The growing usage of connected devices and networks and an increase in cyberattacks on Internet of Things (IoT) devices are contributing to the growth of the IoT security market, according to The Internet of Things Security Market – Forecasts from 2022 to 2027 report released by Research and Markets.
The growing adoption of connected devices and networks has increased concerns related to cyber threats. IoT involves adding internet connectivity to a system of interrelated devices and digital machines. This complex integration and interconnectivity of systems have also led to a rise in cyberattacks on devices to gather confidential data. As such, the demand for IoT security solutions is growing worldwide in order to detect, resist and recover various IoT devices from malicious attacks.
Further, the increase in cyberattacks on IoT devices is accelerating at an unprecedented rate, with more than 2.5 billion global events since 2019. Geopolitical motivation also leads to a rise in the number of cyberattacks globally. Cyberattackers are using malware to take control of IoT devices or connected machines across industries such as banking, financial services and insurance (BFSI), retail and healthcare. Since these industries have critical and confidential data stored, it is crucial to adopt IoT security solutions, thus driving the market growth of IoT security, according to the report.
High penetration of mobile devices and increasing mobile platforms boosts demand for IoT security solutions
Industries such as healthcare and BFSI are providing a variety of applications, services and functions available on mobile devices to their customers. Most of the confidential data stored on these devices includes usernames, credit card details and passwords, which is targeted data for hackers. Due to this increasing dependency on mobile devices, companies are required to implement effective cybersecurity solutions. Additionally, governments in various countries are implementing strict regulations regarding the use of IoT security solutions to reduce cases of cyberattacks.
For example, in 2020, California implemented an IoT security law that requires manufacturers of IoT devices to provide “reasonable security features” designed to protect user privacy. The features are largely determined by password requirements provided by manufacturers who must supply a unique, pre-programmed password for each device or require users to establish a new means of authentication before the device can be operated.
According to the report, the legislation is likely to benefit other countries that export IoT devices to the U.S., as manufacturers are required to comply with the laws in regions in which they sell their products. Thus, stringent regulations will further drive the demand for IoT security solutions and services across the globe. As a result, global IoT security solution and service providers are further expanding their market reach in this region, thereby propelling the regional market growth during the forecast period. For reference, the IoT security market was estimated to be over $799 million in 2020.
For more information on the report, click here.