IoT Security Market Analysis

IoT Security Market Overview

As per MRFR, the IoT security market has been growing significantly over the past few years. It is expected to reach USD 8.576 billion by 2032, at a CAGR of 17.8% during the forecast period 2022–2032. The IoT security market is expected to grow at 17.8% CAGR during the forecast period, 2024-2032. In 2021, the market was led by North America with 40.73% share, followed by Europe and the Asia Pacific with shares of 24.76% and 18.74%, respectively. The high demand for IoT security in retail, manufacturing, healthcare, transportation, energy & utilities, IT & Telecommunications, BFSI, and other sectors is aiding the market growth in the Asia-Pacific region.

Figure 1: IoT Security Market Size, 2023-2032 (USD Billion)

Source: Industry Expert, Secondary Research, and MRFR Analysis

The Global IoT Security market has been segmented into type, solution, technology, vertical, and region. On the basis of type, the market is bifurcated into Network Security, Endpoint Security, Application Security, Cloud Security, and Others. By type segment, Network Security accounted for the largest market share with a market value of USD 4,464.2 million in 2021, which is projected to grow at a CAGR of 20.2% during the forecast period. By solution, the Global IoT security market is categorized into Identity Access Management, Device Authentication and Management, Secure Communication, Security Analytics, Trusted Identification, Data Encryption & Tokenization, and Other. Based on the solution, Device Authentication and Management accounted for the largest market share with a market value of USD 5,748.5 million in 2021 and is projected to grow at a CAGR of 21.5%. 

Based on technology, the Global IoT security market has been divided into Facial Recognition, Iris Recognition, and Fingerprint Identification. Based on the technology, Fingerprint Identification accounted for the largest market share with a market value of USD 13,429.6 million in 2021 and is projected to grow at a CAGR of 23.6%. Based on the vertical, the Global IoT security market has been segmented into Retail, Manufacturing, Healthcare, Transportation, Energy & Utilities, IT & telecommunications, BFSI, and Others. Based on the vertical, Manufacturing accounted for the largest market share with a market value of USD 4,924.2 million in 2021 and is projected to grow at a CAGR of 19.5%. Based on region, the Global IoT security market has been segmented into North America, Europe, Asia-Pacific, Middle East . 

Covid-19 Analysis

Since the lockdown and the closure of all production businesses, the fundamental components of IoT security are numerous sensors, without which the system cannot be installed. Furthermore, the sensors are made in many locations worldwide, making it impossible to export and import due to stringent lockdown measures implemented by governments worldwide, making raw material procurement extremely complex. Any system cannot come to life on its own without the whole set of raw materials, and system integration and system mating with software is impossible. As a result, the IoT security market's expansion has halted. Communication is critical amid the COVID-19 issue all around the world.

Every individual and government has been in continual contact to provide and receive real-time information on COVID-19, regardless of federal, state, central, municipal, or provincial levels. Healthcare, telecommunications, media and entertainment, utilities, and government agencies are working around the clock to stabilize the situation and provide essential services to everyone. Remote working, increasing video streaming, and worldwide internet connections have swiftly become essential components of modern civilization.

IoT Security Market Dynamics

Drivers

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  GROWING NEED FOR IOT SECURITY

  
  

The surge in internet penetration worldwide and progress in the speed of the internet have made technologies such as IoT evolve at a very quick pace. With the fulfilment of essential IoT criteria, namely, progress in speed, it is being employed in various technical applications and issue solving without the intervention of people. IoT is utilized in engineering applications and in the day-to-day operations of modern living, automating them. It saves a lot of time and is reliable, making it a convenient option. Everyday tasks like automating home lighting can be automated and controlled via IoT, but because IoT devices are controlled via the network, they are vulnerable to security attacks because they are a combination of various technologies like communication technology, information technology, electronic sensors, and actuator technology.

As a result, any form of security attack is feasible, and the IoT-enabled equipment can also be controlled, necessitating the need for IoT security. Blockchain technology is one of the most important answers for IoT security concerns. Blockchain technology is used to track sensor data and prevent it from being duplicated with other harmful data. Instead, than relying on a third party to establish trust, sensors can communicate data via blockchain.

RESTRAINTS

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  SIGNIFICANT INCREASE IN NEW VARIANTS OF IOT THREATS AND LACK OF AWARENESS

  
  

IoT devices are becoming more common in people's lives, and the ability of new botnets to infect, attack, and cause havoc is growing rapidly. As the corporate environment changes, so do the security requirements. People, on the other hand, are unaware of device vulnerabilities and the possibility of being hacked. Organizations fail to grasp internal threat risks, such as how employees are just a click away from downloading potential malware, undetected viruses, and threat activities such as spear-phishing and botnet. Security suppliers are creating novel and tailored products for a wide range of users, including individuals, SMEs, major organizations, and government agencies. The lack of awareness about security that is associated with the respective business portfolio is impeding the growth of the IoT security industry. Most clients, particularly those in Latin America and the Middle East, are unaware and hence unable to take advantage of the security goods and services available in the market that meet their needs.

