Wide-scale implementation of Internet of Things (IoT) concept has the ability to transform the way we live. The emergence of new IoT products such as home automation components, internet-enabled appliances and energy management devices are changing the entire scenario of IoT industry. However, lack of security is still one of the most important concerns for people and enterprises that look to adopt IoT. Recent ransomware and Distributed Denial of Service (DDoS) attacks have made this concern even more viable. Cost barrier and infrastructure investment for hackers are quite low and they use inexpensive, mass-scale techniques such as automated bots, email and off-the-shelf exploit kits among others. However, the magnitude of damage of these techniques is quite high. The infection of just one device or network element can result in a successful network attack. Therefore, IoT security will be an important area of concern for any organization in the coming years in order to comfortably roll-out their IoT-based solutions.
IoT has witnessed mass scale adoption across various application areas in recent years. In the manufacturing sector, its adoption is believed to significantly reduce bottlenecks, improve efficiency and increase profitability. Restaurant and retail chains could implement IoT to monitor customer movements, improve supply chain management and enhance the overall customer experience. In the healthcare sector, IoT could be implemented to more effectively manage staff, monitor patients and expensive medical equipment. The large scale adoption of IoT technologies across various verticals has made it vulnerable to cyber-attacks, thus arising the need for appropriate IoT security measures.
The major factor driving the IoT security market growth is the rapid adoption of cloud-based services as well as connected devices on a very large scale. Confidential data such as biometrics information is often stored on clouds, making them vulnerable to theft and misuse. Thus, in order to protect these data from unauthorized access, IoT security is finding increased adoption in the IoT space. Moreover, improved IoT security handling skills and organizational changes are further expected to bolster the adoption of IoT security during the forecast period. With improving technical expertise for infrastructure handling, IoT security will find an increased adoption in organizations. In addition, various countries such as Japan, China, Germany and the U.S. among others have embraced the Industrie 4.0 (fourth industrial revolution). The Industrie 4.0 is sponsored by the German government with a vision for advanced manufacturing sector. It encompasses many business designs and technologies, including the IoT and digital business. This factor is expected to positively impact the IoT security market growth.
Some of the major players profiled in the report are Verizon Enterprises Solutions, PTC, Inc., Check Point Security Software Technologies Ltd., Symantec Corporation, Cisco Systems, Inc., Gemalto NV, IBM Corporation, Trend Micro, Inc., Hewlett Packard Development Company L.P., Intel Corporation, NSIDE Secure SA and AT&T, Inc. among others.
In 2020, the Internet of Things (IoT) security market worldwide market was led by the manufacturing segment. Manufacturing companies are in the constant urge to enhance their production output and business process efficiency. Smart manufacturing in particular has been at the vanguard of introducing scalability, transparency and process defined architecture in manufacturing operations. Moreover, the implementation of Industrie 4.0, also referred to as the fourth industrial revolution in various countries such as the U.S., China, Japan and Germany among others is leading to the increased adoption of IoT technologies in the manufacturing sector and thus further arising the need for IoT security. These initiatives are contributing to the manufacturing segment growth.
The Banking, Financial Services and Insurance (BFSI) follow the manufacturing segment, in terms of value. Consumers are always in the lookout for convenient and personalized service whenever possible. This is evident from the growing popularity of mobile banking apps, online banking transactions, and contactless payment technologies. With added convenience they also want the highest levels of digital security from their banks. Security threats and data breaches often pose major problems to banks in the IoT era. Therefore, in order to ensure maximum security to its customers, the banking sector has been increasingly adopting IoT security measures.
The global Internet of Things (IoT) security market is dominated by the North American region. In 2020, the region accounted for more than 40% of the overall market revenue generated worldwide. The IoT security market here is majorly attributed to the U.S. and Canada being the early adopters of IoT technologies in various applications such as smart manufacturing and healthcare. The region has witnessed some major IoT security breaches in recent years. According to a survey conducted by Altman Vilandrie & Company, in the U.S., nearly 50% of firms using IoT have been a victim of security breaches. Moreover, presence of a large number of big players in the region such as Intel Corporation, IBM Corporation and Cisco Systems, Inc. has further contributed to the IoT security market growth.
In the following years, Asia Pacific is set to register the highest growth. The market growth here is primarily driven by the growing mobile devices penetration, large number of business organizations and the unregulated usage of the Internet. Moreover, growing economic growth and social transformation in the region is further expected to create a favorable environment for the adoption of IoT technologies, thereby impacting the IoT security market growth positively.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Internet of Things (IoT) Security market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Security
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Solution
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
