IoT Security Market

IoT Security Market Overview:

The global IoT security market size reached US$ 5.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 40.7 Billion by 2032, exhibiting a growth rate (CAGR) of 25.5% during 2024-2032. The market is driven by the growing demand for strong security measures to secure IoT devices in financial institutions, rising need to protect infrastructures from cyber threats to avoid disruptions that can have serious ramifications for public safety and civic operations, and thriving retail industry.

IoT Security Market Analysis:

• Major Market Drivers: The growing demand for IoT security in the finance sector due to the high value of financial data and transactions is offering a favorable market outlook.
• Key Market Trends: The rising need for strong security measures to prevent vulnerabilities and assure seamless operations in smart cities is propelling the growth of the market.
• Geographical Trends: North America enjoys the leading position on account of the widespread adoption of IoT technology in industries, such as healthcare, manufacturing, and transportation.
• Competitive Landscape: Some of the major market players in the IoT security industry include Allot Ltd., Armis Inc., CENTRI Technology, Cisco Systems, Inc. ForgeRock Inc., Fortinet, Inc., Gemalto NV, International Business Machines (IBM) Corporation, Infineon Technologies AG, Intel Corporation, Mocana Corporation, Newsky Internet Limited, SecuriThings, NortonLifeLock Inc. (Symantec Corporation), ZingBox Inc., among many others.
• Challenges and Opportunities: While the market faces challenges, such as managing the complexity of securing diverse IoT devices and platforms, it also encounters opportunities in leveraging AI and blockchain for advanced threat detection and enhancing regulatory compliance solutions.
   

IoT Security Market Trends:

Increasing cybersecurity frauds in finance sector

According to an article published on the website of the International Monetary Fund (IMF) in 2024, the financial sector has suffered more than 20,000 cyberattacks, causing the loss of 12 billion dollars in past 20 years. The finance sector is a popular target for hackers due to the high value of financial data and transactions. As cyberattacks are getting more sophisticated, the necessity for strong security measures to secure IoT devices in financial institutions is increasing. Financial institutions are rapidly using IoT equipment, such as ATMs, payment terminals, and mobile banking apps, to improve customer services and operational efficiencies. These gadgets, if not properly secured, can serve as entry points for hackers. Financial institutions handle a large amount of sensitive data, including personal and financial information. Ensuring the security of this data is critical to retaining customer trust and meeting regulatory standards. IoT security solutions help secure data against breaches and illegal access, which is catalyzing the IoT security market demand. Cyberattacks on financial organizations can result in considerable financial losses, including direct theft, regulatory fines, and reputational damage. Investing in IoT security helps limit these risks by preventing breaches and maintaining the integrity of financial systems.

Rising development of smart cities

The IMARC Group’s report shows that the global smart cities market size reached US$ 1,233.7 Billion in 2023. Smart cities use a massive network of interconnected devices and sensors to manage infrastructure and services, such as traffic control, energy distribution, public safety, and trash management. Power grids, water supply systems, and transportation networks are all part of smart cities' key infrastructure. Securing these infrastructures from cyber threats is critical to avoid disruptions that could have serious ramifications for public safety and civic operations. Smart cities collect and interpret massive volumes of data from a variety of sources, such as surveillance cameras, environmental sensors, and citizen gadgets. Ensuring the privacy and protection of this data is critical to prevent illegal access and breaches, which drives the need for complete IoT security solutions, thereby supporting the IoT security market growth.

Thriving retail industry

Retailers are rapidly using IoT devices including smart shelves, connected point-of-sale (POS) systems, digital signage, and RFID tags to improve inventory management, customer experience, and operational efficiencies. Ensuring the security of these devices is crucial to avoid data breaches, fraud, and financial losses, which is driving the demand for advanced IoT security solutions. Retailers use IoT devices to collect and process vast amounts of customer data, such as shopping behavior, preferences, and personal information, which is increasing the IoT security market revenue. Protecting sensitive data from illegal access and breaches is critical for preserving customer trust and adhering to data protection requirements. IoT devices play an important role in supply chain management by enabling real-time visibility and tracking for items. Ensuring the security of these devices helps to prevent disruptions, theft, and tampering, thereby improving the supply chain's integrity and efficiency in the retail sector. According to the data published on the website of the National Retail Federation, retail sales will increase between $5.23 trillion and $5.28 trillion in 2024.

IoT Security Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, security type, and vertical.

Breakup by Component:

• Solutions
• Services
   

Solutions account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions and services. According to the report, solutions represent the largest segment.

