Navigating the IoT Security Market Landscape
By 2025, the IoT security market will be experiencing considerable changes, driven by the confluence of macroeconomic factors. The growing use of IoT devices is accelerating the development of new security solutions, which are mainly based on artificial intelligence and machine learning. The pressure from governments is also growing, as they impose stricter rules for protecting sensitive data and ensuring the privacy of consumers. Moreover, the changing habits of consumers, who are increasingly dependent on connected devices, are making companies prioritise security measures. These factors are strategic for all the players, because they not only shape the competition but also impose the need for new solutions to counter the emerging threats in an increasingly interconnected world.
Top Trends
- Increased Regulatory Compliance
Governments are imposing stricter regulations on IoT security, such as the EU’s General Data Protection Regulation and California’s Consumer Privacy Act. These regulations are forcing companies to implement more stringent data protection measures. If they don’t, they could be fined up to 4 per cent of their turnover. This is driving a growing demand for security solutions that meet compliance requirements, and the market is responding with an increasing number of offerings.
- Rise of AI-Driven Security Solutions
Artificial intelligence is increasingly being integrated into IoT security solutions in order to enhance the detection and response capabilities of such solutions. Artificial intelligence is used by companies such as IBM and Cisco to analyse large volumes of data and identify anomalies. Artificial intelligence is reported to reduce response times by up to 90%. This trend is expected to continue and in future artificial intelligence will be a standard feature of IoT security products, thereby enhancing the operational efficiency of such products.
- Adoption of Zero Trust Architecture
The zero-trust security model is gaining ground in the IoT environment as organizations recognize the need for strict access control. This model, which assumes that threats can come from outside or inside, encourages continuous verification. In a survey, 80 percent of organizations said they would adopt zero-trust security by 2025. This new approach is reshaping security strategies, resulting in a more resilient IoT environment.
- Enhanced Focus on Supply Chain Security
In the wake of recent high-profile attacks on IoT, many companies have been quick to put the security of their supply chains at the top of their priorities. A number of market leaders have already begun to conduct thorough risk analyses and put in place security policies for their suppliers. Nevertheless, recent statistics show that in the last year, some 60% of companies have suffered some kind of attack on their supply chains. This trend is likely to drive investment in supply chain security solutions that ensure a comprehensive level of security.
- Integration of Blockchain Technology
Cryptography is a method for storing data on the Internet of Things. It provides a decentralized and inviolable way of managing data. Companies like Thales and IBM are working on the use of the blockchain for the secure identification of devices and the integrity of their data. Research has shown that the blockchain can reduce the number of security breaches by up to 50%. The maturing of this technology will bring it into common use and offer new levels of trust.
- Growth of Managed Security Services
In the case of the Internet of Things, which is becoming more complex, it is common to turn to managed security service providers (MSSPs) for their know-how. This is a consequence of the lack of security expertise in-house and the need for constant surveillance. According to some studies, the MSSP market is set to grow significantly and that some 70% of companies are considering out-sourcing their IoT security. This is reshaping the competition, with the MSSPs offering a wide range of solutions.
- Emphasis on Device Authentication
Consequently, with the proliferation of IoT devices, the need for a secure method of device identification is becoming paramount. Biometric and multi-factor authentication are being implemented to prevent unauthorised access. A recent study found that 75% of IoT attacks are a result of weak device identification. This trend will inevitably lead to further innovation in device identification and thus more secure IoT.
- Collaboration Between Industry and Government
The public-private partnership is becoming an indispensable tool for addressing the security of the Internet of Things. Governments are collaborating with industry leaders to develop best practices and frameworks for the implementation of secure IoT. For example, the National Institute of Standards and Technology (NIST) is helping companies to implement security measures. This trend is bringing a more uniform approach to IoT security, resulting in greater resilience.
- Increased Investment in Cybersecurity Insurance
Cybersecurity insurance is growing in importance as the threat of cyberattacks increases. A recent survey found that 60 percent of companies plan to buy or renew their cyber-risk insurance by 2025. This trend is driving the market by creating demand for more comprehensive insurance that covers the risks of the Internet of Things.
- Focus on Privacy-Enhancing Technologies
Having to deal with the growing concern for data privacy, many companies have incorporated privacy-enhancing technologies (PETs) into their IoT security strategies. Data encryption and anonymization are two of the most popular methods of protecting the data. It is known that 65% of consumers trust companies that protect their privacy. This trend is expected to affect the product development, as the companies are trying to comply with the requirements of the consumers and the regulations.
Conclusion: Navigating the IOT Security Landscape
IoT security will be a highly competitive and fragmented market in 2025, with a wide range of legacy and new players competing for dominance. Regional trends point to an increasing emphasis on bespoke solutions, particularly in North America and Europe, where regulations are driving innovation. Strategically, vendors must be able to meet changing customer demands with advanced capabilities, such as AI, automation and smart energy. As such, the ability to offer flexible and scalable solutions will be key to achieving leadership in this market, as companies seek to partner with vendors who can meet their specific security needs. This means that, to remain competitive in this fast-moving market, vendors must ensure that their strategies are aligned with these capabilities.