IoT Security Market Revenue, Size, Share & Opportunity Analysis Report by Component (Solutions and Services), By Security Type (Network Security, Endpoint Security, Cloud Security, Application Security, Device Authentication & Management), By Deployment Type (On-Premises and Cloud-Based), By Solution (Encryption Solutions, Identity Access Management (IAM), Security Analytics, Unified Threat Management (UTM), Distributed Denial of Service (DDoS) Protection, Firewall Solutions, Intrusion Detection and Prevention Systems (IDPS)), By Industry Vertical (Healthcare, Manufacturing, Retail, Transportation & Logistics, Energy & Utilities, Government, BFSI (Banking, Financial Services, and Insurance), Smart Cities, Consumer Electronics), By Organization Size (Small and Medium Enterprises (SMEs) and Large Enterprises), By Region, And Segment Forecasts, 2025 – 2032
IoT Security Market Size & Trends
The global Internet of Things IoT Security Technology Market size was valued at USD 12,614.33 million in 2024. The market is projected to grow from USD 16,778.32 million in 2025 to USD 123,577.23 million by 2032, exhibiting a CAGR of 33.01% during the forecast period.
Market Definition & Introduction
IoT (Internet of Things) security is defined as defending IoT (Internet of Things) devices and networks against data theft and manipulation by hackers. One of the primary market drivers during the projection period is the need to protect the future of internet-connected devices by rigorously implementing necessary/next-generation security measures, increasing transparency, and giving customers the option to refuse data collection. As 3G and 4G long-term evolution (LTE), as well as wireless networks and technologies, gain popularity, the risk of cyberattacks rises. These cellular networks facilitate the exchange of real-time and transaction-related information needed by consumers, demanding IoT security. IoT security is necessary due to the rapid increase of IoT deployment in industries such as health monitoring, smart home products, smart city initiatives, and intelligent retail. The use of cloud technology for data storage by many businesses increases the risk of unauthorised access to data.
According to the International Institute for Management Development, in 2022, 871 million smart home devices were supplied globally, with the total expected to rise to 1.23 billion by 2027 (Source: https://www.imd.org/blog/digital-transformation/internet-of-things/). Thus, with the increasing number of smart home devices, there is an increasing demand for IoT (Internet of Things), ultimately boosting the demand for the IoT (Internet of Things) security technology market.
Market Drivers
Building Intelligent Infrastructure is Driving the Demand for IoT Security Market.
Conceptual models for infrastructure projects aiming to provide state-of-the-art services and infrastructure include smart cities and intelligent buildings. A smart city effectively makes use of its ICT infrastructure to enhance liveability and the effectiveness of services and operations within the city. A city can be deemed smart if it adheres to the following guidelines: smart transportation, smart buildings, smart utilities, and smart citizen services. Therefore, IoT is essential for carrying out smart city initiatives successfully because of technologies like data networking, cloud computing, mobility, and sensors. As IoT devices proliferate throughout the smart city ecosystem, their security has become increasingly challenging. Given the vulnerabilities of IoT networks and devices, as well as their increasing significance in daily life, IoT security is therefore essential.
Market Trend
IoT Defects Give Hackers New Possibilities Expected to Boost the Demand in the Forecast Period.
All facets of contemporary life, including homes, workplaces, transportation, and even human bodies, are now impacted by IoT-era gadgets and applications. Everything has been intelligently engineered to benefit from the internet connection. With the introduction of IPv6 and the increasing use of Wi-Fi networks, the Internet of Things (IoT) is growing. Because of this, fraudsters are increasingly targeting the Internet of Things. It is easy for a hacker to reset the device and install new updates if they try. IoT devices present a bigger challenge to hackers because of their diversity and the need to attack each device independently. In order to get over these problems, these hackers choose the right moment and location to target a device, making it unpresentable and requiring the owner to pay a ransom.
COVID Impact on IoT Security Market
Globally, working conditions have changed significantly as a result of the coronavirus epidemic. In the meantime, workers in the fields of information technology, education, and government have adjusted to their new working conditions. In order to establish a strong, secure communication network, organisations must act quickly. Malware, ransomware, email phishing via linked networks, and fraudulent websites claiming to offer donations or advice are the most common security attacks. Improved security solutions would be required in such situations. It is important to remember that the economic effects of the pandemic would probably differ by nation and region.
Competitive Landscape
The competition landscape is also thoroughly examined in the IoT security market research report. Additionally, comprehensive profiles of all significant companies are accessible. Among the leading companies in the IoT security space are Armis Inc. and Allot Ltd. To counter new threats to IoT networks, leading industry players are continuously developing and enhancing all-encompassing security solutions. These companies provide efficient threat detection, prevention, and response through the use of cutting-edge technologies like blockchain, artificial intelligence (AI), and machine learning (ML).
IoT Security Companies
Microsoft
Symantec Corporation
IBM Corporation
Intel Corporation
Amazon Web Services, Inc.
Cisco Systems, Inc.
Telefonaktiebolaget LM Ericsson
Thales TCT
Allot
Atos SE
Fortinet, Inc.
Zingbox
Mocana
SecuriThings
CENTRI Technology
Armis, Inc.
ForgeRock
NewSky Security
McAfee, LLC
AT&T Intellectual Property
Check Point Software Technologies Ltd.
Trustwave Holdings, Inc.
Verizon
Company Strategic Developments
In February 2023: Numerous cutting-edge cloud management technologies, particularly targeted at the industrial Internet of things, were showcased by Cisco. By offering straightforward and understandable panels for better industrial system administration and monitoring, these solutions aim to effectively integrate information technology (IT) and operational technology (OT) processes.
In May 2023: AWS said that Configurable Endpoints will support Transport Layer Security (TLS) 1.3. The two main security and performance enhancements offered by TLS 1.3 are the removal of legacy features and older cypher suites from earlier TLS versions and improved performance as a result of a simplified handshake protocol.
Segment Analysis
IoT Security Technology Market, by Component
The solutions segment is expected to dominate the IoT security technology market. Important elements in defending IoT ecosystems against these changing threats include network, endpoint, and application security. For example, protecting data when it moves between linked devices requires network security solutions. Another crucial element is endpoint security because every connected device could be a source of entry for cyberattacks. These solutions preserve the general security of the Internet of Things network by shielding individual devices from malware, illegal access, and other security flaws.
However, the services segment is expected to grow at the fastest CAGR during the forecast period. The need for services like consultancy, integration, and managed security has increased dramatically as businesses deploy more IoT devices. These services assist businesses in creating, putting into practice, and overseeing strong security frameworks that are suited to their unique IoT settings.
IoT Security Technology Market, by Security Type
The network security segment is expected to dominate the IoT security technology market. One of the most important aspects of IoT security is network security. It includes preventing unauthorised access, cyberattacks, and security lapses to data and network infrastructure. Businesses may reduce the risks associated with IoT by implementing robust security protocols to protect their priceless assets.
However, the cloud security segment is expected to grow at the fastest CAGR during the forecast period. The market for IoT security is anticipated to increase significantly over the next several years due to rising IoT use and changing cyberthreats. Cloud service providers, network equipment suppliers, and cybersecurity companies are important industry participants.
IoT Security Technology Market, by Deployment Type
The cloud-based segment is expected to dominate the IoT security technology market. Cloud-based security solutions will be essential for protecting sensitive data and linked devices. Organisations may reduce risks and guarantee the long-term success of their IoT activities by using a proactive and all-encompassing approach to IoT security.
However, the on-premises segment is expected to grow at the fastest CAGR during the forecast period. On-premises IoT security solutions are appealing to enterprises with strict security requirements and data privacy concerns because they provide a high degree of control and customisation. Greater visibility and control over security infrastructure are made possible by these solutions, which are implemented within an organization's own data centre or network.
IoT Security Technology Market, by Solution
The encryption solutions segment is expected to dominate the IoT security technology market. Encryption is essential for protecting data from the Internet of Things. Encryption guarantees that information is private even if it is intercepted by turning it into an unintelligible code.
However, the firewall solutions segment is expected to grow at the fastest CAGR during the forecast period. Firewalls are essential for IoT security because they filter network traffic and prevent unwanted access. Device, network, and cloud deployment are among the different levels at which they can be implemented.
IoT Security Technology Market, by Industry Vertical
The manufacturing segment is expected to dominate the IoT security technology market. IoT devices play a major role in supply chain optimisation, automation, and predictive maintenance in the manufacturing sector. But manufacturers are now exposed to serious security concerns as a result of this growing connection.
However, the retail segment is expected to grow at the fastest CAGR during the forecast period. In order to protect sensitive data, stop cyberattacks, and guarantee the seamless operation of IoT-enabled retail solutions, the retail industry's IoT security technology market is essential.
IoT Security Technology Market, by Organization Size
The large enterprise segment is expected to dominate the IoT security technology market. A wide range of IoT devices, from smart office equipment to industrial sensors, are frequently found in large organisations. A cohesive security plan is challenging to establish because of this variety.
However, the small and medium enterprises (SMEs)segment is expected to grow at the fastest CAGR during the forecast period. SMEs can create customised security solutions for certain IoT sectors, such as industrial IoT or smart agriculture. SMEs may find that providing managed security services, such as threat detection, incident response, and vulnerability assessment, is a profitable business strategy.
Regional Analysis
According to InfoNest Market Analytics, the North American IoT security market held a share of 34.56% in 2024. The Internet of Things has grown rapidly due to new business models, applications, and lower device costs. As a result, there are now more linked objects, including wearables, consumer electronics, cars, equipment, meters, and machines.
The Asia Pacific IoT security market is expected to register the fastest CAGR of 32.16% during the forecast period of 2025-2032. IoT security firms have several growth prospects in major markets, including Singapore, Japan, China, India, and Australia. Expanding government initiatives, growing demand for fast computing, virtualised environments, analytics, security, digitalisation, high-volume networking, and improved overall internet speed and responsiveness are the main factors propelling the growth of the IoT security market in this area.
Segmentation
Component Outlook (Revenue, USD Million, 2019-2032)
Security Type Outlook (Revenue, USD Million, 2019-2032)
Deployment Type Outlook (Revenue, USD Million, 2019-2032)
Solution Outlook (Revenue, USD Million, 2019-2032)
Industry Vertical Outlook (Revenue, USD Million, 2019-2032)
Organization Size Outlook (Revenue, USD Million, 2019-2032)
The Report Covers
