IoT security presents a massive opportunity in the channel as the global market is set to reach nearly $10 billion by 2025.
That’s according to a new report by Grand View Research, which expects a compound annual growth rate (CAGR) of nearly 30 percent. The market totaled $1.24 billion last year.
Surging demand for enhanced privacy is driving the market, with increasing government efforts to implement stringent regulations to restrict the amount of data collected by IoT devices by industries such as banking, financial services and insurance (BFSI), retail and health care.
Increasing use of 3G and 4G long-term evolution (LTE), as well as wireless networks and technologies, is augmenting the risk of cyberattacks. Also, internet implementation is rising rapidly in areas such as health monitors, smart home appliances, smart city projects and smart retails, which has created the necessity for IoT security.
Adoption of cloud technologies by various organizations for storing confidential data is increasing the risk of unauthorized access to data. Moreover, the growing trend of BYOD is increasing concerns regarding data security. An effective security solution, such as integration of firewalls and data loss prevention with IoT security services, strengthens organizational posture to face cyber threats, according to the report.
However, lack of awareness about the benefits and availability of IoT security is hampering the growth of the market. Also, the high cost of installation is a stumbling stone.
The identity and access management (IAM) segment is expected to register a healthy CAGR through 2025. Also, professional services is expected to retain its dominance.
The application security segment is anticipated to register the highest CAGR – 33.5 percent – through 2025.
North America is expected to maintain its dominance in the market until 2025. Asia Pacific is anticipated to register the highest CAGR – 34.6 percent – through the period.