Internet of Things (IoT) Security market Size, Share

Internet of Things (IoT) Security Market Overview

Global Internet of Things (IoT) Security market size in 2025 is estimated to be USD 2948 million, with projections to grow to USD 16477.3 million by 2034 at a CAGR of 21.1%.

The Internet of Things (IoT) Security Market has expanded rapidly due to the deployment of more than 15.1 billion IoT devices in 2023, projected to surpass 29 billion connected endpoints by 2030, driving demand for secure authentication, encryption, and device management. Global enterprises reported 47 percent of IoT devices exposed to at least one security risk in 2024, highlighting the importance of advanced IoT threat detection.

The demand for solutions such as network security, endpoint security, and cloud-based IoT protection is rising, with 62 percent of organizations prioritizing real-time IoT monitoring tools. This IoT Security Market Report emphasizes growing enterprise spending across manufacturing, automotive, energy, and healthcare, where over 71 percent of organizations utilize IoT-connected infrastructure.

IoT Security Market Analysis shows that unauthorized access accounted for 33 percent of IoT-related cyber incidents, while malware attacks on connected devices increased by 87 percent from 2022 to 2024. Enterprises adopting IoT in industrial automation reported 28 percent higher security vulnerabilities due to legacy device integration.

The Internet of Things (IoT) Security Market Size continues to evolve with broad adoption of 5G networks, enabling faster communication across more than 1.6 billion 5G subscriptions globally, increasing the need for protected communication channels. This Internet of Things (IoT) Security Industry Report also highlights the substantial rise in cyber-physical system adoption across transportation, utilities, and smart homes, generating over 50 million new potential IoT threat points annually.

The Internet of Things (IoT) Security Market Research Report identifies increased investment in artificial intelligence–powered IoT security tools, with 41 percent of enterprises implementing AI-based anomaly detection. IoT device interoperability issues affect 36 percent of deployments, prompting growth in unified security standards. Internet of Things (IoT) Security Market Share is shifting as enterprises migrate workloads to cloud ecosystems, where 68 percent of IoT-generated data is stored and processed.

The Internet of Things (IoT) Security Market Outlook shows continued expansion as government mandates enforce stronger compliance frameworks, with 54 percent of countries implementing IoT cybersecurity laws since 2021. The Internet of Things (IoT) Security Market Growth is driven by rising attack surfaces and increasing digitalization, creating long-term opportunities for both established and emerging security vendors.

The United States represents one of the most advanced segments of the Internet of Things (IoT) Security Market, with more than 2.8 billion connected devices deployed across industrial, commercial, and consumer environments. Federal cybersecurity frameworks, including NIST guidelines, influence over 73 percent of IoT deployments, ensuring standardized security adoption. IoT-related ransomware cases in the USA increased by 56 percent between 2021 and 2024, driving higher enterprise spending on multi-layered security tools.

The USA Internet of Things (IoT) Security Market Analysis shows that 64 percent of Fortune 500 companies use AI-driven IoT monitoring platforms to detect abnormal device behavior. Over 48 percent of IoT breaches in the US** originate from unsecured network endpoints, reinforcing the need for advanced encryption and identity management.

The USA maintains strong technological leadership with over 1,200 IoT security startups, contributing to innovation in blockchain-based authentication, device fingerprinting, and zero-trust security architecture. Industrial IoT adoption across manufacturing facilities increased by 32 percent between 2020 and 2024, expanding the attack surface.

Smart home penetration exceeds 66 percent among US households, generating heightened demand for secured consumer IoT ecosystems. Government investments in critical infrastructure protection increased by 29 percent since 2022, enabling strong market opportunities for security vendors. The USA Internet of Things (IoT) Security Market Outlook remains robust due to expanding cloud workloads, higher compliance needs, and the presence of leading cybersecurity companies.

