The global IoT security market size was valued at USD 45.15 billion in 2025 and is projected to grow from USD 57.26 billion in 2026 to USD 414.78 billion by 2034, registering a CAGR of 28.10% during the forecast period (2026–2034). North America dominated the IoT security market with a market share of 34.20% in 2025.
IoT security comprises technologies, software, and services designed to protect connected devices, communication networks, cloud platforms, and data from cyber threats, unauthorized access, and malicious attacks. These solutions include identity and access management, device authentication, encryption, endpoint protection, network security, and threat monitoring, and are widely deployed across manufacturing, healthcare, automotive, energy & utilities, smart cities, retail, and critical infrastructure.
The IoT security market demand is increasing due to the rapid proliferation of connected devices, growing frequency of cyberattacks targeting IoT ecosystems, and stringent cybersecurity regulations across industries. Organizations are adopting advanced IoT security solutions to safeguard critical infrastructure, ensure regulatory compliance, and protect sensitive operational data. Continuous advancements in zero-trust security architectures, AI-powered threat detection, edge security technologies, and increasing investments in Industrial IoT (IIoT) are also contributing to IoT security market growth.
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The IoT security market is indirectly exposed to supply chain disruptions due to its dependence on semiconductor components, networking hardware, embedded security chips, and cloud infrastructure required for connected device deployments. Disruptions across the global electronics and semiconductor supply chain delayed IoT device production and deployment, slowing the implementation of new security solutions across manufacturing, healthcare, automotive, and industrial sectors. Rising component costs and extended procurement timelines increased deployment costs, prompting vendors to diversify supplier networks, regionalize manufacturing, and expand software-based security offerings that reduce reliance on specialized hardware. The market is witnessing a K-shaped recovery, with cloud-native IoT security platforms, managed security services, and software-based solutions recovering faster than hardware-dependent IoT deployments as enterprises continue prioritizing cybersecurity investments.
Zero-trust security architecture is emerging as a key IoT security market trend by enabling continuous authentication and least-privilege access across connected devices and networks. Compared to conventional perimeter-based security models, zero-trust frameworks continuously verify users, devices, and applications before granting access, significantly reducing the risk of lateral cyberattacks. The increasing adoption of Industrial IoT (IIoT), remote asset management, and hybrid work environments is accelerating demand for zero-trust solutions.
IoT security adoption across critical infrastructure is emerging as a key IoT security market trend by enabling real-time protection of connected operational assets in essential industries. Compared to conventional security approaches that primarily protect IT environments, modern IoT security platforms provide continuous monitoring, anomaly detection, and threat prevention for operational technology (OT) systems. According to the International Energy Agency (IEA), global investment in electricity grids reached approximately USD 400 billion in 2025, increasing the deployment of connected sensors and smart grid technologies that require advanced cybersecurity.
The IoT security market forecasts continued investment activity driven by the rapid expansion of connected devices, increasing cybersecurity threats, and rising adoption of Industrial IoT (IIoT) across critical industries. Investors are focusing on companies developing advanced device security platforms, zero-trust architectures, embedded cybersecurity solutions, and operational technology (OT) protection technologies that strengthen cyber resilience and safeguard connected infrastructure.
Key Investment and Funding Activities in IoT Security Market, 2025
Armis
USD 200 million
In October 2025, Armis secured a USD 200 million funding round led by General Catalyst to accelerate the expansion of its cyber exposure management platform protecting IoT, OT, medical devices, and critical infrastructure worldwide.
Exein
USD 81 million (Series C)
In September 2025, Exein raised USD 81 million in Series C funding to expand its embedded IoT cybersecurity platform, strengthen R&D capabilities, and scale partnerships with semiconductor manufacturers and device OEMs globally.
Oligo Security
USD 50 million (Series B)
In January 2025, Oligo Security completed a Series B funding round to advance runtime application security solutions that protect connected applications, cloud workloads, and IoT environments from emerging cyber threats.
Growing Enforcement of Cybersecurity Regulations and Increasing Convergence of IT and Operational Technology Drives Market
The growing enforcement of cybersecurity regulations for critical infrastructure and connected ecosystems is accelerating demand for IoT security solutions across industries. Governments are introducing stringent security requirements to protect connected devices used in energy, healthcare, transportation, manufacturing, and public infrastructure from evolving cyber threats. For instance, the European Union's Cyber Resilience Act (CRA) establishes mandatory cybersecurity requirements for products with digital elements throughout their lifecycle, while the US Cyber Trust Mark program promotes stronger security standards for consumer IoT devices.
The increasing convergence of Information Technology (IT) and Operational Technology (OT) networks is creating substantial demand for advanced IoT security solutions. Industrial organizations are integrating connected sensors, industrial control systems, robotics, and edge devices with enterprise IT infrastructure to improve operational efficiency and enable real-time decision-making. As industries continue digital transformation initiatives under Industry 4.0, organizations are investing in comprehensive IoT security platforms to protect interconnected IT-OT environments, ensure business continuity, and maintain resilient industrial operations.
