Executive Summary
The utilities sector—comprising energy, water and other critical infrastructure—is facing an escalating cybersecurity crisis. With growing digital transformation, IoT adoption, and increased cyber threats targeting operational technology and industrial control systems, the need for skilled cybersecurity professionals has never been higher.
Key Takeaways:
- Cyberattacks on the utilities sector increased by 35% in 2023, with energy companies being prime targets (Cybersecurity Ventures).
- 90% of energy sector executives say cyber threats pose a significant risk to operations, yet many struggle to find qualified professionals (Deloitte Survey).
- The utilities industry faces a severe skills gap, with cybersecurity job openings outpacing available talent.
- Critical infrastructure firms are particularly vulnerable due to outdated legacy systems and a lack of experienced OT cybersecurity specialists.
- In 2023 alone, 90% of the world’s largest energy companies suffered cybersecurity breaches, with critical infrastructure becoming a primary target for state-sponsored hackers and cybercriminals.
- The energy industry faces serious difficulties in finding and retaining skilled cybersecurity professionals, with salaries substantially lower than sectors like finance and insurance, exacerbating talent shortages (IEA Report).
- The average cost of a cyberattack in the energy sector reached $4.8 million in 2024, a 10% increase from the previous year, making energy one of the most expensive industries for cyber breaches (IBM Cost of a Data Breach Report 2024).
This report explores the hiring challenges in the utilities sector, key cybersecurity trends, and strategies for securing top talent in an evolving threat landscape.
The Evolving Cybersecurity Landscape in Utilities
Cyber threats against the utilities sector have increased dramatically, with energy, water, and infrastructure firms facing growing risks. Key industry statistics highlight the urgency:
- Cyberattacks targeting critical infrastructure rose by 35% in 2023, with energy firms being one of the most targeted industries (Cybersecurity Ventures).
- 90% of energy sector executives cite cybersecurity risks as a top business concern, yet struggle to find and retain skilled cybersecurity professionals (Deloitte 2023 Energy Study).
- Cyberattacks on utilities have been growing rapidly since 2018, with record-high incidents following Russia’s invasion of Ukraine (IEA Analysis).
- The average cost of a cyberattack in the energy sector is now $4.8 million, up 10% from 2023, making energy firms top targets for cybercriminals (IBM 2024 Data Breach Report).
These statistics demonstrate the growing need for cybersecurity specialists who understand both IT security and OT/ICS security.
Cybersecurity Talent Shortage in the Utilities Sector
- OT Security Expertise is Scarce: The biggest challenge in utilities cybersecurity is the shortage of professionals who understand operational technology (OT) and industrial control systems (ICS) security.
- High Demand, Limited Supply: There are far more cybersecurity job openings than qualified candidates, particularly for OT cybersecurity roles.
- Regulatory Challenges: New cybersecurity regulations from CISA, NERC CIP, and other governing bodies have made hiring skilled compliance professionals essential.
- Aging Workforce: Many skilled professionals in the utilities sector are approaching retirement, creating additional workforce gaps.
- The National Institute of Standards and Technology (NIST) found that only 20% of electric utility companies feel confident they have the cybersecurity talent they need.
- In 2023, an NGA roundtable identified urgent policy actions to expand the energy sector's cyber workforce pipeline, urging Governors and state leaders to take action.
With increasing cyber threats and regulatory demands, the utilities sector must rethink its cybersecurity hiring strategies.
Hiring Barriers and Recruitment Challenges
Utilities companies face multiple barriers when hiring cybersecurity talent:
- Lack of OT Security Specialists: Most cybersecurity professionals are trained in IT security, not OT/ICS, making it difficult to find experts with the right skill set.
- Long Hiring Processes: Utilities firms take an average of 6-9 months to hire cybersecurity professionals, compared to 3-6 months in other industries.
- Lower Salaries Than Other Sectors: The energy industry struggles to compete with finance and tech sectors, where cybersecurity salaries are substantially higher (IEA Report).
- Competing with Tech Firms: Utilities companies compete with tech giants for cybersecurity talent, often struggling to match salaries and benefits.
- Growing Regulatory Pressures: Governments and regulatory bodies, including CISA, NERC, and the EU’s NIS2 Directive, are imposing stricter obligations on energy companies, requiring cybersecurity teams to expand.
Without addressing these challenges, energy and critical infrastructure firms will continue to face severe hiring shortages.
Key Cybersecurity Roles in High Demand
The utilities sector is actively seeking professionals with specialized cybersecurity expertise, particularly in OT security and compliance.
- OT Security Engineers - Experts in industrial control systems (ICS), SCADA security, and operational technology risk management.
- Incident Response Analysts - Specialists in handling cybersecurity incidents targeting energy and water infrastructure.
- Cloud Security Architects - Professionals securing cloud-based energy grid solutions and smart metering systems.
- Compliance & Risk Officers - Specialists ensuring utilities firms meet NERC CIP, CISA, and TSA cybersecurity regulations.
- Penetration Testers - Ethical hackers focused on testing vulnerabilities in ICS, smart grid technologies, and critical infrastructure.
- Cyber Threat Intelligence Analysts - Professionals monitoring and predicting evolving threats against critical infrastructure.
The demand for these roles far exceeds the available talent pool, making proactive hiring strategies essential.
Conclusion
The utilities sector is at a critical inflection point—growing cyber threats, increased regulations, and a severe cybersecurity talent shortage make hiring skilled professionals an urgent priority.
Organizations that fail to adapt their hiring and retention strategies will struggle to fill positions, leaving them vulnerable to cyber threats targeting critical infrastructure. By improving hiring practices, offering competitive compensation, and focusing on OT cybersecurity expertise, utilities firms can position themselves as attractive employers in cybersecurity.
Get in touch
Raeesa Patel
E : raeesa.patel@goodmanmasson.com
T : +1 646 916 3803
