IoT Security Companies

IoT Security Market Opening Overview

Why the IoT Security Market Is Expanding?

The IoT Security Market is accelerating past the pace of most adjacent cybersecurity categories, driven less by discretionary enterprise IT spending than by two hardening legal mandates. Per MRFR analysis, the market reached USD 9.50 Billion in 2025 and is projected to reach USD 126.03 Billion by 2035, registering a CAGR of 29.5% across the 2026–2035 forecast period. Network Security holds the dominant security-type share at 38.5% in 2025, reflecting enterprise reliance on perimeter-level inspection across converged OT-IT industrial corridors, while Cloud/Virtual Security is forecast to grow fastest at a 31.5% CAGR as organizations migrate security workloads to multi-tenant cloud platforms. 

North America dominates regionally with a 32.0% share of 2025 revenue, supported by federal zero-trust mandates and venture capital focus in device-identity startups. Asia-Pacific is the fastest-growing region with a projected 31.5% CAGR through 2035, driven by smart-city programs across China and India.

The EU’s Cyber Resilience Act and the UK’s Product Security and Telecommunications Infrastructure Act have turned product security from a voluntary engineering decision into a legal requirement for market access, and are estimated to have redirected USD 4.2 Billion in enterprise cybersecurity budgets to IoT-specific controls in the 2023 to 2025 period. This structural change is being driven by the CRA’s CE-marking system, which can sanction manufacturers up to EUR 15 Million or 2.5% of their global revenue for unremediated vulnerabilities, driving purchase decisions away from the cheapest connected devices and toward security-certified alternatives. Meanwhile, operational technology environments that once operated air-gapped are now converging with corporate IT stacks, and standard IT firewalls don’t have the protocol depth required for Modbus, OPC UA and BACnet traffic — a gap that is moving OT security purchasing authority from plant-operations teams to centralized CISO offices.

Why These Companies Are Leading?

Market leadership in IoT security is increasingly defined not by point-product breadth but by platform consolidation economics — the ability to fold identity, endpoint, network, and AI-workload protection into a single procurement relationship as enterprises tire of vendor sprawl. Cisco Systems leverages its incumbent network footprint to report Security product revenue growth of 59% year-over-year in FY2025, embedding IoT-relevant threat detection directly into infrastructure customers already own. Palo Alto Networks and Fortinet are racing to platformize through acquisition — Palo Alto's USD 25 Billion purchase of CyberArk extends its reach into machine and agentic-AI identity, a category directly adjacent to device-identity security for IoT fleets. At the same time, Microsoft and IBM monetize IoT-adjacent security as an attach motion layered onto dominant cloud and hybrid-infrastructure franchises. MRFR identifies breadth of protocol support, time-to-value under 30 days, and SIEM/SOAR integration APIs as the structural differentiators separating category leaders from point-product vendors in this market.

Top 10 Global IoT Security Companies — MRFR Rankings (2026)

All revenue figures are validated from official company annual reports, investor relations disclosures, or SEC/regulatory filings. Where official figures are unavailable for private companies, this is explicitly noted.

*Private company revenues marked 'Undisclosed' where no official published financials are available.

Detailed Company Profiles

1. Cisco Systems | NASDAQ: CSCO | San Jose, CA, USA

Cisco's IoT security position rests on a structural advantage competitors cannot easily replicate: it already sits inside the network fabric that IoT traffic must traverse, so its security portfolio is a software attach to hardware it has already sold. FY2025 total revenue reached USD 56.65 Billion, with Security product revenue up 59% year-over-year (SEC 10-K, FY2025) — a growth rate far outpacing Cisco's core Networking line, which actually declined 3%. The USD 28 Billion Splunk acquisition, closed March 2024, now feeds Cisco's Cyber Vision and Talos threat intelligence directly into SIEM/SOAR workflows, letting Cisco correlate IoT endpoint anomalies against enterprise-wide telemetry in ways stand-alone IoT vendors cannot match. MRFR views Cisco's embedded-infrastructure position as durable but exposed to platform-native cloud challengers that do not require a hardware footprint to deploy.

2. Palo Alto Networks | NASDAQ: PANW | Santa Clara, CA, USA

Palo Alto Networks is betting that IoT and OT security cannot be solved in isolation from identity — the USD 25 Billion CyberArk acquisition, announced July 2025 and closed February 2026, is Palo Alto's largest deal by more than 20x and signals a deliberate move to control the identity layer that both human users and an increasingly agentic population of AI-driven and machine identities depend on. FY2025 revenue grew 15% to USD 9.2 Billion (Palo Alto Networks FY2025 earnings release), with Next-Generation Security ARR up 32% to USD 5.6 Billion. Its Cortex XSIAM platform already anchors OT Security enhancements aimed at ruggedized NGFWs and secure remote access for utility and manufacturing customers with limited physical site access. MRFR assesses that the CyberArk integration, if executed cleanly, positions Palo Alto to own both the network and identity control planes for converged IT/OT/IoT environments — a combination few competitors can assemble organically.

