IoT In Security Market to Surpass USD 557.9 Billion By 2034

Market Insights

The global IoT security market is projected to expand significantly, reaching USD 557.9 billion by 2034, up from USD 32.7 billion in 2024. This reflects a strong CAGR of 32.80% during the forecast period (2025–2034). The rapid adoption of connected devices, growing cybersecurity threats, and stricter data protection regulations are key drivers fueling this expansion.

North America led the market in 2024, holding a 33.7% share with revenues of approximately USD 11 billion. The U.S. market alone was valued at USD 8.81 billion and is expected to grow at a CAGR of 30.5%, driven by rising investments in cybersecurity solutions, government initiatives, and increasing IoT deployments in industries such as healthcare, manufacturing, and smart infrastructure.

As IoT adoption accelerates, security solutions are becoming essential to protect networks, devices, and data from cyber threats. Businesses and governments are prioritizing advanced authentication, encryption, and AI-driven threat detection systems to secure their IoT ecosystems. This strong demand positions IoT security as a critical segment within the broader cybersecurity industry.

Key Takeaways

• The Global Internet of Things (IoT) in Security Market is expected to experience substantial growth in the coming decade. The market size is projected to reach approximately USD 557.9 billion by 2034, growing from USD 32.7 billion in 2024 at a CAGR of 32.80% during the forecast period from 2025 to 2034.
• In 2024, the U.S. market for IoT in security was valued at approximately USD 8.81 billion. It is expected to expand at a CAGR of 30.5%, driven by increasing investments in cybersecurity infrastructure and the rising adoption of IoT-enabled security solutions across various industries.
• North America held a dominant position in the global IoT in Security Market in 2024, capturing over 33.7% of the total market share. The region’s revenue stood at approximately USD 11 billion, reflecting strong demand for IoT-driven security solutions in sectors such as finance, healthcare, and smart cities.
• The Solutions segment emerged as the leading category in the IoT in Security Market in 2024, accounting for more than 72.5% of the total market share. The growing need for advanced security solutions, including AI-driven surveillance and real-time threat detection, contributed to this dominance.
• Within the market, the Network Security segment also maintained a strong position in 2024, securing over 38.6% of the market share. The increasing frequency of cyber threats and the rising demand for secure IoT connectivity played a key role in driving this segment’s growth.
• The Energy and Utilities segment was a major end-user in the IoT in Security Market in 2024, holding more than 32.6% of the market share. The sector’s reliance on IoT-powered monitoring systems and predictive maintenance solutions for critical infrastructure security significantly influenced this growth.

Market Overview

IoT Security is the protection mechanism put in place to safeguard connected devices and networks within the Internet of Things (IoT) ecosystem from unauthorized access and cyber threats. It is crucial across various applications including smart homes, healthcare devices, and industrial IoT, aiming to maintain data integrity, ensure user privacy, and prevent disruptions from cyberattacks​.

The IoT Security market is a rapidly expanding sector within the global technology landscape, focusing on providing solutions that address the unique challenges posed by the interconnected nature of devices. This market includes products and services that offer authentication, encryption, and security software tailored to the IoT. As the number of connected devices continues to rise, so does the demand for effective security solutions, making this market a critical area of investment for companies seeking to safeguard their operations and data.

The proliferation of IoT devices enhances convenience but also expands the attack surface for cyber threats, significantly driving the IoT security market. The escalation in cybercrime incidents and the heightened dependency on digital infrastructure, especially in sectors like healthcare and manufacturing, necessitate stringent security measures​.

The demand for IoT security solutions is set to surge as industries and consumers increasingly adopt smart devices. The need for advanced security is most pronounced in sectors where data sensitivity is high, such as healthcare and financial services. Market demand is characterized by a preference for integrated security solutions that offer comprehensive protection across multiple devices and platforms, highlighting a growing market segment keen on maintaining high security standards while expanding their IoT capabilities.

Analysts’ Viewpoint

The IoT security market presents numerous investment opportunities, particularly in areas involving the development of advanced security technologies. Companies investing in AI-driven security analytics, real-time threat detection systems, and blockchain solutions for enhanced data integrity are likely to see substantial returns. Strategic investments in startups innovating in IoT security can also provide significant benefits, as these new enterprises drive the evolution of the market with cutting-edge solutions.

