According to the research firm, one of the major challenges that remains to be resolved is the question of implementing effective cyber security measures to ensure that EV charging transactions are safe and private.

As auto manufacturers begin to launch the initial wave of EVs such as the Chevrolet Volt and the Nissan Leaf into the market, and as cities and utilities deploy charging equipment infrastructure to support these new vehicles, the industry is grappling with a wide variety of technology and business issues surrounding EV adoption, said the research firm.

The research firm's analysis finds that the largest segment for EV cyber security investment will be smart charging management, which will garner $274m in worldwide revenue between 2011 and 2015. Other key market segments include data analytics and customer information management.

Bob Lockhart, senior analyst at Pike Research, said: “The prevailing philosophy of the EV industry has been to ‘build first, secure later. This poses many risks for financial transactions, customer privacy, and the integrity and reliability of the grid infrastructure.

“Utilities and key vendors are just beginning to focus on addressing these issues, and the security solutions implemented will have a strong influence on the success and credibility of EVs as a replacement for internal combustion engine vehicles.”

Mr Lockhart adds that several important areas for EV cyber security investment include securing financial transactions that are required for EV recharging; implementing secure and hardened IT environments on electric vehicle service equipment and distribution grid hardware; secure end-to-end communications throughout the EV infrastructure; authoritative identification of vehicle owners/operators for recharging transactions and compliance with applicable data privacy laws and other regulations.

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