IoT Security Market Size, Share & Trends Analysis Report By Solution (Analytics, Encryption, Identity and access management, Threat management, Others), By Type (Cloud, Endpoint, Network, Application, Others), By Application (Smart manufacturing, Connected logistics, Connected healthcare, Smart retail, Others), By Services (Professional Service, Managed Services), By Professional Services (Implementation, Consulting, Support and Maintenance), By Data Sensitivity (High-Sensitive Data, Low and Moderate Sensitive Data) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global IoT security market size was valued at USD 15.2 billion in 2023. It is projected to reach USD 158.8 billion by 2032, growing at a CAGR of 29.8% during the forecast period (2024–2032).

IoT (Internet of Things) security is defined as securing IoT (Internet of Things) devices and networks against data theft and data perversion by hackers. One of the main factors propelling the market over the forecast period is the need to secure the future of internet-connected devices by robustly configuring necessary/next-generation security features, increasing transparency, and giving consumers the option to refuse data collection.The risk of cyberattacks is rising as 3G and 4G long-term evolution (LTE), as well as wireless networks and technologies, are used more frequently. These cellular networks facilitate the exchange of real-time and transaction-related information essential to users, necessitating IoT security. IoT security is necessary due to the exponential growth of IoT implementation in areas like health monitors, smart home appliances, smart city projects, and intelligentretail.The use of cloud technologies for data storage by various organizations increases the risk of unauthorized access to data. Concerns about data security are growing as the bring your own device (BYOD) trend gains traction. As a result, many businesses and organizations need efficient security solutions. A strong security solution, like incorporating firewalls and data loss prevention with IoT security solutions, improves an organization's ability to deal with cyber threats.

Market Dynamics

What Are The Main Factors Driving The Market For IoT Security?

IoT Flaws Presenting New Opportunities for Hackers

IoT-era devices and applications invade every aspect of modern life, including homes, workplaces, automobiles, and even human bodies. To take advantage of having an internet connection, all of the objects have been made to be intelligent. The Internet of Things (IoT) is growing thanks to the introduction of IPv6 and the rapid use of Wi-Fi networks. As a result, IoT is growing in popularity as a target for online criminals. It is simple to reset a device and apply new patches if a hacker attempts. IoT devices present a more significant challenge for hackers because of their heterogeneity and the need to target each device differently. These hackers get around these problems by picking the right time and place to target a device so that it cannot be reset, and the owner must pay a ransom. The organization has found more than twice as many IoT attacks,more than 1.5 billioncompared to 639 million during the previous half-year. The alarming flaws discovered in IoT devices have elevated IoT security to the top of the list of urgent problems. The IoT security market is driven by the rising frequency and severity of ransomware attacks, forcing many vendors to create security solutions for IoT ransomware.

Growth in Deployments for IoT

As a part of their efforts to undergo digital transformation, organizations are embracing the Internet of Things (IoT). Businesses are connecting and deploying an increasing number and variety of IoT devices to their corporate networks to achieve transformational goals. By 2025, there will be 25.2 billion Internet of Things connections, according to GSMA Intelligence. Due to the interconnected nature of IoT devices, a hacker has access to numerous other connected devices if one is compromised. As a result, reliable Internet of things (IoT) security solutions is required.

What Are the Challenges For IoT Security Market?

Significant Growth in New IoT Threat Variants and Lack of Awareness

IoT devices are a growing part of our daily lives, and so is the speed at which new botnets can infect, attack, and cause havoc. Security demands are changing along with the business environment. People aren't aware of a device's vulnerability or the possibility of a hack. Organizations overlook internal threat vulnerabilities due to the focus on external threats, such as the ease with which employees can download malware, undetected viruses, and threat-related activities like spear-phishing and botnets. Security vendors create cutting-edge and unique products for various users, including household consumers, SMEs, large corporations, and governmental organizations. The development of the IoT security market is being hampered by the lack of knowledge about security compatible with the relevant business portfolio. Most customers, particularly those in areas like Latin America and MEA, are unaware of the security products and services offered on the market, making it impossible for them to take advantage of their needs.

What Are The Future Opportunities For IoT Security?

Smart Infrastructure Development

Smart cities and intelligent buildings are conceptual models for infrastructure projects that aim to provide cutting-edge services and infrastructure. A smart city effectively uses its ICT infrastructure to enhance livability and increase the effectiveness of urban operations and services. If the city adheres to the following principles: intelligent buildings, smart utilities, smart citizen services, and smart transportation, the city can be regarded as smart. Therefore, technologies like data communications, cloud, mobility, and sensorsmake IoTcrucial to successfully implementing smart city projects. Securing IoT devices has become more challenging as they proliferate throughout the smart city ecosystem. As a result, IoT security is essential due to the vulnerabilities of IoT devices and networks and their growing importance in daily life. It is becoming increasingly important to secure IoT ecosystems, which presents lucrative opportunities for committed and skilled IoT security solution providers.

Regional Analysis

Asia Pacific Dominates the Global Market.

The global IoT security market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific is the most significant shareholder in the global IoT security market and is expected to grow at a CAGR of 27.6% during the forecast period.China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific IoT security market.Significant economies like Singapore, Japan, China, India, and Australia present vendors for IoT security with numerous growth opportunities. The main factors propelling this region's IoT security market growth are the expanding government initiatives, the rising demands for quick computing, virtualized environments, analytics, security, digitalization, high-volume networking, and the rising overall internet speed and responsiveness. The factors delaying the market's growth are the development of critical operating infrastructure in developing nations, a lack of awareness of the benefits of IoT security solutions, and a preference for 3G and 4G LTE.

