Global Internet Of Things (IoT) In Security Market Analysis Report By Offering (Solutions (Identity and Access Management, Data Encryption and Tokenization, Secure Communication Protocols, Public Key Infrastructure Certificate Lifecycle Management, Distributed Denial Of Service (Ddos) Protection, Security Analytics, Others), Services (Professional Services (Implementation & Integration Services, Training & Consulting Services, Support and Maintenance services), Managed Services), By Security Type (Network Security, Endpoint Security, Application Security, Cloud Security, Others), By End-use (Energy and Utilities, Manufacturing, Automotive, Transport, Consumer Electronics, Healthcare, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global IoT Security Market size is expected to be worth around USD 557.9 Billion By 2034, from USD 32.7 Billion in 2024, growing at a CAGR of 32.80% during the forecast period from 2025 to 2034. In 2024, North America dominated the IoT in Security Market with over 33.7% market share and revenues of USD 11 billion. The U.S. market was valued at USD 8.81 billion and is projected to grow at a CAGR of 30.5%.

The IoT Security Market is expanding as the number of connected devices skyrockets across various sectors such as healthcare, manufacturing, and transportation. This market growth is fueled by the increasing awareness of the risks associated with poorly secured IoT devices. Organizations are investing in IoT security solutions to protect sensitive data and infrastructure from cyber threats, positioning the market for continued growth in the coming years​.

The growth of the IoT security market is driven by rising cyber threats and physical security breaches, pushing organizations to adopt advanced solutions. IoT technology provides proactive, intelligent security that can better anticipate and mitigate potential risks. The reduction in the cost of IoT sensors and devices has made these technologies more accessible and cost-effective for security applications.

One central objective of IoT security is to ensure the confidentiality, integrity, and availability of data across networks and devices. This involves protecting data from unauthorized access and ensuring that devices are resilient against attacks, thereby maintaining the functionality and trust in IoT systems​

The main drivers propelling the IoT Security Market include the rising number of cyber attacks targeting IoT devices, the broad adoption of IoT in various sectors, and stringent regulatory requirements demanding enhanced data security measures. The proliferation of smart city projects and smart devices also significantly contributes to the urgency for robust IoT security solutions​.

According to G2, 42% of organizations can identify insecure IoT devices, yet only 14% replace them promptly. A significant 98% of IoT traffic remains unencrypted, exposing sensitive data to potential threats. Among companies already utilizing IoT, 32% cite the lack of skilled security personnel as their biggest challenge. In the retail sector, 57% of businesses are actively enhancing privacy protections, while 43% focus on preventing data breaches.

Furthermore, 55% of companies do not enforce security compliance for third-party IoT providers, and 48% cannot detect breaches in their IoT devices. Based on data from LLC Buddy, the adoption of IoT in smart homes is expected to surpass 400 million households by 2025. Retailers continue to prioritize security, with 43% focusing on preventing data breaches and 57% implementing stronger privacy measures.

The global IoT ecosystem is rapidly expanding, with over 3.5 billion devices recorded by 2023, led by Asia in adoption. According to Frontier Economics, IoT is projected to contribute a 10% increase in the United States’ GDP over the next 30 years, highlighting its long-term economic impact.

AI significantly impacts IoT security market trends by enhancing the capabilities of security systems to analyze vast amounts of data generated by IoT devices. AI-driven security solutions can predict potential security breaches and automate threat responses, leading to more proactive and adaptive IoT security strategies​

Key Takeaways

• The Global Internet of Things (IoT) in Security Market size is expected to reach USD 557.9 billion by 2034, growing from USD 32.7 billion in 2024, at a compound annual growth rate (CAGR) of 32.80% during the forecast period from 2025 to 2034.
• In 2024, the U.S. market for the Internet of Things (IoT) in security was estimated at USD 8.81 billion, and it is projected to expand at a CAGR of 30.5%.
• In 2024, North America held a dominant market share in the Internet of Things (IoT) in Security Market, capturing more than 33.7%, with revenues amounting to USD 11 billion.
• In 2024, the Solutions segment led the Internet of Things (IoT) in security market, holding more than 72.5% of the market share.
• In 2024, the Network Security segment held a dominant position within the Internet of Things (IoT) in Security Market, capturing more than 38.6% of the market share.
• In 2024, the Energy and Utilities segment also led the Internet of Things (IoT) in Security Market, holding more than 32.6% of the market share.

U.S. Market Size And Growth

In 2024, the U.S. market for the Internet of Things (IoT) in security was estimated at USD 8.81 billion. It is projected to expand at a compound annual growth rate (CAGR) of 30.5%.

