The global Internet of Things (IoT) security market size was accounted for USD 1.24 billion in 2017 and projected to grow with a CAGR of 29.7% over the forecast period. IoT is a major technology trend and has gained popularity in various companies globally. Introduction of IoT products in machine learning, wireless networking, and artificial intelligence along with the development of microcontrollers and sensors, security of these technologies for reliable operations is becoming essential.
Growing usage of connected deviceshas led to organization networks to data breaches. Therefore, driving awareness related to cyber-attacks among consumers is expected to surge the market growth during the forecast period.
Smart devices with computational and networking capabilities are developing homes, cities, hospitals, as well as the manufacturing industry. The developing network of connected devices is providing enhancement inmanaging patients, enhanced manufacturing processes, and energy efficiency. Though this system has several benefits, data security is a major challenge for end-users. Therefore, to reduce such challenges, the demand for IoT security is expected to propel during the forecast period.
The growing application of connected devices is generating high amount of data for creating new business models like automated real-time decision making or Products-as-a-Service (PaaS). These developments within the IoT ecosystem are increasing risk of cyber-attacks like IP theft, network manipulation, data falsification, data & identity theft, and device manipulation. Further,increasing application of IoT in critical infrastructure, government, and corporate sectors has increased data security and privacy concerns which are expected to drive the Internet of Things security market growth.
Security is a major aspect for the IoT environment. Moreover, malfunctioning of connected devices like connected cars or smart grids can cause risk to consumers, businesses, and society. IoT has generated issues like monetary loss or privacy violations within devices, cloud, networks, applications, infrastructure, and services. Thus, growing need to prevent sabotaging and fraudulent activities like cyber-attacks is positively impacting on market growth.
By components, the market is classified into solutions & services. In 2017, solution segment held the market share of around 63.0% in terms of revenue and projected to retain its position over the forecast period. As IoT devices are being connected with botnets and IoT vulnerabilities are increasing, thereby the demand for IoT security solutions is increasing. IoT security solutions offer strong security architecture for connected devices. Further, growing security concerns with machine learning are expected to drive the segment growth over the forecast period.
On the basis of solutions, the IoT security market is fragmented into analytics, encryption, Data Loss Protection (DLP), Identity and Access Management (IAM), Unified Threat Management (UTM), and others. In 2017, IAM held the largest market share of more than 32.0%, as IAM helps to provide a complete spectrum of users and manage data captured by them, digital identities, authorization access for desired information. Risk management growth like policy-based compliance and audit management is a major factor in driving the segment growth.
Encryption solution segment is projected to grow with the fastest CAGR of more than 35.0% during the forecast period. For IoT devices, encryption layers offer better data security. In addition, growing need to secure sensitive information such as personal data and financial transactions is anticipated to drive the segment growth overthe next few years. Further, regulatory compliance, brand reputation, and data privacy concerns are other factors propelling the need for data security which is expected to witness a positive impact on segment growth.
Based on services, the market is fragmented into professional and managed. In 2017, the professional service segment is expected to lead the market in terms of revenue and registering a CAGR of over 28.0% during the projected period. Increasing need for end-to-end security services including policy & management, test & evaluation, secure by design, and assessment is a major factor driving the segment growth.
On the other hand, professional IoT security services are projected to witness significant growth over the forecast period. In many enterprises, IoT is an emerging trend where professional IoT security services are expected to offer robust data security for wireless communication.
On the basis of security type, the Internet of Things (IoT) security market is segmented into application, cloud, endpoint, network, and other. In 2017, endpoint has emerged as a prominent segment and generated revenue of USD 405.5 million. IoT technology is gaining traction among large enterprises as well as SMEs and implying a large amount of personal information on cloud platforms which has increased incidence of data breaches and cyber-attacks. Therefore, these enterprises need robust data security against data theft and cyber-attacks. Thus, rising spending on IT security is expected to witness a significant impact on market growth.
