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.
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.
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.
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.
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.
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.
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.
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 |
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.
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.
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
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.
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.
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:
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.