IoT Security Market (2022-2029)

Growing IoT deployment, the increasing number of ransomware attacks on IoT devices, the rising demand to protect connected network infrastructure, the increasing number of IoT security regulations, and the growing importance of security & privacy concerns are the key factors driving the growth of the IoT security market. However, the increase in new variants of IoT threats and degrading global economic conditions due to the COVID-19 pandemic restrain the growth of the IoT security market.

The COVID-19 pandemic disrupted businesses and supply chains worldwide. The pandemic claimed millions of lives and severely affected several economies globally. Thus, several organizations’ plans to incorporate IoT security have been delayed, which hampered the growth of the IoT security market. Enterprise Virtual Private Network (VPN) servers became a lifeline for organizations and institutions as numerous employees shifted to a work-from-home operating model and students adopted virtual and distance learning due to the COVID-19 pandemic. The rapid adoption of such approaches led to an increase in cyber-attacks and security threats. Spear-phishing emails (personalized emails sent to targeted users to trick them into sharing sensitive information) increased tremendously amidst the COVID-19 pandemic. For instance, spear-phishing email attacks related to COVID-19 have increased by 667% since February 2020.

The COVID-19 pandemic hindered the growth of the IoT security market to a notable extent. However, the demand for digital transformation is expected to stay elevated. The digitally-driven intermediaries are proving to be effective, benefiting the IoT security market. Thus, the IoT security market is projected to witness exponential growth amidst the pandemic.

However, several businesses are exerting extensively to move the IoT security market in the right direction. Local governments are also undertaking several relief steps to mitigate the negative impacts of the COVID-19 pandemic. As a result, the IoT security market is expected to recover to its original track after 2023.

In this era of IoT, digitally connected devices and applications are encroaching on every aspect of human lives, including homes, offices, and cars. All the objects have been tuned smart to harness the benefits of the internet. According to GSMA Intelligence 2018, the number of IoT connections will grow to 25 billion globally by 2025, up from 10.3 billion in 2018.

The proliferation of IoT devices, the advent of IPv6, and the wide deployment of Wi-Fi networks have increased cyberattacks on IoT. For instance, according to Kaspersky, between January and May 2021, the organization has detected more than 1.5 billion IoT attacks, up from 639 million during the previous half-year, which is more than twice the volume. Also, in 2019, cyber-attacks on IoT devices surged 300%. Such alarming vulnerabilities found on IoT devices are compelling organizations worldwide to deploy IoT security solutions to safeguard connected devices. Thus, the growing IoT deployments and the increasing number of cyber-attacks compel IoT vendors to develop IoT security solutions for connected devices.