IoT Security Market by Type (Network Security, Endpoint, Application Security, & Cloud Security), Offerings (Solutions & Services), Application Area (Smart Manufacturing, Connected Logistics & Transportation), Data Sensitivity - Global Forecast to 2028
[265 Pages Report] MarketsandMarkets forecasts the global IOT Security Market size to grow from USD 20.9 billion in 2023 to USD 59.2 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 23.1% during the forecast period. This growth is fueled by a rapid increase in the number of Industry 4.0 IoT security incidents stressing the need to strengthen cyber resilience, IoT vulnerabilities opening up new possibilities to hackers, a growing number of IoT security regulations, and rising security concerns for critical infrastructure.
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IoT Security Market Dynamics
Driver: Rising security concerns for critical infrastructure
Hackers are focusing their attention on loT devices and exploiting well-known vulnerabilities, such as default usernames, passwords, and static code backdoors. In today's world, all industries are embracing automation through loT integration. Essential infrastructures like electricity, water, and other crucial resources are early adopters of loT and are currently undergoing the process of automation. While automation greatly improves operational efficiency, it also exposes systems to cyber-attacks. The increasing vulnerability of critical systems has become the primary worry for governments worldwide. Any unintentional or malicious tampering with the controls of a nuclear reactor poses a significant threat to both human life and property.
Restraint: Significant increase in new variants of IoT threats and lack of awareness
IoT devices are becoming a part of our lives; the ability of new botnets to infect, attack, and wreak havoc is also increasing rapidly. For instance, a new variant of threat in the Mirai malware family, known as Miori, is targeting IoT devices to integrate into a larger botnet and launch Distributed Denial-of-Service (DDoS) attacks. Besides Miori, other Mirai offsprings, including Shinoa, APEP, and IZ1H9, use the same Remote Code Execution (RCE) vulnerability to find and infiltrate victims’ open source-based machines.
Opportunity: 5G networks to accelerate a new wave of IoT applications
The low latency of 5G and Multi-access Edge Computing (MEC) helps optimize production in an IoT-enabled smart factory. 5G technology accelerates the uptake of IoT applications and services throughout the ICT industry. 5G is expected to enable new use cases in remote monitoring, visual inspection, and autonomous operations in large-scale remote environments, such as mines and connected vehicles. It also enables machines to communicate without human intervention with a wide array of IoT services. It has facilitated safer, more efficient, and cost-effective transport networks. It also aims at offering improved access to medical treatments by reliably connecting patients and doctors all over the globe. 5G technology would enable richer, smarter, and more convenient living and working.
Challenge: Lack of standardization in IoT protocol
As a diverse range of devices needs to be connected, the need to coordinate with these devices has increased. Various devices use different hardware, run over different platforms, and are manufactured by different vendors. This incompatibility among devices, sensors, and even interfaces of remote servers causes the interoperability challenge in the IoT space. IoT involves every aspect of human life, and the challenge lies in unifying these standards so that M2M communication becomes user-friendly and flexible. Several associations and organizations are working toward resolving this issue. The existing interoperability standards, such as MTConnect, Ethernet for Control Automation Technology (EtherCAT), MCS-DCS Interface Standardization (MDIS), Master Control System (MCS), Distributed Control System (DCS), and Interface Standardization, promote data interchange across heterogeneous domains and industries. Companies currently use custom Application Programming Interfaces (APIs) and solutions for every IoT project. A common protocol and communication standard is required to enable communication among IoT-enabled devices to share data or form an intelligent network.
Market Ecosystem
Prominent companies in this market include well-established, financially stable software and solutions providers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Microsoft (US), AWS (US), Google (US), IBM (US), Intel (US), Cisco (US), Ericsson (Sweden), Thales (France), Allot (Israel), Infenion (Germany), Atos (France), etc. are some of the major players operating in this ecosystem.
Based on the solutions, the IAM segment is expected to hold the highest market size during the forecast period.
Ensuring data confidentiality and authorized control over connected devices is crucial for the security of any loT network. As loT continues to expand its presence across various industries, it becomes essential to tailor loT security measures to the specific needs of each industry. As the number of loT deployments continues to rise, so does the level of cyberattacks targeting these networks. To address these concerns, IoT security solutions employ a range of measures, such as identity and access control management, device authentication and management, and PKI lifecycle management, among others. These solutions play a vital role in safeguarding the integrity and protection of loT systems.
Based on region, the Asia Pacific is expected to grow at the highest CAGR during the forecast period
The growth in the IoT device is a result of an aggressive approach by key players aiming to improve business performance and collaboration. Organizations of all sizes and types across all sectors are often highly dependent on vendors or integrators to deliver Information and Communications Technology (ICT) products and services. The increasing use of Internet of Things (IoT) technologies help support their operations and to accomplish their business objectives. The advancement in technology and integration of it into every aspect of the modern world have led to significant improvements, at the same time, introduced new security risks. The rise in ransomware attacks in the IoT ecosystem and the need to follow rigorous adherence and regulatory demand are anticipated to drive market growth. Currently, North America is a paramount contributor to the expansion of the global IoT security market owing to the adoption of IoT in numerous Applications and various initiatives taken by the US Government.