IoT security solutions include a diverse set of technologies and techniques aimed at providing comprehensive protection for IoT devices, networks, and data. These solutions, which include encryption, authentication, intrusion detection and prevention systems, device management, and secure firmware updates, provide comprehensive security coverage. IoT security solutions can be customized to fit the unique requirements of various businesses and integrated with current IT infrastructure, which is positively influencing the IoT security market dynamics.

Breakup by Security Type:

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

Cloud security holds the largest share of the industry

A detailed breakup and analysis of the market based on the security type have also been provided in the report. This includes network security, endpoint security, application security, cloud security, and others. According to the report, cloud security accounts for the largest market share.

Cloud security solutions secure data transported to and from IoT devices, as well as data stored in the cloud, against breaches, illegal access, and other cyber threats. Furthermore, integrating sophisticated technologies like AI and machine learning (ML) into cloud security improves threat detection and response capabilities. This makes it an essential component for defending IoT networks.

Breakup by Vertical:

• Energy and Utilities
• Manufacturing
• Automotive
• Transport
• Consumer Electronics
• Healthcare
• Others
   

Energy and utilities represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes energy and utilities, manufacturing, automotive, transport, consumer electronics, healthcare, and others. According to the report, energy and utilities represent the largest segment.

Energy and utilities are the most important verticals in the IoT security industry since they rely heavily on interconnected systems to manage and optimize infrastructure. The use of IoT technology in this sector improves the efficiency of energy distribution, grid management, and resource monitoring while simultaneously introducing substantial security issues. Given the critical nature of these systems, any cyberattack, or disruption can have serious effects, such as power outages, safety risks, and economic impacts. As a result, effective IoT security measures are required to protect against potential threats and maintain the integrity and stability of the energy supply chain, which is contributing to the IoT security market insights.

Breakup by Region:

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Iran
  • United Arab Emirates
  • Others
     

North America leads the market, accounting for the largest IoT security market share

The report has also provided a comprehensive analysis of all the major regional markets, which include Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); North America (the United States and Canada); Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others); and the Middle East and Africa (Turkey, Saudi Arabia, Iran, United Arab Emirates, and others). According to the report, North America represents the largest regional market for IoT security.

North America is the largest region in the IoT security market for several reasons, including the widespread adoption of IoT technology in industries, such as healthcare, manufacturing, transportation, and smart homes. The existence of significant technology businesses and modern infrastructure promotes innovations and implementation of IoT solutions, necessitating strong security measures to protect against evolving cyber threats. Furthermore, strong regulatory regulations and standards in the United States and Canada need robust cybersecurity measures, which is driving the demand for advanced IoT security solutions. Moreover, key players operating in the region are introducing new cloud solutions to strengthen the security of IoT devices and networks. For instance, in 2023, Cisco announced new innovations in cloud-managed networking for industrial IoT applications to secure all industrial assets. The region's strong focus on R&D, combined with significant investments in cybersecurity, contributes to the market expansion.

Competitive Landscape:

• The IoT security market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the IoT security industry include Allot Ltd., Armis Inc., CENTRI Technology, Cisco Systems, Inc. ForgeRock Inc., Fortinet, Inc., Gemalto NV, International Business Machines (IBM) Corporation, Infineon Technologies AG, Intel Corporation, Mocana Corporation, Newsky Internet Limited, SecuriThings, NortonLifeLock Inc. (Symantec Corporation), and ZingBox Inc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the market are continually creating and improving comprehensive security solutions to combat emerging threats to IoT ecosystems. These firms use modern technologies like artificial intelligence (AI), machine learning (ML), and blockchain to deliver effective threat detection, prevention, and response capabilities. They are also working to integrate their solutions with cloud platforms and other IT infrastructure while providing smooth and scalable security measures. To remain ahead of growing threats, these major organizations are spending in R&D, forging strategic alliances, and purchasing smaller companies with specific expertise. Furthermore, they collaborate closely with regulatory organizations to ensure that their solutions help clients achieve severe compliance criteria. In addition, major players are focusing on mergers and partnerships to expand their customer base and keep them competitive in the market. For instance, in 2023, Allot Ltd. has extended its partnership with PPF Telecom Group to launch consumer cybersecurity services.

IoT Security Market News:

• In 2023: AWS announced that AWS IoT Core now supports Transport Layer Security (TLS) version 1.3 amongst its transport security options. TLS 1.3 offers customers enhanced security and performance as compared to TLS 1.2.
• In 2023: SecuriThings announced the launch of a new Managed Service Platform for the physical security space that enables managed service providers to manage, visualize and maintain customer environments from a single pane of glass.

IoT Security Industry Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, IoT security market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the IoT security industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.