Market Size and Overview:

The Global IoT Security Market was valued at USD 9.35 billion in 2024 and is projected to reach a market size of USD 37.33 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 31.9%.  

The IoT Security Market is rapidly emerging as a critical component of the broader Internet of Things ecosystem, addressing the growing concerns around data privacy, device integrity, and network protection. As billions of devices connect across homes, industries, healthcare, transportation, and cities, securing these endpoints from cyber threats has become essential. The increasing sophistication of cyberattacks, coupled with the sensitive nature of data transmitted through IoT networks, is pushing organizations and governments to prioritize robust security frameworks. From embedded device protection and identity management to secure communication protocols and cloud-based monitoring, the IoT security market is evolving to provide comprehensive solutions that safeguard connected systems at every layer. 

Key Market Insights:

The number of connected IoT devices surpassed 15 billion globally by the end of 2023, and it is expected to grow steadily over the coming years. With this increase, the volume of data generated across these networks has surged, creating greater exposure to potential security breaches. In fact, over 57% of organizations implementing IoT reported at least one security incident related to connected devices in the last year, underlining the urgent need for robust security solutions.

A recent analysis found that over 70% of IoT devices operate with outdated or vulnerable firmware, leaving them highly susceptible to exploitation. Weak authentication protocols, lack of encryption, and misconfigured settings are some of the most common vulnerabilities. This growing concern is prompting businesses to adopt multi-layered security architectures, integrating features such as device identity verification, threat detection, and real-time response systems to protect their IoT infrastructure.

Industries such as healthcare, manufacturing, and energy are among the most targeted due to the high value and sensitivity of their data. Around 60% of healthcare organizations have significantly increased their spending on IoT security measures since 2022, with a focus on securing patient data and medical devices. The convergence of regulatory compliance, digital transformation, and increased threat sophistication is fueling the IoT security market forward as a foundational element of any connected ecosystem.
 
IoT Security Market Drivers:

Rising Cybersecurity Threats and Increasing Complexity of IoT Ecosystems Are Urging Stronger Security Infrastructure

As the number of connected devices continues to grow exponentially, so does the surface area for potential cyberattacks, driving a critical need for robust IoT security solutions. The increasing complexity of IoT ecosystems, often involving a mix of legacy systems and new devices, creates numerous entry points for attackers to exploit. Cybercriminals are increasingly targeting IoT endpoints—such as smart sensors, surveillance cameras, and connected home devices—due to their often minimal built-in protection. This has led to a spike in ransomware, botnet attacks, and data breaches, particularly in sectors like healthcare, manufacturing, and critical infrastructure. As a result, both public and private organizations are prioritizing investment in layered security architectures that protect at the device, network, and application levels.

Regulatory Mandates and Industry Compliance Requirements Are Driving Adoption of IoT Security Solutions

Governments and regulatory bodies worldwide are introducing stringent data protection laws and compliance requirements, fueling demand for specialized IoT security technologies. Frameworks like GDPR, HIPAA, and industry-specific standards mandate that businesses using connected devices safeguard consumer data and ensure secure transmission across networks. In response, companies are integrating solutions such as end-to-end encryption, secure boot mechanisms, identity access management, and anomaly detection systems into their IoT strategies. Compliance is not only essential for avoiding legal penalties but also critical for building customer trust and maintaining reputational integrity in a hyper-connected digital world.

Proliferation of Remote Work and BYOD Models Has Increased Network Vulnerability

The shift to remote work environments and bring-your-own-device (BYOD) policies has further intensified the need for comprehensive IoT security protocols. As employees connect personal devices to corporate networks and use IoT-enabled tools outside controlled environments, organizations face more risks of unauthorized access and data leaks. This expanding edge environment makes it essential to monitor and manage every device on the network in real time. As a result, businesses are turning to secure access service edge (SASE) frameworks, zero-trust architecture, and centralized security management tools to ensure complete visibility and control over their IoT ecosystem.

Emergence of AI and Machine Learning in Security is Driving Smarter, Predictive IoT Protection

The integration of artificial intelligence (AI) and machine learning (ML) into security platforms is revolutionizing the way IoT threats are detected and mitigated. These technologies enable systems to learn from network behavior patterns, predict vulnerabilities, and respond to threats in real time. AI-driven analytics help identify anomalies that traditional security tools might miss, offering a proactive approach to risk management. This advancement is making IoT security not just reactive, but predictive and adaptive, which is crucial in an environment where threats evolve rapidly. The adoption of AI-enabled security tools is expected to be a game-changer in scaling IoT safely and sustainably.

IoT Security Market Restraints and Challenges:

Lack of Standardization and Resource Constraints Are Hindering Widespread IoT Security Implementation

Despite growing awareness and urgency, the IoT security market faces significant challenges because of the lack of global standardization and the limited computational resources of many IoT devices. With thousands of device manufacturers operating under varying protocols and minimal interoperability, creating a unified and scalable security framework becomes complex and fragmented. Additionally, many IoT devices have restricted processing power, storage, and battery life, making it difficult to implement advanced security features like encryption or real-time threat detection. Small and medium-sized enterprises often struggle with budget limitations, limiting their ability to adopt enterprise-grade security solutions. 

IoT Security Market Opportunities:

The IoT security market presents vast opportunities driven by the rapid expansion of smart infrastructure, increased cloud adoption, and the evolution of Industry 4.0. As smart cities, autonomous vehicles, and industrial automation become mainstream, the demand for real-time, scalable, and adaptive security solutions is growing significantly. Emerging markets, especially in Asia-Pacific and Latin America, are beginning to invest heavily in digital transformation, creating a fertile landscape for security vendors. The rise of 5G networks, edge computing, and AI-integrated security platforms opens new doors for innovation, enabling advanced threat detection and device-level protection. 

