The Internet of Things (IoT) Security Market is estimated at US$698.289 million for the year 2019. The growing adoption of connected devices and networks has also increased the concern related to cyber threats. IoT involves adding internet connectivity to a system of interrelated devices and digital machines. This complex integration and interconnectivity of systems have also lead to a rise in the number of cyberattacks on the devices in order to gather confidential data. As such, the demand for IoT security solutions is augmenting worldwide in order to detect, resist, and recover various IoT devices from different malicious attacks. The increase in cyberattacks on IoT devices is accelerating at an unprecedented rate with more than 2.5 billion global events till 2019. Geopolitical motivation is also leading to a rise in the number of cyberattacks across the globe. Cyber attackers are constantly using malware to take control of IoT devices or connected machines and conducting malware activities across industries such as BFSI, retail, and healthcare. Since these industries have critical and confidential data stored, it is crucial to adopt IoT security solutions, thus driving the market growth of IoT security.
High penetration of mobile devices and increasing mobile platforms across the globe is another factor that has boosted the demand for IoT security solutions. Industries such as healthcare and BFSI are providing a variety of applications, services, and functions available on mobile devices to their customers. Most of the confidential data stored on these devices include usernames, credit card details, and passwords which makes it easier for hackers to steal this data. As a result of this increasing dependency on mobile devices, companies are required to implement effective cybersecurity solutions, thus bolstering the IoT security market growth. Rising investments in smart homes have also led to growing concerns regarding privacy and security. Even the American FBI has warned about the hacking and privacy risks that are related to smart TVs.
Governments in various countries are implementing strict regulations regarding the use of IoT security solutions in order to reduce the cases of cyberattacks. One such example is the recently implemented IoT security law in California, United States. However, the legislation is likely to benefit other countries as well which export IoT devices in the U.S. as manufacturers are required to comply with laws in which they sell their products. Thus, stringent regulations will further drive the demand for IoT security solutions and services across the globe, thereby spurring the overall market growth during the forecast period.
Market players in the global IoT security market are launching new solutions in order to diversify their product portfolio which will also lead to global market growth during the next five years. For example, TP-Link has recently released the new HomeCare™ Pro powered by Avira. This combination of TP-Link’s router experience and Avira’s best-in-class device security will ensure the privacy of consumers’ smart homes. In November 2018, Bell Canada launched a managed IoT security service for businesses that use Internet-connected sensors, video cameras and switches, and also for municipalities that are trying to be smart cities in Canada. This managed IoT service is aimed to provide safety and security to customers’ IT infrastructure and systems as they are rapidly adopting new IoT technologies.
The Global IoT Security market is segmented by type, component, end-user industry, and geography. By type, the global IoT security market is segmented into network security, application security, cloud security, and others. The market is segmented by components as solutions and services. The Global IoT security market is also segmented by the end-user industry as BFSI, government, healthcare, transportation, retail, energy and power, and others.
North America holds a notable market share
By geography, the Global IoT Security Market in Transportation is segmented as North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2019 and will remain at its position until the end of the forecast period. The high rate of adoption of advanced technologies including IoT coupled with the presence of major market players in the region significantly contributes to the IoT security market growth in this region. The recent implementation of strict regulations regarding the security of sensitive data is further fuelling the growth of this regional market. For example, in September 2019, California Governor implemented a new law aimed at regulating the security of IoT devices which took effect on January 1, 2020. The law aims to better address the data security risks associated with increased levels of connectivity at the workplace. This is the first IoT-specific security law in the country which requires all IoT devices sold in California to be equipped with reasonable security measures. As a result, global IoT security solution and service providers are further expanding their market reach in this region, thereby propelling the regional market growth during the forecast period. Recently in February 2020, WiSeKey International Holding Ltd. Has announced the registration of 23 new strategic patents in the United States which are essential to applications related to digital transformation that are fuelling the IoT adoption. The company’s strategic move is to ensure its position as a major player in the IoT industry for the coming years by providing its customers with advanced technology and protecting their products from counterfeiting while preventing the loss of sensitive enterprise and consumer data. APAC will witness a decent CAGR during the forecast period owing to the rising number of cases in cyberattacks in countries like China, India, and South Korea on account of growing IoT deployments. Increasing investments in smart cities projects, transportation industry, and BFSI across APAC countries is further spurring the demand for IoT security solutions and services.
Prominent key market players in the Global IoT Security Market include Thales Group, McAfee, LLC, Accenture, IBM, Cisco Systems, Inc., and Bell Canada among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the Global IoT Security Market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.