, with the country's T&D infrastructure investments unmatched globally. However, as the reliance upon smart grid systems grows, the threat of cyber-attacks becomes ever more significant.
According to the new report, developing effective security against threats such as the Stuxnet and Night Dragon attacks is the greatest challenge facing the global SCADA industry today. The use of malware and viruses is becoming increasingly common, raising the future risk of attacks on SCADA control centres.
*Supervisory Control and Data Acquisition (SCADA) for Power Transmission and Distribution (T&D) - Global Market Size, Competitive Landscape and Forecasts to 2020