IoT Security Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Solution, Service), By Deployment (Cloud, On-premise), By Enterprise (SME, Large Enterprise), By Security Type (Network Security, End-point Security, Application Security, Cloud Security and Others), By Application (Smart Manufacturing, Smart Energy & Utilities, Connected Logistics, Smart Home & Consumer Electronics, etc.), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 36.77 Billion
CAGR (2026-2031)	25.01%
Fastest Growing Segment	Solution
Largest Market	Asia Pacific
Market Size (2031)	USD 140.33 Billion

Market Overview

The Global IoT Security Market will grow from USD 36.77 Billion in 2025 to USD 140.33 Billion by 2031 at a 25.01% CAGR. The Global IoT Security Market encompasses the strategic frameworks and technological solutions designed to safeguard connected devices, networks, and data from unauthorized access and cyber threats. The primary drivers propelling this market’s growth include the exponential increase in network endpoints which expands the global attack surface, and the implementation of stringent regulatory mandates that enforce robust data protection standards. Furthermore, the critical need to secure operational technology within infrastructure sectors supports demand, as organizations seek to prevent disruptions that could compromise safety and continuity.

However, the market confronts a significant challenge regarding the disparity between threat awareness and actual resource allocation. The rapid integration of complex technologies often outpaces the financial and technical commitment required to secure them. According to PSA Certified, in 2024, while 69% of technology decision-makers placed greater importance on security due to artificial intelligence, only 50% believed their organizations were investing sufficient funds to address these emerging risks. This gap highlights a financial constraint that may impede the comprehensive adoption of advanced security measures.

Key Market Drivers

The exponential proliferation of connected IoT devices is fundamentally expanding the global attack surface, creating vast new entry points for cybercriminals to exploit. As organizations digitize infrastructure and consumers adopt smart technology, the sheer volume of unsecured endpoints allows threat actors to construct massive botnets for distributed denial-of-service (DDoS) campaigns. This scaling of connected assets without commensurate security hardening has led to a dramatic rise in volumetric attacks, necessitating advanced network safeguards. According to Nokia, March 2024, in the 'Threat Intelligence Report 2024', IoT botnet DDoS traffic increased by five times over the preceding year, primarily driven by the exploitation of insecure devices. This trend underscores the critical market demand for solutions capable of managing device visibility and neutralizing botnet activity at the network edge.

Simultaneously, the market is being propelled by the escalating frequency and sophistication of malware and ransomware specifically targeting IoT endpoints. Attackers are increasingly leveraging automation to bypass traditional defenses, turning weak IoT security into a gateway for broader enterprise network breaches. This urgency is reflected in the rapid surge of malicious activity aimed at these vulnerabilities, forcing organizations to invest heavily in endpoint protection. According to SonicWall, July 2024, in the '2024 Mid-Year Cyber Threat Report', IoT malware volume spiked by 107% during the first half of the year compared to the same period in 2023. The widespread nature of these threats further validates the need for comprehensive security measures. According to Check Point Software, in 2024, 54% of organizations on average suffered from attempted cyber-attacks targeting their IoT devices every week.

Download Free Sample Report

Key Market Challenges

The Global IoT Security Market confronts a significant challenge regarding the disparity between threat awareness and actual resource allocation. While the integration of complex connected technologies is accelerating, the financial commitments required to secure these expanding ecosystems often lag behind the technical needs. This misalignment results in a precarious scenario where the sophistication of IoT networks outpaces the budgetary provisions available for their protection, effectively delaying the deployment of essential security architectures and leaving critical infrastructure vulnerable to exploitation.

This financial constraint directly hampers market expansion by limiting the wide-scale adoption of advanced defensive frameworks. According to ISACA, in 2024, 51% of organizations reported that their cybersecurity budgets were underfunded, highlighting a widespread inability to meet the rising costs of digital defense. Consequently, this funding gap forces enterprises to compromise on security depth or defer critical investments, which slows the procurement of necessary technological solutions and retards the overall revenue growth of the market despite the escalating urgency of the threat landscape.

Key Market Trends

The Standardization of Consumer IoT Security Labeling Programs is fundamentally reshaping the market as governments transition from voluntary guidelines to mandatory compliance regimes. This trend compels manufacturers to integrate security baselines—such as unique passwords and vulnerability disclosure policies—directly into the product lifecycle to maintain market access. Initiatives like the U.S. Cyber Trust Mark and the UK’s Product Security and Telecommunications Infrastructure (PSTI) framework are driving this shift, effectively making security certification a prerequisite for retail presence rather than a differentiator. This regulatory pressure is forcing a rapid industry-wide alignment with new compliance standards to avoid exclusion from major economic regions. According to the UK Government, December 2024, in the 'Cyber security of consumer IoT - manufacturer survey', 91% of manufacturers surveyed stated they were aware of UK cyber security regulations related to consumer connectable products, indicating the high level of urgency surrounding these legislative requirements.