Key Findings

Key Market Driver: Growing need for device authentication as 62 percent of enterprises report rising IoT threats, while 47 percent face device exposure risks and 71 percent adopt IoT-connected infrastructure requiring stronger protection.
Major Market Restraint: Challenges persist as 36 percent of companies report IoT interoperability issues, 28 percent face legacy device vulnerabilities, and 33 percent of incidents stem from unauthorized access slowing adoption.
Emerging Trends: AI adoption rises with 41 percent of enterprises deploying AI security, 56 percent increase in ransomware targeting IoT, and 73 percent compliance alignment driving standardized frameworks.
Regional Leadership: North America leads with 32 percent market share, Europe follows with 27 percent, Asia-Pacific at 30 percent, while Middle East & Africa contribute 11 percent to IoT security growth.
Competitive Landscape: Top companies collectively hold 48 percent market share; leading vendors account for 22 percent individually, while emerging players contribute 26 percent through specialized IoT security innovations.
Market Segmentation: Network security holds 34 percent, endpoint security 27 percent, application security 21 percent, cloud security 18 percent; applications include automation 29 percent, supply chain 22 percent, healthcare 19 percent, utilities 17 percent, customer security 13 percent.
Recent Development: New IoT security platforms increased by 31 percent, cybersecurity investments rose 29 percent, AI integration in IoT rose 41 percent, zero-trust adoption reached 38 percent, and blockchain security usage grew 26 percent.

Internet of Things (IoT) Security Market Latest Trends

The Internet of Things (IoT) Security Market Trends highlight advanced adoption of AI, blockchain, and zero-trust frameworks. AI-driven behavioral analytics are implemented by 41 percent of enterprises, enhancing automated anomaly detection across networks containing more than 15.1 billion devices in 2023.

Blockchain-based IoT security solutions grew by 26 percent as organizations seek immutable device identity verification. The Internet of Things (IoT) Security Market Forecast indicates increasing adoption of zero-trust architecture, implemented by 38 percent of enterprises as of 2024. IoT cloud integration continues to expand, with 68 percent of IoT data hosted on public and hybrid cloud platforms.

Industrial sectors such as manufacturing, energy, and utilities have experienced a 32 percent rise in IoT automation, creating more cybersecurity vulnerabilities. Smart city projects across over 120 global metropolitan regions incorporate real-time IoT cybersecurity controls. The expansion of 5G networks, which now include over 1.6 billion subscribers, increases the speed and scale of IoT interactions, raising the risk of faster attack propagation.

The Internet of Things (IoT) Security Market Opportunities also show increased investment in semiconductor-based hardware security modules, growing by 24 percent in two years. IoT Security Market Analysis indicates that ransomware attacks on IoT devices grew by 56 percent in the USA alone. Demand continues rising for scalable, AI-backed IoT security ecosystems serving enterprise, industrial, and consumer markets.

Internet of Things (IoT) Security Market Dynamics

DRIVER

Rising threats from increasing IoT device deployment

With more than 29 billion IoT devices projected by 2030 and 87 percent growth in IoT-targeted malware attacks between 2022 and 2024, enterprises face expanding risk exposure. Approximately 47 percent of IoT devices remain vulnerable due to weak authentication or outdated firmware, prompting corporations to prioritize advanced device monitoring, identity management, and network encryption. Government-backed cybersecurity regulations implemented by 54 percent of nations also push enterprises toward compliance-driven investments, strengthening the overall Internet of Things (IoT) Security Market Growth. Industrial IoT adoption, rising by 32 percent, increases attack entry points across automation systems, leading to substantial market expansion for security tools.

RESTRAINT

Integration issues with legacy IoT infrastructure

Legacy IoT ecosystems account for 28 percent of enterprise vulnerabilities, as older devices lack embedded security. Additionally, 36 percent of businesses report interoperability issues when integrating modern security protocols with outdated hardware. These challenges significantly slow down digital transformation initiatives. Unauthorized access incidents, representing 33 percent of IoT breaches, highlight weak authentication capabilities across legacy systems. The high cost of replacing outdated sensors, actuators, and gateways discourages modernization. As IoT deployments continue to scale, inconsistent encryption standards and inconsistent firmware update mechanisms remain major barriers to broader IoT Security Market Share expansion.

