The Internet of Things (IoT) security market consists of sales of Internet of Things security devices/ software and related services. IoT security is a technological area that provides solutions for safeguarding smart devices, networks, other connected devices and centralized user hubs from unwanted manipulation. This industry includes establishments that provide security solutions to counter IoT security threats such as remote vehicle hijacking, privacy leaks, brute force attacks on passwords and others.
The IoT security market covered in this report is segmented by type into network security, endpoint security, application security, cloud security, others. The Internet of Things (IoT) security market is also segmented by application into healthcare & life sciences, infrastructure & cities, industrial system & sensors, smart home & consumer, transport & urban mobility and by component into solution, services.
The global IoT security market is expected to grow from $1.95 billion in 2020 to $2.22 billion in 2021 at a compound annual growth rate (CAGR) of 13.8%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The Internet of Things (IoT) security market is expected to reach $6.43 billion in 2025 at a CAGR of 30.5%.
The emergence of smart city concept is the driving force for the rise in demand for IoT Security. As the population is growing, the need for sustainable development is of more important. Smart cities are well equipped with handling high traffic, population control, and better security for people. The execution for such a task can be done by installing IoT Devices in the smart cities. This involves connecting devices to one another, exchange data in a secured manner, forming a pattern and then providing a final solution. The remotely connected CCTV and automated incident detection (the use of computers to continuously monitor traffic conditions and detect incidents or traffic queues) allow a quicker response to threats. IoT led crowd management solutions help monitor and manage crowds of people across all sorts of gatherings. Smart street lighting helps to lower crime rates and improve driving conditions. This rising demand for security in the smart cities increases investment in the IoT Security Market. For instance, the Indian Government released ?9,940 Crores (INR) ($1.42 Billion) for smart city mission.
Lack of awareness regards the importance of IoT security and risk mitigating measures among the people may hinder the IOT security market growth. The IoT security service providers are impacted due to the lack of awareness as there are instances where the IoT devices have been attacked by malicious software and viruses. Installing an IoT device does not simply solve the problem of security concerns. For instance, according to a survey conducted by Trend Micro, IT Security firm, 86% of IT and security decision makers across the globe believe that their organizations need to enhance their awareness of IoT threats. Furthermore, the survey stated that lack of awareness makes the organization fall and lead to thefts and data breach.
According to another survey conducted by Dynatrace, a software company, consumers continue to see a significant risk in IoT device security where two-thirds of them have encountered performance issues with potential risk.
The increasing usage of block chain technology in order to protect data of IoT devices, enhance transparency and security, reduce costs, and increase efficiency is a new trend in the IoT Security market. Block chain is a distributed decentralized ledger and underlying technology of bitcoin (a cryptocurrency) which is shared database (can be saved, owned, updated at different levels), not managed by central authority, comprising secure transactions, authenticated and verifiable. The block chain technology is integrated into IoT networks to provide additional privacy and security. It helps in reduction of processing time and cost, records transactions of all connected IoT devices, ensures tracking connected devices, coordinates these devices and aid smooth transaction process, provides efficiency to compliance issues, avoid re-entries, data leakages and frauds, minimize time to settle losses and ensures cryptographic security. For instance, Atonomi provides IoT security solution to IoT developers and manufacturers with block chain based immutable identity and reputation tracking. In 2019, According to a survey by Gemalto, a digital security firm, the adoption of block chain technology to help secure IoT data, services and devices in the IoT sector doubled from 9% to 19%.
The European Telecommunications Standards Institute (ETSI), a Technical Committee on Cybersecurity (TY Cyber) released a first globally applicable standard for consumer IOT security, ETSI TS 103 645, so as to keep a security baseline for all internet-connected consumer products and provide a basis for future IoT certification schemes. This standard state that the IoT devices must make it easy for consumers to delete their personal data when there is a transfer of ownership. The standard also requires the implementers to stop using universal default passwords as it may lead to a large number of security issues. It also allows the security researchers to report any kind of security flaw in the IoT device.
In June 2020, Microsoft Corporation, a USA based technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services acquired Cyber X, Inc. for $165 million. This acquisition will expand Microsoft Corporation Azure IoT security offerings, including Azure Sentinel, to cover devices in a variety of industrial settings. Cyber X, Inc, a USA based Computer & Network Security company.
Major players in the Internet of Things (IoT) security market are Cisco, IBM, Intel, Infineon and Symantec Corporation.
The regions covered in the Internet of Things (IoT) security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the Internet of Things (IoT) security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The global IoT security market is segmented -
1) By Type: Network Security, Endpoint Security, Application Security, Cloud Security, Others
2) By Application: Healthcare & Life Sciences, Infrastructure & Cities, Industrial System & Sensors, Smart Home & Consumer, Transport & Urban Mobility
3) By Component: Solution, Services
