IoT Security Market

IoT Security Market Size & Insights

IoT Security Market size was valued at USD 26.3 billion in 2024 and is forecast to touch USD 106.5 billion in 2032, and the market is expected to grow at a whopping CAGR of 19.1% from 2025-2032 owing to rising number of cyber-attacks globally coupled with growing adoption of IoT across vertical.

Global IoT Security Market Drivers

Rising Number of Ransomware Attacks Globally

The global IoT Security Market is expected to become more mainstream in the coming six years due to the rising number of ransomware attacks on IoT devices and the growing data risk in IoT networks across the globe. The hackers are targeting IoT devices and taking advantage of known vulnerabilities, such as those regarding the default username, password, and static code backdoor. Thus, the increasing vulnerability of critical systems is encouraging the government of various countries to opt for IoT-enabled security.

In addition to this, the rising requirement for IoT security solutions with multiplying variants of attacks is another factor that is having a positive influence on market growth. The increasing incorporation of IoT products in artificial intelligence, wireless networking, and machine learning and the development of sensors and microcontrollers has augmented the need for security for reliable operations of the technology, driving the market growth. Factors including the innovations in 4G and 5G technologies and growing penetration of social media platforms has bolstered the number of identity and data thefts, bolstering the market growth.

Growing Adoption of IoT devices Across Sectors

Proliferation of IoT devices across industries and government is creating a demand to secure and protect these devices from ransomware, DDoS and other type of attack is driving the demand for internet of things security market.

Further, the development of smart cities and rising automation across several industry verticals has bolstered the need for effective security solutions to secure personal and organizational data from malware attacks. The advent of new trends which include Bring Your Own Device (BYOD), primarily across the corporate organizations will pave the way for the market growth. Thus, the growing deployment of IoT security solutions in order to handle communications and digital identities of their employees across on-premises, cloud and hybrid environments will offer enormous opportunities to the market.

The cybercriminals are using the multi-layered cyber-attacks to monitor the intelligence and commercial aspects of individuals, enterprises, and countries. This factor has encouraged large companies to integrate their security solutions to decrease the cost and enhance the safety of their facility. Hence, the increasing requirement for integrated security solutions will surge the market demand in the coming years.

Furthermore, the rising usage of 3G and 4G long-term evolution and wireless networks and technologies is growing the risk related to cyber-attacks. Real-time information and transaction-related information, which is essential to users, is basically exchanged through these cellular networks, which in turn, is boosting the need for IoT security.

The increasing trend of bring your own device (BYOD) is rising concerns related to data security. On the other hand, the lack of awareness related to the remarkable benefits and availability of IoT security solutions are likely to hamper the growth of the market in the coming years. Moreover, the high cost of installation is another factor that will have a negative impact on market growth.

IoT Security Market Segment Analysis

IoT Security Market by Component Insights: Solutions type captured the largest market share in 2024

IoT market Security by Components, Solutions type captured the largest market share in 2024, and is forecast to dominate over the upcoming years, because of their ability to help organizations mitigate the chances of malware and ransomware attacks on the enterprise connected IoT network and smoothly operate the business.

Based on the component, the services segment is anticipated to grow at a higher CAGR during the forecast period. The services segment is further segmented into professional services and managed services. The accelerating demand for technical expertise in IoT devices is a major factor that is surging the demand for consultation and professional services.

IoT Security Market by Security Type Insights: Network Security hold the largest market share

Network security dominated the market as IoT systems are part of the larger network and data is shared between the devices connected. Rising DDoS, botnet formation, firmware attacks, and data breaches are driving the demand for network security solutions.

Data encryption and tokenization is expected to witness higher CAGR during the forecast period. Security is considered as one of the essential component when it comes to the deployment of IoT into the manufacturing processes.

The IoT sensors measure variables, which include pressure, speed, consumption, actuator, and temperature. These systems adversely impact the physical world, control critical infrastructure, and helps in collecting sensitive information related to various operations and smart equipment. The combination of these factors is propelling the demand for IoT security and privacy protection in various organizations.

