Internet of Things (IoT) Security Market by Type (Network, Endpoint, Application and Cloud Security), Solution (Identity Access Management, Device Authentication and Management, Security Analytics, and IDS/IPS), Service, Application Area, and Region - Global Forecast to 2022

[161 Pages Report] The overall IoT security market is expected to grow from USD 6.62 billion in 2017 to USD 29.02 billion by 2022, at a CAGR of 34.4% from 2017 to 2022. Security is one of the most important aspect of IoT implementations as the hacking of IoT devices can cause severe issues. In IoT implementations most of the data is stored in the cloud and hence can be encrypted and secured. However, culprit directly attacks the device and install new patches. Secondly, ransomware developers are looking to make the maximum money for the least efforts. Hence, it is easy for them to exploit software such as Adobe Flash or Internet Explorer. IoT security solutions such as identity and access management, intrusion detection and prevention, device authentication, secure communications allow users to secure the IoT implementations. The base year considered for the study is 2016, and the forecast has been provided for the period between 2017 and 2022.

Market Dynamics

Drivers

• Increase in ransomware attacks on IoT systems
• Securing ubiquitous environment
• Mandatory requirement to comply with stringent regulations
• Increase in risk-based adaptive security for IoT ecosystem

Restraints

• Costly IoT security innovations and budget constaints
• Physical restraints of IoT devices and endless variety of IoT applications

Opportunities

• Increased data risk in vast IoT networks
• Increasing use of freeware IoT operating systems

Challenges

• Low awareness about the importance of IoT security
• Lack of standardization for IoT solutions

Rise in number of IoT devices and the data generated through them drives the global IoT security market Data-centric security is an approach to emphasize the security of data over the security of networks, servers, or applications. Data is increasing, both in range and volume, because of the increasing use of IoT in various application areas, such as smart manufacturing, healthcare, smart cities, energy and utilities, telecommunication, retail, and BFSI. Businesses are increasingly relying on IoT data for driving their important business decisions with the help of advance intelligent analytics solutions. Hence, securing this data becomes very important for the IoT security vendors.  Rise in use of smart devices (mobile phones, laptops, and tablets) and progressive communication technologies (Zig-Bee and 6lowPAN), the private data is rising at a rapid pace. Growing quantity of private data in a digital form is challenging for IoT security providers especially in healthcare applications. It is commonly saved outside the control of user by external companies or websites and for proper data handling users should trust these companies or websites.

Objectives of the study:

The following are the major objectives of the study.

• To define, describe, and forecast the IoT security solutions, types, services, and application areas with respect to the individual growth trends and contributions towards the overall market
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, industry-specific challenges, and restraints)
• To analyze micro markets1 with respect to individual growth trends, prospects, and contributions to the overall market
• To analyze the opportunities in the market and the details of the competitive landscape for stakeholders and market leaders
• To forecast the market size of segments with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To profile key players and comprehensively analyze their core competencies2
• To analyze competitive developments, such as mergers and acquisitions, partnerships, contracts, and new product developments in the IoT security market

During this research study, major players operating in the IoT security market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

Breakdown of Primary Participants

To know about the assumptions considered for the study, download the pdf brochure

The IoT security ecosystem comprises vendors providing IoT security solutions to their commercial clients across the globe. Companies, such as PTC Inc. (US), Symantec Corporation (US), Verizon Enterprises Solutions (US), Trustwave (US), Check Point Security Software Technologies Ltd. (US), Cisco Systems, Inc. (US), IBM Corporation (US), Infineon Technologies (Germany), Gemalto NV (Netherlands), AT&T Inc. (US), Trend Micro Inc.(Japan), and Digicert (US) have adopted new partnerships, agreements, and collaborations as their key strategies to enhance their market reach. This strategy accounted for the largest share of the total strategies adopted by the market players.

Major Market Developments

• In May 2017, PTC formed a partnership with Ernst & Young, a multinational professional services firm. This partnership enabled PTC and Ernst & YoungY to co-create IoT solutions, to enable the manufacturers to improve end-to-end Product Lifecycle Management (PLM).
• In March 2016, Symantec launched its new security solution, Encryption Everywhere to support Symantec security products. This solution has a wide website security package from simple encryption to robust security solutions.
• In July 2015, Tustwave introduced new IoT security services to help manufacturers and business users of IoT technology, devices, and applications, to efficiently identify and remediate IoT related threats and vulnerabilities.

