The global Internet of Things (IoT) security market is expected to grow from $6.62 billion this year to just over $29 billion by 2022 at a compound annual growth rate (CAGR) of more than 34 percent, with Verizon, Cisco and AT&T among the major vendors.
That’s according to a new report by MarketsandMarkets. Other major vendors include PTC, Symantec, Trustwave, Check Point Security Software Technologies, IBM, Infineon Technologies, Gemalto NV, Trend Micro and Digicert.
In all, the global IoT market is expected to grow from almost $171 billion this year to $561 billion by 2022, MarketsandMarkets says.
Increasing ransomware attacks on IoT systems, securing ubiquitous environment, and the increasing need for data-centric security are the major forces driving the market, according to the report.
Network security is expected to hold the largest share of the IoT security market. Wireless communication is carried out with the help of various secure protocols such as LPWAN, Zig-bee, 6LowPAN, Bluetooth, Z-Wave and NFC. Technologies such as Bluetooth Low Energy, IEEE 802.15.4 and IEEE 802.11ah play a significant role in IoT connectivity. These networking technologies are more susceptible to cyberattacks and hence it holds the largest market share during the forecast period.
Smart manufacturing is expected to dominate in the application areas during the forecast period. Manufacturing companies have been integrally focusing on enhancing their business process efficiency and production output with optimum resource utilization. Smart manufacturing has been at the forefront in introducing transparency, scalability and process defined architecture in manufacturing operations.
Also, various initiatives such as Industry 4.0, implemented by countries such as Germany and Japan, are driving the adoption of smart manufacturing initiatives.
North America is expected to hold the largest IoT security market share, the report says. The United States and Canada are major growth drivers due to early adoption of IoT technologies in various application areas such as health care and smart manufacturing. The strong financial position of North America allows these countries to invest heavily in leading IoT-enabled devices and solutions/services.