Home Technology IoT Cybersecurity Market Size, Share & Growth Graph by 2033

IoT Cybersecurity Market Size, Share & Trends Analysis Report By Type (Network Security, Endpoint Security, Application Security, Cloud Security, Others), By Application (Smart Home and Wearables, Smart Energy, Smart Security, Manufacturing, Transportation and Logistics, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Report Code: SRTE1169DR
Last Updated : Jan 20, 2025
Author : Aritra Banerjee
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IoT Cybersecurity Market Size

The global IoT cybersecurity market size was valued at USD 14.36 billion in 2024 and is projected to grow from USD 16.07 billion in 2025 to reach USD 39.6 billion by 2033, growing at a CAGR of 11.93% during the forecast period (2025-2033).

IoT cybersecurity refers to the practices and technologies designed to protect Internet of Things devices and networks from cyber threats and attacks. IoT devices, which include everything from smart home gadgets to industrial machinery, are often connected to the internet and communicate with each other, making them vulnerable to security breaches. Internet of Things cybersecurity involves securing these devices, the data they collect, and the networks they operate on.

The rapid proliferation of Internet of Things devices across industries like healthcare, manufacturing, and transportation has created an expansive attack surface for cybercriminals. As these devices become more interconnected, the need for advanced cybersecurity solutions has surged. Organizations are increasingly investing in robust protection systems to mitigate the risks posed by cyberattacks and safeguard sensitive data from breaches.

Data security and privacy concerns are also pivotal factors driving the IoT cybersecurity market. As IoT networks expand, the volume of sensitive information being transmitted increases, making them attractive targets for hackers. This growing vulnerability has prompted companies to prioritize cybersecurity measures, adopting technologies such as encryption, authentication, and intrusion detection to ensure the integrity and confidentiality of data across Internet of Things networks.

iot cybersecurity market

Source: Insurance Information Institute, Inc.

The above graph represents the number of complaints received by Insurance Information Institute, Inc. related to cyberattacks from the year 2019 to 2023.

Latest Market Trends

Integration of AI in the Internet of Things Cybersecurity

Artificial intelligence (AI) and machine learning (ML) are revolutionizing IoT cybersecurity by enabling systems to predict, detect, and respond to threats more effectively. These technologies are capable of analyzing massive volumes of data generated by IoT devices, identifying patterns, and spotting anomalies in real time.

AI-driven algorithms enhance the ability to foresee potential risks before they escalate, while ML continuously improves threat detection by learning from past incidents. This proactive approach ensures that Internet of Things networks remain secure even as they grow and evolve, minimizing vulnerabilities and improving overall system resilience.

  • For instance, according to IBM Security, AI-driven cybersecurity solutions can reduce the average time to identify and contain a breach by up to 27%, underscoring their value in IoT contexts.

IoT Cybersecurity Market Growth Factors

Rapid proliferation of the Internet of Things devices

The widespread adoption of IoT devices in sectors such as healthcare, manufacturing, and transportation is driving an increased need for robust cybersecurity solutions. These connected devices serve as gateways for cybercriminals, making it crucial to implement strong security measures to prevent unauthorized access and data breaches.

Moreover, the vast amounts of sensitive data exchanged between devices in these industries necessitate continuous protection against evolving threats. As the reliance on IoT grows in critical sectors, organizations must invest in cybersecurity technologies to mitigate risks and ensure the safety and privacy of their systems and customers.

  • For instance, IoT Analytics estimates that the number of active Internet of Things devices globally will reach 29.4 billion by 2030, amplifying the need for dedicated security solutions.

Increasing cybersecurity regulations

Governments worldwide are introducing stringent regulations and frameworks to safeguard critical data and protect IoT ecosystems from cyber threats. These regulations are aimed at ensuring that organizations comply with robust cybersecurity standards, especially as IoT networks become more widespread and integral to daily life.

Governments are imposing stricter requirements on data protection, breach reporting, and device certification to reduce vulnerabilities. As a result, organizations are compelled to adopt advanced cybersecurity measures to meet regulatory demands, avoid penalties, and protect sensitive information.

  • For instance, the European Union’s General Data Protection Regulation (GDPR) and California’s IoT Security Law mandate specific security requirements for Internet of Things devices, creating a regulatory-driven demand.

Market Restraint

High implementation costs

While the need for robust IoT cybersecurity solutions grows, the associated costs can be a significant barrier, particularly for SMEs. Implementing comprehensive security measures involves significant investment in both technology and personnel. SMEs often face challenges in allocating budgets to protect their Internet of Things systems, which can make them more vulnerable to cyberattacks.

Moreover, the high costs of cybersecurity solutions, including ongoing maintenance and updates, can deter smaller businesses from adopting necessary protections. However, as the cost of cyberattacks rises, SMEs must consider investing in affordable, scalable solutions to secure their Internet of Things networks and avoid potential breaches.

Market Opportunity

Expansion of smart cities

The rise of smart cities presents significant opportunities for IoT cybersecurity providers as urban areas integrate advanced technologies into their infrastructure. With connected devices managing essential services like traffic, healthcare, and utilities, securing these Internet of Things networks is crucial.

  • For example, Barcelona has implemented smart infrastructure projects like connected streetlights, waste management systems, and smart meters that rely on secure data communication. With these devices generating vast amounts of data, IoT cybersecurity plays a pivotal role in ensuring that cyberattacks do not disrupt essential services such as water supply, energy grids, and transportation.

As cities grow smarter, the demand for tailored security solutions will only increase, offering substantial growth prospects for cybersecurity providers in urban environments.

Study Period 2021-2033 CAGR 11.93%
Historical Period 2021-2023 Forecast Period 2025-2033
Base Year 2024 Base Year Market Size USD 14.36 billion
Forecast Year 2033 Forecast Year Market Size USD 39.6 billion
Largest Market North America Fastest Growing Market Asia Pacific
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Regional Insights

North America: Dominant region with a significant market share

North America dominates the global IoT cybersecurity market, largely due to its advanced technology infrastructure and widespread adoption of Internet of Things devices across various sectors, including healthcare, manufacturing, and transportation. The region's strong emphasis on data security and compliance with rigorous regulatory standards, such as the California Consumer Privacy Act (CCPA) and the Federal Information Security Management Act (FISMA), further enhances its position.

North America is home to several leading cybersecurity solution providers, including Cisco, Palo Alto Networks, and Fortinet, which are driving innovation in IoT security. With increasing concerns over data breaches and cyberattacks, both public and private sectors in North America are investing heavily in IoT cybersecurity solutions to safeguard critical infrastructures and maintain privacy.

  • For instance, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) has introduced comprehensive guidelines to enhance Internet of Things security, bolstering market growth.

Europe: Rapidly growing region

Europe is witnessing significant growth in the IoT cybersecurity market, largely driven by strong regulations and a strategic focus on smart city initiatives. The implementation of the General Data Protection Regulation (GDPR) has played a pivotal role in fostering data privacy and cybersecurity best practices across the continent. The regulation has forced organizations to adopt stronger security measures, particularly for IoT devices, to ensure compliance.

Countries like Germany and the UK are leading the charge with dedicated smart city projects, where IoT technologies are integrated into urban infrastructure to improve efficiency, safety, and sustainability. These initiatives, coupled with growing concerns over cyber threats, are propelling the demand for robust Internet of Things cybersecurity solutions in the region.

  • For instance, according to ACEA, Europe’s investment in IoT-enabled smart grids and transportation is expected to exceed USD 50 billion by 2030.

Countries Insights

  • United States:CISA reported that 75% of cyber incidents in 2023 involved IoT devices, prompting the U.S. government to develop specific IoT cybersecurity frameworks. Therefore, the Department of Defense allocated USD 2 billion to IoT cybersecurity research to combat emerging threats. The U.S. is focusing on improving security in both consumer and critical infrastructure devices to mitigate risks from increasing IoT adoption across sectors.
  • China: China's Ministry of Industry and Information Technology (MIIT) reported that 25% of cyberattacks in 2023 targeted IoT devices, especially in industrial sectors. As a result, the country has incorporated IoT cybersecurity into its 14th Five-Year Plan, allocating USD 15 billion by 2025 to strengthen IoT security. This investment aims to address vulnerabilities in smart city initiatives and industrial Internet of Things applications, enhancing national cybersecurity resilience.
  • India:CERT-In reported that over 22 million IoT devices were targeted by cyberattacks, highlighting the growing cybersecurity risks. The Indian government launched the Cyber Surakshit Bharat initiative, requiring IoT security compliance for 100 Smart Cities Mission projects. This initiative aims to bolster security measures for IoT networks, ensuring that urban smart infrastructure remains resilient against potential breaches.
  • Japan:Japan's National Institute of Information and Communications Technology (NICT) tested over 200 million IoT devices for vulnerabilities in 2023. With 55% of cyberattacks targeting IoT devices, the Japanese Ministry of Communications has enhanced regulations to secure IoT devices, focusing on high-risk sectors such as healthcare and transportation. The government's proactive approach aims to protect critical infrastructure from evolving Internet of Things-based threats.
  • Germany:Germany's Federal Office for Information Security (BSI) revealed that 68% of industrial cyber incidents in 2023 were linked to IoT vulnerabilities, prompting the government to implement stricter security laws. As part of its High-Tech Strategy 2025, Germany has allocated USD 1.8 billion for IoT cybersecurity research and development. This investment aims to enhance the security of industrial IoT devices and ensure protection in critical industries like manufacturing and energy.
  • United Kingdom:The United Kingdom’s Telecommunications Infrastructure Act (2022) mandates that all sold IoT devices meet specific security standards. The National Cyber Security Centre (NCSC) reported that 20% of IoT-related vulnerabilities were found in smart home devices in 2023. The UK is actively working to raise security standards for connected devices to protect consumers from privacy breaches and cyberattacks targeting home networks.
  • Brazil:Brazil’s National IoT Plan allocated USD 900 million for IoT cybersecurity by 2025, aiming to safeguard critical sectors like healthcare and smart grids. CERT Brazil reported that 32% of cyberattacks in 2023 targeted IoT devices in these sectors. The country’s strategic focus on IoT security aims to protect emerging technologies as IoT adoption grows rapidly across various industries.
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Segmentation Analysis

By Type

Network security segment dominated the market with the largest market revenue. Network security is a cornerstone of the IoT cybersecurity market, ensuring secure communication between IoT devices and servers. As IoT systems scale, safeguarding data transfer channels becomes critical to prevent unauthorized access and breaches. Strong measures like encryption and secure authentication maintain data integrity and privacy, building trust in Internet of Things systems.