Simultaneously, the market is witnessing the Widespread Adoption of Zero Trust Architecture for IoT Networks as a critical evolution beyond traditional perimeter-based defenses. Because connected devices often lack robust built-in security and operate across dispersed environments, organizations are increasingly treating every endpoint as untrusted by default, necessitating continuous verification of device identity and integrity. This architectural shift relies heavily on rigorous machine identity management, such as Public Key Infrastructure (PKI), to ensure that only authenticated assets can communicate within the network. The complexity of managing these identities at scale, however, has exposed significant operational vulnerabilities that are accelerating the demand for automated trust frameworks. According to Keyfactor, February 2024, in the 'State of IoT Security' report, 98% of organizations experienced a certificate-related outage in the past 12 months, highlighting the fragility of current identity management systems and the pressing need for resilient zero-trust implementations.

Segmental Insights

The Solution segment is recognized as the fastest-growing category in the Global IoT Security Market, driven by the critical demand for scalable, automated protection across vast device networks. Enterprises are increasingly deploying unified platforms, including identity access management and device encryption, to secure endpoints against evolving cyber threats. This growth is further accelerated by rigorous compliance standards from the National Institute of Standards and Technology, which advocate for embedded security architecture. As a result, organizations are prioritizing comprehensive software suites to ensure seamless regulatory adherence and operational resilience without relying solely on manual intervention.

Regional Insights

Asia Pacific commands a leading position in the Global IoT Security Market, driven by its status as the world’s largest manufacturing hub and the widespread adoption of Industry 4.0. The region hosts the highest volume of connected devices globally, fueled by extensive smart city initiatives in major economies like China and India. This density of endpoints necessitates rigorous security measures to protect critical infrastructure from cyber threats. Furthermore, strengthening regulatory frameworks, such as Singapore’s Cybersecurity Act and India’s data protection mandates, compel organizations to prioritize compliance. These factors collectively establish Asia Pacific as the dominant force in global market activity.

Recent Developments

• In November 2024, Microsoft released Azure IoT Operations, a new cloud service engineered to manage IoT data and security at scale. This offering was developed to run on Kubernetes clusters, enabling organizations to collect and process data from diverse edge devices and integrate it with digital modeling applications. The launch marked a significant expansion of the company's IoT portfolio, providing a unified architecture that bridges the gap between operational technology and information technology. The solution was designed to enhance decision-making and operational efficiency while ensuring robust security governance for connected industrial systems.
• In October 2024, Armis announced the closure of a $200 million Series D investment round, raising its valuation to $4.2 billion. This funding was secured to accelerate the development of its AI-powered cyber exposure management platform, which protects assets across IT, OT, and IoT environments. The company planned to utilize the capital to support organic growth and global expansion, further enhancing its ability to secure critical infrastructure for major enterprises and government entities. This financial milestone highlighted the increasing market demand for comprehensive asset intelligence and real-time risk mitigation in a rapidly evolving threat landscape.
• In June 2024, Claroty unveiled the next evolution of its cyber-physical systems protection platform, designed to deliver enhanced asset visibility across industrial environments. This unified solution offered flexibility for deployment either in the cloud or on-premise, consolidating exposure management, network protection, and threat detection into a single interface. The launch addressed the complexities of securing expanded connectivity in critical infrastructure by reducing blind spots and streamlining risk management. By integrating various security capabilities, the company aimed to help organizations lower the total cost of ownership while effectively mitigating threats to their operational technology and IoT assets.
• In March 2024, Mitsubishi Electric Corporation announced a strategic partnership with Nozomi Networks Inc. to strengthen operational technology and IoT security defenses. As part of this collaboration, the Tokyo-based electronics giant acquired an equity stake in the security provider to jointly pursue new business initiatives. The companies agreed to integrate their respective technologies, combining factory automation equipment with advanced network visualization and intrusion detection capabilities. This initiative aimed to deliver comprehensive security solutions that support continuous system operation and data analysis for critical infrastructure and manufacturing sectors, directly addressing the growing cyber risks associated with industrial digital transformation.

Key Market Players

• Cisco Systems, Inc.
• Palo Alto Networks, Inc.
• Fortinet, Inc.
• IBM Corporation
• Check Point Software Technologies Ltd.
• Trend Micro Incorporated
• McAfee Corporation
• Armis Security, Inc.
• Forescout Technologies, Inc.
• Sophos Ltd.

By Component	By Deployment	By Enterprise	By Security Type	By Application	By Region
Solution Service	Cloud On-premise	SME Large Enterprise	Network Security End-point Security Application Security Cloud Security and Others	Smart Manufacturing Smart Energy & Utilities Connected Logistics Smart Home & Consumer Electronics etc	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global IoT Security Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• IoT Security Market, By Component:

• Solution
• Service

• IoT Security Market, By Deployment:

• Cloud
• On-premise

• IoT Security Market, By Enterprise:

• SME
• Large Enterprise

• IoT Security Market, By Security Type:

• Network Security
• End-point Security
• Application Security
• Cloud Security and Others

• IoT Security Market, By Application:

• Smart Manufacturing
• Smart Energy & Utilities
• Connected Logistics
• Smart Home & Consumer Electronics
• etc

• IoT Security Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE