1. How many IoT devices were attacked in 2023?
Around 3 Million IoT devices were attacked in 2023 globally
IoT Security Market Size: Analysis by Solution (Identity & Access Management (IAM), Data Encryption & Tokenization, Device Authentication & Management, Intrusion Detection & Prevention Systems (IDPS), Secure Communication, Public Key Infrastructure (PKI) Lifecycle Management, Security Analytics, Unified Threat Management (UTM)), Service, Security type and Industry Vertical: Global and Regional Statistics and Forecast-2024-2030
The IoT security market was valued at USD 3.78 billion in 2023 and is projected to grow to USD 17.52 billion by 2030, with a compound annual growth rate (CAGR) of 25.4% from 2024 to 2030.
Market Outlook
The IoT security market was valued at USD 3.78 billion in 2023 and is projected to grow to USD 17.52 billion by 2030, with a compound annual growth rate (CAGR) of 25.4% from 2024 to 2030. The IoT security market is witnessing alarming attack trends as the number of connected devices surges. Cybercriminals are increasingly targeting IoT devices due to their often weak security protocols and the vast amount of sensitive data they handle.
Common attacks include botnets, like the Mirai malware, exploiting unsecured devices to launch DDoS attacks, ransomware targeting critical infrastructure, and data breaches exposing personal and corporate information. As smart homes, industrial IoT (IIoT), and connected vehicles proliferate, the frequency and sophistication of these attacks are escalating, driving the urgent need for enhanced security measures and robust regulatory frameworks.
The IoT security market is expected to grow significantly due to the increasing adoption of IoT devices, rising cyber threats, and stricter regulatory requirements. The proliferation of connected devices in various sectors such as smart homes, industrial settings, and healthcare, along with high-profile cyberattacks, has sparked a greater emphasis on robust security solutions. The use of AI and machine learning for threat detection, as well as the increasing adoption of cloud-based security services, are driving factors in this growth. Government initiatives to enhance cybersecurity standards and the integration of security in IoT devices are also crucial in shaping the market's expansion over the next decade.
The IoT security market offers opportunities driven by escalating cyber threats and rapid IoT adoption. Innovations in AI and machine learning provide advanced threat detection and response capabilities, improving security for diverse IoT applications. The increasing focus on regulatory compliance and data protection fuels demand for comprehensive security solutions. Opportunities also arise from the integration of IoT security in emerging technologies like 5G, smart cities, and autonomous vehicles. Additionally, growing awareness of IoT vulnerabilities among enterprises and consumers is leading to investments in robust security measures. As IoT ecosystems expand, there is significant potential for growth in specialized security services and solutions.
Hypothesis on the Growing Importance of Security in the IoT Market:
As the Internet of Things (IoT) continues to expand across industries, the demand for IoT security solutions is surging due to increasing concerns over data breaches, cyberattacks, and the vulnerability of connected devices. With billions of IoT devices expected to be in use globally by 2030, the security risks associated with these devices are growing exponentially. IoT devices, ranging from smart home systems and industrial sensors to connected vehicles and medical devices, often have inadequate built-in security features, making them prime targets for cybercriminals. According to a study by Kaspersky, the number of attacks on IoT devices increased by 98% between 2021 and 2022, highlighting the urgent need for robust security measures.
Governments and regulatory bodies around the world are increasingly enforcing stricter IoT security regulations to safeguard sensitive data and critical infrastructure. For instance, the European Union's Cybersecurity Act and the U.S. IoT Cybersecurity Improvement Act mandate that IoT device manufacturers implement minimum security standards. These regulations are pushing businesses and manufacturers to prioritize IoT security solutions, further driving market growth. The global IoT security market is expected to grow at a CAGR of 25.4% from 2023 to 2030 as organizations invest in technologies such as encryption, authentication, and AI-based security systems to protect their IoT networks.
