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    US IoT Security Market

    ID: MRFR/ICT/12373-HCR
    128 Pages
    Aarti Dhapte
    October 2025

    US IoT Security Market Research Report: Information By Component (Solutions (Identity Access & Management, Data Encryption & Tokenization, Device Management, Security Analytics, Unified Threat Management) and Services (Consulting & Implementation, Training and Education, Support and Maintenance, Professional, Managed Security Services)), By Deployment (Cloud and On-premise), By Enterprise Size (SME's and Large Enterprises), By Product Type (Network Security, Endpoint Security, Application Security, Cloud Security- Forecast Ti...

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    US IoT Security Market Summary

    As per MRFR analysis, the US IoT Security Market was estimated at 8.889 USD Billion in 2024. The IoT Security industry is projected to grow from 11.0 in 2025 to 93.08 by 2035, exhibiting a compound annual growth rate (CAGR) of 23.8 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US IoT Security Market is poised for substantial growth driven by regulatory compliance and technological advancements.

    • The market is witnessing increased regulatory compliance, particularly in North America, which is the largest market for IoT security solutions.
    • Integration of AI and machine learning technologies is becoming prevalent, enhancing the capabilities of security solutions across various sectors.
    • Consumer awareness and education regarding security risks are on the rise, influencing purchasing decisions and market dynamics.
    • Rising cybersecurity threats and the expansion of smart devices are key drivers propelling investment in IoT security solutions, especially in the cloud segment.

    Market Size & Forecast

    2024 Market Size 8.889 (USD Billion)
    2035 Market Size 93.08 (USD Billion)
    CAGR (2025 - 2035) 23.8%

    Major Players

    Cisco Systems (US), Palo Alto Networks (US), IBM (US), Microsoft (US), Amazon Web Services (US), Fortinet (US), Check Point Software Technologies (IL), McAfee (US), Trend Micro (JP), FireEye (US)

    US IoT Security Market Trends

    The US IoT Security Market is currently experiencing a transformative phase, driven by the increasing integration of Internet of Things devices across various sectors. As organizations adopt smart technologies, the demand for robust security solutions has surged. This heightened focus on security stems from the growing awareness of potential vulnerabilities associated with connected devices. Consequently, businesses are prioritizing the implementation of comprehensive security frameworks to safeguard sensitive data and maintain consumer trust. Furthermore, regulatory pressures are compelling organizations to enhance their security measures, leading to a more proactive approach in addressing IoT-related threats. In addition, the landscape of the US IoT Security Market is evolving with advancements in artificial intelligence and machine learning. These technologies are being leveraged to develop more sophisticated security solutions that can adapt to emerging threats in real-time. As cyber threats become increasingly complex, the need for innovative security measures is paramount. The market appears poised for continued growth, as stakeholders recognize the necessity of investing in security to protect their IoT ecosystems. Overall, the US IoT Security Market reflects a dynamic interplay between technological advancement and the imperative for enhanced security protocols.

    Increased Regulatory Compliance

    Organizations are facing mounting pressure to comply with various regulations aimed at protecting consumer data and privacy. This trend is driving investments in security solutions that not only meet compliance requirements but also enhance overall security posture.

    Integration of AI and Machine Learning

    The incorporation of artificial intelligence and machine learning into security solutions is becoming more prevalent. These technologies enable organizations to detect and respond to threats more effectively, thereby improving the resilience of IoT systems against cyber attacks.

    Focus on Consumer Awareness and Education

    As the number of connected devices grows, there is a heightened emphasis on educating consumers about IoT security risks. This trend is fostering a more informed user base that is proactive in adopting security measures, ultimately contributing to a more secure IoT environment.

    US IoT Security Market Drivers

    Expansion of Smart Devices

    The proliferation of smart devices across various sectors is a key driver for the US IoT Security Market. As of 2025, it is projected that there will be over 30 billion connected devices worldwide, with a substantial portion located in the United States. This rapid expansion necessitates enhanced security protocols to safeguard these devices from potential threats. Industries such as healthcare, manufacturing, and smart homes are increasingly integrating IoT solutions, thereby amplifying the demand for security measures. The need to protect these interconnected systems from unauthorized access and data breaches is likely to propel the market forward.

    Rising Cybersecurity Threats

    The US IoT Security Market is experiencing a surge in demand due to the increasing frequency and sophistication of cyber threats. As organizations adopt more IoT devices, the attack surface expands, making them more vulnerable to breaches. In 2025, it is estimated that cybercrime will cost the global economy over 10 trillion dollars annually, prompting businesses to invest heavily in security solutions. This trend indicates a growing recognition of the need for robust security measures to protect sensitive data and maintain consumer trust. Consequently, companies are prioritizing investments in IoT security technologies, which is likely to drive market growth significantly.

