IoT Security Market Size, Share, and Trends 2024 to 2033

IoT Security Market (By Component: Solutions, Services; By Deployment: Cloud, On-premises; By Enterprise Size: SMEs, Large Enterprises; By Product Type: Network Security, End-point Security, Application Security, Cloud Security, Others; By End-user Industry: Consumer IoT, Others; By Application: Smart Homes, Smart Manufacturing, Connected Logistics, Connected Healthcare, Smart Retail, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

  • Last Updated : June 2024
  • Report Code : 4452
  • Category : ICT

IoT Security Market Size to Reach USD 168.56 Bn by 2033

The global IoT security market size was USD 21.06 billion in 2023, estimated at USD 25.93 billion in 2024 and is expected to reach around USD 168.56 billion by 2033. The market is expanding at a solid CAGR of 23.12% over the forecast period 2024 to 2033. prevalence of cyber threats along with increasing demand for IoT network and devices further led to necessity of stronger security measure in the enterprises are the major factors propelling the markets growth globally.

IoT Security Market Size 2024 to 2033

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IoT Security Market Key Takeaways

  • Asia Pacific held the largest share of the market in 2023. The region is observed to sustain the position in the upcoming years.
  • Europe is anticipated to showcase remarkable growth rate in the market globally.
  • By component, the solutions segment is expected to witness robust growth in the upcoming years.
  • By component, the services segment is anticipated to showcase significant growth rate in the market.
  • By deployment, the cloud-based solutions segment is expected to witness the fastest rate of growth in the forecast period.
  • While on premise solutions is observed to hold a considerable share of the market.
  • By enterprise size, the large enterprises segment dominated the market in 2023.
  • By product type, network security held the largest share of the market in 2023. The segment
  • By end user, the manufacturing segment is anticipated to hold the largest market share and thus, will dominate the IoT security market globally.
  • By application, the smart manufacturing segment is anticipated to hold the highest share in the IoT security market.

Market Overview

Internet of Things (IoT) IoT security is a technology that deals with protective approach towards networks and various devices associated with networks. IoT devices are any type of devices that can deploy on the cloud, since cloud has ability to store tremendous data thus, it is more likely to attack by hackers and unauthorized accessors.to protect these IoT device it requires special kind of cybersecurity guidelines as they are different from traditional mobile devices and applications. IoT security encompasses with spectrum of stratergies, methods and protocols design to mitigate rising vulnerabilities of existing network system.

Moreover, threats like DDoS- distributed denial of service attacks can be identified and prevents whole network as it can harm the set of IoT further and the whole system gets collapsed increasing the downtime of overall operation. Despite of the innumerable advantages provide by IoT security devices, challenges such as resources constraints, lack of sufficient encryption, multiple devices connection causes malfunction in the network. These challenges can be addressed by using security tools such as, Microsoft defender for IoT,ForeScout Platform, assimly and AWS IoT device defender. Due to such advanced solutions to protect IoT network, the IoT security market is poised to grow significantly in the foreseeable period.

IoT Security Market Growth Factors

  • Increasing awareness about IoT network security and its inevitability to function smoothly.
  • Rising number of devices interconnected simultaneously increasing threat of cyber-attacks.
  • Innumerable advantages and increasing popularity of Internet of things led to deploy robust security measures for IoT devices and networks.
  • Rising prevalence of massive phishing attacks campaign.
  • Proliferation of connected devices across various sectors like healthcare, manufacturing, and smart homes.
  • Growing awareness of security vulnerabilities and cyber-attacks targeting IoT devices and networks.
  • Implementation of data protection laws and regulatory standards mandating robust IoT security measures.
  • Innovations in AI, machine learning, and blockchain enhancing IoT security market.
  • Supportive policies and investments in digital infrastructure and smart city projects.
  • There is increased demand for secure IoT applications in industrial automation and smart manufacturing.
  • Expansion of connected healthcare services and remote patient monitoring requiring strong security protocols.

IoT Security Market Scope

Report Coverage Details
Market Size in 2023 USD 21.06 Billion
Market Size in 2024 USD 25.93 Billion
Market Size by 2033 USD 168.56 Billion
Market Growth Rate CAGR of 23.12% from 2024 to 2033
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Component, Deployment, Enterprise Size, Product Type, End-user Industry, Application and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


IoT Security Market Dynamics

Driver

Expansion of end-users

The major driver of the IoT security market is rapid expansion of the market with the help of IoT networks and devices as many enterprises are adopting the internet of things to initiate the digital transformation for their enterprises. According to the statistics, at the end of 2025, the total number of IoT connections will rise more than 25 billion. Since the IoT devices are interconnected to each other, it is essential to secure each device within IoT network as collapsing a single device can affect the other devices and hacker most probably get chance to damage the whole network system. Hence it is essential to deploy a robust security measure to protect the complete network which further fuelling the IoT security market globally.