Key Target Audience for IoT Security Market

• IoT security solution vendors
• Third-party system integrators
• IoT security professionals and consultants
• IoT Security agencies
• Machine-to-Machine (M2M), IoT, and telecommunication companies
• Consultancy firms/advisory firms
• Third Party system integrators
• Regulatory agencies
• Investors and venture capitalists

Scope of the IoT Security Market Research Report

The research report segments the IoT security market into the following submarkets:

By Component

• Solutions
• Services

By Type

• Network security
• Endpoint security
• Application security
• Cloud security
• Others

By Solution

• Identity access management
• Data encryption and tokenization
• IDS/IPS
• Device authentication and management
• Secure software and firmware update
• Secure communications
• PKI lifecycle management
• Distributed denial of service protection
• Security analytics
• Others

By Service

• Professional services
• Integration Services
• Support and Maintenance
• Consulting Services
• Managed services

By Application Area

• Smart Manufacturing
• Smart Energy and Utilities
• Connected Logistics
• Consumer Wearables
• Connected Healthcare
• Smart Government and Defense
• Connected Vehicles
• Smart Retail
• Others

By Region

• North America
• Europe
• APAC
• MEA
• Latin America

Critical questions which the report answers

• What are new application areas which the IoT security companies are exploring?
• Which are the key players in the market and how intense is the competition?

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 breakdown of the North American market into the US and Canada
• Further breakdown of the European market into the UK, Germany, and France

Company Information

• Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 16)
    1.1 Objectives of the Study
    1.2 Market Definition
           1.2.1 Years Considered for the Study
    1.3 Currency
    1.4 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
    2.3 Research Assumptions
    2.4 Limitations

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 29)
    4.1 Attractive Opportunities in the IoT Security Market
    4.2 Market, By Top 3 Solution and Region, 2017
    4.3 Lifecycle Analysis, By Region, 2017
    4.4 Market Investment Scenario
    4.5 Market, By Type, 2017–2022

5 Market Overview and Industry Trends (Page No. - 32)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Ransomware Attacks on IoT Systems
                    5.2.1.2 Securing Ubiquitous Environment
                    5.2.1.3 Increasing Need for Data-Centric Security
                    5.2.1.4 Mandatory Requirements to Comply With Stringent Regulations
                    5.2.1.5 Increase in Risk-Based Adaptive Security for IoT Ecosystem
           5.2.2 Restraints
                    5.2.2.1 Costly IoT Security Innovations and Budget Constraints
                    5.2.2.2 Physical Restraint of IoT Devices and Endless Variety of IoT Applications
           5.2.3 Opportunities
                    5.2.3.1 Increased Data Risk in Vast IoT Networks
                    5.2.3.2 Increasing Use of Freeware IoT Operating Systems
           5.2.4 Challenges
                    5.2.4.1 Low Awareness About the Importance of IoT Security
                    5.2.4.2 Lack of Standardization for IoT Solutions
    5.3 Regulatory Implications
           5.3.1 ISO Standards
           5.3.2 ISO/IEC JTC1
                    5.3.2.1 ISO/IEC JTC1/SWG5
                    5.3.2.2 ISO/IEC JTC1/SC31
                    5.3.2.3 ISO/IEC JTC1/SC27
                    5.3.2.4 ISO/IEC JTC1/WG7 Sensors
           5.3.3 IEEE
           5.3.4 CEN/ISO
           5.3.5 CEN/CENELEC
           5.3.6 ETSI
           5.3.7 ITU-T
           5.3.8 NIST
    5.4 IoT Threat Map Analysis

6 Market Analysis, By Component (Page No. - 42)
    6.1 Introduction

7 IoT Security Market Analysis, By Type (Page No. - 45)
    7.1 Introduction
    7.2 Network Security
    7.3 Endpoint Security
    7.4 Application Security
    7.5 Cloud Security
    7.6 Others

8 IoT Security Market Analysis, By Solution (Page No. - 53)
    8.1 Introduction
    8.2 Identity Access Management
    8.3 Data Encryption and Tokenization
    8.4 Intrusion Detection System/Intrusion Prevention System
    8.5 Device Authentication and Management
    8.6 Secure Software and Firmware Update
    8.7 Secure Communications
    8.8 PKI Lifecycle Management
    8.9 Distributed Denial of Service Protection
    8.10 Security Analytics
    8.11 Others

9 IoT Security Market Analysis, By Service (Page No. - 64)
    9.1 Introduction
    9.2 Professional Services
           9.2.1 Integration Services
           9.2.2 Support and Maintenance
           9.2.3 Consulting Services
    9.3 Managed Services