    Growing Consumer Awareness of Security Risks

    Consumer awareness regarding the security risks associated with IoT devices is a significant driver for the US IoT Security Market. As individuals become more informed about potential vulnerabilities, they are demanding higher security standards from manufacturers and service providers. In 2025, surveys indicate that over 70 percent of consumers prioritize security features when purchasing IoT devices. This shift in consumer behavior is prompting companies to enhance their security offerings, thereby driving market growth. The increasing expectation for transparency and accountability in IoT security is likely to shape the future landscape of the industry.

    Increased Investment in IoT Security Solutions

    Investment in IoT security solutions is on the rise, driven by the growing awareness of the potential risks associated with connected devices. In 2025, the US IoT Security Market is expected to witness a compound annual growth rate of over 25 percent. This growth is fueled by organizations recognizing the importance of securing their IoT infrastructure. Companies are allocating significant budgets to implement advanced security measures, including encryption, authentication, and intrusion detection systems. This trend suggests a shift in corporate strategy towards prioritizing cybersecurity, which is likely to enhance the overall market landscape.

    Regulatory Pressures and Compliance Requirements

    The US IoT Security Market is increasingly influenced by regulatory pressures and compliance requirements. As governments and regulatory bodies establish stricter guidelines for data protection and privacy, organizations are compelled to adopt comprehensive security measures. In 2025, it is anticipated that compliance with regulations such as the California Consumer Privacy Act (CCPA) will drive investments in IoT security solutions. Companies that fail to comply may face substantial penalties, further incentivizing the adoption of robust security frameworks. This regulatory landscape is likely to create a favorable environment for the growth of the IoT security market.

    Market Segment Insights

    By Component: Solutions (Largest) vs. Services (Fastest-Growing)

    In the US IoT Security Market, the component segment is primarily bifurcated into solutions and services. Solutions currently dominate this segment, reflecting a robust adoption of comprehensive security measures embedded within devices. These solutions encompass software and hardware offerings that are integral to safeguarding IoT infrastructures. On the other hand, the service aspect, while smaller in market share, is experiencing rapid growth as organizations increasingly seek specialized expertise in managing and responding to security threats that arise in the IoT space.

    Solutions (Dominant) vs. Services (Emerging)

    In the US IoT Security Market, solutions are marked as the dominant component due to their critical role in establishing protective measures across various IoT devices. They encompass a wide range of technologies, including encryption, firewalls, and intrusion detection systems, which are essential for maintaining secure operations. Conversely, services represent an emerging sector characterized by a surge in demand for consultancy, managed security services, and incident response teams. As businesses scale their IoT operations, the reliance on specialized services to navigate security complexities has increased, positioning services as a vital complement to the dominant solutions.

    By Deployment: Cloud (Largest) vs. On-premise (Fastest-Growing)

    In the US IoT Security Market, the deployment segment showcases a significant split between cloud and on-premise solutions. The cloud deployment remains the largest segment due to its scalability, cost-effectiveness, and ability to support an increasing number of connected devices. Organizations are increasingly adopting cloud solutions for IoT security because of the ease of integration and management that these platforms offer, which enhances overall operational efficiency.

    Deployment: Cloud (Dominant) vs. On-premise (Emerging)

    Cloud deployment is characterized by its flexibility and vast resources available in the cloud environment, making it particularly appealing for enterprises looking to leverage advanced analytics and machine learning capabilities for IoT security. In contrast, on-premise solutions are seeing rapid growth, driven by concerns over data privacy and regulatory compliance. This increasing demand is resulting in a shift whereby organizations are seeking on-premise installations to maintain greater control over their sensitive data while still benefiting from IoT innovations.

    By Enterprise Size: Large Enterprises (Largest) vs. SMEs (Fastest-Growing)

    In the US IoT Security Market, Large Enterprises hold a significant market share, driven by their vast resources and established infrastructure. These organizations prioritize security solutions to protect extensive networks and sensitive data, making them pivotal players in the market. Conversely, Small and Medium-sized Enterprises (SMEs) represent the fastest-growing segment, as they increasingly adopt IoT technologies to enhance operational efficiencies and competitive edge. SMEs are recognizing the necessity of robust security measures to manage emerging threats effectively, contributing to their rapid growth in the market.