IoT Security Market Segmentation:

Market Segmentation: By Component:

•    Solution
•    Services

The solution segment continues to lead the IoT security market, as enterprises prioritize comprehensive systems that offer multi-layered protection across their expanding network of connected devices. With threats becoming more advanced and frequent, companies are adopting robust security solutions that include features like encryption, firewalls, identity and access management, intrusion detection, and real-time threat analysis. These solutions are being implemented across industries to secure data in transit, prevent unauthorized access, and maintain the integrity of connected operations. 
Meanwhile, the services segment is emerging as the fastest-growing category, driven by the increasing need for expert-led support to deploy, manage, and optimize IoT security systems. As organizations face pressure to comply with evolving security regulations and standards, service offerings such as consulting, implementation, maintenance, and managed security services are gaining traction. Businesses—especially small and medium enterprises—are turning to third-party providers for scalable solutions and round-the-clock monitoring. This growing reliance on external expertise is accelerating the adoption of IoT security services across various sectors, highlighting their growing importance in the market landscape.

Market Segmentation: By Type:

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

Network security remains the dominant segment in the IoT security market as it forms the foundational defense layer protecting the communication between connected devices and systems. With the explosive growth of IoT networks and the sheer volume of data being transmitted across these connections, ensuring secure, encrypted, and uninterrupted communication has become a critical priority. This segment encompasses firewalls, intrusion detection systems, and traffic monitoring tools that help prevent unauthorized access and cyber intrusions. 

Cloud security is emerging as the fastest-growing segment due to the growing reliance on cloud platforms for IoT data storage, management, and analytics. As more IoT solutions move to the cloud for scalability and cost-efficiency, the need to protect sensitive data from breaches and unauthorized access has intensified. Cloud security solutions offer features like data encryption, secure API access, identity and access management, and threat intelligence, all of which are essential for maintaining trust and compliance in cloud-based IoT environments. The rising adoption of multi-cloud and hybrid cloud strategies across enterprises further fuels the rapid growth of this segment.

Market Segmentation: By End-Use:

•    Energy & Utilities
•    Manufacturing
•    Automotive
•    Transportation
•    Consumer Electronics
•    Healthcare
•    Others

Energy and utilities are currently the dominant end-use segment in the IoT security market due to the critical nature of infrastructure and the increasing digitalization of grid systems, smart meters, and energy management platforms. With national power grids and utility services becoming increasingly connected, the need for fortified cybersecurity protocols is paramount to prevent catastrophic disruptions. These systems are frequent targets of sophisticated cyber threats, including state-sponsored attacks, which can cause widespread outages and safety risks. 

Healthcare is rapidly emerging as the fastest-growing segment as the adoption of connected medical devices, telehealth services, and health monitoring systems surges globally. The sensitive nature of patient data, combined with the life-critical function of many IoT-enabled devices, demands stringent security measures to ensure data confidentiality and system reliability. Cyberattacks on hospitals and health networks have intensified in recent years, prompting greater investment in securing medical IoT (IoMT) devices against ransomware, unauthorized access, and data breaches. 

                                                                                  
  
Market Segmentation: Regional Analysis:

•    North America
•    Asia-Pacific
•    Europe
•    South America
•    Middle East and Africa

North America is the dominant region in the IoT Security Market, accounting for the largest share because of its advanced technological infrastructure, early adoption of IoT technologies, and strong regulatory focus on data privacy and cybersecurity. The presence of major IoT security solution providers and significant investments from both private and public sectors further reinforce its leadership position.
Asia-Pacific is the fastest-growing region, driven by rapid digital transformation, growing IoT adoption in smart cities, manufacturing, and healthcare, as well as expanding internet penetration. Emerging economies in this region are investing heavily in IoT infrastructure and security solutions, making it a hotspot for market expansion and innovation in IoT security technologies.

COVID-19 Impact Analysis on the Global IoT Security Market:

The COVID-19 pandemic accelerated the adoption of IoT devices across industries because of the sudden shift toward remote work, digital health monitoring, and automation in manufacturing and utilities. This rapid expansion exposed new security vulnerabilities, driving urgent demand for enhanced IoT security solutions. Organizations prioritized strengthening their cybersecurity frameworks to protect remote networks and connected devices from increasing cyber threats. As a result, the pandemic acted as a catalyst, significantly boosting awareness and investment in IoT security worldwide.

Latest Trends/ Developments:

The IoT security market is witnessing significant advancements with the integration of artificial intelligence (AI) and machine learning (ML) technologies, which enable proactive threat detection and automated response systems. These intelligent security frameworks can analyze vast amounts of data in real time, identify unusual patterns, and predict potential attacks before they occur. This shift from reactive to predictive security is enhancing the resilience of IoT networks and reducing the risk of breaches. 

Another key trend is the increasing emphasis on zero-trust security models within IoT ecosystems, which operate on the principle of "never trust, always verify." This approach limits access permissions, continuously authenticates devices, and monitors communications to minimize the risk of unauthorized entry. Furthermore, blockchain technology is being explored to secure IoT transactions and device identities by providing decentralized, tamper-proof ledgers. Together with increased regulatory focus on data privacy and compliance, these developments are shaping a more robust and adaptive IoT security landscape that can keep pace with evolving threats and industry demands.

Key Players:

•    Gemalto NV
•    Intel Corporation
•    SecuriThings.
•    Broadcom Inc.
•    INTERNATIONAL BUSINESS MACHINES CORPORATION
•    Cisco Systems, Inc.
•    Fortinet, Inc.
•    Palo Alto Networks, Inc.
•    Trend Micro Inc.
•    Infineon Technologies AG