Technological advancements in IoT security include the development of more sophisticated encryption methods, the adoption of blockchain for secure device-to-device communication, and the implementation of advanced biometric security systems. These technologies enhance the security of IoT devices by ensuring that data remains protected from unauthorized access throughout its lifecycle, from transmission to storage.

The regulatory environment for IoT security is evolving as governments worldwide recognize the importance of securing IoT ecosystems. Regulations such as the GDPR in Europe and various national guidelines in the U.S. mandate strict security measures for IoT devices and systems. These regulations ensure that companies implement adequate security safeguards, which in turn drives the demand for advanced IoT security solutions in the market.

Report Segmentation

Offering Analysis

In 2024, the Solutions segment held a dominant position in the Internet of Things (IoT) in Security Market, securing a 72.5% market share. The increasing demand for advanced security solutions to protect connected devices and networks has driven this growth. Organizations are investing in AI-driven security analytics, intrusion detection systems, and endpoint protection to mitigate cyber threats.

As IoT ecosystems expand across industries, the need for robust security solutions, including encryption, authentication, and real-time threat monitoring, continues to rise. The shift towards cloud-based security services and managed security solutions has further strengthened the market presence of this segment.

Security Type Analysis

The Network Security segment emerged as the leading security type within the IoT in Security Market in 2024, capturing 38.6% of the total market share. The rapid proliferation of IoT devices has made networks more vulnerable to cyberattacks, prompting organizations to prioritize network security measures.

Solutions such as firewalls, secure gateways, intrusion prevention systems (IPS), and zero-trust architectures are being widely implemented to safeguard IoT networks. With the growing risk of data breaches and unauthorized access, businesses are increasingly adopting AI-powered network security tools to detect and respond to cyber threats in real time.

End-Use Analysis

The Energy and Utilities segment accounted for the largest share of the IoT in Security Market in 2024, holding 32.6% of the market. The integration of IoT technologies in smart grids, power plants, and utility infrastructures has increased the need for strong cybersecurity measures.

Energy and utility companies are deploying IoT security solutions to protect critical infrastructure from cyber threats, prevent operational disruptions, and ensure compliance with regulatory standards. As the sector continues its digital transformation, investment in security solutions for industrial IoT (IIoT) applications is expected to grow further.

Regional Analysis

In 2024, the U.S. market for the Internet of Things (IoT) in security was estimated at USD 8.81 billion. It is projected to expand at a compound annual growth rate (CAGR) of 30.5%.

The dominant position of North America, particularly the United States, in the Internet of Things (IoT) in Security market can be attributed to several foundational factors. Foremost among these is the region’s advanced technological infrastructure, which facilitates the rapid deployment and integration of IoT solutions. North America benefits from a well-established network of internet connectivity and cloud computing platforms, which are essential for the operation of IoT devices in security applications.

Additionally, the United States is home to numerous leading technology companies that specialize in IoT and cybersecurity technologies. These companies not only drive innovation within the market through extensive research and development activities, but also have the capacity to invest significantly in the implementation of IoT solutions across various sectors, including healthcare, manufacturing, and retail. This concentration of market-leading firms supports the growth and expansion of IoT security solutions in the region.

In 2024, North America held a dominant market position in the Internet of Things (IoT) in Security Market, capturing more than a 33.7% share, with revenues amounting to USD 11 billion.

Moreover, the regulatory environment in North America further supports the adoption of IoT in security. Government initiatives aimed at enhancing national cybersecurity defenses encourage the incorporation of IoT technologies. Policies that mandate stringent data protection and privacy measures necessitate advanced security solutions, thereby propelling the IoT security market. The proactive stance on cybersecurity at both the federal and state levels translates into higher market penetration and growth.

Finally, the high level of awareness about cybersecurity risks among businesses and consumers in North America contributes to the region’s leading position in the IoT in Security market. With increasing incidences of cyberattacks and data breaches, there is a growing demand for robust security solutions, which IoT technology can provide. This awareness, coupled with the availability of technical expertise and favorable regulatory conditions, drives the continuous growth and innovation in this sector.

