The emerging adoption of Internet of Things (IoT) has enabled the control of various connected devices into a single smart interface of smartphones, PCs and tablets. At the same time, it has also provided the opportunity to hackers for hacking the entire infrastructure to promote the disruptions. The increasing numbers of cyber security threats have resulted in the urgent need for adopting integrated IoT security solutions for enterprises, SMBs, and government. As the impact of potential IoT threats is expected to be severe, most large enterprises and SMEs will increase work toward implementing IoT security solutions to safeguard the highly critical data and infrastructures.
The IoT security market is expected to grow to $28.90 billion by 2020, at a CAGR of 33.2 percent during the forecast period of 2015 to 2020 due to growing security concerns for the critical infrastructure along with diversified application of IoT. Moreover, the growth of social media and rising prominence of personal data are also fueling the growth of market. The emergence of applications and connectivity technologies of IoT such as sensors, RFIDs, NFC and Zigbee; capture huge amount of data and personal information such as bank details, medical data, and transaction details which can be vulnerable if hacked. Therefore, MarketsandMarkets expects the trend for IoT security to grow at a faster rate than IoT.
According to MarketsandMarkets analysis, Identity and Access Management (IAM) solution holds the largest share of IoT security solutions market. The solution serves major verticals such as BFSI, telecommunication and IT, energy, oil and gas, public sector, education, healthcare, and retail. The rising cases of digital identity fraud and the features of IAM such as password management, single sign on, advanced authentication and audit are driving the growth of IAM. Additionally, increased spending pattern over security solutions and enhanced enterprise mobility also add to the adoption of IAM.
Among the services, support and maintenance services is expected to lead the market throughout the forecast period. . It includes maintenance of hardware and software to provide seamless security and minimize the loss due to threats. Securing IoT is a big task and therefore the need for real-time resolution of problems is witnessing a vast increase. Support & maintenance services are essential for real-time solution of problems and hence are witnessing huge growth due to increasing penetration of IoT in different verticals.
The banking, financial services, and insurance (BFSI) vertical accounted for the largest market share in the IoT security market during 2015-2020. This sector is continuously upgrading its processing and transaction technologies and therefore requires end-to-end security solutions to optimize operations against both internal and external threats. Furthermore, smart banking, internet banking, and mobile banking are the factors which have led the BFSI sector to focus more on IoT security. Also, this sector is among early adopters of IoT and therefore is expected to witness high traction in the IoT security market.
The growing adoption of connected devices across different verticals and the widespread impact of IoT attacks are expected to shape the future of IoT security market. The growth potential of the IoT security market is expected to remain high in the future and the market is expected to provide huge growth opportunities to the security solutions and services providers. The diversification trend of the cybersecurity vendors and semi-conductor manufacturers into providing embedded security solutions for IoT has also increased the competition in the market. Due to security concerns; enterprises, SMBs and government organizations are increasing their investments towards better IoT security solution and therefore the growth will remain high for the IoT security market in future.
Edited by
Ken Briodagh