IoT Security Market by End-Use Application Type Insights: Energy & Utilities dominate the market.

The largest vertical for IoT Security is energy & utility owing to large networks of smart grid and smart meter deployed globally. IoT devices across utilities vertical help to monitor all devices in real time basis improving energy efficiency.

Smart home & consumer electronics is expected to grow at a robust rate in the upcoming years, owing to the rising incidences of cyber attacks which include denial of service (DoS) and data & identity theft. With a significant surge in the number of connected homes, the adoption rate of products like smart fire & alarm systems, intelligent security systems, and smart electronics has increased. Thus, the need for security solutions and services has increased in smart homes and consumer electronics, driving the market size.

IoT Security Market by Regional Insights: Asia Pacific holds the largest market share

Based on the region, Asia-Pacific region is expected to dominate the market during the forecast years. The rising adoption of advanced technologies such as IoT, Artificial Intelligence, and various other advanced technologies is a major factor that is propelling the growth of the market in this region. Moreover, the continuous economic growth and the increasing spending on IoT, especially in the major economies such as China, India, Singapore, and Japan, is further complementing the market growth in the coming years.

IoT Security Market Major Players & Competitive Landscape

Major IoT Security market players operating in the market include Microsoft, AWS, Cisco Systems Inc., IBM, Intel Corporation, Infineon Technologies AG, NortonLifeLock Inc, Thales Group, Allot, Fortinet Inc., Thales, among others.

IoT Security Market News

• • In 2024, ROSHN, a real estate developer in Saudi Arabia has partnered with Cisco to explore sustainable smart buildings and their upcoming innovation hub using IoT.
  • In 2023, Schneider Electric  partnered with Cisco systems to further improve their innovation in AI and IoT to deliver powerful digital solutions across MENA region.
  • In 2020, Cisco launched a new Cloud-Native Platform, SecureX, that will help in simplifying the security and tackles complexity. Cisco SecureX offers greater visibility in the entire security portfolio, delivers security analytics, and automates workflows to speed up threat detection and response.
  • In 2020, IBM completed the acquisition of Spanugo, a cloud security startup to improve its compliance. The company will help IBM at the time of auditing with their technology that can effectively and transparently show cybersecurity compliance in the real time.
  • In 2020, Infineon Technologies AG entered into a partnership with Sectigo which will help to safeguard IoT devices.

IoT Security Market Scope of the Report

IoT Security Market Research Report Segmentation

The Global IoT Security Market has been segmented on the basis of Component, Security Type, and End-use Industry and Regions. Based on the Component, the market is segmented into Solutions and Services. Based on the Security Type, the market is segmented into Network Security, Endpoint Security, Application Security, Cloud Security, and Others. Based on the End-use Industry, the market is segmented into Energy and Utilities, Manufacturing, Automotive, Transport, Consumer Electronics, Healthcare and Others.

Global IoT Security Market by Component

• • Solutions
  • Services

Global IoT Security Market by Security Type

• • Network Security
  • Endpoint Security
  • Application Security
  • Cloud Security
  • Others

Global IoT Security Market by End-use Industry

• • Energy and Utilities
  • Manufacturing
  • Automotive
  • Transport
  • Consumer Electronics
  • Healthcare
  • Others

Global IoT Security Market by Region

• • North America IoT Security Market (Option 1: As a part of the free 25% customization)

    • By Component
    • By Security Type
    • By End-use Industry
    • US Market All-Up
    • Canada Market All-Up

  • Europe IoT Security Market (Option 2: As a part of the free 25% customization)

    • By Component
    • By Security Type
    • By End-use Industry
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific IoT Security Market (Option 3: As a part of the free 25% customization)

    • By Component
    • By Security Type
    • By End-use Industry
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW IoT Security Market (Option 4: As a part of the free 25% customization)

    • By Component
    • By Security Type
    • By End-use Industry
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the IoT Security (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Microsoft
  • AWS
  • Cisco Systems Inc.
  • IBM
  • Intel Corporation
  • Infineon Technologies AG
  • NortonLifeLock Inc
  • Thales Group
  • Allot
  • Fortinet Inc.