IoT Security Market Size (2025 – 2030)

The Global IoT Security Market was estimated at about USD 24.45 billion in the year 2025 and is forecasted to reach USD 74.15 billion value by the year 2030, growing at a CAGR of around 20.31% during the forecast period.

Due to the rapid increase in the number of connected IoT devices, protection of the entire IoT system is now the main concern of enterprises as well as governments across the especially in the Western world. The higher frequency of cybercrimes on IoT systems and higher regulatory standards are the main factors behind this market’s growth.

Key Market Insights:

• In the future, IoT devices across the world are predicted to go beyond 40 billion thus the ever-expanding market base for security solutions.

• Among industries, healthcare and manufacturing are identified as the primary beneficiaries and the first adopters of IoT security where exposure to the consequences of a breach is limited only by the imagination.

• North America has the highest IoT Security Market share, with the Asia Pacific region poised to experience the highest growth rates.

• A constantly growing market in the fields of AI, blockchain, and quantum computing will change the positions of IoT security in the future.

• The healthcare and manufacturing sectors are emerging as the primary adopters of IoT security due to the high stakes of potential breaches.

• North America leads the IoT Security Market, while the Asia-Pacific region is expected to witness the fastest growth.

• Growing investments in emerging technologies such as AI, blockchain, and quantum computing are expected to redefine the IoT security landscape.

IoT Security Market Drivers:

Increase in IoT Threats that underline the importance of Artificial Intelligence Security Solutions Driving the Market Growth.

The rapid adoption of IoT devices has increased the range of malicious actors that have to perform their operations. New studies suggest that attacks targeting IoT devices were up, proving once more that security cannot be an afterthought. Viruses, worms, Trojan horses, ransomware, Distributed Denial of Service (DDoS) attacks, and botnets are some known threats infecting IoT systems. The problem with IoT devices is much more concerning since the failure of one device can quickly crash other IoT equipment, and this makes the need for preventive steps rather crucial. Enterprises are therefore using artificially intelligent threat detection systems to deal with these vices effectively.

International Standards Propose IoT and Data Privacy Standards Improvements.

In other words, governments and regulatory authorities across the jurisdictions of the world are tightening the protection of data and individual privacy. For example, the GDPR has IoT provisions that ensure that internet users’ data is protected, and the CCPA also has IoT security measures. Adherence to these regulations is forcing the IoT sector to fund secure global systems. New regulations of emerging markets such as Asia-Pacific and the Middle East are also anticipated to bolster the security environment in these areas. Also, new laws with regard to AI and IoT security are still being formulated in various nations, which will additionally influence the market.

Security and IoT: How Artificial Intelligence and Machine Learning are Disrupting IoT Protection with Predictive and Adaptive Services.

AI and ML are now incorporated into Internet of Things security solutions. These will help in the immediate identification of threats and defense against such attacks with minimal effect on an organization. The use of AI in making predictive analysis is very useful in identifying these threats in IoT networks. The ML algorithms also allow for anomaly detection meaning that IoT security is much more flexible for fast-changing IoT environments. Moreover, it has expanded autonomous security systems capable of self-healing as well as adapting to other rising threats.

Increase in IoT Consumption Boosts Endpoint Security and Zero Trust Market.

With more and more employees teleworking or using their own devices at work the reliance on IoT devices grew and thus highlighted the need to secure these devices. There is growing interest in endpoint security due to the risks posed by various and disparate devices in organizations. This trend is also helping to increase the need for unified threat management systems that consolidate multiple layers of protection into a single platform. There is an increasing trend in the adoption of Zero Trust Network Access (ZTNA) solutions in this arena since they improve security in remote work environments.

IoT Security Market Challenges:

High Implementation Costs: Accommodation of an effective IoT security system requires expensive investment in terms of software, hardware, and qualified personnel. Market penetration of such products is hampered by the fact that SMEs rarely have sufficient resources to spare for additional investments. Additional expenses that include those for maintaining the software, upgrading the system, and compliance audit add to this challenge. However, there is a tendency in which vendors recently provide the flexibility of prices, for example, the subscription model to this.

Fragmented Ecosystem:This means that the provision of security to IOT is a herculean task due to the inconsistency of the devices within the structure. It is challenging to build solutions that are perfect for all interoperability space needs and practices due to different requirements for security, and this leads to the formation of new vulnerabilities. This situation is exacerbated by the fact that there is little communication between the manufacturers, developers, and security providers. Industry consortiums & alliances have risen to the challenge by trying to develop much-needed standards such as the IoT Security Foundation.

Limited Awareness: Unfortunately, IoT security adoption still has not reached the level of awareness that it needs to be in today’s organizations. This lack of awareness leads to the implementation of a weak security level, which in turn raises the possibility of compromises and has a negative effect on market development. It is for this reason that awareness campaigns, training programs, and government-led awareness creation must be initiated to fill this gap. The integration of cybersecurity education in learning cultures is now emerging as a critical feature of mitigating this challenge.

Scalability Issues: As IoT networks get on the rise, it becomes difficult to maintain the same level of security boost when the number of devices in the networking ecosystem also increases. Management teams struggle to properly manage growth in their organizations regarding security solutions without incurring costs that will eventually have a negative impact on their bottom line. One of the problems that IoT faces is scalability, owing mainly to the factors that include the heterogeneity of the IoT devices that in terms of capabilities, protocols, and operating systems that they support differ greatly. Potential solutions in this regard include Software Defined Networking (SDN), and Network Function Virtualization (NFV) that are being considered to address these issues.

IoT Security Market Opportunities:

Growing Adoption of Cloud-Based Security: The increase in the adoption of cloud solutions is giving rise to new cloud IOT security solutions. Many of these solutions are scalable, affordable, and could be easily deployed making them possible for nearly every size of enterprises. They are also improving security solutions including secure encryption, identity access management, and secure application programming interfaces to augment cloud solutions. The implementation of hybrid cloud models is still another factor that is fueling the need for adaptable IoT security systems.

Expansion of Smart Cities: Governments around the globe are putting significant amounts of money into smart city projects, embedding IoT technologies for city optimization. With the ongoing proliferation of smart devices as the key infrastructure of smart cities, there is significant interest in effective security mechanisms to address potential threats. The IoT Security Market’s growth is set for further development due to smart city projects in regions such as Asia-Pacific and the Middle East. Further, the application of green technologies during the planning and construction of smart cities is creating new opportunities for IoT security solutions.

Rise in Edge Computing: The innovation of edge computing has shifted the landscape of IoT security by enhancing the speed of data analysis and lessening dependence on a central hub. This trend is expected to fuel the necessity of decentralized security frameworks that are specific to edge architectures. Edge security architectures provide improved protection against neoliberal latency threats and facilitate improved data security. There is also an increasing focus on lighter forms of cryptographic solutions that will suit edge devices with limited resources.

Advancements in Blockchain Technology: Security in IoT networks is now increasingly seeking to be addressed through the application of blockchain technology. By design, it is inherent in a decentralized framework that data can be safeguarded, and unauthorized access guarded against, making it a promising area for IoT security solutions. Reward IoT systems on blockchain also enhance traceability and accountability making the technology suitable for industries such as logistics and supply chains. Advanced permissioned blockchains are taking IoT security to even further horizons as the field continues to evolve.

IOT SECURITY MARKET REPORT COVERAGE:

Global IoT Security Market Segmentation: By Component

1. Solutions:

   • Network Security

   • Endpoint Security

   • Application Security

   • Cloud Security

2. Services:

   • Professional Services

   • Managed Services

The analysis of the IoT security market dynamics for the year 2024 forecast that the solutions segment shall be dominant with more and more companies embracing advanced security software for the protection of IoT ecosystems. The global managed services market is expected to experience growth because managed services are more affordable and can better meet the intricate security needs placed on businesses today. The standout subsegment for professional services is consulting, integration and training is also on the rise.