OPPORTUNITY

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  DEVELOPMENT OF SMART INFRASTRUCTURE

  
  

Smart cities and smart buildings are conceptual models that are intended to supply a set of cutting-edge services and infrastructure. A smart city is one that uses its ICT infrastructure to improve the quality of life and increase the efficiency of urban operations and services. Smart cities adhere to the following components: smart transportation, smart buildings, smart utilities, and smart citizen services. As a result, the effective implementation of smart city initiatives is strongly reliant on technology such as data communications, cloud computing, mobility, and sensors, which comprise IoT. With the rise of IoT devices in the smart city ecosystem, securing these devices has grown more difficult. As a result, the vulnerabilities of IoT devices and networks, as well as their growing significance in daily activities, make IoT security critical. The need to safeguard IoT ecosystems is gaining traction, which is creating lucrative prospects for devoted and knowledgeable IoT security solution providers.

IoT Security Market Segmentation

The global internet of things security market has been segmented into Type, Solution, Technology, and Vertical.

Based on Type, the global IoT security market has been segmented into Endpoint Security, Application Security, Cloud Security, And Others.

Based on Solution, the global IoT security market has been segmented into Identity Access Management, Device Authentication and Management, Secure Communication, Security Analytics, Trusted Identification, Data Encryption And Tokenization, And Others.

Based on Technology, the global internet of things (iot) security market has been segmented into Facial Recognition, Iris Recognition, And Fingerprint Identification.

Based on Vertical, the global IoT security market has been segmented into Retail, Manufacturing, Healthcare, Transportation, Energy & Utilities, IT & Telecommunications, BFSI, And Others.

Regional Analysis

Geographically, the global IoT Security market has been segmented into North America, Europe, the Middle East & Africa, and South America.

North America is likely to lead the internet of things (iot) security market. The players present in North America are one of the top players in the world. North America accounted for the largest market share of XX% in 2021, with a market value of USD XXX million; the market is expected to register a CAGR of 19.5% during the forecast period. Europe was the second-largest market in 2021, valued at USD XXX million; the market is projected to exhibit a CAGR of 24.7%. However, the market in Asia-Pacific is expected to register the highest CAGR.

Competitive Landscape

The IoT security market is characterized by the presence of many global, regional, and local players. The market is competitive, with all the players competing to gain maximum market share. An increase in cyber-attacks on IoT systems and high demand for IoT security services by the healthcare and telecommunications sectors are key factors that drive the market growth. High costs associated with IoT security implementations and innovations restrain the growth of the internet of things security market. However, data risks in huge IoT systems will create opportunities for the market’s growth.

According to MRFR analysis, the growth of the IoT security market is dependent on market conditions. The key vendors in the market are,

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  PTC

  
  


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  Symantec Corporation

  
  


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  Infineon Technologies AG

  
  


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  Trustwave Holdings, Inc. (Singtel)

  
  


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  CISCO SYSTEMS, INC.

  
  


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  Check Point Software Technologies Ltd.

  
  


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  IBM Corporation

  
  


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  AT&T Inc.

  
  


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  Trend Micro Inc.

  
  


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  DigiCert

  
  


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  Thales

  
  


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  Intel Corporation

  
  


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  General Electric

  
  


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  Verizon

  
  


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  Sophos Ltd.

  
  

These companies are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are prominent providers of IoT security and compete in the IoT security market to increase their geographic presence, expand their customer base, and form strategic partnerships.

The top 5 players in the IoT security market are Cisco Systems, Inc., Thales Group, Infineon Technologies, IBM Corporation, and Verizon Communications Inc.

Recent Developments

In May 2023, Allot Ltd revealed its partnership with the Eastern European Telecom Group to release cyber security consumer solutions and simplified data protection.

September 2023 saw Intel Corporation introduce IoT-optimized processors that improve security, functional safety, and real-time capabilities for edge customers.

Last month, International Business Machines (IBM) Corporation unveiled ‘Watsonx Your Business’ as a way of reinforcing how innovative AI solutions can transform businesses.

Arm bought Trustonic, an IoT Security Company, at $1.1 billion in January 2023. Trustonic is involved in providing security solutions for various Internet of Things devices such as smartphones, wearables, and connected cars.

In February 2023, Cisco purchased Cloudlock, another IOT security company, for $2.6 billion dollars.

Microsoft acquired RiskIQ in March 2023, which is an IoT security company that cost $1 billion.

Trustwave announced its cloud-based cybersecurity platform in May 2020, serving as the basis for the firm’s managed security services, products, and other cybersecurity offerings. The Trustwave Fusion platform is meant to address enterprise IT needs since it will be integral to operations as they undergo digital transformation while confronting a perpetually changing landscape in terms of threat vectors.

Colorado-based Optiv Security Inc. is a private cyber-security solution provider involved with companies that offer them various cyber programs along with managed security services like risk mitigation and integration of technology solutions. The organization has been operational since 2015.

Microsoft's latest Patch released in November 2022 addresses half a dozen zero-day vulnerabilities, including one involving the distribution of malware updates through the Mark-of-the-Web (MotW) security feature used by hackers.

Report Overview

This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2030. For this analysis, MRFR segmented the global IoT Security market has been segmented based on Type, Solution, Technology and Vertical.

By Type

• Endpoint Security


• Application Security


• Cloud Security


• Others

By Solution

• Identity Access Management


• Device Authentication And Management


• Secure Communication


• Security Analytics


• Trusted Identification


• Data Encryption And Tokenization


• Others


• By Technology


• Facial Recognition


• Iris Recognition


• Fingerprint Identification

By Vertical

• Retail


• Manufacturing


• Healthcare


• Transportation


• Energy & Utilities


• IT & Telecommunications


• BFSI


• Others