Market Players:
The major players in the IoT Security market are Microsoft (US), AWS (US), Google (US), IBM (US), Intel (US), Cisco (US), Ericsson (Sweden), Thales (France), Allot (Israel), Infenion (Germany), Atos (France), etc. These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their footprint in the IoT Security market.
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Report Metrics |
Details |
Market size available for years |
2023-2028 |
Forecast period |
2023–2028 |
Base Year |
2022 |
Forecast units |
Value (USD) Million/Billion |
Segments Covered |
Offerings, Solutions, Services, Type, Data Sensitivity, Applications and Region |
Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
Companies covered |
Microsoft (US), AWS (US), Google (US), IBM (US), Intel (US), Cisco (US), Ericsson (Sweden), Thales (France), Allot (Israel), Infenion (Germany), Atos (France), etc. |
This research report categorizes the IoT Security market to forecast revenues and analyze trends in each of the following submarkets:
Based on the Offerings:
- Solutions
- Services
Based on Solutions:
- Identity and Access Management
- Data Encryption and Tokenization
- Intrusion Detection System and Intrusion Prevention System
- Device Authentication And Management
- Secure Communications
- Public Key Infrastructure Lifecycle Management
- Distributed Denial Of Service Protection
- Security Analytics
- Other Solutions
Based on Services:
- Professional Service
- Managed Services
Based on Professional Services:
- Implementation
- Consulting
- Support and Maintenance
Based on Type:
- Network Security
- Endpoint Security
- Application Security
- Cloud Security
- Other Security Types
Based on the Application area:
- Smart Manufacturing
- Smart Energy and Utilities
- Connected Logistics and Transportation
- Smart Home and Consumer Electronics
- Connected Healthcare
- Smart Government and Defense
- Smart Retail
- Others
Based on the Data Sensitivity:
- High-Sensitive Data
- Low and Moderate Sensitive Data
By Region:
-
North America
- United States (US)
- Canada
-
Europe
- United Kingdom (UK)
- Germany
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
-
Middle East & Africa
- UAE
- KSA
- Israel
- Rest of the Middle East & Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In May 2023, AWS announces support for Transport Layer Security (TLS) 1.3 through Configurable Endpoints. TLS 1.3 provides two major improvements in security and performance - it removes legacy features and older cipher suites in previous versions of TLS, and offers better performance through a simplified handshake process.
- In April 2023, Launches a new IoT security platform called IBM Security QRadar for IoT
- In February 2023, Cisco announced new cloud management tools for industrial IoT applications, simplified dashboards to converge IT and OT operations, and flexible network intelligence to see and secure all industrial assets
- In July 2022, Microsoft launched Defender for IoT to protect printers, smart TVs and all connected things besides PCs and smartphones. Microsoft Defender for IoT was launched in preview in late 2021 but was also formerly known as Azure Defender for IoT, which launched in public preview in 2020. Before that, it was called Azure Security Center for IoT
Frequently Asked Questions (FAQ):
What is the definition of IoT Security market?
Thales Group defines IoT security as a practice that keeps IoT systems safe. IoT security tools protect from threats and breaches, identify and monitor risks, and can help fix vulnerabilities. IoT security ensures the availability, integrity, and confidentiality of deployed IoT solutions.
IoT security is the practice of securing IoT devices and networks they’re connected to. The interconnectedness of IoT presents a substantial challenge to enterprises in terms of security risk arising from shadow devices connected to the network and IoT security solutions and services minimizing IoT security concerns and protecting organizations, people, processes, and data from threats, thus minimizing the losses caused due to threats and cyber-attacks on connected devices..
What is the market size of the IoT Security market?
The IoT Security market size is projected to grow from USD 20.9 billion in 2023 to USD 59.2 billion by 2028, at a CAGR of 23.1% during the forecast period.
What are the major drivers in the IoT Security market?
Rapid increase in the number of Industry 4.0 IoT security incidents stressing the need to strengthen cyber resilience: The fourth industrial revolution, known as Industry 4.0, and industrial transformation, requires heightened attention for cybersecurity. The industrial internet of things (IIoT), machine learning, and big data boost the manufacturing industry. Industry 4.0 fosters significant improvements to data exchange and industrial control in this industry. AI and IoT integrated systems allow optimization of the manufacturing process, send early alerts, contribute to quality control, and forecast equipment failures in machinery. Thus, the digitization of assets, equipment, vehicles, and processes in a factory leads to an exponential increase in the number of connected devices
Who are the key players operating in the IoT Security market?