North America is expected to grow at a CAGR of 32.2% during the forecast period.The U.S. and Canada are included in the analysis of the IoT security market in North America.New business models, applications, and lower device costs have helped accelerate the adoption of the Internet of Things, which has increased the number of connected devices like wearables, consumer electronics, cars, machinery, meters, and machinery. Attacks on consumer IoT are common, but the threat is increased by the possibility of disruption in other industries like manufacturing. IoT security is a topic on which businesses, consumers, and regulators are all focused. Due to their increasing importance, businesses that provide IoT-based solutions worldwideinvest heavily in their security.

The main drivers of the IoT security market in the US are the high adoption of cutting-edge technologies, an increase in cyberattacks, and an increase in connected devices. One of the top regions for IoT implementation is the nation. The region's growing digitization and spending on IoT security are additional factors.

Segmental Analysis

The market is segmented by solution, type, and application.

Based on the solution, the global IoT security market is bifurcated into analytics, encryption, identity & access management, threat management, and others.

The identity & access managementsegment is the highest contributor to the market and is expected to grow at a CAGR of 29.4% during the forecast period.IAM is expected to be the most widely used solution for security applications.A new identity ecosystem known as the Identity of Things(IDOT) has emerged due to identity and access management research and development. Due to the expanding demand for multi-factor authentication, identity and access management solutions are required. The field of security analytics is predicted to expand at a remarkable rate. Using cutting-edge methods like machine learning to identify potential threats, analytics-driven security solutions can ingest large volumes of data. IoT security includes a significant amount of data encryption and tokenization.

Based on type, the global IoT security market is bifurcated into the cloud, endpoint, network, application, and others.

The endpoint segment is the highest contributor to the market and is expected to grow at a CAGR of 30.3% during the forecast period. Due to the enormous increase in IoT device numbers, endpoint-based security measures currently hold a disproportionate market share. IoT device adoption in many commercial applications has made for a lucrative target for cybercriminals to prey upon. Traditional antivirus software has evolved into endpoint security, which now offers a thorough defense against sophisticated malware and dynamic zero-day threats.

Based on application, the global IoT security market is bifurcated into smart manufacturing, connected logistics, connected healthcare, smart retail, and others.

The smart manufacturing segment is the highest contributor to the market and is expected to grow at a CAGR of 30.5% during the forecast period.Due to factors like the adoption of wireless technology, the BYOD culture, and the adoption of cloud technologies, which will lead to the market's expansion, smart manufacturing will contribute a larger share of the market's growth. Factory managers can automatically gather and analyze data with smart manufacturing to make better decisions and maximize production. IoT connectivity solutions installed at the factory level transmit data from sensors and machines to the cloud.

Based on services, the global IoT security market is bifurcated into professional service and managed service. 

Managed services dominate the global IoT security market due to their comprehensive and continuous protection, scalability, and cost-effectiveness. Established by the increasing complexity of IoT ecosystems and the need for round-the-clock monitoring, managed services offer proactive threat detection, real-time response, and regular updates. They relieve organizations of the burden of maintaining in-house security expertise, making them a preferred choice across various industries. The dominance of managed services is driven by the rising frequency of cyber threats and the demand for robust, end-to-end security solutions. Their widespread adoption is further supported by advancements in AI and machine learning, enhancing their efficiency and reliability.

Based on professional services, the global IoT security market is bifurcated into implementation, consulting, and support and maintenance. 

Implementation services dominate the professional services segment of the global IoT security market due to the critical need for correctly setting up and integrating IoT security solutions. Established through the increasing deployment of IoT devices across industries, implementation services ensure that security measures are effectively embedded from the start. This includes configuring devices, networks, and software to work seamlessly together while addressing specific security requirements. The dominance of implementation services is driven by the complexity of IoT environments, which require tailored solutions to safeguard against vulnerabilities. Their crucial role in preventing breaches and ensuring operational efficiency underpins their market leadership.

Based on data sensitivity, the global IoT security market is bifurcated into high-sensitive data and low and moderate-sensitive data. 

High-sensitive data dominates the global IoT security market due to the critical need for stringent protection measures for data with significant privacy, financial, or operational implications. Established by the growing prevalence of IoT devices in sectors such as healthcare, finance, and government, where data breaches can have severe consequences, the focus on securing high-sensitive data has intensified. Organizations handling high-sensitive data invest heavily in advanced security solutions to comply with strict regulations and prevent cyber threats. This dominance is driven by the imperative to protect sensitive information from sophisticated attacks, ensuring trust, compliance, and operational continuity in high-risk environments.

Impact of covid-19

The COVID-19 pandemic has created havoc in the entire world. All the sectors around the world were drastically affected. There was chaos in the healthcare sector due to the increasing number of patients worldwide. An automatic organization system had become a need for the hour in this situation. The world healthcare facilities were not prepared for this COVID-19 outbreak, and hence the demand for these systems quickly increased.

After the pandemic, the hospitals realized the need to have quality management systems for administration and overall operations. In such a difficult time, medical errors should be avoided as the number of fatal incidents was already surging in the second wave. It is also crucial for healthcare facilities to keep up with the regulatory landscape concerning the use of the software. Continuous training to understand these changes and requirements due to developing technologies has become necessary post-pandemic. Due to these reasons, the need for medical QMS software will rise in the forecast period. 

Recent Developments

• November 2022, Microsoft's most recent Patch addresses six zero-day vulnerabilities, including one related to the Mark-of-the-Web (MotW) security feature that cybercriminals have used to distribute malware updates.

• September 2022, IoT devices are protected in real-time by Sternum's patented technology against even undiscovered vulnerabilities.