The application segment is projected to grow with the highest CAGR over the forecast period. The rapid growth of the web, mobile-based applications, and IoTfor businesses is expected to fuel the segment growth. In addition, increasing number of cyber-attacks can directly become a threat to company’s profitability and reputation, thereby expected to drive the IoT security demand in the application segment.
On the basis of application, the market is segmented into infrastructure & cities, healthcare and life science,industrial system and sensors, smart home & consumer, transport &urban mobility, and others. In 2017, smart home and consumer held the largest market share and projected to reach around USD 2.93 billion by the end of 2025. Rise in the number of smart homes across the globe, especially in developed regions has increased the application of intelligent security systems, smart fire & alarm systems, as well as smart electronics. Therefore, growing application of IoT systems in consumer electronics and smart homes has increased the need for security solutions. Further, increasing cases of cyber-attacks and data privacy concerns such as denial of service (DoS) and data & identity theft is expected to further fuel the segment growth.
The infrastructure and cities segment is expected to grow with the fastest CAGR of over 31.0% during the forecast period. Increasing application of IoT technology in smart city and smart buildings in HVAC, electric vehicle and temperature controller is driving the need for strong security solutions. For example, as machine learning and IoTtechnologies are enabling smart building infrastructure, thereby rising need for data security is anticipated to open new avenues for market players.
In 2017, North America IoT security market accounted for revenue of USD 442.4 million. This is due to early adoption of IoT-based technologies across several applications like retail and healthcare in this region. In addition, high spending capacity of enterprises on IoT security services and solutions is expected to drive the market growth. Increasing venture capitalists in the market is opening new avenues for new entrants.
Asia Pacific is expected to grow with a CAGR of more than 34.0% during the forecast period. Increasing adoption of IoT technologies for smart cities and smart grids across several countries such as Australia, India, and China is expected to generate a huge amount of data that will raise government responsibility towards robust data security. These factors will enforces government to implement strong data security policies that are projected to drive the regional market growth during the forecast period.
The outbreak of the COVID-19 virus has positively impacted the market. The outbreak of COVID-19 has leveraged most of the companies for remote working. Therefore, their devices are most vulnerable to cyber-attacks owing to lack of security. Thus, IoT security is playing a vital role to protect data as well as systems who are working from home. Moreover, the demand for endpoint security type is increasing during this situation. Industry players are striving to develop new tools for robust IoT security which is expected to witness a significant impact on market growth.
The market is highly competitive in nature. The top 10 industry players held more than 35.0% market share, in 2017. In the same year, Cisco Inc. gained the largest market share. Industry players are focusing on R&D activities to offer reliable and high-quality products. Further, small players are coming up with innovative products and services to strengthen their footprints in the market.
Increasing incidences of IoT cyber-attacks and data breaches, governmentin many countries across the globe are implementing strict policies that are enforcing market players to come up with robust data security solutions. Key players operating in this industry are IBM Corporation; McAfee, Cisco Systems Inc.; Symantec Corporation.; and Gemalto NV; LLC.
Base year for estimation
Actual estimates/Historical data
2015 - 2016
2018 - 2025
Revenue in USD Billion & CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, France, Spain, China, India, Japan, ANZ, ASEAN, South Korea, Brazil, Mexico, GCC Countries, Israel, and South Africa
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global Internet of Things (IoT) security market report based component, solution, services, security type, application and region:
• Component Outlook (Revenue, USD Billion, 2015 - 2025)
• Solution Outlook (Revenue, USD Billion, 2015 - 2025)
• Data Loss Protection (DLP)
• Identity and Access Management (IAM)
• Unified Threat Management (UTM)
• Services Outlook (Revenue, USD Billion, 2015 - 2025)
• Security Type Outlook (Revenue, USD billion, 2015 - 2025)
• Application Outlook (Revenue, USD Billion, 2015 - 2025)
• Healthcare & Life Science
• Infrastructure & Cities
• Industrial system & Sensors
• Smart home & Consumer
• Transport & Urban Mobility
• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
• North America
• The U.S.
• The U.K.
• Asia Pacific
• Australia New Zealand
• South Korea
• Latin America
• GCC Countries
• South Africa
Research Support Specialist, USA