Legacy Infrastructure Integration and Device Lifecycle Management Restrains Market Expansion
The integration of modern IoT security solutions with legacy industrial systems remains a significant restraint for the IoT security market. Many organizations in manufacturing, energy, utilities, and transportation continue to operate legacy operational technology (OT) assets that were not designed with built-in cybersecurity capabilities. Retrofitting these systems with modern authentication, encryption, and continuous monitoring solutions is often complex, costly, and may disrupt ongoing operations.
Managing cybersecurity across the diverse lifecycle of connected IoT devices poses another major challenge to market expansion. IoT ecosystems often comprise devices from multiple vendors with varying hardware capabilities, software versions, and update mechanisms, making consistent security management difficult. issues increase operational complexity, prolong vulnerability exposure, and discourage organizations from rapidly scaling IoT deployments, thereby restraining market growth.
Expansion of Secure Edge Computing and Increasing Adoption of Connected Healthcare Offer Growth Opportunities to Market Players
A key IoT security market growth opportunity stems from the rapid expansion of secure edge computing across industrial and enterprise environments. As organizations increasingly process data closer to connected devices, demand for integrated security solutions that provide real-time threat detection, encrypted communications, and secure device authentication is growing significantly. The accelerating deployment of edge computing across manufacturing, healthcare, transportation, and smart city applications is creating new requirements for distributed cybersecurity, secure device communication, and continuous threat monitoring.
The growing adoption of connected healthcare is creating opportunities for advanced IoT security solutions that safeguard medical devices, remote patient monitoring systems, and hospital networks. Increasing digitalization of healthcare services and stricter patient data protection requirements are encouraging healthcare providers to invest in cybersecurity platforms designed for connected medical ecosystems. Companies such as Claroty are expanding healthcare-focused cybersecurity solutions to improve visibility, detect cyber threats, and secure connected medical devices across clinical environments.
Evolving Cyber Threat Landscape and Limited IoT Security Standardization Challenges Market Growth
The rapidly evolving cyber threat landscape remains a major challenge for the IoT security market. Attackers continuously develop sophisticated ransomware, botnets, and zero-day exploits targeting connected devices, making it difficult for organizations to maintain effective protection. As threat vectors continue to evolve, security vendors must constantly update detection capabilities and threat intelligence, increasing operational complexity and development costs.
The absence of universally accepted security standards across diverse IoT ecosystems presents another significant challenge for market expansion. Connected devices are developed using different hardware architectures, communication protocols, and operating systems, resulting in inconsistent security implementations and interoperability issues. This fragmented ecosystem complicates device onboarding, vulnerability management, and security policy enforcement across large-scale deployments.
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By component, the solutions segment accounted for a share of 68.10% in 2025 due to its widespread adoption for securing connected devices, networks, applications, and cloud infrastructure against evolving cyber threats. Organizations are increasingly deploying endpoint security, identity and access management, network security, encryption, and threat detection solutions to strengthen cyber resilience. The growing implementation of zero-trust architectures and regulatory compliance requirements further supports the dominance of this segment.
The services segment is projected to grow at a CAGR of 29.40% during the forecast period due to the rising demand for consulting, system integration, managed security, and incident response services. As IoT ecosystems become more complex, organizations are increasingly relying on specialized cybersecurity providers to ensure continuous monitoring, vulnerability management, and regulatory compliance.
By security type, the network security segment accounted for the largest IoT security market share of 35.60% in 2025 due to its critical role in protecting connected devices, gateways, and communication networks from unauthorized access and cyberattacks. The rapid deployment of Industrial IoT (IIoT) and connected infrastructure further strengthens demand for network security solutions.
The identity and access management (IAM) segment is projected to grow at a CAGR of 31.20% during the forecast period due to the increasing need for secure device authentication, user identity verification, and privileged access control across connected ecosystems. Growing adoption of zero-trust security models and machine identity management is further accelerating the demand for IAM solutions.
By end user, the manufacturing segment accounted for the largest IoT security market share of 27.80% in 2025 due to the widespread deployment of Industrial IoT (IIoT), smart factories, industrial control systems, and connected production equipment. The growing adoption of Industry 4.0 technologies further reinforces the segment's market leadership.
The healthcare segment is projected to grow at a CAGR of 31.40% during the forecast period due to the increasing adoption of connected medical devices, remote patient monitoring systems, and digital healthcare infrastructure. Rising cybersecurity concerns surrounding patient data, medical device vulnerabilities, and regulatory compliance are encouraging healthcare organizations to strengthen IoT security investments.
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North America: Market Dominance Led by Advanced Cybersecurity Infrastructure and Evolving Cybersecurity Guidelines
The North America IoT security market accounted for the largest regional share of 34.20% in 2025 due to the widespread adoption of connected technologies, strong cybersecurity regulations, and significant investments in Industrial IoT (IIoT) and critical infrastructure protection. The region benefits from the presence of leading cybersecurity vendors, early adoption of cloud computing, and continuous digital transformation across manufacturing, healthcare, energy, and government sectors. Increasing implementation of zero-trust security frameworks and federal cybersecurity initiatives continues to strengthen market growth across the region.