You May Also Like To Read

• Smart Security System Market
• LLMs in Cybersecurity Market
• AI Vulnerability Scanning market
• Europe Creator Economy Market
• LendTech Market

Emerging Trends in IoT Security

• Integration of Artificial Intelligence: Artificial intelligence is significantly enhancing IoT security by enabling automated threat responses and real-time anomaly detection. This trend is expected to grow as AI algorithms become more sophisticated.
• Enhanced Edge Computing: Security responses in IoT are becoming more immediate due to edge computing, which processes data closer to where it is collected, reducing latency and enabling faster action against potential threats​.
• Blockchain Applications: The use of blockchain technology is on the rise in IoT for ensuring data integrity and improving the security of transactions, thanks to its decentralized nature​.
• Adoption of Zero Trust Models: Zero trust architectures are gaining traction, emphasizing the need for strict access controls and continuous verification within IoT ecosystems to mitigate risks​.
• Regulatory and Compliance Evolution: The landscape of IoT security is also being shaped by evolving regulations and standards that demand rigorous compliance, pushing manufacturers to enhance security measures​.

Top Use Cases

• Smart Home Automation: IoT technologies are commonly used in home automation, including smart thermostats and lighting systems that adapt to user preferences, enhancing both convenience and security​.
• Smart Building Management: IoT devices manage building operations such as energy consumption, security, and environmental monitoring, significantly improving efficiency and safety​.
• Smart Parking Systems: These systems utilize IoT to monitor parking spaces in real-time using sensors and CCTV, improving security and management in public and private properties​.
• License Plate Recognition Systems: IoT enhances security in transportation by integrating LPR technology that helps in real-time surveillance and law enforcement coordination​.
• Fleet Management: IoT is crucial in managing logistics and fleet operations, offering real-time vehicle tracking and maintenance alerts to prevent theft and ensure operational efficiency​.

Attractive Opportunities

• Consumer Protection through Enhanced Device Security: With the increasing prevalence of IoT devices, there is a substantial opportunity to develop solutions that offer robust security to protect users from unauthorized access and data breaches​.
• Energy Management: IoT devices can optimize energy usage in homes and industries, which not only reduces costs but also enhances the sustainability of operations, presenting opportunities for innovation in green technologies​.
• Healthcare Applications: IoT security is critical in healthcare, where devices are used for monitoring patient health and managing sensitive data, ensuring privacy and compliance with health regulations​.
• Industrial Automation: Secure IoT applications in industrial settings can significantly enhance operational efficiency and safety, driving the fourth industrial revolution or Industry 4.0​.
• Smart Cities Initiatives: As cities become smarter, secure IoT solutions will be key in managing everything from traffic to public services, presenting opportunities for large-scale urban improvements​.

Key Market Segments

By Offering

• Solutions
  • Identity and Access Management
  • Data Encryption and Tokenization
  • Secure Communication Protocols
  • Public Key Infrastructure Certificate Lifecycle Management
  • Distributed Denial Of Service (Ddos) Protection
  • Security Analytics
  • Others
• Services
  • Professional Services
    • Implementation & Integration Services
    • Training & Consulting Services
    • Support and Maintenance services
  • Managed Services

By Security Type

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Others

By End-use

• Energy and Utilities
• Manufacturing
• Automotive
• Transport
• Consumer Electronics
• Healthcare
• Others

Top Key Players in the Market

• Microsoft Corporation
• Amazon Web Services, Inc.
• Google LLC
• IBM Corporation
• Intel Corporation
• Cisco Systems, Inc.
• Telefonaktiebolaget LM Ericsson
• Thales TCT
• Allot
• Atos SE
• Others

Report Scope

Conclusion

In conclusion, IoT security is a crucial aspect of the modern digital landscape, with the market poised for significant growth driven by technological advancements, regulatory changes, and a heightened threat environment. As businesses continue to expand their IoT capabilities, the importance of investing in comprehensive security solutions becomes paramount to protect both data and devices in an increasingly connected world.

Discuss your needs with our analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF