Internet of Things (IoT) Security Market Size and Trends Report 2025

Global Internet of Things (IoT) Security Market Size and Share – by Type (Network, Endpoint, Cloud, Application Security, and Others), Solution (Threat Analysis, Identity Access Management, Data Loss Protection, Encryption, Dispatch & Incident Response, Distributed Denial of Service Protection, and Others), Application (Smart Home, Connected Car, Information & Communication Technology, Smart Factories, BFSI, Smart Retail, Smart Healthcare, Smart Transportation, Wearable, and Others), and Regional Forecast (2017–2025)

Publication Month : Apr 2017

  • Report Code : TIPTE100000288
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 229
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The global IoT security market generated US$ 7.3 billion in 2016 and is likely to hit US$ 30.9 billion by 2025, expanding at a CAGR of 17.6% during 2017–2025.

The increasing focus on security and privacy concerns, rising trend of smart cities, strict government regulations encouraging the deployment of IoT security, and the collaboration between companies to develop products and services with a sustainable ecosystem are the potential elements proliferating the global IoT security market growth. Contrary to this, the complicated security infrastructure, lack of awareness among the majority, and deficiency of skilled labor hampers the market expansion.

Internet of things comprises devices and systems allowing users across all segments to connect, access, and exchange data. IoT is moving from a centralized structure to a complex network with over millions of smart devices integration. This shift brings to the surface all new business and service opportunities. With the sprawling network of IoT worldwide, security is becoming a critical element that cannot be neglected in the development of systems. IoT security deals with the safety of data and devices. The security system includes different semiconductor technologies, power management devices, sensors, and microprocessors. The growing trends of smart homes, smart cities, industry 4.0, and connected devices are making users more conscious about data security. 

Regionally, North America held the largest share of the global IoT security market in 2016. However, by 2025 Asia Pacific is expected to amass the largest market share with optimal revenue.

Future Trends

Emergence of Blockchain in IoT Security

Blockchain technology, being a decentralized database, serves as an online ledger keeping a record of transactions that can’t be changed. It can track billions of connected devices, enable transactions, co-ordinate between devices, and facilitate significant savings to IoT industry manufacturers. This decentralized approach is anticipated to eliminate nodes of failure, creating a more resilient ecosystem for devices to run. The cryptographic algorithm used by blockchain is capable of keeping user data more confidential. As the technology is fledgling and changing vigorously, its widespread commercialization is foreseen in few years. Blockchain would emerge as an object of intense interest in IoT applications, thus setting a promising trend in the global IoT security market.

Drivers

Increasing Focus on Security and Privacy Concerns

The trusted IoT tech companies and solution providers equally focus on protecting privacy, improving security, and building trust.These three constitute the major drivers of IoT security market. A robust IoT solution approach emphasizes protecting the infrastructure and devices, developing a high level of data privacy, and building trust among regulators and customers. Along with the virtual management of systems, IoT services are anticipated to be concerned over security as well. With the rising IoT devices, the risk of infiltration by unauthorized sources also tends to increase, leaving a critical mark on users and systems. User’s identity, payment details, and other digital data of utmost importance are at stake with the connection of essential everyday objects with the internet. Thus, the growing demand for data security bolsters the global IoT security market.

Rising Trend of Smart Cities

Internet of Things (IoT) serves as the base for smart city conceptualization and execution. The devices, systems, and users are interconnected in a smart city. Even the government would be connected with the systems, thereby increasing the risk of critical data loss. When everything is connected and accessed via the internet, the chances of data breaches resulting in system malfunctioning increases. This can even compromise the confidential and sensitive government data. Thus, with the development of smart cities in future, data security must remain the priority of implementation. Besides, the military and armed forces’ data is susceptible to international hacking activities, which in turn demands the high-end protection.

Restraints

Complicated Security Infrastructure

Sustaining security over IoT has been a complex proposition. IoT is not only confined to smartphones, sensors, cameras, or other devices but constitutes a lot more complexity than it looks like.Even the simplest IoT system comprises a wired or wireless network, hardware components such as routers, switches, control units, peripheral devices, and suitable software. Deployment of IoT systems becomes complicated with the bigger networks. One more tangent of security, if added to the IoT systems beyond predetermined structure, makes it far more complicated to understand. Analyzing the systems is time-consuming, as multiple security solutions exist for each component of the IoT framework. Most developers are focusing on the design and utility of IoT devices rather than the security aspects, which might adversely impact the global IoT security market growth.

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Global Internet of Things (IoT) Security Market: Strategic Insights

iot-security-market
Market Size Value inUS$ 8.4 billion in 2017
Market Size Value byUS$ 30.9 billion by 2025
Growth rateCAGR 17.6% from 2017 to 2025.
Forecast Period2017-2025
Base Year2017
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Market Segmentation

By Type

Demand for Security Triggered the Segmental Growth

The global IoT security market, by type, is split into network, endpoint, cloud, application, and other securities. The network security segment led the IoT security market in 2016 and is expected to continue dominating over the forecast timeframe. Networks in IoT systems enable discreet devices to communicate. Implementation of network security help organizations safeguard their communication channels from data misuse and unauthorized access. The adoption of network security solutions is highly influenced by the rising demand for secure cloud technology. Also, the intense use of virtualization made the systems susceptible to malware and defective processes, thereby mandating the integration of network security solutions that includes a firewall to perform exhaustive scanning of packets.