The robust growth of the IoT in security market within the United States can be attributed to increasing concerns about security in various sectors including industrial, residential, and public services. The integration of IoT devices in security systems enhances capabilities in surveillance, access control, and threat detection, thus driving the market forward.

Regulatory and compliance demands across industries require advanced security solutions, which IoT technologies are well-suited to deliver. The development of smart cities and infrastructure projects further boosts the demand for integrated IoT security, driving market growth. The projected CAGR not only reflects current adoption but also highlights significant future expansion, emphasizing IoT’s pivotal role in enhancing security across various sectors.

In 2024, North America held a dominant market position in the Internet of Things (IoT) in Security Market, capturing more than a 33.7% share, with revenues amounting to USD 11 billion. This market share is driven by the widespread adoption of IoT technologies in sectors like healthcare, retail, and transportation, where security is crucial.

The region’s market leadership is driven by strict regulatory standards and policies ensuring enhanced data security and privacy. Government and private sector initiatives to adopt advanced technologies, such as AI and machine learning, further boost IoT security growth. North America’s continued investment in these technologies pushes the boundaries of IoT security solutions, fueling market expansion.

The rapid growth of smart city projects in the U.S. and Canada creates significant opportunities for IoT security solutions, particularly in public safety and urban infrastructure management. These projects demand advanced security systems to address potential threats, driving the expansion of the IoT security market in the region.

Analysts’ Viewpoint

There is a growing demand for IoT security solutions that can offer comprehensive protection across various layers of technology. This includes demand for real-time threat detection systems, secure communications protocols, and advanced authentication methods. As businesses increasingly rely on IoT technologies, the need for robust security measures to safeguard these systems continues to rise​.

Emerging IoT security trends include adopting blockchain technology to secure device communications, improving data integrity and privacy. Decentralized networks in IoT devices prevent single points of failure, common in traditional systems. Additionally, increasing focus on consumer privacy and data protection regulations drives developers to create secure IoT devices that prioritize privacy.

The IoT Security Market presents significant investment opportunities in developing solutions that provide layered security for IoT devices, platforms, and networks. Investors are particularly interested in companies that innovate in areas like blockchain for IoT security, AI-driven threat detection systems, and secure chipset technologies​.

Technological innovations in IoT security are rapidly evolving. Smarter AI algorithms are being developed to efficiently analyze data from IoT devices and detect anomalies. Biometric systems, such as facial recognition, fingerprint scanning, and voice identification, are increasingly integrated with IoT to enhance security. These advancements improve accuracy, convenience, and system interoperability.

The market for IoT in security is witnessing substantial expansion across various sectors, including residential, commercial, and industrial domains.In residential settings, IoT security systems are becoming more personalized and scalable. Businesses use IoT to protect assets, monitor operations, and ensure safety. In industries, IoT secures critical infrastructure, from utilities to transportation, enhancing traditional security.

Offering Analysis

In 2024, the Solutions segment held a dominant position in the Internet of Things (IoT) in security market, capturing more than a 72.5% share. This segment includes key security solutions like identity and access management, data encryption, and DDoS protection, crucial for securing connected devices and networks in the IoT ecosystem.

Identity and access management systems are vital, acting as the first line of defense in IoT security by ensuring only authorized users can access devices and networks, preventing breaches. Data encryption and tokenization are also crucial, safeguarding the integrity and confidentiality of data as it moves across networks or is stored on devices.

Secure communication protocols are another key component, protecting data transmission between IoT devices and management systems from interception or tampering. As IoT deployments grow across industries, the need for secure communication becomes even more crucial due to the increasing volume of sensitive data being transmitted.

The increasing complexity of cyber-attacks has fueled the demand for advanced security analytics within the Solutions segment. These tools use algorithms and machine learning to detect and predict threats in real-time, enabling proactive responses and ensuring IoT system integrity, driving the Solutions segment’s market dominance.

Security Type Analysis

In 2024, the Network Security segment held a dominant market position within the Internet of Things (IoT) in Security Market, capturing more than a 38.6% share. This prominence can be attributed to the increasing complexity and frequency of cyberattacks targeting network infrastructures.

As IoT devices often act as entry points for such attacks, securing the network layer has become crucial for businesses and consumers alike. Network security solutions specifically designed for IoT environments help in monitoring and preventing unauthorized access and threats, thereby maintaining the integrity and availability of networked systems.

Endpoint Security focuses on protecting devices, from consumer gadgets to industrial machines. As IoT devices increase, each endpoint becomes a potential vulnerability. These solutions defend against malware, exploit attacks, and other threats at the device level, ensuring each IoT network node remains secure.

Application Security in the IoT context addresses the software components that operate on or with IoT devices. This segment ensures that applications are free from vulnerabilities that could be exploited by attackers. With IoT devices increasingly used for critical functions across various sectors, securing the applications that run on these devices is paramount.

End-use Analysis

In 2024, the Energy and Utilities segment held a dominant market position in the Internet of Things (IoT) in Security Market, capturing more than a 32.6% share. This leadership stems from the critical need for strong security in energy infrastructure, which faces rising cyber threats. IoT technologies enhance monitoring and real-time analytics, improving threat detection and response in the sector.

The integration of IoT in security systems within energy and utilities facilitates the management of vast networks of pipelines and electric grids, which are often dispersed over large geographical areas. These systems allow for the remote monitoring and control of facilities, reducing the risk of unauthorized access and improving operational efficiency.

Regulatory pressures are key to this segment’s dominance, as stringent regulations require energy and utility companies to adopt advanced security measures. IoT security solutions help ensure compliance by providing comprehensive visibility and control over the security of critical infrastructure.

The modernization of aging energy infrastructure with smart grid technologies boosts demand for IoT security solutions. As utilities enhance reliability and efficiency, IoT security is crucial to protect against disruptions and ensure system resilience. The Energy and Utilities segment’s market share reflects the urgent need to address security challenges with advanced IoT-enabled measures.

Key Market Segments

By Offering

• Solutions
  • Identity and Access Management
  • Data Encryption and Tokenization
  • Secure Communication Protocols
  • Public Key Infrastructure Certificate Lifecycle Management
  • Distributed Denial Of Service (Ddos) Protection
  • Security Analytics
  • Others
• Services
  • Professional Services
    • Implementation & Integration Services
    • Training & Consulting Services
    • Support and Maintenance services
  • Managed Services

By Security Type

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

By End-use

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

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Driver

Proliferation of IoT Devices

The rapid expansion of the Internet of Things (IoT) has transformed the way we interact with technology, leading to a significant increase in connected devices across various sectors. This proliferation serves as a primary driver for enhancing security measures within the IoT landscape.

As IoT devices become integral to daily operations in industries such as healthcare, manufacturing, and smart cities, the volume of data generated has surged. This interconnected environment offers numerous benefits, including improved efficiency and real-time analytics.

However, it also presents an expanded attack surface for cyber threats. Each connected device can serve as an entry point for malicious actors, making strong security protocols crucial. In healthcare, IoT devices monitor patient vitals and manage equipment. A breach could compromise patient data or manipulate devices, jeopardizing patient safety.

Restraint

Lack of Standardization

IoT devices are manufactured by various companies, each implementing its own communication protocols, operating systems, and security measures. This diversity results in compatibility issues, making it challenging to establish uniform security standards.

The absence of standardized security frameworks means that some devices may have robust security features, while others possess minimal protections. Attackers can exploit these weaker links to infiltrate networks, compromising the entire system.

This lack of standardization also hampers the development of comprehensive security solutions. Security providers struggle to create universal protection mechanisms for diverse devices and platforms. As a result, organizations often need multiple security solutions, increasing complexity and costs.

Opportunity

Development of Smart Infrastructure

Smart infrastructure encompasses various applications, including smart grids, intelligent transportation systems, and automated industrial operations. These systems rely on interconnected IoT devices to collect and analyze data, optimizing performance and resource management.

For example, smart grids utilize sensors to monitor energy consumption, enabling efficient distribution and reducing waste. The critical nature of these infrastructures necessitates stringent security measures. A security breach in a smart grid could lead to widespread power outages, while vulnerabilities in intelligent transportation systems could disrupt traffic management, leading to safety hazards.

Securing IoT infrastructures is crucial for public safety and maintaining trust, creating a lucrative market for IoT security solutions. Cybersecurity companies can offer specialized services like threat detection, secure communication, and incident response strategies.

Challenge

Evolving Threat Landscape

The dynamic nature of cyber threats presents an ongoing challenge to IoT security. As technology advances, so do the tactics and sophistication of cyber attackers, necessitating continuous adaptation and enhancement of security measures. IoT devices are particularly vulnerable due to their diverse functionalities and varying levels of security.

Many devices operate with limited processing power and memory, restricting the implementation of advanced security features. This makes them attractive targets for attackers seeking to exploit these limitations. The challenge is further compounded by the rapid proliferation of IoT devices, which expands the potential attack surface.

Each new device connected to a network introduces additional vulnerabilities that must be managed. Traditional security measures may not scale effectively to protect these extensive and diverse networks.