10 IoT Security Market Analysis, By Application Area (Page No. - 71)
     10.1 Introduction
     10.2 Smart Manufacturing
     10.3 Smart Energy and Utilities
     10.4 Connected Logistics
     10.5 Consumer Wearables
     10.6 Connected Healthcare
     10.7 Smart Government and Defense
     10.8 Connected Vehicles
     10.9 Smart Retail
     10.10 Others

11 Geographic Analysis (Page No. - 81)
     11.1 Introduction
     11.2 North America
     11.3 Europe
     11.4 Asia Pacific
     11.5 Middle East and Africa
     11.6 Latin America

12 Competitive Landscape (Page No. - 103)
     12.1 Microquadrant Overview
             12.1.1 Vanguards
             12.1.2 Innovators
             12.1.3 Dynamic
             12.1.4 Emerging
     12.2 Competitive Benchmarking
             12.2.1 Product Offerings
             12.2.2 Business Strategies

13 Company Profiles (Page No. - 108)
(Overview, Financials, Products & Services, Strategy, and Developments)*
     13.1 PTC Inc.
     13.2 Symantec Corporation
     13.3 Verizon Enterprise Solutions
     13.4 Trustwave
     13.5 Check Point Security Software Technologies Ltd.
     13.6 Cisco Systems, Inc.
     13.7 International Business Machines Corporation
     13.8 Infineon Technologies
     13.9 Gemalto NV
     13.10 AT&T, Inc.
     13.11 Trend Micro, Inc.
     13.12 Digicert

*Details on Overview, Financials, Product & Services, Strategy, and Developments Might Not Be Captured in Case of Unlisted Companies.

14 Appendix (Page No. - 152)
     14.1 Industry Excerpts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing RT: Real-Time Market Intelligence
     14.5 Available Customizations
     14.6 Related Reports
     14.7 Author Details

List of Tables (71 Tables)