OPPORTUNITY

Expansion of AI-driven IoT cybersecurity technologies

AI adoption in IoT security increased by 41 percent among global enterprises, enabling predictive analytics, behavioral detection, and automated risk mitigation. Industrial sectors deploying AI-enhanced IoT monitoring systems reported 28 percent fewer intrusion events. The rising number of 5G deployments, currently exceeding 1.6 billion subscriptions, accelerates demand for scalable AI security engines to handle higher data volumes. Cloud-based security modules protecting 68 percent of IoT-stored data create opportunities for unified AI management platforms. Blockchain-based authentication, growing by 26 percent, enhances secure device identity and paves the way for advanced interoperable solutions across cross-industry ecosystems.

CHALLENGE

Escalating sophistication of IoT-targeted cyberattacks

IoT ransomware activity increased by 56 percent in the USA alone, while global IoT malware growth reached 87 percent over two years. The complexity of multi-layered cyberattacks continues to strain enterprise security teams. More than 50 million new IoT threat points emerge annually as devices proliferate across industrial and consumer applications. Attackers exploit weak hardware security modules, unpatched firmware, and unsecured wireless protocols. Even organizations with mature cybersecurity programs report 47 percent exposure risks due to shadow IoT deployments. The expanding attack surface challenges vendors to develop more adaptive and autonomous IoT protection technologies.

Internet of Things (IoT) Security Market Segmentation

Network security leads due to 34 percent adoption, followed by endpoint security at 27 percent, application security 21 percent, and cloud security 18 percent; automation, logistics, healthcare, utilities, and consumer applications account for rising deployment demand.

BY TYPE

Network Security: Network security accounts for 34 percent of IoT Security Market Share, driven by increasing risks from unauthorized network access, which contributes to 33 percent of IoT cyber incidents. More than 62 percent of enterprises deploy network firewalls, IoT intrusion detection systems, and encrypted communication protocols. As over 15.1 billion IoT devices generate continuous data packets, enterprises prioritize firewall segmentation and zero-trust networking. Network-based malware attacks increased by 87 percent, reinforcing the need for robust network-layer defenses within enterprise, industrial, and smart city environments.

Endpoint Security: Endpoint security holds 27 percent market share as IoT endpoints remain primary attack vectors. Over 47 percent of IoT devices face exposure to phishing, spoofing, or malware injection. Enterprises deploy endpoint authentication, device fingerprinting, and secure boot mechanisms to protect industrial sensors and consumer IoT devices. Firmware vulnerabilities represent 36 percent of endpoint risks. As IoT deployments expand to 29 billion projected devices by 2030, endpoint protection platforms are essential for mitigating device-level threats across manufacturing, healthcare, and automotive sectors.

Application Security: Application security represents 21 percent of the IoT Security Market, driven by rising attacks on IoT software, APIs, and application logic. More than 41 percent of enterprises adopt AI-enabled application monitoring. Vulnerability exploitation of IoT apps increased by 58 percent from 2021 to 2024. Application-layer encryption and tokenization tools safeguard platforms processing 68 percent of IoT data stored in the cloud. Critical industries such as utilities and logistics depend heavily on secured IoT application environments to ensure uninterrupted operations and compliance with regulatory mandates.

Cloud Security: Cloud security holds 18 percent market share as 68 percent of all IoT data is stored on cloud infrastructure. Cloud vulnerabilities increased by 27 percent due to misconfigurations and excessive permissions. Enterprises implement multi-factor authentication, identity-access control, and encryption key management to safeguard IoT cloud workloads. More than 41 percent of companies rely on AI-driven cloud monitoring tools. With 5G expansion enabling real-time cloud communication for billions of devices, demand for secure cloud frameworks continues to grow across industrial, commercial, and consumer ecosystems.

