How should enterprises prioritize IoT Security Market spending when budgets are limited?

Start with asset discovery and network segmentation — these two controls neutralize the widest range of attack vectors at the lowest cost. Layering managed-detection services on top provides 24/7 coverage without hiring additional staff [15]. Read More

What distinguishes agentless from agent-based approaches in the IoT Security Market?

Agentless platforms monitor network traffic to identify devices passively, ideal for legacy equipment that cannot run software. Agent-based tools offer deeper firmware-level telemetry but require compatible operating systems [14]. Read More

How does the IoT Security Market address devices with 10+ year operational lifecycles?

Vendors are embedding crypto-agile firmware that allows encryption algorithms to be swapped remotely. Network micro-segmentation isolates aging devices that cannot be updated, limiting blast radius [9]. Read More

What role do cyber-insurance carriers play in shaping IoT Security Market demand?

Insurers now require IoT asset inventories and segmentation proof before issuing policies. Denial of coverage for non-compliant organizations effectively creates a commercial mandate paralleling government regulation [12]. Read More

How do sector-specific regulations fragment the IoT Security Market vendor landscape?

Healthcare demands HIPAA-aligned controls, energy requires NERC CIP compliance, and automotive follows UNECE WP.29. Vendors must maintain multiple certification tracks, favoring platform players with modular compliance engines [19]. Read More

What procurement criteria differentiate leading IoT Security Market platforms?

Buyers prioritize breadth of protocol support, automated asset classification accuracy, time-to-value below 30 days, and integration APIs for SIEM/SOAR platforms. Vendor-lock-in risk and data-residency options rank as secondary but growing selection factors [2]. Read More

How will the IoT Security Market evolve as satellite-connected IoT scales?

LEO satellite constellations will extend connectivity to remote assets beyond terrestrial-network reach. Security architectures must adapt to higher-latency links and intermittent connectivity, driving demand for edge-native encryption and store-and-forward threat analytics [11]. Read More

IoT Security Market (2021 - 2023)

ID: MRFR/ICT/1658-CR

267 Pages

Nirmit Biswas

Last Updated: July 17, 2026

IoT Security Market Size, Share and Research Report By Security Type (Network Security, Endpoint/Devices Security, Application Security, Cloud/Virtual Security), By Component (Solutions, Services), By End-User Industry (Smart Manufacturing, Connected Healthcare, Automotive and Mobility, Energy and Utilities, Other End Users), By Deployment Mode (On-Premise, Cloud/SECaaS, Hybrid Edge) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Industry Forecast to 2035.

IoT Security Market

Market Size

Forecast Period2021-2023

CAGR (2021-2023)29.5%

2021 Market Size9.5 USD Billion

2023 Market Size12.3 USD Billion

Key Players

Cisco Systems

Palo Alto Networks

Fortinet

Microsoft

IBM

Thales Group

Trends

Mandatory Security-by-Design Regulation
OT-IT Network Convergence
AI/ML-Powered Threat Detection

Opportunities

Security-as-a-Service for Mid-Market Manufacturers
AI-Driven Autonomous Response Platforms
Emerging-Market Smart-City Programs

