PUBLISHER: KBV Research | PRODUCT CODE: 1709518
PUBLISHER: KBV Research | PRODUCT CODE: 1709518
The Global IoT Security Market size is expected to reach $165.08 billion by 2032, rising at a market growth of 25.2% CAGR during the forecast period.
Due to the rapid digital transformation and growing reliance on smart technologies, the sector is witnessing strong demand for IoT security. Connected devices such as personal devices, smart appliance, smart homes, and customer tracking tools enhance efficiency and expose retailers to new security vulnerabilities. Thus, the consumer electronics segment garnered 11% revenue share in the market in 2024. As consumers integrate multiple IoT devices into their living and working environments, protecting these interconnected systems from hacking, unauthorized access, and data leakage becomes critical. The need to protect customer data, transaction details, and supply chain integrity drives retailers to invest in reliable IoT security frameworks to prevent breaches and build consumer trust.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In March, 2025, Thales Group S.A. announced the partnership with IoT M2M Council (IMC), the largest community of qualified IoT adopters to enhance IoT security and connectivity. Their expertise in eSIM technology and cybersecurity solutions will help manage IoT device lifecycles and improve connectivity. Additionally, In February, 2025, Check Point Software Technologies Ltd. teamed up with Variscite, a leading ARM-based System on Module (SoM) / Computer on Module (CoM) vendor to enhance IoT security. By integrating Check Point's Quantum IoT Protect Nano Agent with Variscite's System on Modules, the collaboration provides robust protection against cyber threats.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the IoT Security Market. In March, 2025, Microsoft Corporation teamed up with CyberArk, a software company to enhance industrial IoT security by aligning NIST's guidelines. This solution incorporates Microsoft's Azure IoT and Defender for IoT, along with CyberArk's privileged access management, ensuring secure device management and real-time monitoring. The collaboration aims to address security challenges in edge environments and improve operational continuity for manufacturers. Companies such as Amazon Web Services, Inc., Cisco Systems, Inc., and IBM Corporation are some of the key innovators in IoT Security Market.
Market Growth Factors
companies are now prioritizing investments in comprehensive IoT security frameworks. These include deploying firewalls, secure firmware, encrypted communications, device authentication protocols, and real-time threat monitoring systems. The implementation of more stringent cybersecurity standards and best practices for IoT deployments is also being enforced by governments and regulatory bodies. Subsequently, the IoT security market experiences substantial development and innovation as the necessity to safeguard connected environments increases in response to the ongoing evolution of cyber threats.
In the United States, the Health Insurance Portability and Accountability Act (HIPAA) requires healthcare organizations to secure patient data, including data collected through IoT-enabled medical devices such as heart monitors, insulin pumps, or remote diagnostic tools. These devices must ensure confidentiality, integrity, and availability of protected health information (PHI) in transit and at rest. Countries like Japan, India, and Singapore have also launched national strategies or guidelines for IoT security, further indicating a global shift toward regulatory accountability. These mandates force businesses to invest in compliant IoT security infrastructure, from data encryption and access controls to regular auditing and risk assessments. Therefore, regulatory compliance is emerging as a necessary legal requirement, becoming a major catalyst driving growth in the IoT security market.
Market Restraining Factors
The inconsistent security practices stemming from this lack of standardization increase the likelihood of vulnerabilities and cyberattacks. Since attackers often exploit the weakest link in a network, any device with subpar security can become an entry point for threats. This undermines the effectiveness of the entire IoT system and erodes consumer and business trust in connected devices. Consequently, companies may delay or avoid investing in IoT technologies altogether, slowing the market's expansion and potential.
Component Outlook
Based on component, the market is bifurcated into solutions and services. The solutions segment garnered 66% revenue share in the market in 2024. As IoT deployments expand across industries, organizations increasingly seek comprehensive security solutions that offer real-time monitoring, intrusion detection, data encryption, and secure device authentication. The demand for scalable and integrated platforms that efficiently manage diverse IoT environments fuels adoption. Furthermore, enterprises are compelled to invest in sophisticated security solutions in order to prevent legal and financial penalties as a result of their adherence to regulatory standards, including GDPR, HIPAA, and others.
Security Type Outlook
On the basis of security type, the market is classified into network security, endpoint security, application security, cloud security, and others. The cloud security segment recorded 25% revenue share in the market in 2024. Cloud security is becoming increasingly important as IoT solutions rely on cloud-based platforms for data storage, analytics, and device management. The shift to the cloud brings scalability and efficiency and introduces new vulnerabilities, such as data breaches, account hijacking, and insecure APIs. Enterprises are prioritizing identity and access management (IAM), data encryption, and compliance monitoring to secure their cloud infrastructure. The requirement for flexible and reliable cloud security solutions has been made worse by the widespread adoption of hybrid and multi-cloud techniques across numerous industries.
End-use Outlook
By end-use, the market is divided into energy & utilities, manufacturing, automotive, healthcare, transport, consumer electronics, and others. The energy and utilities segment procured 21% revenue share in the market in 2024. The segment increasingly adopts IoT security measures to safeguard critical infrastructure such as smart grids, remote monitoring systems, and automated power distribution networks. As these systems become more interconnected, they become prime targets for cyberattacks that could disrupt essential services. The rising threat of cyber espionage, operational sabotage, and regulatory pressure for infrastructure protection is pushing utility providers to deploy advanced IoT security protocols across their networks.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 35% revenue share in the market in 2024. North America leads the IoT security market due to its highly developed technological infrastructure, early adoption of IoT solutions, and high levels of cybersecurity awareness in both the public and private sectors. The presence of major technology giants and cybersecurity firms in the U.S. and Canada drives continuous innovation and deployment of cutting-edge security solutions. Strict regulatory frameworks like HIPAA, CCPA, and other data protection laws compel organizations to prioritize robust IoT security. The increasing integration of IoT in critical industries such as healthcare, BFSI, and manufacturing further fuels the region's demand for comprehensive security systems.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global IoT Security Market Report Segmentation
By Component
By Security Type
By End-use
By Geography