3. Fortinet | NASDAQ: FTNT | Sunnyvale, CA, USA

Fortinet's differentiator in IoT security is unit-economics scale: its claimed 55% unit market share in firewalls gives it a distribution advantage that lets it cross-sell FortiNAC and FortiGuard IoT services into an installed base competitors would need years to replicate. FY2025 revenue grew 14% to USD 6.80 Billion (Fortinet FY2025 earnings release, Feb 2026), with Unified SASE and Security Operations billings growing 24%.

Fortinet’s November 2024 alliance with Dragos boosts its operational technology cybersecurity footprint to industrial-native threat detection at a lower cost than a full acquisition. This capital-light strategy diverges from rivals chasing multibillion-dollar M&A.

 MRFR notes Fortinet's structural bet is that hardware-anchored firewall dominance, not platform breadth, remains the more durable moat in IoT-adjacent network security through the CRA compliance cycle.

4. Microsoft | NASDAQ: MSFT | Redmond, WA, USA

Microsoft’s relevancy in IoT security is connected to its supremacy in the cloud: Defender for IoT and Azure Sphere are monetized less as independent products and more as retention methods for an Azure customer base that earned over USD 75 Billion in FY2025 revenue, up 34% (Microsoft FY2025 10-K). The company’s total revenue was USD 281.72 Billion in FY2025. Microsoft’s security division publicly topped USD 20 Billion in annualized revenue per earlier earnings-call disclosures, with the company claiming security remains a top engineering investment priority as of fiscal 2025 (Microsoft FY2025 disclosures). Defender for IoT is an integrated Azure capability, not a separate purchase. Microsoft indirectly captures IoT security investment through platform stickiness. This bundled distribution approach is a structural advantage that pure-play IoT security providers cannot contest without matching the scale of Microsoft's cloud infrastructure – a challenge MRFR believes is insurmountable.

5. IBM | NYSE: IBM | Armonk, NY, USA

IBM's IoT security play is embedded within its broader hybrid-cloud and AI transformation, with QRadar and Maximo IoT Security positioned as components of a Software segment that grew revenue into a company-wide FY2025 total of USD 67.5 Billion, up 8% year-over-year (IBM Q4 2025 earnings release, Jan 2026). IBM's February 2024 partnership with Palo Alto Networks to jointly deliver AI-powered security offerings reflects a capital-light approach to filling IoT/OT security gaps rather than large-scale acquisition. IBM's generative AI book of business, now exceeding USD 12.5 Billion inception-to-date, is increasingly cross-sold into security consulting engagements covering connected-asset risk. MRFR assesses IBM's consulting-led go-to-market as a differentiated path to IoT security revenue, converting large enterprise digital-transformation engagements into recurring security software attach.

6. Thales Group | Euronext Paris: HO | Meudon, France

Thales pursued the most aggressive inorganic strategy among European IoT security players, completing its USD 3.6 Billion acquisition of Imperva in December 2023 — ahead of its original 2024 target date — to build a combined applications, data, and identity security portfolio inside its Digital Identity & Security segment. FY2025 group sales reached EUR 22.1 Billion, with digital identification and security solutions contributing approximately 17.4% of net sales (Thales FY2025 results, March 2026); the Cyber Products line returned to organic growth in Q4 2025 after integration-related disruption from merging Imperva and Thales sales forces. Thales's IoT SAFE and Cinterion portfolio anchor hardware-rooted device identity for connected industrial and automotive platforms. MRFR notes that Thales's cybersecurity revenue base, while smaller than its U.S. peers in absolute terms, benefits from deep incumbency in European CRA-driven certification demand that domestic competitors lack.

7. Check Point Software | NASDAQ: CHKP | Tel Aviv, Israel

Check Point is racing to close an AI-security gap that threatens to make its nano-agent device architecture look dated, announcing the acquisition of Lakera (reported at approximately USD 190–300 Million, closed Q4 2025) on the same day CrowdStrike announced its own AI-security acquisition — a signal of how compressed the competitive window has become. FY2025 revenue reached USD 2.725 Billion, up 6% year-over-year (Check Point FY2025 earnings release, Feb 2026). Beyond Lakera, Check Point closed three further acquisitions in early 2026 — Cyata, Cyclops, and Rotate — for a combined ~USD 150 Million, extending exposure management across cloud, on-premises, OT, and SaaS environments. MRFR views Check Point's rapid-fire, smaller-ticket M&A cadence as a deliberate alternative to Palo Alto's mega-deal approach, aimed at assembling platform breadth without diluting margins.

8. Armis | Private | San Francisco, CA, USA

Armis built its position on agentless, visibility-first device discovery — a technical choice that let it protect legacy IoT and OT assets that cannot run software agents, a segment MRFR identifies as a persistent blind spot for endpoint-native competitors. As a private company, Armis does not publish audited revenue, but disclosed surpassing USD 300 Million in Annual Recurring Revenue in November 2025, growing over 50% year-over-year, ahead of a USD 435 Million pre-IPO round that valued the company at USD 6.1 Billion. Armis's trajectory culminated in ServiceNow's agreement to acquire the company for USD 7.75 Billion, announced December 2025 — a valuation jump of more than 25% over the pre-IPO round completed just weeks earlier. MRFR's verdict: the ServiceNow deal validates asset-visibility platforms as the entry point enterprise software vendors are choosing to acquire their way into IoT/OT security, rather than build organically.

9. CrowdStrike | NASDAQ: CRWD | Austin, TX, USA

CrowdStrike is extending its cloud-native endpoint architecture into IoT through Falcon for IoT and XDR, wagering that the single-agent, single-console model that won it enterprise endpoint share will translate to connected-device fleets as OT-IT convergence accelerates. FY2026 (ended January 31, 2026) total revenue reached USD 4.81 Billion, up 22% year-over-year, with ending ARR surpassing USD 5.25 Billion — the fastest pure-play cybersecurity software company to reach that milestone (CrowdStrike FY2026 earnings release, March 2026). CrowdStrike's October 2025 strategic partnership with Fortinet to unify endpoint and firewall protection reflects a coopetition strategy: rather than building OT-native network inspection itself, CrowdStrike is partnering to plug the network-layer gap in its IoT security coverage. MRFR notes CrowdStrike continues to recover commercial momentum following its 2024 global outage, with FY2026 results showing accelerating, not decelerating, customer consolidation onto the Falcon platform.

10. Claroty | Private | New York, NY, USA

Claroty is the most OT-native pure-play among the top 10, having built its xDome and Medigate platforms specifically for cyber-physical systems rather than extending an IT-security product into OT as an afterthought — a positioning MRFR and independent analysts consistently cite as a differentiator against broader enterprise security vendors. As a private company, Claroty does not disclose audited revenue, but confirmed an 80% valuation increase since its March 2024 financing round, reaching an estimated USD 3 Billion following a USD 150 Million Series F round led by Golub Growth in January 2026. The company now works with 24 Fortune 100 organizations and has partnered with Schneider Electric and Rockwell Automation on an AI-powered asset cataloguing tool, the CPS Library. MRFR assesses Claroty's IPO-track positioning — targeted as early as 2027 — as a signal that OT-native security platforms retain independent scale potential even as broader IT security vendors consolidate the category through acquisition.

M&A Activity Tracker

Key verified transactions shaping IoT Security Market consolidation (2023–2026):

Key Trend: M&A in the IoT Security Market is bifurcating into two tracks — platform-consolidation mega-deals (Palo Alto–CyberArk) that buy identity and analytics capability at scale, and smaller AI-security tuck-ins (Check Point–Lakera) racing to close agentic-AI gaps before competitors — with the ServiceNow–Armis deal marking the first time a non-security enterprise software vendor has paid a premium to own IoT/OT asset visibility outright.

R&D Investment & Innovation Signals

Leading companies are investing in AI-native detection, identity convergence, and post-quantum readiness as the structural fronts of IoT security competition:

●       Palo Alto Networks reported AI-related annual recurring revenue of approximately USD 545 Million in fiscal Q4 2025, more than 2.5x year-over-year, with its XSIAM AI-driven security operations platform serving approximately 400 customers — signaling that AI-native detection is shifting from differentiator to baseline expectation across the IoT/OT threat-response stack.

●       Cisco's Security product line grew 59% in FY2025, outpacing every other Cisco business unit, as Splunk-derived SIEM and SOAR capabilities are integrated with Talos threat intelligence to correlate IoT endpoint anomalies against enterprise-wide network telemetry (Cisco SEC 10-K, FY2025).

●       Check Point's rapid-fire early-2026 acquisitions of Cyata, Cyclops, and Rotate (combined ~USD 150M) extend continuous threat exposure management (CTEM) across cloud, on-premises, OT, and SaaS environments — an architecture bet that exposure management, not point detection, is the next IoT security battleground.

●       Fortinet and Dragos deepened their November 2024 partnership to deliver joint OT cybersecurity solutions, reflecting an industry-wide pattern of capital-light partnerships supplementing, rather than replacing, in-house R&D for specialized OT/industrial-protocol coverage.

●       NIST's finalization of post-quantum cryptographic standards has started a 10-year migration clock for connected-device fleets; MRFR expects a distinct sub-segment to emerge around quantum-resistant key management and certificate lifecycle automation, adding an estimated 3–5 percentage points of incremental growth to the base CAGR beyond 2030.

●       Claroty's CPS Library, developed in partnership with Schneider Electric and Rockwell Automation, is an AI-powered asset-cataloguing tool designed to improve visibility and accuracy in tracking industrial asset specifications — a direct response to the device-fragmentation and legacy-firmware restraint MRFR identifies as the market's largest structural drag.

●       Microsoft continues to position Defender for IoT and its broader security stack around AI-scale threat signal processing, publicly citing analysis of more than 100 trillion security signals daily as a core differentiator for enterprise consolidation onto its platform.

●       Armis and Claroty, the two OT-native pure-plays in the top 10, both closed pre-exit financings in late 2025/early 2026 (Armis's USD 435M round and Claroty's USD 150M Series F) explicitly earmarked for R&D acceleration ahead of anticipated IPO or acquisition events — evidence that private capital continues to reward OT-native architecture even as IT-security incumbents consolidate the category.