    Enterprise Size: Large Enterprises (Dominant) vs. SMEs (Emerging)

    Large Enterprises in the US IoT Security Market are characterized by their comprehensive security frameworks and robust investments in advanced technologies. They leverage sophisticated methodologies to safeguard critical data and infrastructures, ensuring resilience against cyber threats. The strategic adoption of IoT solutions enables these organizations to enhance operational efficiencies and streamline processes. In contrast, SMEs are emerging rapidly as a crucial segment in this market. They prioritize cost-effective security solutions tailored to their unique needs, often integrating user-friendly platforms that offer high scalability and adaptability. The increasing threat landscape and regulatory compliance requirements are driving SMEs to invest in IoT security, leading to their significant growth potential in the coming years.

    By Product Type: Network Security (Largest) vs. Endpoint Security (Fastest-Growing)

    In the US IoT Security Market, the product type segment is primarily dominated by Network Security, which holds the largest market share. This segment benefits from the increasing reliance on interconnected systems and the growing number of devices connected to the internet. In contrast, Endpoint Security is experiencing rapid growth as organizations recognize the vulnerabilities posed by endpoints in an increasingly remote and digital workforce. The rise of IoT devices necessitates stronger security measures to protect these access points against potential threats.

    Network Security (Dominant) vs. Endpoint Security (Emerging)

    Network Security plays a crucial role in the US IoT Security Market as it comprises solutions designed to protect and monitor network infrastructures. It is characterized by robust technologies, including firewalls, intrusion detection systems, and secure gateway architectures. As IoT deployments expand, Network Security becomes a dominant force due to its foundational importance in safeguarding data flow across devices. Conversely, Endpoint Security has emerged as a vital area of focus, reflecting the growing need for unique security strategies tailored to protect individual device access points. This segment's rapid growth is attributed to the increase in cyber threats targeting mobile and remote endpoints, compelling organizations to adopt comprehensive security solutions to mitigate risks.

    By End-user Industry: Healthcare (Largest) vs. Automotive (Fastest-Growing)

    The US IoT Security Market displays varied distribution of market shares among its end-user industries. The healthcare sector stands out as the largest contributor, significantly leveraging IoT technologies for patient monitoring, data security, and operational efficiency. In contrast, the automotive industry is rapidly emerging, driven by the demand for connected cars and advanced driver-assistance systems, placing it in an advantageous position for growth in the IoT security landscape.

    Healthcare: Dominant vs. Automotive: Emerging

    The healthcare segment in the US IoT Security Market is characterized by a strong emphasis on data security, compliance with regulatory standards, and the integration of IoT devices for improved patient care and operational management. As a dominant player, it effectively utilizes IoT technologies to enhance the safety and efficiency of healthcare delivery. On the other hand, the automotive sector, while still developing its full potential in IoT security, is growing rapidly, fueled by innovations in smart vehicle technology and increased consumer demand for enhanced safety and connectivity features. This segment is on the cusp of becoming a significant contributor as automakers continue to invest in cybersecurity solutions to protect against emerging threats.

    By Application: Smart Homes (Largest) vs. Smart Manufacturing (Fastest-Growing)

    In the US IoT Security Market, the application segment showcases diverse growth opportunities. Smart Homes dominate the market, benefiting from a surge in consumer interest in connected devices that enhance security, convenience, and energy efficiency. Meanwhile, Smart Manufacturing is rapidly gaining traction, driven by the adoption of IoT technologies that enhance operational efficiency and reduce risks associated with cyber threats. Together, these segments shape the landscape of IoT security, reflecting shifting consumer and industrial priorities. As awareness of IoT vulnerabilities rises, sectors like Smart Manufacturing are witnessing heightened investments. This growth is fostered by an increasing need for intelligent security solutions to safeguard sensitive data and operations. Additionally, the acceleration of the smart homes segment is spurred by innovative products and the growing trend for integrated home automation, illustrating a broader shift towards enhanced security protocols across applications.

    Smart Homes: Dominant vs. Smart Manufacturing: Emerging

    The Smart Homes segment is characterized by a wide range of security solutions, including smart locks, cameras, and alarm systems, all designed to offer convenience and peace of mind to homeowners. As the dominant force in the US IoT Security Market, this segment appeals to tech-savvy consumers eager to create connected environments that can be monitored remotely. In contrast, the Emerging Smart Manufacturing segment focuses on operational security, employing advanced IoT devices to monitor equipment and prevent unauthorized access. This segment is driven by industry needs for efficiency and security, with companies investing heavily in protective measures to mitigate risks from potential cyber-attacks. Together, these segments underscore the diverse landscape of the IoT security market, highlighting how consumer preferences and industrial demands coalesce.