The major players in the IoT Security market are Microsoft (US), AWS (US), Google (US), IBM (US), Intel (US), Cisco (US), Ericsson (Sweden), Thales (France), Allot (Israel), Infenion (Germany), Atos (France), etc. These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, enhancements, and acquisitions to expand their footprint in the IoT Security market.
What are the opportunities for new market entrants in the IoT Security market?
5G networks to accelerate a new wave of IoT applications: The low latency of 5G and Multi-access Edge Computing (MEC) helps optimize production in an IoT-enabled smart factory. 5G technology aims at accelerating the uptake of IoT applications and services throughout the ICT industry. 5G is expected to enable new use cases in remote monitoring, visual inspection, and autonomous operations in large-scale remote environments, such as mines and connected vehicles. It also enables machines to communicate without human intervention with a wide array of IoT services. It has facilitated safer, more efficient, and cost-effective transport networks. It also aims at offering improved access to medical treatments by reliably connecting patients and doctors all over the globe. 5G technology would enable richer, smarter, and more convenient living and working.
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This research study involved extensive secondary sources, directories, and databases, such as D&B Hoovers, Bloomberg Businessweek, and Factiva, to identify and collect information useful for this technical, market-oriented, and commercial study of the IoT Security market. Primary sources were industry experts from core and related industries, preferred system developers, service providers, resellers, partners, and organizations related to the various segments of the industry’s value chain. In-depth interviews were conducted with various primary respondents, including key industry participants and subject-matter experts, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects. These included key industry participants, subject-matter experts, C-level executives of key companies, and industry consultants.
Secondary Research
The market share and revenue of the company offering IoT Security services were identified. The secondary data was available through paid and unpaid sources by analyzing the product portfolio of major companies in the ecosystem and rating them based on their performance and quality. In the secondary research process, various sources were referred to for identifying and collecting information for this study. In the secondary research process, various sources were referred to for identifying and collecting information for this study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, journals, certified publications, and articles from recognized authors, directories, and databases.
Primary Research
Various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report in the primary research process. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Chief Information Security Officers (CISOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the IoT Security market.
The Breakup of Primary Research:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the global IoT Security market and the size of various other dependent sub-segments. The research methodology used to estimate the market size includes the following details:
- Analyzing the size of the global IoT Security and then identifying revenues generated through the technology
- Identifying the key players in the market and their revenue contribution in the respective regions
- Estimating the size of the IoT Security market
- Estimating the market size of other IoT Security technology providers
IoT Security Market Size: Botton Up Approach
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IoT Security Market Size: Top Down Approach
Data Triangulation
After arriving at the overall market size, the IoT Security market was divided into several segments and subsegments. The data triangulation procedures were used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
Thales Group defines IoT security as a practice that keeps IoT systems safe. IoT security tools protect from threats and breaches, identify and monitor risks, and can help fix vulnerabilities. IoT security ensures deployed IoT solutions' availability, integrity, and confidentiality.
IoT security is securing IoT devices and networks they’re connected to. The interconnectedness of IoT presents a substantial challenge to enterprises in terms of security risk arising from shadow devices connected to the network and IoT security solutions and services minimizing IoT security concerns and protecting organizations, people, processes, and data from threats, thus minimizing the losses caused due to threats and cyber-attacks on connected devices.
Key Stakeholders
- Global managed service providers
- Cloud Service Providers (CSPs)
- Independent Software Vendors (ISVs)
- System integrators
- Value-added Resellers (VARs)
- Managed Service Providers (MSPs)
- Chief Financial Officers (CFOs)
- Information Technology (IT) directors
- Small and Medium-sized Enterprises (SMEs)
- IT strategy consultants
- Managed services consulting vendors
- Technology partners
- Research organizations
- Enterprise users
- Technology providers
Report Objectives
- To determine and forecast the global IoT security market based on components, solutions, services, types, deployment modes, application areas, and regions from 2018 to 2028, and analyze various macro and microeconomic factors that affect the market growth
- To forecast the size of the market segments with respect to five key regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA)
- To provide detailed information related to the major factors (drivers, opportunities, threats, and challenges) influencing the growth of the IoT security market
- To analyze each sub-segment for individual growth trends, prospects, and contribution to the total IoT security
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the IoT security
- To profile key market players comprising top vendors and start-ups; provide comparative analysis based on business overview, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscapes
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities, in the market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the MEA market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in IoT Security Market
Interested in endpoint and application security
Understanding of IOT security market
Understanding market sizing and vendors in IOT space
Understanding the projected market value related to the IOT Security Market
Understanding of security products related to IOT
Interested in IOT security market
Understanding the key players in IOT security market
Interested in maerket sizing of security for IOT
Understanding the market size and segments of global IOT security market.
Interested in IOT market