The US IoT security market was valued at USD 11.82 billion in 2025, led by rapid deployment of connected devices across industrial automation, healthcare, smart cities, and critical infrastructure. Government initiatives such as the U.S. Cyber Trust Mark and increasing investments in critical infrastructure cybersecurity are accelerating the adoption of IoT security solutions. Cisco Systems continues to expand its IoT and industrial cybersecurity portfolio through Cisco Cyber Vision, enabling organizations to improve visibility and secure operational technology (OT) environments.
The Canada IoT security market was valued at USD 2.14 billion in 2025, driven by growing investments in smart infrastructure, connected healthcare, and industrial automation. Organizations are increasingly implementing advanced cybersecurity solutions to comply with evolving national cybersecurity guidelines and protect connected assets from sophisticated cyber threats. The country's expanding digital economy continues to support the adoption of secure IoT deployments across public and private sectors.
Asia Pacific: Fastest Growth Driven by Increasing Integration of Zero-trust Architecture and Focus on Industrial Automation
The Asia Pacific IoT security market is expected to grow at a CAGR of 30.60% during the forecast period, showcasing the fastest regional growth. Rapid industrialization, expanding 5G deployments, increasing adoption of smart manufacturing, and large-scale smart city initiatives are driving demand for advanced IoT security solutions across the region. Governments and enterprises are significantly increasing cybersecurity investments to secure connected infrastructure, industrial systems, and digital public services.
The IoT security market in China was valued at USD 5.18 billion in 2025, supported by extensive deployment of Industrial IoT, smart manufacturing, and smart city projects. Government initiatives promoting digital infrastructure and cybersecurity compliance are encouraging organizations to strengthen IoT security capabilities. Companies such as Huawei continues to integrate advanced cybersecurity technologies into its cloud and IoT ecosystem to protect connected enterprise and industrial environments.
The Japan IoT security market was valued at USD 2.11 billion in 2025, driven by widespread adoption of connected manufacturing, robotics, and critical infrastructure modernization. The country's focus on industrial automation and cybersecurity resilience is accelerating investments in secure IoT platforms. Enterprises are increasingly implementing zero-trust architectures and advanced threat detection solutions to protect connected operational environments.
The India IoT security market was valued at USD 1.86 billion in 2025, fueled by rapid expansion of smart cities, digital public infrastructure, connected healthcare, and industrial automation. Increasing cybersecurity awareness, government-led digital transformation programs, and rising enterprise adoption of cloud-connected IoT solutions are driving market demand. Growing investments in secure digital infrastructure continue to create significant opportunities for IoT security solution providers.
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The IoT security market competitive landscape is moderately consolidated, with competition concentrated among established cybersecurity companies, networking providers, cloud security vendors, and industrial cybersecurity specialists. Leading players compete through advanced threat detection capabilities, zero-trust security architectures, comprehensive device visibility, cloud-native security platforms, and strong enterprise partnerships. Emerging players also focus on embedded IoT security, operational technology (OT) protection, AI-powered threat intelligence, and managed security services to strengthen their market presence. The IoT security market ecosystem is shaped by evolving cybersecurity regulations, increasing adoption of Industrial IoT (IIoT), expanding cloud-connected ecosystems, and growing cyber threats.
June 2026: NTT DOCOMO BUSINESS, Transatel & Zscaler launched Cellular SASE for IoT, a SIM-based Zero Trust security solution integrating global IoT connectivity with cloud-delivered security to protect IoT devices without requiring endpoint agents or VPNs.
May 2026: OneLayer launched its Technology Alliance Program (TAP), establishing a certified ecosystem with partners including Check Point, Ericsson, Fortinet, Nokia, Digi International, Semtech, and Kigen to strengthen security for private LTE and 5G-enabled IoT networks.
May 2026: Armis introduced Armis Vulnerability Intelligence, a new capability within its cyber exposure management platform that enables organizations to prioritize and remediate vulnerabilities affecting connected IoT, OT, medical, and cyber-physical assets.
March 2026: Lantronix and Pairpoint signed an MoU to explore post-quantum security technologies for industrial IoT deployments, focusing on securing connected industrial assets against emerging quantum-era cyber threats.
January 2026: Afero partnered with Texas Instruments to develop an end-to-end secure IoT platform combining TI's Wi-Fi microcontrollers with Afero's cloud-based IoT security platform for connected smart home devices.
January 2026: Lantronix and Safe Pro Group signed a Memorandum of Understanding (MoU) and Master Services Agreement (MSA) to jointly develop Qualcomm-based embedded edge computing platforms with AI-driven threat detection for autonomous and IoT systems.
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Author's Details
Research Analyst
Pavan Warade is a Research Analyst with over 4 years of expertise in Technology and Aerospace & Defense markets. He delivers detailed market assessments, technology adoption studies, and strategic forecasts. Pavan’s work enables stakeholders to capitalize on innovation and stay competitive in high-tech and defense-related industries.
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