IoT Security Market

[324 Pages Reports] The global IoT security market size is projected to grow from USD 24.2 billion in 2024 to USD 56.2 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 18.4% during the forecast period.

Increasing IoT security incidents such as the Mirai botnet, Stuxnet, and Distributed Denial of Service (DDoS) related to Industry 4.0 have developed a strong need for advanced security measures to secure crucial IoT devices. The number of potential entry points for cybercriminals multiplies with the increasing interconnection of manufacturing and industrial operations with connected devices, machines, and systems exchanging data in real time. The vulnerabilities of industrial control systems have caused significant economic losses in the Industry 4.0. This has caused organizations to seek for more secure solutions for IoT devices. Attackers are increasingly targeting critical infrastructure so, organizations have recognized the urgent need for robust IoT security solutions real time. From sensors to industrial robots, every added device represents a potential pathway for attackers. The attacks on IoT devices result in financial losses, operational disruptions, and reputational damage; hence, organizations have started investing heavily in strong and secure IoT security measures.

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IMPACT OF AI/GEN AI ON IOT SECURITY MARKET

AI/Gen AI enhances IoT security by analyzing data patterns for threat detection, vulnerability detection, improving user authentication, analyzing network traffic anomalies, and generating synthetic data for training security models. These technologies analyze vast amounts of data and identify anomalies, predict attacks, and adapt defenses in real-time. For instance, IBM Watson, an AI-powered cybersecurity platform, uses generative AI to analyze and identify patterns from various data sources such as network traffic and user behavior for threat detection. Fortinet's FortiAI is a GenAI-based IoT security assistant offered within the FortiManager platform detects and troubleshoots IoT vulnerabilities. It also enhances network operations by streamlining configuration through FortiAI.

IOT SECURITY MARKET DYNAMICS

Driver: Need to effectively deal with IoT vulnerabilities

As the number of IoT devices increases, the potential attack surfaces also increases. These IoT devices have limited processing power and memory, making them vulnerable for cyberattacks. Organizations are investing in robust IoT security solutions to identify and mitigate vulnerabilities to protect sensitive data and prevent system disruptions. It ensures the secure operation of their connected ecosystems. The IoT security market is driven by the urgent need to address vulnerabilities in connected devices.

Restraint: Lack of awareness about new variants of IoT threats.

The IoT security market hinders due to lack of awareness about the continuously evolving IoT threat landscape. Organizations are unaware of new attack variants such as various types of data breaches, firmware vulnerabilities, malware infections, ransomware, denial-of-service attacks (DDoS) and man-in-the-middle attacks. This lack of knowledge makes them vulnerable to exploitation and affects their ability to implement effective security measures. This may also lead to delay in threat responses, increase in the risk of data breaches, and financial losses. The IoT ecosystems are complex because of devices from various manufacturers and operating systems. This worsens the challenge of keeping up with the latest threat variants of IoT.

Opportunity: Development of smart infrastructure

The development of smart infrastructure projects heavily depends on IoT technology. There is a surge in smart city initiatives and industrial automation globally, especially in Asia Pacific and Gulf regions, which has created a flourishing market for IoT security solutions. IoT security providers can drive market growth and innovation by developing specialized solutions to tackle the unique challenges of these environments

Challenge:Lack of standardization in IoT protocol

Due to lack of standardization in IoT, it is challenging to implement consistent security measures because of the wide range of communication protocols, operating systems, and hardware platforms used in IoT devices. Attackers have a larger surface area to exploit vulnerabilities in certain protocols or devices due to the heterogeneous nature of the ecosystem. Managing and securing IoT deployment without standardized security measure is difficult for the enterprises. The development of unified security solutions is hampered by the incompatibility of various IoT platforms. In order to overcome this obstacle, industry cooperation and the creation of open standards are necessary to improve the security of the Internet of Things.