Table 1 IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 2 Market Size, By Type, 2015–2022 (USD Million)
Table 3 Market Size, By Region, 2015–2022 (USD Million)
Table 4 Network Security: Market Size, By Region, 2015–2022 (USD Million)
Table 5 Endpoint Security: Market Size, By Region, 2015–2022 (USD Million)
Table 6 Application Security: Market Size, By Region, 2015–2022 (USD Million)
Table 7 Cloud Security: Market Size, By Region, 2015–2022 (USD Million)
Table 8 Others: Market Size, By Region, 2015–2022 (USD Million)
Table 9 IoT Security Market Size, By Solution, 2015–2022 (USD Million)
Table 10 Solutions: Market Size, By Region, 2015–2022 (USD Million)
Table 11 Identity Access Management: Market Size, By Region, 2015–2022 (USD Million)
Table 12 Data Encryption and Tokenization: Market Size, By Region, 2015–2022 (USD Million)
Table 13 Intrusion Detection System/Intrusion Prevention System: Market Size, By Region, 2015–2022 (USD Million)
Table 14 Device Authentication and Management:Market Size, By Region, 2015–2022 (USD Million)
Table 15 Secure Software and Firmware Update: Market Size, By Region, 2015–2022 (USD Million)
Table 16 Secure Communications: Market Size, By Region, 2015–2022 (USD Million)
Table 17 PKI Lifecycle Management:Market Size, By Region, 2015–2022 (USD Million)
Table 18 Distributed Denial of Service Protection:Market Size, By Region, 2015–2022 (USD Million)
Table 19 Security Analytics: Market Size, By Region, 2015–2022 (USD Million)
Table 20 Others: Size, By Region, 2015–2022 (USD Million)
Table 21 IoT Security Market Size, By Service, 2015–2022 (USD Million)
Table 22 Services: Market Size, By Region, 2015–2022 (USD Million)
Table 23 Market Size, By Professional Service, 2015–2022 (USD Million)
Table 24 Professional Services: Market Size, By Region, 2015–2022 (USD Million)
Table 25 Integration Services Market Size, By Region, 2015–2022 (USD Million)
Table 26 Support and Maintenance Market Size, By Region, 2015–2022 (USD Million)
Table 27 Consulting Services Market Size, By Region, 2015–2022 (USD Million)
Table 28 Managed Services: Market Size, By Region, 2015–2022 (USD Million)
Table 29 IoT Security Market Size, By Application Area, 2015–2022 (USD Million)
Table 30 Application Area: Market Size, By Region, 2015–2022 (USD Million)
Table 31 Smart Manufacturing: Market Size, By Region, 2015–2022 (USD Million)
Table 32 Smart Energy and Utilities: Market Size, By Region, 2015–2022 (USD Million)
Table 33 Connected Logistics: Market Size, By Region, 2015–2022 (USD Million)
Table 34 Consumer Wearables: Market Size, By Region, 2015–2022 (USD Million)
Table 35 Connected Healthcare: Market Size, By Region, 2015–2022 (USD Million)
Table 36 Smart Government and Defense: Market Size, By Region, 2015–2022 (USD Million)
Table 37 Connected Vehicles: Market Size, By Region, 2015–2022 (USD Million)
Table 38 Smart Retail: Market Size, By Region, 2015–2022 (USD Million)
Table 39 Others: Market Size, By Region, 2015–2022 (USD Million)
Table 40 Market Size, By Region, 2015–2022 (USD Million)
Table 41 North America: IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 42 North America: Market Size, By Type, 2015–2022 (USD Million)
Table 43 North America: Market Size, By Solution, 2015–2022 (USD Million)
Table 44 North America: Market Size, By Service, 2015–2022 (USD Million)
Table 45 North America: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 46 North America: Market Size, By Application Area, 2015–2022 (USD Million)
Table 47 Europe: IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 48 Europe: Market Size, By Type, 2015–2022 (USD Million)
Table 49 Europe: Market Size, By Solution, 2015–2022 (USD Million)
Table 50 Europe: Market Size, By Service, 2015–2022 (USD Million)
Table 51 Europe: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 52 Europe: Market Size, By Application Area, 2015–2022 (USD Million)
Table 53 Asia Pacific: IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 54 Asia Pacific: Market Size, By Type, 2015–2022 (USD Million)
Table 55 Asia Pacific: Market Size, By Solution, 2015–2022 (USD Million)
Table 56 Asia Pacific: Market Size, By Service, 2015–2022 (USD Million)
Table 57 Asia Pacific: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 58 Asia Pacific: Market Size, By Application Area, 2015–2022 (USD Million)
Table 59 Middle East and Africa: IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 60 Middle East and Africa: Market Size, By Type, 2015–2022 (USD Million)
Table 61 Middle East and Africa: Market Size, By Solution, 2015–2022 (USD Million)
Table 62 Middle East and Africa: Market Size, By Service, 2015–2022 (USD Million)
Table 63 Middle East and Africa: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 64 Middle East and Africa: Market Size, By Application Area, 2015–2022 (USD Million)
Table 65 Latin America: IoT Security Market Size, By Component, 2015–2022 (USD Million)
Table 66 Latin America: Market Size, By Type, 2015–2022 (USD Million)
Table 67 Latin America: Market Size, By Solution, 2015–2022 (USD Million)
Table 68 Latin America: Market Size, By Service, 2015–2022 (USD Million)
Table 69 Latin America: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 70 Latin America: Market Size, By Application Area, 2015–2022 (USD Million)
Table 71 Market Ranking for the IoT Security Solution Providers, 2017

List of Figures (61 Figures)

