Internet of Things Security Market - Global Forecast 2025-2030

The Internet of Things Security Market size was estimated at USD 23.72 billion in 2024 and expected to reach USD 27.67 billion in 2025, at a CAGR 17.24% to reach USD 61.63 billion by 2030.

The Internet of Things has evolved into a complex ecosystem where billions of connected devices generate vast amounts of data daily, expanding the attack surface in ways previously unimaginable. Rapid proliferation across consumer, industrial, and critical infrastructure environments has outpaced conventional security frameworks, creating new vulnerabilities at every layer of the technology stack. Compounding the challenge, geopolitical tensions and the rise of sophisticated cyber adversaries have driven state and non‐state actors to exploit these gaps for espionage, financial gain, or disruption. Recent analyses underscore that healthcare, financial services, and energy sectors remain among the most targeted due to the high-value data they process and the life‐safety implications of system breaches.

In response to these mounting threats, regulatory bodies and standard-setting organizations have accelerated their efforts to enforce security‐by‐design principles within IoT deployments. In January 2025, the White House and FCC unveiled the U.S. Cyber Trust Mark program to label consumer IoT devices meeting rigorous cybersecurity criteria, mirroring the success of Energy Star by offering a clear trust indicator for shoppers. Meanwhile, international initiatives such as the European Union’s Cyber Resilience Act are mandating vulnerability management, security documentation, and lifecycle support standards, signaling a shift toward mandatory accountability for manufacturers and service providers alike. Together, these developments are laying the groundwork for a more resilient IoT ecosystem, but organizations must still navigate a rapidly shifting threat landscape while implementing foundational security controls.

At the core of today’s IoT security transformation lies the integration of advanced technologies, which are redefining how threats are detected, analyzed, and mitigated. Artificial intelligence and machine learning algorithms now provide real-time anomaly detection by continuously learning from device telemetry, enabling automated threat response mechanisms that far outpace manual processes. Edge computing architectures further bolster security by decentralizing analysis closer to the data source, thereby reducing reaction times and limiting the propagation of malicious activity across networks. Blockchain’s immutable ledger capabilities offer tamper-proof device authentication and secure data exchange, while emerging quantum-resistant cryptographic techniques prepare ecosystems against future decryption risks. Concurrently, the zero trust model is gaining traction in IoT environments, enforcing strict identity verification for every connection and transaction, regardless of network location, to minimize lateral movement and unauthorized access.

Beyond technological innovations, the regulatory landscape and workforce readiness are undergoing equally significant shifts. Heightened compliance requirements are pushing manufacturers and service providers to embed security throughout product lifecycles, from design to end‐of‐life, underpinned by directives such as GDPR in Europe and new labeling mandates in the U.S. However, the cyber skills gap remains a pressing concern, as organizations struggle to recruit professionals adept in both IT and OT security domains. Structured cybersecurity education programs tailored to IoT defense strategies are emerging as a critical enabler, equipping multidisciplinary teams with the knowledge to implement robust security architectures and respond effectively to evolving threats.

U.S. import duties introduced under Section 232 and Section 301 have imposed tariffs on semiconductor chips, smartphones, and other electronic components, directly impacting the hardware‐centric security models traditionally relied upon in IoT devices. Manufacturers faced immediate cost pressures as essential security elements-such as secure elements, trusted platform modules, and cryptographic chips-became up to 25% more expensive to source. This sudden cost escalation forced many to reassess proprietary hardware security implementations, prompting a pivot toward flexible, software‐defined protection mechanisms that mitigate tariff exposure while maintaining robust security postures.

Supply chain diversification accelerated as organizations sought alternative component sources to manage lead‐time disruptions and cost volatility, but this rapid realignment introduced fresh vulnerabilities. Reliance on new or less‐vetted suppliers increased the risk of counterfeit parts and embedded backdoors entering critical IoT deployments, amplifying the need for stringent supplier vetting and component provenance verification practices. The convergence of tariff‐driven supply chain shifts with heightened cyber threat activity underscored how economic policy can indirectly influence risk profiles across complex, globally distributed networks.

Responding to these challenges, forward‐thinking enterprises have adopted layered security frameworks that blend software‐centric protections-such as behavioral analytics, virtual patching, and over‐the‐air update capabilities-with critical hardware trust anchors where necessary. Many have turned to managed security service providers to deliver enterprise‐grade IoT defense at scale, avoiding large upfront hardware investments while benefiting from continuous monitoring and rapid incident response. These strategic adaptations not only buffered the shock of tariff fluctuations but fostered more agile, resilient security models capable of evolving alongside emerging threats.

The Internet of Things security market can be understood through multiple analytical lenses that reveal distinct priorities and solution requirements. Based on component, the market encompasses both services and solutions, with managed security and professional expertise driving proactive defenses on one hand, and encryption, authentication, identity management, intrusion prevention, and public key infrastructure products on the other ensuring end‐to‐end protection. Similarly, segments defined by security type illustrate the full spectrum of risk mitigation, from application and cloud security safeguards to data privacy controls, endpoint hardening measures, and network‐centric defenses. Deployment mode further differentiates offerings into cloud-based architectures delivering scalability and rapid updates, alongside on‐premise implementations where data sovereignty and local control are paramount. Organization size yields unique considerations, with large enterprises prioritizing integrated, enterprise‐grade platforms while small and medium businesses seek cost‐effective, turnkey solutions. Finally, industry vertical segmentation highlights tailored approaches spanning automotive and transportation, financial services, energy and utilities, government and defense, healthcare, and information technology and telecommunications, each with sector‐specific threat profiles and compliance mandates.