IoT Security Market Ecosystem

“By Offering, Services segment expected to grow at higher CAGR during the forecast period”

The IoT security market's services segment growth is driven by the increasing number of IoT devices, the advancing sophistication of cyber threats, and the need for ongoing security monitoring and adaptation services. Providers such as Microsoft, IBM, Foritnet, and Cisco, offers professional services like consulting, risk assessment, implementation and support, along with the managed services that provide continuous security operations monitoring and maintenance. Professional services assist in creating comprehensive IoT security strategies, while managed services offer the necessary resources and expertise for effective implementation and maintenance As organizations face the challenges of securing their IoT environments, the need for expert guidance and managed services is rising.

“By Application, Connected Healthcare segment is expected to grow at higher CAGR during forecast period”

The IoT security market's services segment growth is driven by the increasing number of IoT devices, the advancing sophistication of cyber threats, and the need for ongoing security monitoring and adaptation services. Providers such as Microsoft, IBM, Foritnet, and Cisco, offers professional services like consulting, risk assessment, implementation and support, along with the managed services that provide continuous security operations monitoring and maintenance. Professional services assist in creating comprehensive IoT security strategies, while managed services offer the necessary resources and expertise for effective implementation and maintenance As organizations face the challenges of securing their IoT environments, the need for expert guidance and managed services is rising.

By Region, Asia Pacific is expected to grow at the highest CAGR during the forecast period.

Organizations in Asia Pacific are prioritizing compliance with various regulations like GDPR, PCI, SOX, CCPA, HIPAA, and the Monetary Authority of Singapore. This helps them establish security standards and audit controls. Countries such as India, China, Japan, Singapore, Australia, and others in the region offer growth opportunities for security solutions and services for IoT. The growing initiatives for transitioning the IT infrastructure with big data and mobile computing are shaping the digital transformation in     Asia Pacific.

Key players

The key players in the IoT security market are Microsoft (US), Fortinet (US), AWS (US), IBM (US), Intel (US), Cisco (US), Thales Group (France),Infineon (Germany) , Allot (Israel), Atos (France), Checkpoint (US), Palo Alto Networks (US), Mobileum (US), Entrust (US), NXP Semiconductors (Netherlands), and Kaspersky (Switzerland), MagicCube (US), Claroty (US), Ordr (US), Armis (US), Nozomi Networks (US), Keyfactor (US), Particle Industries (US), Karamba Security (Israel), and Forescout (US)

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Scope of the Report

The study categorizes the IoT security market by segments – offering, data sensitivity, application and region.

By Offering:

• Solution
  • IAM
  • Data Encryption and Tokenization
  • IDS/IPS
  • Device Authentication and Management
  • Secure Communication Protocols
  • PKI Certificate Lifecycle Management
  • Distributed Denial of Service (DDoS) Protection
  • Security Analytics
  • Virtual Firewall
• Services
  • Professional
    • Implementation
    • Support and Maintenance
    • Consulting
  • Managed

By Data Sensitivity [Qualitative]

• High Data Sensitivity
• Low and Moderate Data Sensitivity

By Application:

• Smart Manufacturing
• Smart Energy & Utilities
• Smart Home and Consumer Electronics
• Smart Government
• Smart Retail
• Connected Logistics
• Connected Healthcare
• Others (Smart Education, and Smart Agriculture)

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In April 2024, ROSHN, a Saudi real estate developer, partnered with Cisco to explore sustainable smart buildings and their upcoming innovation hub using IoT.
• In January 2024, Entrust announced a commercially available Post-Quantum Ready PKI platform. which allows organizations to manage digital certificates for securing communication in the future era of quantum computing.
• In April 2024, Fortinet and IBM cloud collaborated to develop the Fortinet Virtual FortiGate Security Appliance (vFSA). This collaboration intended to be beneficial for the manufacturing industry where vFSA can monitor and filter network traffic, specifically for remote access and security of IoT devices.
• In December 2023, Schneider Electric and Cisco partnered to boost the innovation in AI and IoT to deliver impactful digital solutions for various industries in the EMEA region.
• In July 2023 Check Point partnered with Cynerio to offer a comprehensive medical IoT security solution to secure patient data and critical healthcare operations.

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