    Get more detailed insights about US IoT Security Market

    Regional Insights

    North America : Leading Innovation and Adoption

    The North American IoT security market is driven by rapid technological advancements, increasing cyber threats, and stringent regulatory frameworks. The region holds approximately 60% of the global market share, making it the largest market for IoT security solutions. The demand for robust security measures is further fueled by the growing adoption of IoT devices across various sectors, including healthcare, manufacturing, and smart cities. The United States is the primary contributor to this market, with key players like Cisco Systems, Palo Alto Networks, and IBM leading the charge. The competitive landscape is characterized by continuous innovation and strategic partnerships among these companies. Additionally, government initiatives aimed at enhancing cybersecurity infrastructure are propelling market growth, ensuring a secure environment for IoT deployments.

    Europe : Regulatory Focus and Growth

    Europe is witnessing significant growth in the IoT security market, driven by stringent regulations such as the General Data Protection Regulation (GDPR) and the European Union's Cybersecurity Act. The region accounts for approximately 25% of the global market share, making it the second-largest market. The increasing awareness of data privacy and security concerns among consumers and businesses is propelling demand for advanced IoT security solutions. Leading countries in this region include Germany, the UK, and France, where companies like Check Point Software Technologies and Fortinet are making substantial contributions. The competitive landscape is marked by a mix of established players and emerging startups, all striving to innovate and meet the evolving security needs of IoT users. The European market is characterized by a collaborative approach among stakeholders to enhance security standards and practices.

    Asia-Pacific : Rapid Growth and Adoption

    The Asia-Pacific region is rapidly emerging as a significant player in the IoT security market, driven by increasing internet penetration, urbanization, and the proliferation of IoT devices. This region holds approximately 10% of the global market share, with countries like China, Japan, and India leading the charge. The demand for IoT security solutions is further fueled by the rising number of cyber threats and the need for compliance with local regulations. China is at the forefront of this growth, with major investments in smart city initiatives and IoT infrastructure. Key players such as Trend Micro and FireEye are actively expanding their presence in the region, focusing on innovative security solutions tailored to local needs. The competitive landscape is evolving, with both The US IoT Security share, highlighting the importance of localized strategies in addressing security challenges.

    Middle East and Africa : Emerging Market Potential

    The Middle East and Africa (MEA) region is gradually recognizing the importance of IoT security, driven by increasing digital transformation initiatives and the adoption of smart technologies. This region currently holds about 5% of the global market share, with significant growth potential as more businesses embrace IoT solutions. The demand for security measures is being propelled by rising cyber threats and the need for compliance with emerging regulations. Countries like the UAE and South Africa are leading the way in adopting IoT technologies, with local players and international firms working to provide tailored security solutions. The competitive landscape is characterized by a mix of established companies and startups, all aiming to address the unique security challenges faced in the region. As awareness of cybersecurity grows, investments in IoT security are expected to increase significantly in the coming years.

    Key Players and Competitive Insights

    The US IoT Security Market is characterized by a rapidly evolving competitive landscape, driven by increasing concerns over cybersecurity threats and the proliferation of connected devices. Major players such as Cisco Systems (US), Palo Alto Networks (US), and IBM (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Cisco Systems (US) emphasizes innovation through its robust portfolio of security solutions tailored for IoT environments, while Palo Alto Networks (US) focuses on integrating advanced AI capabilities into its security offerings. IBM (US), on the other hand, leverages its extensive cloud infrastructure to provide comprehensive security services, indicating a trend towards cloud-based security solutions that cater to the growing demand for scalable and flexible IoT security measures.

    The competitive structure of the market appears moderately fragmented, with numerous players vying for market share. Key business tactics include localizing manufacturing and optimizing supply chains to enhance responsiveness to market demands. This fragmentation allows for a diverse range of solutions, yet the collective influence of major players like Amazon Web Services (US) and Fortinet (US) is significant, as they continue to shape industry standards and customer expectations through strategic partnerships and technological advancements.

    In August 2025, Cisco Systems (US) announced a strategic partnership with a leading telecommunications provider to enhance its IoT security offerings. This collaboration aims to integrate advanced threat detection capabilities into the telecommunications infrastructure, thereby providing customers with a more robust security framework. The strategic importance of this partnership lies in its potential to expand Cisco's market reach and enhance its service delivery in the rapidly growing IoT sector.

