IoT security market to accelerate to $40.3 bn by 2026
Research company Marketsandmarkets has released a new report predicting that the global IoT Security Market size will grow from USD 14.9 billion in 2021 to USD 40.3 billion by 2026, at a CAGR of 22.1% during the forecast period. The drivers for spurring this competitive and diverse market, include, the rapid increase in the number of Industry 4.0 IoT security incidents, stressing the need to strengthen cyber resilience; the growth in IoT security regulations; and security concerns for critical infrastructure. The development of smart infrastructure and the roll-out of the 5G network could also accelerate a new wave of IoT security applications.
By market type within the IoT sector, it is the network security segment that is expected to register the larger market size in 2026. Every enterprise today needs a degree of network security solutions to secure it from the ever-increasing cyber threats. The network architecture is complex and always under threat. The network environment is always changing, and attackers are trying to find and exploit vulnerabilities. These vulnerabilities are found in a large number of areas, including devices, data, applications, users, and locations. There are several network security tools and applications that address the threats and vulnerabilities across the IoT ecosystem. The key trend contributing to the growth of the network security segment is the rising adoption of IoT applications among various industries.
Large enterprises hold the lion’s share
By organisation size, large enterprises are expected to hold the biggest share, as they reshape their security policies and architectures to incorporate big data for protecting critical assets from various cyber attacks. They majorly adopt the IoT security ecosystem to safeguard networks, endpoints, data centres, devices, users, and applications against unauthorised usage and malicious ransomware attacks. With the increasing sophistication of cyber attacks, the demand for advanced IoT security solutions is growing in large enterprises to secure their networks.
Cloud deployment is the way forward
The cloud deployment mode is the fastest-growing segment in terms of mode, because organisations are beginning to understand that they can avoid costs related to hardware, software, storage, and technical staff by using cloud-based IoT security solutions. Cloud-based platforms offer a unified way in the form of SaaS-based security services to secure business applications. These platforms are beneficial for organisations that have strict budgets for security investments. SMEs deploy their solutions in the cloud as it enables them to focus on their core competencies rather than investing their capital in security infrastructures. The cloud deployment mode is growing as cloud IoT security solutions are easy to maintain and upgrade.
Smart homes and wearable tech
By application area, the smart home is an integrated IoT-enabled living, security, comfort, entertainment, and overall home. Smart homes and consumer electronics consist of devices, such as wristwear, eyewear, neckwear, and bodywear, and smart home appliances. In addition, consumer wearables include ring scanners, body-worn cameras, and special-purpose footwear. Consumer electronics and smart home appliances are vulnerable and susceptible to cyberattacks. This vulnerability and susceptibility provides IoT security vendors with a great opportunity to address the security needs of these consumer wearables.
The US leads the way
North America is expected to hold the largest market size in the global IoT Security market during the forecast period. North America has witnessed significant growth in the IoT security market, and it leads the market in terms of market share. North America has led in witnessing cyber attack incidents globally. It is regarded to be the most advanced region with regards to information technology security adoption and infrastructure. The rising concern to safeguard critical infrastructure and sensitive data has enlarged government intermediacy in recent years. Numerous government industry-collaborative efforts have been considered to boost the IoT security market. Budget allocation, along with mandated information consulting policies and collaboration with the private sectors, is expected to make North America the most lucrative market.
The key and emerging market players in the IoT Security Market as named by the Marketsandmarkets in relation to the report include: Microsoft, AWS, Google, IBM, Intel, Cisco, Ericsson, Thales, Allot, Infineon, Atos, Magiccube, Dragos, Claroty, Karamba, Vdoo, Forgerock, Ordr, Newsky, Trend Micro, Sophos, Checkpoint, Fortinet, Palo Alto, Kaspersky and Entrust (US).