IoT Security Market - Forecasts from 2025 to 2030

The IoT security market is expected to grow from USD 30.356 billion in 2025 to USD 96.103 billion in 2030, at a CAGR of 25.92%.

The global IoT security market is witnessing robust growth, driven by the escalating threat of cyberattacks and heightened concerns over data breaches. IoT security services and software are critical for safeguarding Internet of Things (IoT) devices from malicious cyberattacks and hacks. The increasing reliance on automation across various industries has amplified the dependency on IoT devices, thereby intensifying the demand for advanced security solutions. The proliferation of mobile devices and platforms globally, particularly in sectors like Banking, Financial Services, and Insurance (BFSI) and retail, has further fueled this need. These industries have developed user-friendly applications that handle sensitive personal and financial data, making them prime targets for cybercriminals and heightening the urgency for robust IoT security measures.

Technological advancements, including continuous product innovation, present significant opportunities for key market players. However, challenges such as the high costs of IoT security solutions and a shortage of skilled professionals, especially in developing and underdeveloped regions, are restraining market growth during the forecast period.

Market Drivers

The surge in cyberattacks and data breaches is a primary catalyst for the IoT security market. Businesses worldwide are heavily investing in automation to enhance productivity and flexibility, but this has coincided with a rise in cybersecurity threats. IoT security solutions are designed to protect interconnected devices from targeted cyberattacks, addressing vulnerabilities in physically linked systems. The financial impact of data breaches is substantial, prompting organizations to prioritize data privacy and security measures. For instance, the global average cost of a data breach is reported at USD 4.75 million, with prolonged attacks incurring even higher costs. Large organizations with over 10,000 employees allocate significant budgets to security, with many spending at least USD 1 million annually, while others allocate between USD 250,000 and USD 999,999.

The rise in ransomware, phishing, and malware attacks has further accelerated the adoption of IoT security solutions. These threats underscore the need for comprehensive cybersecurity strategies to protect sensitive data and ensure operational continuity across industries.

Geographical Outlook

North America dominates the global IoT security market, driven by the region's advanced technological infrastructure and proactive adoption of security measures in countries like the United States and Canada. The rapid digital transformation in key U.S. sectors, such as healthcare and finance, combined with the growing penetration of mobile platforms, has significantly increased data traffic and the demand for effective cybersecurity solutions. The rising incidence of cybercrimes has further amplified this need.

Government initiatives in the United States are also shaping the market. For example, in October 2022, the Biden administration announced a cybersecurity labeling program for consumer IoT devices, set to launch in 2023, aimed at protecting users from data theft and cybercrimes. This follows the IoT Cybersecurity Improvement Act, which established standards to enhance the security of federal government-owned IoT devices and is expected to influence security practices across other sectors.

Conclusion

The IoT security market is poised for continued expansion, propelled by the growing threat of cyberattacks, increasing automation, and widespread adoption of mobile platforms. While high costs and a lack of skilled manpower pose challenges, technological advancements and supportive regulations offer significant growth opportunities. North America remains a leader in this space, driven by robust infrastructure and proactive cybersecurity policies. Industry stakeholders must focus on innovation and workforce development to address barriers and capitalize on the evolving demand for IoT security solutions.

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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
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Key Market Segments

By Type

• Network Security
• Application Security
• Cloud Security
• Others

By Component

• Solutions
• Services

By End-User Industry

• BFSI
• Government
• Healthcare
• Transportation
• Retail
• Energy and Power
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East, and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indonesia
• Thailand
• Others