IoT Security Market Segmentation: By Deployment Type

• Cloud

• On-Premise

The solutions that operate in the cloud are becoming popular since they allow for IoT protection on a large scale and in real-time. They are likely going to be the market leaders in the year 2030. The adoption of cloud solutions is prevalent in some industries including retail, healthcare, and the financial industry since data security is important.

Traditional solutions have higher credibility in industries that have high security standards in their data such as the healthcare and financial sectors. These solutions often provide administrators with better fine-grained control over the security settings; however, they also have increased costs in terms of installation and management.

IoT Security Market Segmentation: By Industry Vertical

• Healthcare

• Retail

• Manufacturing

• Transportation

• Smart Cities

• Others

The primary industry that will be most involved in IoT security solution uptake will be the healthcare sector which requires security to protect patient data as well as compliance with current laws. The manufacturing sector is also experiencing fast growth due to the enhanced tendency towards connected devices regarding industrial automation. Retail, using IoT in supply chain and customer service management is another industry set to benefit from IoT.

IoT Security Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America Controlled the IoT Security Market in 2024 for more than 35% of the total revenue share. Its leadership in the region is supported by technology giants and its first movers in the implementation of IoT systems. Federal endeavors such as the “Cybersecurity National Action Plan ” are also contributing to the market growth.

Asia-Pacific is expected to have the highest CAGR during the forecast period, due to smart city initiatives and IoT usage in developing countries such as India and China. Authorities’ activities such as India’s “Digital India” are significant in market development.

Europe’s concentration on protecting users' data by adhering to data protection laws such as GDPR is a major reason for IoT security solutions adoption in this part of the world. The main IoT market growth driver is the industrial IoT segment more notably in Germany and the United Kingdom.

IoT has unsurprisingly bridged South America’s growing awareness and investments in support of IoT infrastructure. Brazil and Argentina are the leading technologies utilizing the system with growth in sectors such as agriculture and logistics.

The Middle East and Africa region is calm but active due to smart city investment and industries IoT. It is evident that governments in today’s world such as the UAE and KSA are leading adoption through infrastructure initiatives. Further boosting the market growth is Saudi Arabia Vision 2030 and many such related projects around the globe.

COVID-19 Impact Analysis on IoT Security Market:

The COVID-19 pandemic has impacted almost every industry, and organizations followed the new trend of working remotely due to which IoT devices were adopted. But this growth also increased security vulnerabilities, especially in the Internet of Things, which requires strong protection systems. The market faced a challenge initially during the pandemic breakout due to a disrupted supply chain but the market got back online quickly thanks to the increasing use of connected technologies. Recently, after the COVID-19 pandemic, the focus on obtaining remote work solutions has led to significant further market growth. The two industries that incorporated most of the IoT applications were healthcare and e-commerce, and this quick expansion created a need for protection measures.

Latest Trends and Developments:

Zero Trust Security Models are another approach being implemented to optimize the IoT security system with organizations relying on zero-trust environments that require only identity checks and access. Blockchain Integration for storing data integrity is one of the ways IoT devices that use blockchain technologies are being sought to enhance security.

Collaborations and Partnerships: Current trends indicate that firms are integrating strategically to meet challenging security needs. For example, Microsoft and Cisco have established a partnership where they bring together IoT security platforms. IoT-Specific Threat Intelligence Platforms are new-generation threat intelligence solutions being developed for IoT environments for early threat noticeable and response. The focus on Green IoT for energy-efficient secure IoT solutions that are sustainable is getting attention. Emergence of AI-Driven Risk Assessment is new real-time risk assessment technologies are emerging that would be controlled by artificial intelligence to address IoT security frameworks.

Key Players:

1. Cisco Systems, Inc.

2. IBM Corporation

3. Symantec Corporation

4. Palo Alto Networks, Inc.

5. Trend Micro Incorporated

6. Fortinet, Inc.

7. McAfee, LLC

8. Check Point Software Technologies Ltd.

9. Sophos Ltd.

10. Broadcom Inc.