Figure 1 IoT Security Market: Market Segmentation
Figure 2 Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 IoT Security Market: Assumptions
Figure 8 North America is Estimated to Hold the Largest Market Share in 2017
Figure 9 Fastest-Growing Segments of the Market in 2017
Figure 10 Professional Services Segment is Estimated to Hold the Major Market Share in 2017
Figure 11 Growing Need for Data-Centric Security and Increasing Cyber-Attacks are the Main Drivers for the Growth of the Market
Figure 12 Identity Access Management Solution and North America are Estimated to Hold the Largest Market Shares in 2017
Figure 13 Asia Pacific is Expected to Grow at A Significant Pace During the Forecast Period
Figure 14 Asia Pacific is Expected to Emerge as the Best Market for Investments During the Next 5 Years
Figure 15 Application Security is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 16 IoT Security Market: Drivers, Restraints, Opportunities, and Challenges
Figure 17 Services Segment is Expected to Grow at A Higher CAGR Than Solutions During the Forecast Period
Figure 18 Network Security Type is Expected to Hold the Largest Market Size During the Forecast Period
Figure 19 Identity Access Management is Expected to Dominate the IoT Security Solutions Segment During the Forecast Period
Figure 20 Professional Services Segment is Expected to Dominate the IoT Security Services Market During the Forecast Period
Figure 21 Integration Services Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 22 Smart Manufacturing Application Area is Expected to Hold the Largest Market Size During the Forecast Period
Figure 23 North America is Expected to Exhibit the Highest Market Size in the IoT Security Market During the Forecast Period
Figure 24 Asia Pacific has Witnessed the Highest Growth Rate for the Market, 2015–2022
Figure 25 North America: Market Snapshot
Figure 26 Asia Pacific: Market Snapshot
Figure 27 Microquadrant
Figure 28 PTC Inc.: Company Snapshot
Figure 29 PTC Inc.: Product Offering Scorecard
Figure 30 PTC Inc.: Business Strategy Scorecard
Figure 31 Symantec Corporation: Company Snapshot
Figure 32 Symantec Corporation: Product Offering Scorecard
Figure 33 Symantec Corporation: Business Strategy Scorecard
Figure 34 Verizon Enterprise Solutions: Company Snapshot
Figure 35 Verizon Enterprise Solutions: Product Offering Scorecard
Figure 36 Verizon Enterprise Solutions: Business Strategy Scorecard
Figure 37 Trustwave: Product Offering Scorecard
Figure 38 Trustwave: Business Strategy Scorecard
Figure 39 Check Point Security Software Technologies Ltd.: Company Snapshot
Figure 40 Check Point Security Software Technologies Ltd.: Product Offering Scorecard
Figure 41 Check Point Security Software Technologies Ltd.: Business Strategy Scorecard
Figure 42 Cisco Systems, Inc.: Company Snapshot
Figure 43 Cisco Systems, Inc.: Product Offering Scorecard
Figure 44 Cisco Systems, Inc.: Business Strategy Scorecard
Figure 45 International Business Machines Corporation: Company Snapshot
Figure 46 International Business Machines Corporation: Product Offering Scorecard
Figure 47 International Business Machines Corporation: Business Strategy Scorecard
Figure 48 Infineon Technologies: Company Snapshot
Figure 49 Infineon Technologies: Product Offering Scorecard
Figure 50 Infineon Technologies: Business Strategy Scorecard
Figure 51 Gemalto NV: Company Snapshot
Figure 52 Gemalto NV: Product Offering Scorecard
Figure 53 Gemalto NV: Business Strategy Scorecard
Figure 54 AT&T, Inc.: Company Snapshot
Figure 55 AT&T, Inc.: Product Offering Scorecard
Figure 56 AT&T, Inc.: Business Strategy Scorecard
Figure 57 Trend Micro, Inc.: Company Snapshot
Figure 58 Trend Micro, Inc.: Product Offering Scorecard
Figure 59 Trend Micro, Inc. Business Strategy Scorecard
Figure 60 Digicert: Product Offering Scorecard
Figure 61 Digicert: Business Strategy Scorecard

MarketsandMarkets forecasts the IoT security market size to grow from USD 6.62 billion in 2017 to USD 29.02 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 34.4%. The increasing ransomware attacks on IoT systems, securing the ubiquitous environment, and increasing need for data-centric security are some of the driving factors for the growth of Internet of Things (IoT) security market.

The IoT security market is segmented by type, solution, service, application area, and region. The service segment is expected to grow at a higher CAGR than the solution segment during the forecast period because services help organizations to easily deploy the software on the cloud. The services segment is further categorized into professional services and managed services. Furthermore, the professional services segment is classified into consulting service, support and maintenance, and integration services. The integration service segment is growing at a rapid pace as compared to the other professional service segments, owing to the lack of standardization and increase in diverse protocols, and connectivity of technologies and devices.

The data encryption and tokenization solution is the fastest growing solution in the IoT security market, as the problems of data breach and data thefts are increasing in enterprises. Moreover, as numerus devices are connected to each other in an IoT system, the security of data becomes complex due to the non-standardization and non-compatibility of devices. Due to such humungous connectivity, it has become easier for hackers/attackers to perform malicious activities by finding an unsecured link. Thus, IoT security solution vendors are investing large capitals in Research and Development (R&D) of security solutions, as data security is also one of the major challenges faced by organizations while deploying IoT solutions.

The professional service is expected to grow at the highest CAGR during the forecast period. These services consist of integration, support and maintenance, and consulting services. These services help in deploying IoT solutions by reducing the overall cost while providing highly flexible and scalable access to the end-users. Moreover, understanding where and how IoT will help the business is a complex task, which is done by the IoT consulting services providers. Furthermore, once the solution is deployed the timely maintenance and support services are also provided by the professional service providers making it important in the IoT security market.

The cloud security type is expected to grow at the highest rate during the forecast period. Cloud security constitutes the perspective of both end-users and services providers. Moreover, the use of cloud in IoT is increasing at a rapid pace due to ease, efficiency, and affordability. Because of these reasons, cloud data is more susceptible to cyber-attacks and need a versatile security solution.

