Smart Grid application segment to cement its dominance in the global Internet of Things (IoT) Security Product market in the coming years
Internet of Things (IoT) refers to rapidly expanding network of electronic devices having IP address or physical address for providing Internet connectivity, which enables communication between these IoT devices and other Internet enabled systems over the network. IoT brings Internet connectivity beyond the traditional devices, such as laptop, computers, smart phones and tablets, to various range of products used in everyday life.
These products use embedded technology and are able to communicate with the external environment with the help of Internet. At the same time, this connectivity also poses certain challenges in the form of the provision of unauthorized access to people or hackers, who could intrude into the organization’s infrastructure by hacking the main controlling device.
In order to address this issue, implementation of IoT security in the IoT infrastructure of organizations and individuals is increasingly becoming a primary necessity as these products help in securing their infrastructure and data.
Increasing collaborations and partnerships in the North America region fostering revenue growth of the IoT security product market
In order to offer cutting-edge technology and to cater to the rising demand for IoT among businesses, prominent players in the IoT space are focussing on entering into partnerships and collaborations with other players in the IoT market. Various connected devices manufacturers such as Cisco Systems Inc., telecommunication network solution providers such as AT&T Inc., and technology companies such as IBM Corporation are opting to offer smart solutions for advanced data analytics by utilising IoT platforms.
Future Market Insights forecasts revenue from the global IoT security product market to increase from US$ 12 Bn in 2017 to about US$ 48 Bn by 2027 end, representing a CAGR of 14.9% from 2017 to 2027. This increasing revenue growth is attributed to continuous launching of IoT security offerings and emergence of niche players in the market. Moreover, an increasing number of service providers is also supporting revenue growth of this market.
Government initiatives in smart cities projects
Government organisations of various countries have partnered with major technology companies for implementing IoT across urban cities. These organisations are also providing funds for the development of IoT applications to technology vendors. Due to increasing smart city projects, the adoption of sensor applications is rising significantly.
A growing number of connected devices is expected to fuel demand for IoT security in North America. For instance, the U.S. government invested US$ 8.8 Bn in 2015 in IoT for infrastructure, software and cyber security solutions.
Growing intensity of cyber-attacks on IoT devices and networks
Growing number of devices connected to each other via IoT has resulted in increasing vulnerability in terms of security of the entire IoT ecosystem. Increasing intensity of cyber-attacks on IoT networks and devices has prompted solution providers to focus more on security aspects, which is driving market demand for IoT security solutions globally.
In December 2016, Dyn Inc., which is a U.S. based managing domain name system (DNS) Infrastructure Company, witnessed a Distributed Denial of Service (DDoS) attack from a malware known as Mirai botnet, wherein a number of interconnected IoT devices were being used to conduct cyber-attacks, resulting in disruption of Internet services across the U.S.
Non-adherence to guidelines issued by governing authorities deterring the growth of the IoT security product market
Although a number of governing authorities have issued guidelines to be followed by IoT device manufacturers so as to protect against cyber-attacks on IoT networks and devices, many device manufacturers and users are not strictly adhering to these guidelines and taking precautionary measures.
Non-adherence to these guidelines results in security lapses, which cyber attackers can take advantage of and this creates challenges for IoT security solution providers. This factor is expected to hamper growth of the IoT security product market to a large extent.
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Global IoT Security Product Market Attractiveness, By Application, 2017-2027In terms of value, the smart grid segment is projected to be the most attractive in the global IoT security product market during the forecast period. However, the home and buildi
In terms of value, the smart grid segment is projected to be the most attractive in the global IoT security product market during the forecast period. However, the home and building automation segment is expected to register high Y-o-Y growth rates throughout the forecast period.
In terms of value, the home and building automation segment is expected to register a CAGR of 16.2% during the forecast period. In 2016, the smart grid segment was valued at US$ 3,697.8 Mn and is expected to witness steady growth in terms of revenue throughout the forecast period.
FREQUENTLY ASKED QUESTIONS ABOUT INTERNET OF THINGS (IOT) SECURITY PRODUCT MARKET
What are the future prospects of Internet of Things (IoT) Security Product market?
Growing number of devices connected to each other via IoT has resulted in increasing vulnerability in terms of security of the entire IoT ecosystem. Increasing intensity of cyber-attacks on IoT networks and devices has prompted solution providers to focus more on security aspects, which is driving market demand for IoT security solutions globally.
What are the major challenges for Internet of Things (IoT) Security Product Market?
Although a number of governing authorities have issued guidelines to be followed by IoT device manufacturers so as to protect against cyber-attacks on IoT networks and devices, many device manufacturers and users are not strictly adhering to these guidelines and taking precautionary measures.
Which application will have significant revenue growth in the next five years?
The smart grid application has been considered as largest revenue growth in the next five years due to continuous development of the IoT and innovation and encouraging adoption and use of evolving technologies in smart grid application.
What are the major opportunities for Internet of Things (IoT) Security Product market?
Increasing demand for endpoint security solution for IoT devices, which is a major opportunities for the Internet of Things (IoT) security product market
Which region is expected to be at forefront in the Internet of Things (IoT) Security Product market?
Increasing number of IoT- enabled smart connected devices, which is, in turn, boosting the growth of the Internet of Things (IoT) security product market in East Asia region.
Who are the major companies leading Internet of Things (IoT) Security Product market?
Prominent companies in the Internet of Things (IoT) Security Product market includes International Business Machines Corporation, Cisco Systems, Inc., Intel Corporation, Check Point Software Technologies, Trend Micro Inc., Infineon Technologies AG, Symantec Technology Ltd., Sophos Group Plc., Palo Alto Networks, Inc., Arm Holdings, and among others.
Internet of Things (IoT) Security Product Market: Segmentation
By Component
- Hardware
- Software
By Deployment Type
- End-point or Device Security
- Network Security
- Identity and Access Management
- Vulnerability Management
- Messaging Security
- Web Security
- Others
By Application
- Machine-to-Machine (M2M) Communication
- Smart Grid
- Home and Building Automation
- Wearable Computing Devices
- Vehicle-to-Vehicle (V2V) Communication
By Verticals
- Consumer Goods and Retail
- Manufacturing
- Transportation and Logistics
- Healthcare
- Energy and Utility
- Others
By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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