Increasing adoption of digital technologies including web-based services, online education, and online banking has accelerated adoption of smartphone among individuals, which in turn has necessitated security of such technologies against cyber-attacks.
Various governments across the globe have imposed stringent laws, in order to ensure secure environment and maintain privacy for connected devices. In addition, several enterprises are focusing on implementation of Internet of Things (IoT)-based solutions, encouraging employees in bringing their own devices for flexibility.
In its recent research, Future Market Insights (FMI) projects the global IoT security product market to register a staggering expansion at 14.9% CAGR through 2027.
In 2017, the market will account for revenues worth US$ 12,007.9 Mn, and it is further estimated to reach nearly US$ 50,000 Mn by 2027-end. This growth is primarily attributed to continuous launches of IoT security offerings by enterprises, soaring number of service providers, and emergence of niche players in the market.
North America will Remain Dominant in the Global IoT Security Product Market
North America will remain dominant in the global IoT security product market, with sales estimated to reach nearly US$ 16,000 Mn in revenues by 2027-end. Government organisations of various North American countries have entered into partnership with major technology companies in order to implement IoT across urban cities. These organisations are also providing funds to technology vendors for development of IoT applications. In addition, increasing smart city projects in North America have led to a significant adoption of sensor applications. The aforementioned factors are anticipated to drive growth of IoT security product market in this region.
A number of government authorities have issued guidelines to be followed by IoT device manufacturers for protection against cyber-attacks on IoT devices and networks. However, several device manufacturers and users are not adhering to these guidelines, ignoring precautionary measures. This further has resulted into security lapses, incurring challenges for IoT security solutions providers, which is expected to restrain growth of the market in North America.
APEJ will Register Fastest Expansion in the Global IoT Security Products Market
Asia Pacific Excluding Japan (APEJ) will continue to be the fastest growing market for IoT security products, registering a high double-digit CAGR through 2027. Growing number of connected devices is leading towards expansion of IoT ecosystem in APEJ. This is further prompting the region’s leading companies for developing services and platforms, helping them in efficient management and analysis of real-time data streams gathered from multiple data sources. These companies are now focusing on IoT data analytics, and setting up strategies for procuring and deploying adequate tools in order to enable successful IoT adoption, and real-time analysis of operations. These factors are anticipated to drive demand for IoT security products in APEJ.
With rapidly changing technologies, enterprises are faced with difficulties in deploying technology-specific networks, which in turn is expected to impede market growth in this APEJ. In addition, rapid adoption of IoT among enterprises has led to a surge in cyber-attacks, owing to increasing internet exposure to a number of devices. This has further resulted into an increased chances of cyber-threats, which in turn is estimated to inhibit growth of the IoT security product market in APEJ.
Manufacturing to Remain the Largest Vertical for IoT Security Products
Manufacturing is estimated to remain the largest vertical for IoT security products in the global market. Revenues amassed from sales of IoT security products in manufacturing are expected to reach US$ 15,088.9 Mn by 2027-end. In addition, healthcare will be the fastest growing vertical in the global IoT security products market, followed by energy & utility, and transportation & logistics.
Although smart grid will remain sough-after among applications, home & building automation is expected to witness fastest expansion in the market through 2027. Revenues amassed from smart grid, and home & building automation applications of IoT security products will collectively account for revenues worth US$ 26,753.5 Mn by 2027-end.
Network security will remain preferred solution for IoT security products, with sales anticipated to account for nearly US$ 15,000 Mn by 2027-end. End-point/ device security will continue to be the second largest solution for IoT security products. In addition, vulnerability management solution for IoT security products will register fastest expansion through 2027.
By component, software will continue to retain its dominance in the global IoT security product market, with sales expanding at 15.2% CAGR through 2027. In addition, sales of hardware in the market is expected to surpass revenues worth US$ 20,000 Mn by 2027-end.
Key market players identified in FMI’s report include IBM Corporation, Cisco System Inc., Intel Corporation, Check Point Software Technologies Ltd., Trend Micro Inc., Infineon Technologies, Symantec Technologies, Sophos Group PLC, Palo Alto Networks, ARM Holding PLC.