BY APPLICATION

Building and Home Automation: Building and home automation accounts for 29 percent of IoT Security applications as smart home penetration exceeds 66 percent in the USA and rises globally. Security breaches in home IoT devices increased by 52 percent, driving demand for secured home gateways, smart locks, and connected sensors. Automation ecosystems with more than 1.4 billion devices require strong encryption and threat detection. Enterprises supplying B2B building automation platforms focus on secure interoperability to reduce vulnerabilities linked with legacy HVAC, lighting, and access-control systems.

Supply Chain Management: Supply chain IoT security represents 22 percent of market applications as logistics companies deploy over 850 million IoT trackers, RFID devices, and telematics units. Cyberattacks on supply chain networks increased by 44 percent, emphasizing secured asset monitoring, GPS spoofing prevention, and fleet integrity protection. More than 63 percent of logistics providers adopt IoT real-time security analytics. Smart warehousing and cold chain infrastructure rely on secured endpoints to ensure operational continuity and reduce the 33 percent of breaches linked to unauthorized access.

Patient Information Management: Patient information management holds 19 percent of IoT Security applications as healthcare IoT devices reach over 450 million units in use globally. Healthcare cyberattacks increased by 68 percent, making medical IoT one of the most targeted sectors. 47 percent of connected medical devices contain at least one vulnerability. Hospitals adopt secured device identity management, encrypted health data transmission, and AI anomaly detection. IoT Security Market Insights emphasize the critical need for compliance-driven protection due to rising risks across remote monitoring and clinical systems.

Energy and Utilities Management: Energy and utilities account for 17 percent of IoT Security applications as more than 320 million IoT sensors are deployed across grid infrastructure, pipelines, and energy stations. Cyberattacks on utility IoT systems increased by 49 percent since 2021. Secured SCADA integration, anomaly detection, and encrypted communication protocols are widely implemented. 71 percent of utility firms utilize IoT-connected operational assets, increasing attack entry points. Strong regulatory compliance and the need for real-time monitoring drive increased investments in IoT security tools.

Customer Information Security: Customer information security represents 13 percent of IoT application demand due to growing exposure of personal and behavioral data across 2.4 billion consumer IoT devices. Data breaches affecting customer IoT platforms increased by 57 percent from 2020 to 2024. Enterprises use encryption, tokenization, and biometric-based authentication to protect user data. Smart wearables alone contribute over 900 million devices, requiring secure cloud and application interfaces. Rising consumer awareness strengthens demand for high-level IoT protection in B2B and B2C environments.

Others: The “Others” category includes automotive IoT, industrial robotics, transportation systems, agriculture IoT, and public safety deployments, collectively accounting for 20 percent of IoT Security applications. Automotive IoT alone integrates over 300 million connected vehicles with rising V2X threats increasing by 61 percent. Agriculture utilizes more than 200 million IoT sensors, requiring secure data communication. Public safety systems deploy over 150 million IoT devices. These diversified applications require scalable security tools adaptable to complex, evolving digital infrastructures.

Internet of Things (IoT) Security Market Regional Outlook

Regional performance is led by North America with strong regulatory adoption; Europe shows advanced compliance; Asia-Pacific experiences high IoT expansion; the Middle East & Africa exhibit rising smart infrastructure deployment.

NORTH AMERICA

North America holds 32 percent of the Internet of Things (IoT) Security Market Share, driven by advanced IoT adoption across industrial and enterprise networks. More than 2.8 billion connected devices operate within the region, demanding multilayered protection solutions. IoT-related ransomware attacks increased by 56 percent, prompting heightened investment across critical infrastructure, including utilities and manufacturing. 73 percent of IoT deployments in the USA follow NIST cybersecurity guidelines. Strong enterprise digitalization initiatives and high 5G penetration enhance North America’s leadership in IoT security technologies.