    In September 2025, Palo Alto Networks (US) launched a new AI-driven security platform specifically designed for IoT devices. This platform utilizes machine learning algorithms to identify and mitigate threats in real-time, reflecting a significant shift towards proactive security measures. The introduction of this platform underscores Palo Alto's commitment to innovation and positions the company as a leader in the integration of AI within IoT security solutions.

    In July 2025, IBM (US) expanded its IoT security services by acquiring a cybersecurity startup specializing in threat intelligence. This acquisition is expected to bolster IBM's capabilities in providing comprehensive security solutions tailored for IoT environments. The strategic move highlights IBM's focus on enhancing its service offerings and underscores the importance of threat intelligence in the evolving landscape of IoT security.

    As of October 2025, current trends in the US IoT Security Market indicate a strong emphasis on digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are increasingly shaping the competitive landscape, fostering innovation and collaboration. Looking ahead, it appears that competitive differentiation will evolve, with a notable shift from price-based competition towards a focus on technological innovation, reliability in supply chains, and the ability to deliver comprehensive security solutions tailored to the unique challenges posed by IoT environments.

    Key Companies in the US IoT Security Market market include

    Industry Developments

    In March 2024, the Connectivity Standards Alliance's Product Security Working Group is announcing the launch of its IoT Device Security Specification 1.0, along with a certification procedure and a Product Security Verified Mark. This innovative effort seeks to create a comprehensive standard and certification program for cybersecurity in the Internet of Things (IoT). It offers manufacturers a convenient option to certify their devices, allowing them to easily meet various international rules and standards.

    The Product Security Certification Program consolidates several international requirements into a unified definition, simplifying the process, eliminating duplication, and offering manufacturers a single, reputable method for certifying their devices worldwide. As consumer IoT devices become more popular, there is a greater focus on security because there has been an increase in events involving breaches and the unauthorized takeover of devices. The Product Security Working Group seeks to address this difficulty by integrating the standards of the three most widely used IoT Cybersecurity frameworks from the United States, Singapore, and Europe into a unified specification and certification procedure.

    This collaborative endeavor assists producers in effectively and efficiently meeting the standards of these regulatory regimes, with the goal of instilling confidence in both consumers and regulators.

    May 2023: AWS announces that Configurable Endpoints will support Transport Layer Security (TLS) 1.3. TLS 1.3 offers two significant security and performance enhancements: it gets rid of older cipher suites and legacy features from earlier TLS versions, and it performs better thanks to a streamlined handshake procedure.

    Future Outlook

    US IoT Security Market Future Outlook

    The US IoT Security Market is projected to grow at a 23.8% CAGR from 2024 to 2035, driven by increasing cyber threats, regulatory compliance, and demand for smart devices.

    New opportunities lie in:

    • Development of AI-driven threat detection systems
    • Expansion of IoT security consulting services
    • Integration of blockchain technology for data integrity

    By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

    Market Segmentation

    US IoT Security Market Component Outlook

    • Solutions
    • Services

    US IoT Security Market Deployment Outlook

    • Cloud
    • On-premise

    US IoT Security Market Application Outlook

    • Smart Homes
    • Smart Manufacturing
    • Connected Logistics
    • Connected Healthcare
    • Smart Retail
    • Others

    US IoT Security Market Product Type Outlook

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

    US IoT Security Market Enterprise Size Outlook

    • SME's
    • Large Enterprises

    US IoT Security Market End-user Industry Outlook

    • Automotive
    • Healthcare
    • Government
    • Manufacturing
    • Energy & Power
    • Retail
    • BFSI
    • Others

    Report Scope

    MARKET SIZE 20248.889(USD Billion)
    MARKET SIZE 202511.0(USD Billion)
    MARKET SIZE 203593.08(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)23.8% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of advanced artificial intelligence in US IoT Security Market enhances threat detection and response capabilities.
    Key Market DynamicsRising regulatory scrutiny and technological advancements drive innovation in the US IoT Security Market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    How much is the IoT security market?

    The US IoT Security market size was valued at USD 5.8 Billion in 2022.

    What is the growth rate of the IoT security market?

    The market is projected to grow at a CAGR of 23.80% during the forecast period, 2023-2032.

    Who are the key players in the IoT security market?

    The key players in the market are Microsoft (US), AWS (US), Google (US), IBM (US), Intel (US), Cisco (US), Ericsson (Sweden), Thales (France), Allot (Israel), Infenion (Germany), and Atos (France).

    Which component led the IoT security market?

    The solutions category dominated the market in 2022.

    Which product type had the largest market share in the IoT security market?

    The endpoint security category had the largest share in the market.

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