IoT Security Market - Forecasts from 2023 to 2028

The global IoT security market was valued at US$4,336.052 million in 2021 and is expected to grow at a CAGR of 30.60% over the forecast period to reach US$28,105.365 million by 2028.

IoT security services or software provide protection to the Internet of Things devices from hostile and dangerous cyberattacks and hacks. Rising incidences of cyber-attacks and data breach concerns are the prime factors driving the market growth. The increasing adoption of automation technology in various industry verticals has led to a rising dependency on IoT devices. As a result, the requirements for IoT security solutions are on the rise more than before. Other reasons that have bolstered the need for these solutions include the high adoption of mobile devices and the expanding number of mobile platforms globally. Various end-user sectors such as BFSI and the retail sector have come up with their own application software for convenience purposes. Consumers upload their personal and sensitive information to these apps for shopping, and banking applications. This has resulted in high concerns regarding data security and has made the individual’s data prone to cyberattacks.

Moreover, technological advancements and continuous product development and innovation in this field are providing massive opportunities to key market players worldwide. However, the high cost associated with IoT security solutions, and the lack of knowledge and skilled manpower especially in developing and underdeveloped nations are limiting the growth of the global IoT security market during the anticipated period.

The global IoT security market is driven by surge in cyber-attacks and data breaches.

Firms, companies, and businesses around the world are investing heavily in automation technology to improve work productivity and flexibility yet, the threat of data breaches and cyberattacks remains a key issue. This is therefore driving the adoption of IoT security solutions across numerous industries. The number of reported cybersecurity and data breach incidents has increased substantially. This has led to increased adoption of data privacy and security activities as the impending cost of a data breach is extremely high. IoT security can be thought of as a cybersecurity tactic and defense system that protects against the threat of cyberattacks that explicitly target physically linked IoT devices. As per Verizon, 71 percent of breaches are financially motivated. Similarly, according to IBM, the global average total cost of a data breach is USD 4.75 million. The longest data breach attack which was of 372 days ended up costing USD 150,000 more than the average cost of a data breach. The Cisco Cybersecurity Reports show that 50 percent of large organizations, with a workforce of more than 10,000, spend at least $1 million on security every year. The report also found that 43 percent of organizations spend between US$250,000 and US$999,999, while 7 percent of them spend less than US$250,000.

Consequently, the IoT security market is expanding because of increased cases of ransomware, phishing attacks, and malware coupled with the rising number of threats and dangers caused by cyber-attacks.

Key Developments.

• Walmart introduced a platform for their supermarket division named Alphabot in January 2020. By a Massachusetts-based start-up company named Alert Innovation, the technology was created specifically for Walmart. The shelf-stable groceries, chilled goods, and frozen items that individuals order online are retrieved by Alphabot using autonomous carts.
• In October 2022, America-based cybersecurity startup Viakoo launched “Action Platform” which is the company’s IoT security platform that provides physical security assurance to an organization’s IoT devices by securing, managing, and updating firmware on their IoT devices and enables them in recognizing security vulnerabilities.

North America accounts for major shares of the global IoT security market.

By geography, the tank level monitoring market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is experiencing a significant increase in the adoption of advanced technologies in countries like the United States and Canada aimed at protecting connected network infrastructure and sensitive & confidential data from cybercriminals. The Internet of Things provides interconnectedness between IoT devices with networks with each having a unique identifier for exchanging and collecting data. The growing digital transformation in major sectors of the US such as healthcare and finance, coupled with the growing penetration of mobile platforms has increased the data traffic as well as the demand for effective cybersecurity solutions in the country, which has been further fueled by the growing rate of cybercrimes. For instance, according to the Internet Crime Report 2021 issued by the FBI, a total of 8,47,376 complaints related to cybercrimes were reported in 2021 representing a 7% increase over 7,91,790 in 2020. The country is also witnessing rules and regulation implementation by the government. For instance, in October 2022, the Biden administration announced that from the start of 2023, it would launch a cybersecurity labeling program for consumer IoT devices to protect Americans from data theft and other cybercrimes. Moreover, the IoT Cybersecurity Improvement Act passed by the US government in December 2020, aimed to increase the cybersecurity of federal government-owned IoT devices. The act further lays standards that could boost the security and IoT infrastructure in other sectors as well.

Market Segmentation:

By Type

• Network Security
• Application Security
• Cloud Security
• Others

By Component

• Solutions
• Services

By End-User Industry

• BFSI
• Government
• Healthcare
• Transportation
• Retail
• Energy and Power
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Italy
• Others
• Middle East, and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others