Global IoT Security Market Expected to Reach USD 42.9 Billion by 2033 - IMARC Group

The global IoT security market size was valued at USD 6.3 Billion in 2024, and it is expected to reach USD 42.9 Billion by 2033, exhibiting a growth rate (CAGR) of 23.43% from 2025 to 2033.

The increasing exposure of traffic from unsecured IoT devices is one of the key forces driving the growth of the IoT security market. The rising adoption of IoT devices across diverse sectors, including healthcare, industry, and FMCG product applications, has amplified the risks of data breaches. For instance, according to the latest report by Vedere Research Labs, IoT device vulnerabilities expanded by an astonishing 136% within a year, creating heightened security concerns across industries. These security vulnerabilities are driving the need for robust encryption and additional protective measures to safeguard data transmission within IoT networks. In tandem with the rising need for the secure interaction of several IoT devices, the market for IoT security solutions is also growing as the enterprises looking forward to securing their data from cyber threats while enhancing more complex security quotas such as encryption technology, thereby overarching their data.

The rising complexity of cyber threats in the IoT sector has led organizations to employ cutting-edge technologies such as generative AI for the enhancement of security operations. For instance, IBM added generative AI capabilities to its managed Threat Detection and Response Services on 5^th August, 2024. While the machine-based IBM Consulting Cybersecurity Assistant is incorporated with the watsonx data and AI of the firm, its purpose is to ensure that threats in cyber security are detected, researched, and reported on in a much easier and faster process. Through measures like this, organizations can upgrade their security protocols and software responsiveness to any dangers posed by IoT installation. Considering that the threat of cyber-attacks has increased, there is a noticeable growth in the use of AI-based security systems to comply with the threats and enforce protection on IoT systems. Moreover, as IoT networks are growing, the incorporation of AI for the enhancement of IoT security is becoming more important, which is contributing positively to the demand for security solutions in the market.

Global IoT Security Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others), and the Middle East and Africa (Turkey, Saudi Arabia, Iran, United Arab Emirates, and others). According to the report, North America accounted for the largest IoT security market share due to the rapid expansion of 5G networks, continual technological advancements in IoT and cybersecurity, strict regulatory compliance requirements, and high adoption of IoT devices across various industries.

North America IoT Security Market Trends:

The considerable rise in connectivity is driven by substantial investments from network operators in the region. According to research by 5G Americas, the wireless telecommunications industry saw unprecedented growth as well as innovation in 2023 and resulted in the addition of 700 million 5G connections in 2023 alone, bringing the total to 1.76 billion in the North American market. This rollout of 5G is anticipated to generate significant opportunities for advanced security solutions, particularly in the IoT security sector. This trend is expected to directly benefit the North American IoT security market. As 5G networks enable faster and more reliable connections, the demand for robust, next-generation security services to protect IoT devices and data will rise. With the increasing number of connected devices and heightened cybersecurity risks, businesses in North America will prioritize securing these networks, driving the need for advanced IoT security solutions.

Asia Pacific IoT Security Market Trends:

The IoT security market in Asia Pacific is rapidly expanding due to the region's strong growth in IoT device adoption, particularly in industries like manufacturing, healthcare, and smart cities. Governments are also investing in cybersecurity frameworks to tackle rising risks, creating a favorable environment for IoT security solutions. Countries like China and India are adopting policies to strengthen IoT security and protect against cyber threats. China's IoT cybersecurity policies, including its Cybersecurity Law, focus on strict data localization, state control over digital infrastructure, and comprehensive oversight to safeguard national security. India's approach, driven by the Information Technology Act and supplementary guidelines, aims to regulate data protection and combat cybercrimes while fostering a secure digital environment.

Europe IoT Security Market Trends:

Europe’s market is propelled by regulations like GDPR and the EU Cybersecurity Act, which emphasize data protection and secure digital infrastructure. The market is expected to grow substantially, impelled by industries like automotive and healthcare, with European governments investing in cybersecurity programs to safeguard critical IoT systems and networks.

Latin America IoT Security Market Trends:

In Latin America, the market is witnessing steady growth, fueled by increased digital transformation efforts and expanding IoT infrastructure. With rising concerns over cyber-attacks, organizations in industries like agriculture, logistics, and utilities are focusing on strengthening their IoT security frameworks to protect critical assets and data. Governments in Brazil and Mexico are also improving cybersecurity standards, with Brazil's General Data Protection Law (LGPD) enforcing stricter security measures for IoT deployments.

Middle East and Africa IoT Security Market Trends:

The market in the Middle East and Africa is gaining momentum as countries like the UAE and Saudi Arabia are investing substantial funds for smart city initiatives. The UAE's National Cybersecurity Strategy aims to enhance IoT security across critical infrastructure. In Africa, IoT security is becoming a priority as digital transformation accelerates, with countries introducing cybersecurity policies to address emerging threats.

Top Companies Leading in the IoT Security Industry

Some of the leading IoT security market companies include Allot Ltd., Armis Inc., CENTRI Technology, Cisco Systems, Inc. ForgeRock Inc., Fortinet, Inc., Gemalto NV, International Business Machines (IBM) Corporation, Infineon Technologies AG, Intel Corporation, Mocana Corporation, Newsky Internet Limited, SecuriThings, NortonLifeLock Inc. (Symantec Corporation), and ZingBox Inc. On 6^th May 2024, Fortinet announced the launch of the industry's first generative AI (GenAI) IoT security assistant, enhancing network and security operations. This assistant aids the security and network operations teams in configuring networks and addressing threats more efficiently, utilizing natural language processing to bridge the cybersecurity skills gap. The introduction of this GenAI IoT security assistant signifies a significant advancement in the IoT security sector, offering a sophisticated tool to manage the increasing complexity of IoT environments.

Global IoT Security Market Segmentation Coverage

• On the basis of the component, the market has been bifurcated into solutions and services, wherein solutions represent the most dominant segment, as organizations prefer integrated, end-to-end security solutions to protect their IoT devices. Solutions offer comprehensive protection, ranging from threat detection to real-time monitoring, addressing a broad range of security challenges.
• Based on the security type, the market is categorized into network security, endpoint security, application security, cloud security, and others, amongst which cloud security dominates the market. This is primarily driven by the increasing adoption of cloud-based IoT deployments. The scalability, flexibility, and remote access capabilities of cloud security solutions make them essential for securing data across diverse IoT ecosystems.
• On the basis of the vertical, the market has been divided into energy and utilities, manufacturing, automotive, transport, consumer electronics, healthcare, and others. Among these, energy and utilities dominate the market due to the critical nature of IoT devices in monitoring and managing infrastructure, thus driving demand for robust IoT security solutions.

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