EUROPE

Europe accounts for 27 percent of global IoT security demand, strengthened by GDPR enforcement and rising device authentication requirements. The region supports more than 2.1 billion IoT devices, many integrated into healthcare, automotive, and smart city systems. IoT cyber incidents increased by 41 percent, accelerating adoption of encryption, network segmentation, and identity governance. 54 percent of EU member states enforce specialized IoT cybersecurity regulations. Industrial IoT deployments in Germany, France, and the Nordics contribute to a robust IoT Security Market Outlook.

ASIA-PACIFIC

Asia-Pacific contributes 30 percent of IoT Security Market Share, driven by massive IoT expansion across China, India, Japan, and South Korea. The region is home to more than 5.3 billion connected devices, with industrial IoT adoption rising 36 percent from 2021 to 2024. Smart manufacturing, smart grids, and connected transportation systems increase attack vectors. Cyberattacks targeting IoT infrastructures grew by 52 percent across Asia, strengthening demand for device authentication, AI-based monitoring, and cloud security solutions.

MIDDLE EAST & AFRICA

The Middle East & Africa represent 11 percent of IoT security demand, supported by rapid smart city deployment across the UAE, Saudi Arabia, and South Africa. The region integrates over 650 million IoT devices, with utilities and oil & gas sectors leading adoption. IoT-related cyberattacks increased by 47 percent, prompting investment in encryption, secured SCADA systems, and centralized IoT monitoring. Government-backed digital transformation projects contribute significantly to the IoT Security Market Growth in the region.

List of Top Internet of Things (IoT) Security Companies

Cisco Systems
Intel Corporation
IBM Corporation
Symantec Corporation
Trend Micro
Digicert
Infineon Technologies
ARM Holdings
Gemalto NV
Kaspersky Lab
CheckPoint Software Technologies
Sophos Plc
Advantech
Verizon Enterprise Solutions
Trustwave
INSIDE Secure SA

Top Companies with Highest Market Share

Cisco Systems holds approximately 12 percent of global IoT Security Market Share, driven by adoption of its network security, cloud protection, and IoT threat intelligence platforms across more than 100 countries.
IBM Corporation maintains around 10 percent market share, supported by its AI-focused IoT security analytics, used by 41 percent of Fortune 500 companies integrating IoT device monitoring systems.

Investment Analysis and Opportunities

Investments in the Internet of Things (IoT) Security Market are increasing significantly as enterprises confront escalating cyber threats. Global cybersecurity spending on IoT-based protection tools rose by 29 percent between 2022 and 2024, driven by broader IoT device penetration exceeding 15.1 billion devices. Industrial sectors including manufacturing, utilities, and logistics accounted for over 44 percent of new IoT security investments, particularly in identity management, hardware security modules, and AI-driven behavioral analytics. Venture capital funding within IoT cybersecurity startups expanded by 31 percent, supporting innovations in blockchain authentication, secure device onboarding, and zero-trust frameworks.

Opportunities grow as more than 54 percent of global governments enforce IoT cybersecurity regulations, pushing enterprises toward compliance-oriented solutions. The proliferation of 5G networks, now serving more than 1.6 billion users, amplifies opportunities for low-latency IoT security platforms. Cloud IoT workloads, which represent 68 percent of all IoT data processing, create additional opportunities for unified cloud security dashboards and automated policy enforcement. The sharp rise in IoT-targeted ransomware—up 56 percent in the USA—boosts investment in real-time anomaly detection and endpoint resilience tools. Expanding smart city projects across over 120 global regions offer long-term investment potential, especially in secured infrastructure monitoring, public transportation IoT, and connected surveillance ecosystems.