Additionally, frequent malware attacks from attackers such as DDOS, Deniel-of-service attack, Mirai and Telenet hacked a many IoT devices from large enterprises due to the expansion of companies IoT services offers a greater bandwidth access which create a major challenge for enterprises to secure the IoT devices and networks. Hence, expansion of IoT networks and increased malware attacks, are the significant factors that propelling a markets growth further on a wider scale.

Restraint

High maintenance to manage IoT devices

A major restraint for IoT security market is unmanaged devices that are heterogeneously connected and enable to communicate with each other by using range of protocols and different background. When devices in an IoT network are not managed properly, they become vulnerable for malware attacks from hackers. This is due to weak security settings, outdated firmware and unaddressed vulnerabilities. Hackers can exploit these weaknesses to achieve unauthorized access to the network and launch attacks. Although, by deploying a multi-layered security to secure the IoT devices and network is crucial for managing sensitive data, IoT apps that are cloud-based services.

Additionally, outdated software and weak mechanisms such as lack of standardization for some devices making it difficult to keep the up to date. IoT encompasses with different range of devices, each having different capacities and limitations which need to regularize on a continues basis like security patches, firmware and software updates. These updates resolve vulnerabilities for hacking, enhance security hence to improve overall performance of the IoT device and networks.

Opportunity

Adoption of IoT security in various sectors

One major opportunity for the IoT security market lies in the increasing adoption of connected devices in critical infrastructure sectors like energy, healthcare, transportation, electronics and manufacturing. Since these sectors incorporate IoT devices to improve operational efficiency, the need for robust security solutions to protect against cyber-attack or threats so that to ensure data privacy as a prior feature. This creates a significant demand for advanced security technologies like encryption, network security and highly secure authentication methods.

Enterprise that can offer comprehensive and easily deployable solutions for security solutions customized for these crucial infrastructure applications stand to achieve a significant competitive advantage in the IoT security market, further fuelling the markets growth globally at higher scale.

Component Insights

The solutions segment is expected to witness robust growth in the IoT security market in the upcoming years. IoT security encompasses various security measures such as endpoint security, network security, firmware and software security. By leveraging these solutions for security purposes, the IoT security market is poised to grow remarkably as it has wide applications in various sectors which drives the segments growth globally and increase its demand exponentially in the market.

On the other hand, the services segment is anticipated to showcase a significant growth rate in the market. IoT security services encompasses a variety of offerings to protect the various connected devices and networks. In this segment, the key services include risk assessment, security consultation, management of vulnerabilities to mitigate the risk of unauthorized access and other potential threats. Such a management of security provides constant monitoring and instantaneous response to detect and address security breaches in real time.

Deployment Insights

The cloud-based solutions segment is expected to witness the fastest rate of growth in the forecast period. The reason behind this is cloud-based solutions offers flexibility and scalability for connected devices. These solutions provide highly advanced encrypted solutions to secure data while transmission or at rest. Security analytics helps find threat detection and uses a platform based on cloud computing gives reliable results further fuelling the cloud-based segments growth globally.

While on premise solutions segment is expected to hold a considerable share of the IoT security market during the forecast period. These solutions offer a higher level of security and highly scalable integrated system as compared to cloud-based solutions to ensure security and lead a proactive approach to prevent unauthorized access to the devices and IoT networks. The integration of advanced solutions for on premises solutions is observed to act as a major growth factor for the market.

Enterprise Size Insights

The large enterprises segment held the largest share of the IoT security market in 2023. Large enterprises are cautious about the consumers need, trust on their brand and the credibility they offer to consumers. According to the data published by pew research centre, nearly 80% of Americans are afraid about the companies collecting their personal data and its exploitation. Thus, to address this issue, large enterprisers invest heavily into robust security measures to avoid pitfalls in the IoT security market further propels the large enterprise segments growth globally.

On the other hand, the SMEs enterprises segment is expected to showcase steady growth as enterprises increasing their spending on security services. An IoT based management system can be a boon for many small and medium enterprises that are struggling to stay in the market with the potential to grow over a certain period. Industry 4.0 is the rising phase of IoT which mainly focuses on leveraging various technologies to achieve maximum output and eliminate issues within business operations.

Product Type Insights

The network security segment is expected to hold the highest market share and thus dominate the market globally. The growth of this segment is due to practise of safeguarding the networking infrastructure from malicious attacks and unauthorized access which creates secure environment for devices and various applications used by enterprisers to protect their network security layer.

End-point security expected to drive the market with notable growth. Using an end point security protects the enterprises data being stolen and it can reduce the data breaches effectively. End-point security practises help you to identify the cyberattacks and let you respond faster to act on it. It also detects spyware and malware attacks and provide safeguard against it. Thus, making it a significant factor for the IoT security market.

End user Industry Insights

The manufacturing segment is anticipated to hold the largest market share and thus, will dominate the IoT security market globally. IoT in manufacturing industry could be a gamechanger and create a massive transformation by using manufacturing automation. Humans and robots can work collaboratively, which helps in the prediction of equipment failure while tracking assets available in the warehouse. Interconnected IT sensors enable machines to coordinate with each other which further propels the growth of the IoT security market.