  • A report by Palo Alto Networks revealed that network-based attacks account for 45% of IoT-related security incidents, underscoring the necessity of robust network security solutions to mitigate risks.

By Application

Smart homes and wearable devices lead the IoT cybersecurity market due to their widespread adoption and susceptibility to cyber threats. These devices handle sensitive user data, making them prime targets for hackers. Strong endpoint security and robust network protection are crucial to safeguarding user privacy and ensuring the secure operation of these devices. As consumers embrace smart technology, the need for comprehensive security solutions to protect these applications is expected to continue growing rapidly.

Market Size By Type

Market Size By Type
Network Security Endpoint Security Application Security Cloud Security Others

Company Market Share

Key market players in IoT cybersecurity are increasingly investing in cutting-edge technologies such as AI-powered threat detection, blockchain for secure transactions, and advanced encryption methods to address evolving security threats. They are also focusing on building comprehensive security frameworks for diverse IoT ecosystems across industries.

CYBR: An Emerging Player in the Global IoT Cybersecurity Market

CYBR, an Australian cybersecurity startup, aims to make cybersecurity solutions accessible to all businesses, regardless of size. Its focus on simplifying and democratizing advanced security measures has gained attention within the cybersecurity industry. In 2024, CYBR was recognized as one of South Australia's most promising startups, highlighting its innovative approach and growing influence in the sector.

Recent Developments by CYBR:

  • In January 2024, CYBR introduced a new IoT security tailored for small and medium-sized enterprises (SMEs). The platform offers real-time threat detection, lightweight encryption, and AI-driven anomaly detection to protect IoT devices from cyberattacks.

List of key players in IoT Cybersecurity Market

  1. Cisco Systems, Inc.
  2. IBM Corporation
  3. Palo Alto Networks, Inc.
  4. Fortinet, Inc.
  5. Symantec Corporation
  6. Trend Micro Incorporated
  7. Check Point Software Technologies Ltd.
  8. FireEye, Inc.
  9. Kaspersky Lab
  10. McAfee LLC
  11. AT&T Cybersecurity
  12. Darktrace
  13. AWS (Amazon Web Services)
  14. Zscaler, Inc.
  15. Sophos Group plc
IoT Cybersecurity Market Share of Key Players

Recent Developments

  • January 2025 – LG Electronics received KOLAS IoT cybersecurity testing accreditation for its SW Testing Laboratory. This recognition allows LG to internally test the cybersecurity of IoT devices according to global standards, improving efficiency and reducing costs. Moreover, LG is enhancing its cybersecurity capabilities with its AI-based "LG Shield," which secures user data and devices.

Analyst Opinion

As per our analysts, the global IoT cybersecurity market is set for significant growth, driven by the rapid increase in IoT devices and the escalating threat of cyberattacks targeting connected systems. The adoption of IoT in critical sectors such as healthcare, manufacturing, and transportation is pushing the demand for robust cybersecurity solutions.

Advancements in AI and machine learning are enhancing threat detection and response, while cloud-based security solutions provide scalability and cost-effectiveness. Nevertheless, the market faces challenges, including high implementation costs and regulatory compliance.

Despite these hurdles, the continuous development of smarter IoT ecosystems and stricter cybersecurity regulations will offer ample opportunities for market players to innovate and expand their reach.


IoT Cybersecurity Market Segmentations

By Type (2021-2033)

  • Network Security
  • Endpoint Security
  • Application Security
  • Cloud Security
  • Others

By Application (2021-2033)

  • Smart Home and Wearables
  • Smart Energy
  • Smart Security
  • Manufacturing
  • Transportation and Logistics
  • Healthcare
  • Others

Frequently Asked Questions (FAQs)

How much was the global market worth in 2024?
The global IoT cybersecurity market size was valued at USD 14.36 billion in 2024.
Smart homes and wearable devices lead the IoT cybersecurity market due to their widespread adoption and susceptibility to cyber threats.
The widespread adoption of IoT devices in sectors such as healthcare, manufacturing, and transportation is driving an increased need for robust cybersecurity solutions.
North America dominates the global IoT cybersecurity market, largely due to its advanced technology infrastructure and widespread adoption of Internet of Things devices across various sectors, including healthcare, manufacturing, and transportation.
While the need for robust IoT cybersecurity solutions grows, the associated costs can be a significant barrier, particularly for SMEs.


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