The application area is categorized into smart manufacturing, smart energy and utilities, connected logistics, consumer wearables, connected healthcare, smart government and defense, smart retail, and other segments. The IoT security solutions are widely used in production, procurement, and storage of goods/materials, owing to which, the smart manufacturing application area is expected to dominate the IoT security market.

North America is estimated to hold the largest market share and expected to dominate the IoT security market from 2017 to 2022. This region has the major dominance with sustainable and well-established economies, empowering the region to strongly invest in Research and Development (R&D) activities, thereby contributing to the development of new technologies in IoT security and analytics. Furthermore, the government’s support and heavy investments by various well-established organizations are driving the growth of the IoT security market in the North American region.

APAC has witnessed the highest CAGR in the IoT security market, owing to the dynamic adoption of smart cities and the increasing investment by government toward IoT initiatives. Countries, such as Japan, China, Singapore, Australia, and India are gaining traction and taking various initiatives, in terms of R&D and supporting IoT deployments in utilities, and manufacturing and retail.

Despite the rapid adoption of IoT security in various application areas, the continuous exposure to security issues and lack of standardization are some of the challenging factors for the growth of this market.

Smart Manufacturing

Security is one of the most important factors when it comes to the deployment of IoT into manufacturing processes. In most of the manufacturing operations, IoT sensors measure variables, such as speed, pressure, and consumption and temperature, and actuators controlling physical systems, such as brakes, valves, lights, power circuits, or automated drug dispensers. All these applications affect the physical world, control the critical infrastructure, and sometimes gather sensitive information about different operations and smart equipment. Hence, there is a need for IoT security and privacy protection in an enterprise as some of the devices used in the IoT have limited memory, processing capacity, and battery power; consequently, classical IT security mechanisms are often inadequate to cope with the unique security situations that arise

Smart energy and utilities

Smart energy includes smart meters, smart appliances, renewable energy resources, and energy efficient resources. Organizations in this segment primarily focus on three aspects while deploying smart energy systems, namely, distribution of electricity, control of the production and electronic power conditioning. Integration of IoT in all these areas helps reduce the costs to develop, test, and deploy each of the interconnected networks in the ultimate energy grids. Security threats to the energy network includes malware injections, denial of service, attacks on privacy, and theft of data and energy.

Smart utilities primarily consist of 4 essential utilities services, namely, smart waste management, smart energy management system, smart water management, and city gas distribution. Smart utilities is the most important aspect in conceptualizing, developing, and implementing the idea of smart cities. Smart waste management consists of various solutions such as fleet tracking and monitoring, remote device monitoring, mobile workforce management, advanced analytics, data and platform management, network management, and asset management. Smart water management consists of network monitoring, advanced pressure management, smart irrigation management systems, and residential water efficiency. Security is the integral aspect of all these solutions, as in most of the solutions personal data is involved. Hence, smart energy & utilities is the most important application area for the IoT security market.

Connected Logistics

Quality customer experience and accuracy of the operations are the key factors for sustainability of businesses. Logistics plays a vital role in managing business processes. The nature of logistics is fragmented in terms of mode and region. Hence, logistics providers require transparency and real-time visibility of their activities, including asset management, warehouse management, inventory control, workforce management, and transportation. Logistics have evolved through the integration of various independent processes. However, with the advent of internet connections, these processes have been combined to achieve higher efficiency. Benefits of the Internet in logistics spread across the entire value chain which includes freight transportation, warehouse operations, and last mile delivery. With the advancement in integration of IoT, a huge amount of data is generated, which is then collected, processed, and shared with other connected things through various networking devices, such as gateway, Radio Frequency Identification (RFID), and sensors. The data generated is sensitive. Hence, IoT security solutions play a vital role in managing connected logistics deployments.

Smart Government

Smart government is a model which combines cutting-edge technology, smart solutions, and services to incorporate advanced operations and decision-making process in the government. The term “smart” here refers to solutions with applied intelligence that can provide real-time information about the condition and location of assets, workforce, and fleets through monitoring of the overall IoT network. This brings improved integration and forecasting, support and communication, control and maintenance, distribution, and planning capabilities in the delivery systems. The demand for smart government is driven by the digital revolution of the convergent technologies which is leading toward more sophistication of solutions and services. IoT devices in smart government require a highly robust security mechanism to protect devices from unauthorized and fraudulent activities.

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