While retailers are inclining towards adoption of hi-tech solutions the market demand is increasing notably. The expansion of IoT in the retail industry is due to robust monitoring systems provided by IoT sensors which detect the state of equipment's and their failure prediction before it happens. For instance, Walmart has incorporated IoT sensors to detect the temperature of refrigerator and its condition, which ensures food safety in real time.

Application Insights

The manufacturing segment is anticipated to hold the highest share in the IoT security market. The integration of IoT in manufacturing processes enables real-time monitoring, predictive maintenance, and data-driven decision-making. Key industries, including automotive, electronics, and heavy machinery, are increasingly adopting IoT solutions to streamline operations and reduce downtime. The rise of Industry 4.0 and smart factory initiatives further propels the adoption of IoT in manufacturing. This sector's focus on innovation and efficiency cements its leading position within the broader IoT market.

While the healthcare segment is expected to witness faster growth in the market. The increasing adoption of IoT-enabled medical devices, telemedicine, and remote patient monitoring drives this expansion. These technologies enhance patient care, streamline clinical operations, and enable real-time health data tracking. Additionally, the growing emphasis on personalized medicine and the management of chronic diseases further boosts demand for IoT solutions in healthcare.

Regional Insights

Asia Pacific region dominated the IoT security market with the largest share in 2023. The region with its overall ongoing developments, is observed to Countries like China, India, and Japan are at the forefront, investing heavily in smart city projects, industrial automation, and consumer electronics. The expanding IT infrastructure and growing awareness of cybersecurity threats boost the demand for robust IoT security solutions. Additionally, government initiatives and supportive policies promote digital transformation and innovation. The presence of numerous IoT manufacturers and the rising use of connected devices across various sectors, such as healthcare, transportation, and manufacturing, further accelerate market growth in the Asia Pacific region.

  • North America, in 2023, held a considerable share of the market in 2023. The region's strong economic base and high IT spending capacity have enabled significant investments in IoT security solutions. The presence of major technology companies and IoT security vendors in the United States and Canada further enhances market growth.

Additionally, stringent government regulations and data protection laws necessitate robust security measures, fuelling demand for advanced IoT security solutions. North America's emphasis on innovation and cybersecurity awareness has led to the early adoption of cutting-edge technologies, making it a leading region in IoT security. The proliferation of connected devices in sectors like healthcare, manufacturing, and smart cities underscores the region's dominance.

Europe is anticipated to showcase remarkable growth rate in the market globally. The region's strong industrial base, particularly in Germany, drives the adoption of IoT security solutions to protect critical infrastructure. Investments in smart city initiatives and the rise of Industry 4.0 further propel market expansion. European countries are also emphasizing innovation and collaboration, fostering advancements in IoT security technologies. Additionally, the presence of key market players and a focus on research and development contribute to the region's robust growth. As IoT adoption rises across various sectors, Europe continues to strengthen its position in the IoT security market.

IoT Security Companies

IoT Security Market Companies

Recent Developments

  • On 8th May 2024, Semiconductor fabless startup Mindgrove Technologies launched India’s first 700 MHz high-performance microprocessor, Secure IoT, for connected devices. It is especially designed for those requiring enhanced security at the chip level. Out of the company’s first hundred prototypes, ten are already undergoing functional testing, and the remainder are set to arrive soon.
  • In May 2024, Thingstream unveiled its IoT Starter Kit. It's a comprehensive hardware and software solution to simplify IoT device development and connectivity. The kit enables device manufacturers to rapidly develop globally connected devices so that to accelerate IoT projects.

Segments Covered in the Report

By Component

  • Solutions
  • Services

By Deployment

  • Cloud
  • On-premises

By Enterprise Size

  • SMEs
  • Large Enterprises

By Product Type

  • Network Security
  • End-point Security
  • Application Security
  • Cloud Security
  • Others

By End-user Industry

  • Consumer IoT
  • Industrial
  • Manufacturing 
  • Retail
  • IT and Telecommunication
  • BFSI
  • Government and Defense
  • Transportation and Automotive
  • Energy and Utilities
  • Healthcare
  • Others

By Application

  • Smart Homes
  • Smart Manufacturing
  • Connected Logistics
  • Connected Healthcare
  • Smart Retail
  • Others

By Geography

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

Frequently Asked Questions

The global IoT security market size is expected to increase USD 168.56 billion by 2033 from USD 21.06 billion in 2023.

The global IoT security market will register growth rate of 23.12% between 2024 and 2033.

The major players operating in the IoT security market are Broadcom Inc. (Symantec Corporation), IBM Corporation, Intel Corporation, HP Enterprise Company, AT&T Inc. and Others.

The driving factors of the IoT security market are the expansion of end-users and adoption of IoT for digital transformation by enterprises.

North America region will lead the global IoT security market during the forecast period 2024 to 2033.

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