Emerging Trends

One notable trend is the integration of device authentication mechanisms. By ensuring that only authorized devices connect to networks, organizations can prevent unauthorized access and potential breaches. This approach enhances trust within IoT ecosystems. ​

Another critical development is the emphasis on data encryption. As IoT devices transmit vast amounts of sensitive information, encrypting this data ensures that even if intercepted, it remains unintelligible to malicious actors. This practice safeguards user privacy and maintains data integrity. ​

The implementation of secure boot and firmware updates is also gaining traction. Secure boot ensures that devices start with trusted software, preventing malicious code from executing during startup. Regular and secure firmware updates address vulnerabilities, ensuring devices remain protected against emerging threats. ​

Additionally, authorization and access control mechanisms are being refined. By defining clear permissions for devices and users, organizations can limit the potential impact of compromised devices, ensuring that only necessary data and functionalities are accessible. ​

Business Benefits

Investing in robust IoT security measures yields substantial business advantages. It protects data from unauthorized access. IoT devices often handle sensitive information, and effective security measures ensure this data remains confidential, preserving customer trust and compliance with regulations. ​

IoT security protects devices from malicious attacks. By implementing strong security protocols, businesses can prevent malware infections, denial-of-service attacks, and other threats that could disrupt operations or compromise data integrity. ​

Robust IoT security maintains device and network availability. Secure systems are less likely to experience downtime due to cyberattacks, ensuring continuous operations and reducing potential revenue losses associated with service interruptions. ​

Implementing IoT security measures reduces compliance risks by ensuring adherence to data protection regulations, avoiding legal penalties, and safeguarding a company’s reputation. Prioritizing security also builds customer trust, leading to increased engagement, loyalty, and positive brand perception.

Key Player Analysis

Several key players are leading the charge in developing innovative IoT security technologies.

Microsoft has established itself as a leader in the IoT security space with its Azure IoT platform. By offering end-to-end security capabilities, Microsoft focuses on securing the entire IoT ecosystem, from devices to networks and cloud environments. Microsoft’s security solutions, like Azure IoT Hub and Azure Sphere, protect devices, secure communication, and prevent attacks.

Amazon Web Services (AWS) is another key player in the IoT security domain, providing a wide range of services that ensure the safe operation of IoT applications. With AWS IoT Core and other security features, Amazon ensures that devices are securely connected and can be managed efficiently.

Google LLC is making significant strides in the IoT security market, particularly with its Google Cloud IoT platform. Google’s focus is on providing security solutions that integrate seamlessly into existing cloud infrastructures. Through its advanced machine learning capabilities, Google offers proactive security measures, enabling the detection and prevention of potential threats.

Top Key Players in the Market

• Microsoft Corporation
• Amazon Web Services, Inc.
• Google LLC
• IBM Corporation
• Intel Corporation
• Cisco Systems, Inc.
• Telefonaktiebolaget LM Ericsson
• Thales TCT
• Allot
• Atos SE
• Others

Top Opportunities Awaiting for Players

• Enhanced Security for Smart Cities and Infrastructure: As cities become smarter and more connected, the demand for robust IoT security solutions is growing. This involves everything from traffic management systems to public safety networks, where security protocols are essential to protect data and ensure system integrity​.
• Healthcare Sector Advancements: The integration of IoT in healthcare has accelerated, particularly highlighted by its crucial role during the COVID-19 pandemic. IoT security solutions are now more than ever critical in protecting sensitive healthcare data and ensuring the reliability of medical devices and patient care systems​.
• Adoption of AI and Machine Learning: The integration of AI and machine learning in IoT devices is paving the way for more advanced security features. These technologies enable smarter threat detection systems and automated security responses, making IoT networks more resilient against cyber threats​.
• Expansion in Consumer IoT Devices: There is a significant rise in the use of IoT devices in the consumer segment, from smart home devices to IoT-enabled appliances. Security solutions that can offer enhanced data protection, privacy controls, and secure connectivity will see increased demand as consumers seek to safeguard their personal information​.
• Regulatory Compliance and Data Privacy: With increasing awareness and tightening regulations around data privacy and security, IoT devices will need to comply with various international, regional, and local laws. This regulatory landscape presents opportunities for IoT security solutions tailored to help businesses meet these compliance requirements efficiently​.

Recent Developments

• In 2024, Microsoft acquired ReFirm Labs to enhance IoT security by improving firmware analysis and protection capabilities. This move aims to secure devices at the firmware level, addressing a critical security gap in IoT and Operational Technology (OT) devices.
• In December 2024, AWS announced new cloud security features, including enhanced threat detection capabilities for Amazon GuardDuty using AI and ML algorithms. These advancements can benefit IoT security by improving overall cloud security.

Report Scope