In the Americas, North America leads global IoT security activity, contributing roughly 38% of total deployments. Advanced identity management, network security layers, and cloud-native defense tools are prevalent, particularly across healthcare, finance, and manufacturing sectors where real-time threat detection is essential. Enterprises in this region benefit from mature regulatory frameworks, robust R&D investments, and a competitive vendor ecosystem that fosters continuous innovation.

The Europe, Middle East, and Africa region reflects a strong focus on regulatory compliance and risk management, underpinned by the EU Cyber Resilience Act and the UK Product Security and Telecommunications Infrastructure Act. Combined, these directives compel manufacturers to embed security‐by‐design principles, ensure transparency around update support, and subject products to third‐party audits. As a result, more than 63% of European deployments adhere to GDPR-aligned security protocols, while regional energy and telecom infrastructure projects increasingly integrate multi-layered defenses to meet government mandates.

Asia-Pacific is experiencing rapid growth driven by smart city initiatives, industrial automation, and 5G network expansion. Approximately 68% of organizations in China, Japan, and South Korea now deploy AI-powered analytics and edge security frameworks to protect high-value manufacturing and transportation networks. Government investments in critical infrastructure digitalization and private-sector collaboration are fueling adoption, with evolving cybersecurity standards promoting interoperability and resilience against sophisticated threats.

Leading technology providers are expanding their IoT security portfolios through strategic partnerships, acquisitions, and innovation. Established network security vendors are embedding IoT-focused modules into their platforms, while cloud service providers offer integrated device management and security orchestration toolsets. For example, the collaboration between Armis and Nvidia leverages AI accelerators to enhance threat detection accuracy in resource-constrained environments, setting a new benchmark for real-time anomaly identification. Similarly, operational technology security specialists are refining zero trust frameworks tailored for industrial control systems, addressing the convergence of IT and OT networks.

Platform providers such as Amazon Web Services, Microsoft Azure IoT, and Google Cloud IoT continue to innovate around edge security, leveraging native encryption and unified identity services to simplify secure device onboarding at scale. Leading hardware and device manufacturers are also adopting standardized security certification schemes, as demonstrated by early adopters in the U.S. Cyber Trust Mark program. Collectively, these advancements underscore a maturing market in which interoperability, automation, and proactive defense capabilities are becoming defining competitive differentiators.

To enhance resilience against increasingly sophisticated threats, organizations should adopt a zero trust architecture that treats every device and user as untrusted until verified, enforcing continuous authentication and least-privilege access controls. By integrating AI-driven threat intelligence platforms, security teams can automate anomaly detection, prioritize high-risk events, and reduce mean time to response, shifting from reactive to predictive defense models. Complementing these measures with granular network segmentation limits lateral movement and confines potential breaches to isolated segments, mitigating systemic risk.

In parallel, enterprises must strengthen supply chain security through rigorous vendor assessments, component provenance checks, and enhanced transparency around firmware and software updates. Engaging with managed security service providers enables organizations to access specialized expertise, 24/7 monitoring, and scalable telemetry collection without extensive capital investment. Finally, investing in tailored cybersecurity education programs that focus on IoT device security, threat hunting, and incident response builds internal capabilities to detect and remediate vulnerabilities quickly, fostering a culture of continuous improvement and cross-functional collaboration.

This analysis draws upon a multi-phased research approach combining in-depth primary interviews with C-level executives, IT and OT security specialists, and industry consultants, alongside secondary research into regulatory filings, policy frameworks, and technology white papers. Quantitative data was aggregated from device telemetry reports, supply chain cost analyses, and regional deployment statistics, ensuring comprehensive coverage of market dynamics. A cross-validation methodology compared insights from vendor briefings, public-sector announcements, and reputable technology news outlets to reconcile divergent perspectives and identify emerging trends. The final deliverable synthesizes these findings into actionable intelligence, enriched by expert peer review to verify accuracy and relevance for decision-makers.

As the Internet of Things continues to permeate every facet of business and daily life, maintaining a robust security posture requires a holistic, adaptive strategy. The convergence of advanced technologies, evolving regulatory mandates, and shifting economic policies has reshaped the IoT security landscape, demanding proactive investment in automated defenses, supply chain integrity, and workforce development. Organizations that embrace zero trust principles, diversify security approaches across hardware and software domains, and leverage real-time intelligence will be best positioned to thwart sophisticated attacks and sustain long-term resilience. Collaborative engagement with industry partners, regulators, and standard-setting bodies will further enhance ecosystem security and drive collective progress toward a safer, more reliable connected world.

To gain an in-depth understanding of the Internet of Things security landscape and make informed strategic decisions, reach out directly to Ketan Rohom, Associate Director of Sales & Marketing. Ketan leads customized engagements that align market insights with your organization’s objectives, ensuring you have the competitive intelligence necessary to navigate evolving threats and regulatory requirements. By partnering with Ketan, you will receive tailored market research reports that highlight key segmentation trends, regional dynamics, and actionable recommendations specific to your enterprise’s needs. Engage with Ketan today to secure your bespoke IoT security market research report and position your organization for sustained resilience and growth in an increasingly connected world.