In addition to regulatory pressure, businesses are recognizing that a proactive approach to IoT security can prevent costly data breaches and operational disruptions. The average cost of a data breach reached $4.24 million in 2021, according to IBM, with the risks only increasing as IoT adoption grows. As a result, there is a growing demand for comprehensive security solutions that can protect devices, networks, and data in real time, making IoT security a critical priority in the rapidly evolving digital landscape.
Key Insights
In 2023, North America dominated the IoT Security market, accounting for 40.10% of the market share. The region's IoT security market is characterized by increased regulatory scrutiny and investment in advanced security technologies. With rapid growth in IoT deployments across sectors such as healthcare, manufacturing, and smart cities, there is a growing demand for robust security solutions. Innovations in AI and machine learning are enhancing threat detection and response capabilities. The integration of IoT security with 5G networks and edge computing is also gaining momentum. Additionally, there is a strong focus on compliance with stringent data protection regulations and the development of standardized security frameworks to address evolving cyber threats.
Identity & Access Management (IAM) held a major share within the IoT Security industry, accounting for approximately 35.68% in 2023. Key trends in IAM within the IoT security market include increasing adoption of multi-factor authentication (MFA) and biometric solutions to enhance security for connected devices. There is also a growing emphasis on integrating IAM with AI and machine learning for real-time threat detection and automated access controls. Additionally, the shift towards Zero Trust architectures is gaining traction, focusing on continuous verification and least-privilege access. The rise in IoT devices demands scalable IAM solutions that can handle diverse device types and user scenarios while ensuring compliance with stringent data protection regulations.
Market Dynamics
Government and private sector investments in smart city projects necessitate the deployment of secure IoT solutions to protect critical infrastructure and ensure operational integrity.
Smart city projects receive significant investments from both the government and the private sector, driving the IoT security market. This highlights the importance of robust security solutions to protect critical infrastructure and ensure operational integrity. As urban areas increasingly adopt smart technologies, such as intelligent traffic management systems, energy grids, public safety and environmental monitoring, the number and variety of connected IoT devices expands. The goal of this integration is to improve urban efficiency, reduce costs, and enhance quality of life. However, the widespread deployment of IoT systems presents significant security challenges.
The complexity of smart city infrastructures, which often include interconnected sensors, communication networks, and data platforms, increases the risk of cyberattacks. Threats such as unauthorized access, data breaches, and service disruptions can have severe consequences on public safety, utility services, and overall city functionality. Consequently, ensuring the security of these systems is critical.
Government investments in smart city initiatives are typically accompanied by stringent regulatory requirements and standards designed to protect critical infrastructure. This regulatory pressure drives the adoption of advanced IoT security measures to comply with these regulations and mitigate risks. Similarly, private sector stakeholders, including technology providers and infrastructure developers, are investing heavily in security solutions to safeguard their assets, maintain service continuity, and build trust with consumers and partners.
The focus on securing smart city deployments has led to increased demand for comprehensive IoT security solutions, including identity and access management, data encryption, intrusion detection systems, and secure communication protocols. By addressing these security needs, both government and private sector investments are not only advancing urban innovation, but also reinforcing the resilience and reliability of smart city infrastructures.
The interconnected nature of IoT ecosystems involves multiple layers of hardware, software, and communication protocols, making it difficult to manage and secure the entire system comprehensively.
The complex and interconnected nature of IoT ecosystems presents a significant challenge in the IoT security market. Managing and securing multiple layers of hardware, software, and communication protocols is complicated due to the diverse array of devices involved, each with its own security requirements and vulnerabilities. This diversity makes it difficult to implement a unified security strategy, potentially leading to gaps in overall system security.
The hardware layers include devices with varying processing capabilities and security features. Many IoT devices are designed with minimal security in mind, leaving them vulnerable to attacks. Software layers further complicate security efforts, as IoT applications and firmware may have vulnerabilities or bugs that can be exploited by cybercriminals. Keeping all software components updated and patched regularly is essential but often challenging due to the scale and variety of devices.
Communication protocols, which handle data transmission between devices, also pose security risks. These protocols can have inherent vulnerabilities or may be improperly configured, leading to potential data breaches or unauthorized access. Additionally, integrating these diverse components into a cohesive system requires ensuring that security measures are compatible and effectively enforced across all layers.
The challenge is compounded by the rapid pace of technological advancement, with new devices and protocols continuously emerging. This dynamic environment makes it difficult for security solutions to keep up, often resulting in fragmented security measures that may not address all potential threats.
To address these challenges, a comprehensive and integrated approach to IoT security is necessary. This approach involves standardized protocols, robust security measures across all layers, and ongoing monitoring and management to protect the entire ecosystem effectively.
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Key Pointers |
Values |
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Category |
ICT |
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Pages |
300 |
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Table Count |
210 |
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Chart Count |
120 |
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Companies Analysed |
70 |
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Report Focus |
Global |
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Largest Region |
North America |
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Fastest Growing Region |
Asia Pacific |
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Base Year |
2023 |
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CAGR % (2024-2030) |
25.4% |
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Forecast Year |
2024-2030 |
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Historical Year |
2015-2022 |
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Market Size in 2023 |
USD 3.78 Billion |
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Market Size in 2030 |
USD 17.52 Billion |
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Countries Covered |
U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Turkey, Israel, China, Japan, India, South Korea, Australia, SEA, Brazil, Chile, Argentina, Saudi Arabia, UAE, Qatar, South Africa, Rest of World |
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Key Drivers |
Government and private sector investments in smart city projects necessitate the deployment of secure IoT solutions to protect critical infrastructure and ensure operational integrity.
The interconnected nature of IoT ecosystems involves multiple layers of hardware, software, and communication protocols, making it difficult to manage and secure the entire system comprehensively. |
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Segments Covered |
Solution, Services, Security Type and Industry Vertical |
Segmental Analysis
Based on solution type, IoT Security market is segmented into Identity & Access Management (IAM), Data Encryption & Tokenization, Device Authentication & Management, Intrusion Detection & Prevention Systems (IDPS), Secure Communication, Public Key Infrastructure (PKI) Lifecycle Management, Security Analytics, Unified Threat Management (UTM).
Identity & Access Management (IAM) plays a crucial role in the IoT security market by addressing device and user authentication, access control, and data protection. As the number of connected devices increases, it becomes essential to ensure that only authorized users and devices can access specific IoT networks and data. IAM solutions provide strong protection against unauthorized access and cyberattacks, making them vital for securing IoT environments.
One significant opportunity lies in integrating multi-factor authentication (MFA) and biometric verification into IAM solutions. MFA, which requires multiple forms of verification beyond passwords, significantly enhances security by making it more difficult for attackers to gain unauthorized access. Biometric solutions, such as fingerprint or facial recognition, add another layer of security, particularly useful for managing access to sensitive data or critical systems.
The rise of Zero Trust architectures presents another noteworthy opportunity. Zero Trust emphasizes continuous verification of all users and devices, irrespective of their location, and adheres to the principle of least privilege. By implementing Zero Trust, organizations can ensure that access is granted based on strict policies and real-time risk assessments, enhancing overall security for IoT ecosystems.
IAM solutions are also increasingly incorporating artificial intelligence (AI) and machine learning (ML) to improve threat detection and response. AI-driven IAM systems can analyze user behavior patterns to detect anomalies and potential security breaches more effectively than traditional methods. This proactive approach helps in identifying and mitigating threats before they can cause significant damage.
Additionally, as regulations around data protection become more stringent, IAM solutions play a crucial role in ensuring compliance with standards such as GDPR and CCPA. By implementing IAM practices, organizations can safeguard sensitive information, reduce the risk of data breaches, and avoid regulatory penalties.
In summary, IAM provides valuable opportunities in the IoT security market by enhancing authentication processes, supporting advanced security architectures, leveraging AI for improved threat detection, and ensuring regulatory compliance.