The application security segment is likely to stand as the second-largest market occupant by 2025. The IoT security market for application security, despite facing certain drawbacks, is anticipated to overcome the challenges with the help of technological innovation and improved security techniques. New communication protocols may bring security issues and vulnerabilities, such as malformed packet attacks and flood attacks to the application layer.

By Solution

Reviewing the Identities and Access to the Systems Strengthened the Segment’s Dominance

Based on solution, the global IoT security market is segmented into threat analysis, identity access management, data loss protection, encryption, dispatch and incident response, distributed denial of service protection, and others. The identity access management segment dominated the market in 2016 and is speculated to retain its lead by 2025 with a considerable CAGR. The identity access management system for business progressions enables the supervision of electronic identities. The system can initiate, seize, log, and govern user identities and their associated access permissions in a digital manner. The identity access management solution for IoT aims at enhancing privacy and security in resource-bounded environments for general use. Smart cards and intelligent chip-based security are widely used in the IoT industry.

Threat analysis segment, the second-largest market occupant, exhibits a significant CAGR over the forecast period. The external and internal information vulnerabilities relevant to a particular organization are reviewed against real-world cyber-attacks. The anticipated result of threat assessment is to provide enhanced protection for data integrity and confidentiality. The first step in creating a security framework is recognizing threats such as phishing, app hacking, DOS attacks, and others. Threat analysis needs to be an ongoing activity as a part of a system development process.

Regional Insights

Geographically, the global IoT security market is segmented into North America, Europe, Asia Pacific (APAC), South America (SAM), and Middle East & Africa (MEA).

North America encompassed the largest IoT security market share in 2016 with a substantial revenue share. North America has been an extremely open and competitive market with respect to the adoption of IoT security solutions across major industry verticals. Internet plays a crucial business function in the region. The rising instances of cyber security threats demand essential IoT security solutions for enterprises, industries, and governments. Several organizations in the region have been implementing IoT security solutions to protect the critical data and infrastructures from unauthorized access. The US has been one of the best internet-connected countries in the world, with 87% of the active users. Also, the country has been ranked second globally for online B2C transactions.

In the European IoT security market, several mega-cities from the UK, Germany, and France are considered to be the nodes of IoT security applications. The European Commission recently drafted cyber security requirements to strengthen the security around IoT devices and networks. Foreign data protection, privacy, and other laws and regulations in the Europe are more stringent than those in other regions. Europe pioneered in deploying a maximum number of IoT security solutions across major countries.

The Asia Pacific IoT security market embeds a large number of industries foreseeing huge applications of IoT. Adoption of IoT is observed across the industrial, healthcare, enterprise, retail, and municipality spheres to address and combat data security issues. China witnessed the largest adoption rate of IoT, majorly across manufacturing and BFSI domains.

Lucrative Regions for IoT Security Market Share: by Region

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Key Market Players:

  • Cisco Systems, Inc (US)
  • IBM Corporation (US)
  • Infineon Technologies AG (Germany)
  • Intel Corporations (US)
  • Symantec Corporation (US)
  • ARM Holdings (UK)
  • NXP Semiconductors NV (Netherlands)
  • INSIDE Secure S.A. (France)
  • Gemalto N.V. (Netherlands)
  • Trend Micro Inc. (Japan)
  • Synopsys Inc. (US)
  • ESCRYPT – Embedded Security GmBH (Germany)
  • Microchip Technologies Inc (US)
  • Palo Alto Networks Inc. (US)

Key Developments:

  • February 2017:

    Cisco launched the industry’s first secure internet gateway (SIG) in the cloud, Cisco Umbrella, to address the new enterprise security challenges of mobile and cloud era.
  • March 2017:

    IBM launched industry’s most secure and enterprise-ready blockchain service based on Linux Foundation’s Hyperledger Fabric version 1.0.
  • December 2016:

    Intel security launched the integration of the True Key extension with Windows Hello to deliver a seamless multi-factor sign-in experience on Microsoft edge.
  • February 2017:

    Symantec acquired LifeLock, Inc., a leading provider of identity theft protection, for approximately US$ 2.3 billion.

Report Coverage

The global IoT Security market research report provides detailed insights into the market in terms of size, share, trends, and forecasts. It delivers crisp and precise know-how of drivers, restraints, opportunities, segments, and industrial landscape. A list of key IoT Security market players with their respective developments in recent years has been reserved as a special mention.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, Solution, and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies - IoT Security Market

  1. Cisco Systems, Inc.
  2. IBM Corp.
  3. Infineon Technologies
  4. Intel Corporation
  5. Symantec Corporation
  6. ARM Holdings
  7. NXP Semiconductor
  8. INSIDE Secure
  9. Gemalto NV
  10. Trend Micro, Inc.
  11. Synopsys
  12. ESCRYPT
  13. Palo Alto Networks, Inc.
  14. Microchip Technologies Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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