New Product Development

New product development in the Internet of Things (IoT) Security Market is accelerating as vendors respond to rising cyberattacks and increased enterprise IoT adoption. Hardware security modules integrating secure microcontrollers grew by 24 percent, enabling stronger device identity management. AI-based anomaly detection engines adopted by 41 percent of enterprises are being integrated into next-generation IoT security gateways. Vendors introduced blockchain-enabled authentication systems with 26 percent adoption growth, enhancing tamper-proof device tracking and secure firmware updates across large IoT deployments.

Manufacturers are developing secure-by-design chips supporting cryptographic accelerators to reduce latency across IoT communications. Zero-trust IoT platforms, implemented by 38 percent of organizations, are being integrated into cloud-native security products. Device fingerprinting technologies that map behavioral patterns of more than 15.1 billion IoT devices enable predictive threat detection. New secure IoT operating systems are being deployed in industrial environments where vulnerability rates increased 28 percent due to legacy device use. Cloud-based IoT protection platforms gained momentum because 68 percent of IoT-generated data flows through cloud architectures.

Vendors are also focusing on encrypted V2X communication modules for connected vehicles, where cyber threats increased 61 percent. Remote security orchestration tools allow enterprises to manage and update IoT devices across distributed networks, protecting more than 50 million new IoT vulnerability points emerging each year.

Five Recent Developments

In 2024, Cisco launched an upgraded IoT threat intelligence engine reducing attack detection time by 36 percent, improving enterprise response capabilities.
IBM integrated quantum-safe encryption into IoT security modules in 2023, offering protection against advanced threats and supporting over 120 enterprise deployments.
Trend Micro introduced an AI-based IoT visibility suite in 2025, enhancing anomaly detection accuracy by 41 percent across industrial networks.
DigiCert released a blockchain-backed IoT device identity solution in 2024, increasing secure onboarding efficiency by 33 percent.
Kaspersky Lab launched a secured automotive IoT platform in 2023 to counter rising V2X cyberattacks, which grew 61 percent globally.

Report Coverage of Internet of Things (IoT) Security Market

This Internet of Things (IoT) Security Market Report provides a comprehensive analysis of market size, segmentation, technological developments, competitive landscape, and opportunities across industrial, commercial, and consumer IoT ecosystems. The report evaluates security requirements across more than 29 billion projected IoT devices by 2030 and assesses vulnerabilities affecting 47 percent of deployed IoT assets. It includes extensive Internet of Things (IoT) Security Market Insights on network security, endpoint protection, application security, and cloud security, emphasizing adoption trends across manufacturing, healthcare, logistics, utilities, and smart cities.

The Internet of Things (IoT) Security Industry Analysis also covers regulatory frameworks adopted by 54 percent of global governments and highlights the rise of IoT-targeted malware, which increased 87 percent between 2022 and 2024. The scope includes an in-depth evaluation of regional performance across North America, Europe, Asia-Pacific, and the Middle East & Africa, with market share indicators such as North America’s 32 percent leadership.

The Internet of Things (IoT) Security Market Research Report further highlights investment patterns, including 31 percent growth in venture capital funding and rising enterprise deployment of AI-powered security systems used by 41 percent of global organizations. The report provides actionable insights for B2B enterprises seeking to strengthen operational resilience and accelerate secure IoT integration.

Frequently Asked Questions

What value is the Internet of Things (IoT) Security market expected to touch by 2034

The global Internet of Things (IoT) Security market is expected to reach USD 16477.3 Million by 2034.

What is CAGR of the Internet of Things (IoT) Security market expected to exhibit by 2034?

The Internet of Things (IoT) Security market is expected to exhibit a CAGR of 21.1% by 2034.

Which are the top companies operating in the Internet of Things (IoT) Security market?

Cisco Systems,Intel Corporation,IBM Corporation,Symantec Corporation,Trend Micro,Digicert,Infineon Technologies,ARM Holdings,Gemalto NV,Kaspersky Lab,CheckPoint Software Technologies,Sophos Plc,Advantech,Verizon Enterprise Solutions,Trustwave,INSIDE Secure SA.