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Segments |
Values |
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By Services |
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By Security Type |
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By Industry Vertical |
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Regional Landscape
In terms of regional analysis, IoT Security market covers the study of North America, Europe, Asia Pacific, South America and Middle East and Africa.
The size of the North American IoT Security market was valued at USD 1.52 billion in 2023. It is estimated to reach USD 6.62 billion by 2030, with a CAGR of 24.4% during the forecast period. The North American IoT security market offers significant opportunities driven by rapid technological advancements, increasing cybersecurity threats, and growing investment in smart infrastructure.
As IoT devices become more widespread across various sectors such as smart cities, healthcare, manufacturing, and transportation, the demand for advanced security solutions to protect these interconnected systems is rising. One notable opportunity is the integration of IoT security with emerging technologies such as 5G and edge computing.
The rollout of 5G networks in North America is expected to expand the IoT ecosystem, enabling faster and more reliable connectivity for a wide range of devices. This growth presents an opportunity for security solutions that can address the unique challenges of 5G, including increased data volumes and new attack vectors. Similarly, edge computing, which processes data closer to the source, requires specialized security measures to protect data in real-time and reduce latency.
The rise of smart city initiatives across North America also fuels demand for robust IoT security solutions. As cities deploy connected systems for traffic management, public safety, and utility monitoring, securing these critical infrastructures becomes essential. There is an opportunity for security vendors to offer comprehensive solutions that safeguard smart city applications and ensure operational integrity.
In North America, the strict regulations create an opportunity for IoT security providers. Compliance with regulations like GDPR, CCPA, and industry-specific standards requires strong security measures. This pressure drives organizations to invest in security solutions that ensure compliance and protect sensitive data.
Moreover, the growing awareness of cybersecurity risks among businesses and consumers increases the demand for IoT security solutions. Organizations are looking for advanced tools for threat detection, risk management, and data protection, leading to a rising market for innovative security technologies.
To sum up, North America's IoT security market offers ample opportunities due to technological advancements, smart city investments, regulatory compliance requirements, and increased awareness of cybersecurity threats. These factors collectively drive the demand for advanced, integrated security solutions to protect the expanding IoT landscape.
Competitive Landscape
Some of the major companies operating within the IoT Security market are: Broadcom Inc. (Symantec Corporation), IBM Corporation, Check Point Software Technologies Ltd., Intel Corporation, Hewlett Packard Enterprise Co., Cisco Systems Inc., Fortinet Inc., Trustwave Holdings, Thales Group (Gemalto NV), AT&T Inc., Palo Alto Networks Inc.
Recent Developments:
In April 2024, ROSHN, a Saudi real estate developer, joined forces with Cisco to explore sustainable smart building solutions and develop an innovation hub utilizing IoT technology.
In January 2024, Entrust introduced a Post-Quantum Ready PKI platform, designed to help organizations manage digital certificates and secure communications in the upcoming era of quantum computing. Fortinet and IBM Cloud partnered in April 2024 to create the Fortinet Virtual FortiGate Security Appliance (vFSA), aimed at enhancing network traffic monitoring and IoT device security, particularly for the manufacturing sector.
In December 2023, Schneider Electric and Cisco collaborated to advance AI and IoT innovations, delivering impactful digital solutions across various industries in the EMEA region.
Additionally, in July 2023, Check Point teamed up with Cynerio to provide a comprehensive medical IoT security solution, focusing on the protection of patient data and critical healthcare operations.
Table of Contents
FAQ (Frequently Asked Questions)
2. Which solution holds major share within the IoT Security industry?
Identity & Access Management (IAM) acquired a major share within the IoT Security industry accounting around 35.68% in 2023.
3. Which region is estimated to emerge as a fastest growing region within the IoT Security market?
Asia Pacific is estimated to emerge as a fastest growing region with a CAGR of 26.6% during the forecast period 2024-2030.