Summary Table of Contents Segmentation Methodology Download PDF

1 Market Overview |
1. 1.1 Study Assumptions & Market Definition |
2. 1.2 Scope of the Study |
3. 1.3 Research Methodology
2 Market Summary & Key Takeaways
3 Market Dynamics |
1. 3.1 Market Drivers Analysis | |
  1. 3.1.1 Mandatory Security-by-Design Regulation | |
  2. 3.1.2 OT-IT Network Convergence | |
  3. 3.1.3 AI/ML-Powered Threat Detection | |
  4. 3.1.4 5G & Massive-IoT Device Proliferation | |
  5. 3.1.5 Cyber-Insurance Underwriting Pressure | |
  6. 3.1.6 Smart-City & Critical-Infrastructure Investment | |
  7. 3.1.7 Zero-Trust Architecture Adoption |
2. 3.2 Market Restraints Analysis | |
  1. 3.2.1 Device Fragmentation & Legacy Firmware | |
  2. 3.2.2 Shortage of OT-Security Talent | |
  3. 3.2.3 High Deployment Costs for SMEs | |
  4. 3.2.4 Regulatory Fragmentation Across Jurisdictions | |
  5. 3.2.5 Data-Sovereignty & Cross-Border Restrictions |
3. 3.3 Market Opportunity Analysis | |
  1. 3.3.1 Security-as-a-Service for Mid-Market Manufacturers | |
  2. 3.3.2 AI-Driven Autonomous Response Platforms | |
  3. 3.3.3 Emerging-Market Smart-City Programs | |
  4. 3.3.4 Compliance-Analytics & Certification Monetization | |
  5. 3.3.5 Data-Driven Threat-Intelligence Marketplaces |
4. 3.4 Industry Value Chain Analysis |
5. 3.5 Porter's Five Forces Analysis
4 Global IoT Security Market Size & Forecast (2021–2035) |
1. 4.1 Historical Market Size (2021–2025) |
2. 4.2 Current & Forecast Market Size (2026–2035) |
3. 4.3 Market Size by Revenue (USD Billion) |
4. 4.4 Year-over-Year Growth Analysis
5 Segmentation Analysis |
1. 5.1 By Security Type | |
  1. 5.1.1 Network Security | |
  2. 5.1.2 Endpoint/Devices Security | |
  3. 5.1.3 Application Security | |
  4. 5.1.4 Cloud/Virtual Security |
2. 5.2 By Component | |
  1. 5.2.1 Solutions | |
  2. 5.2.2 Services |
3. 5.3 By End-User Industry | |
  1. 5.3.1 Smart Manufacturing | |
  2. 5.3.2 Connected Healthcare | |
  3. 5.3.3 Automotive and Mobility | |
  4. 5.3.4 Energy and Utilities | |
  5. 5.3.5 Other End Users |
4. 5.4 By Deployment Mode | |
  1. 5.4.1 On-Premise | |
  2. 5.4.2 Cloud/SECaaS | |
  3. 5.4.3 Hybrid Edge
6 Regional Analysis |
1. 6.1 North America | |
  1. 6.1.1 United States | |
  2. 6.1.2 Canada | |
  3. 6.1.3 Mexico |
2. 6.2 Europe | |
  1. 6.2.1 Germany | |
  2. 6.2.2 United Kingdom | |
  3. 6.2.3 France | |
  4. 6.2.4 Italy | |
  5. 6.2.5 Spain | |
  6. 6.2.6 Nordic Countries | |
  7. 6.2.7 Russia | |
  8. 6.2.8 Rest of Europe |
3. 6.3 Asia-Pacific | |
  1. 6.3.1 China | |
  2. 6.3.2 India | |
  3. 6.3.3 Japan | |
  4. 6.3.4 South Korea | |
  5. 6.3.5 ASEAN | |
  6. 6.3.6 Rest of Asia-Pacific |
4. 6.4 South America | |
  1. 6.4.1 Brazil | |
  2. 6.4.2 Argentina | |
  3. 6.4.3 Rest of South America |
5. 6.5 Middle East & Africa | |
  1. 6.5.1 Saudi Arabia | |
  2. 6.5.2 UAE | |
  3. 6.5.3 South Africa | |
  4. 6.5.4 Egypt | |
  5. 6.5.5 Rest of MEA
7 Competitive Landscape |
1. 7.1 Market Share Analysis (2025) |
2. 7.2 Competitive Benchmarking Matrix |
3. 7.3 Company Profiles | |
  1. 7.3.1 Cisco Systems | |
  2. 7.3.2 Palo Alto Networks | |
  3. 7.3.3 Fortinet | |
  4. 7.3.4 Microsoft | |
  5. 7.3.5 IBM | |
  6. 7.3.6 Thales Group | |
  7. 7.3.7 Check Point Software | |
  8. 7.3.8 Armis | |
  9. 7.3.9 CrowdStrike | |
  10. 7.3.10 Claroty
8 Future Outlook & Strategic Recommendations (2026–2035) |
1. 8.1 AI-Autonomous Threat Operations |
2. 8.2 Platform Consolidation & Ecosystem Economics |
3. 8.3 Post-Quantum Migration & Crypto-Agility |
4. 8.4 ESG-Linked Cybersecurity Reporting
9 Recent Developments & News
10 Frequently Asked Questions (FAQs)
11 Report Scope & Methodology |
1. 11.1 Study Period & Base Year |
2. 11.2 Data Sources & Citations |
3. 11.3 Abbreviations
12 LIST OF TABLES |
TABLE 1 Global IoT Security Market Size & Forecast, by Revenue (USD Billion), 2021–2035 |
TABLE 2 Global IoT Security Market — Year-over-Year Growth Analysis, 2021–2035 |
TABLE 3 Global IoT Security Market — Driver Impact Analysis |
TABLE 4 Global IoT Security Market — Restraint Impact Analysis |
TABLE 5 Global IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 6 Global IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 7 Global IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 8 Global IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion) |
TABLE 9 Global IoT Security Market Size, by Region, 2021–2035 (USD Billion) |
TABLE 10 North America IoT Security Market Size, by Country, 2021–2035 (USD Billion) |
TABLE 11 Europe IoT Security Market Size, by Country, 2021–2035 (USD Billion) |
TABLE 12 Asia-Pacific IoT Security Market Size, by Country, 2021–2035 (USD Billion) |
TABLE 13 South America IoT Security Market Size, by Country, 2021–2035 (USD Billion) |
TABLE 14 Middle East & Africa IoT Security Market Size, by Country, 2021–2035 (USD Billion) |
TABLE 15 Competitive Benchmarking Matrix — Global IoT Security Market, 2025 |
TABLE 16 Company Profiles — Key Players, Global IoT Security Market |
TABLE 17 Recent Developments & Strategic Announcements, 2023–2025 |
TABLE 18 Report Scope & Methodology Summary |
TABLE 19 Detailed Sources and Citations |
TABLE 20 North America IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 21 North America IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 22 North America IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 23 North America IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion) |
TABLE 24 Europe IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 25 Europe IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 26 Europe IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 27 Europe IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion) |
TABLE 28 Asia-Pacific IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 29 Asia-Pacific IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 30 Asia-Pacific IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 31 Asia-Pacific IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion) |
TABLE 32 South America IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 33 South America IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 34 South America IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 35 South America IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion) |
TABLE 36 Middle East & Africa IoT Security Market Size, by Security Type, 2021–2035 (USD Billion) |
TABLE 37 Middle East & Africa IoT Security Market Size, by Component, 2021–2035 (USD Billion) |
TABLE 38 Middle East & Africa IoT Security Market Size, by End-User Industry, 2021–2035 (USD Billion) |
TABLE 39 Middle East & Africa IoT Security Market Size, by Deployment Mode, 2021–2035 (USD Billion)
13 LIST OF FIGURES |
FIGURE 1 IoT Security Market Dynamics — Drivers, Restraints & Opportunities |
FIGURE 2 Industry Value Chain Analysis — IoT Security Market |
FIGURE 3 Porter's Five Forces Analysis — IoT Security Market |
FIGURE 4 Global IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 5 IoT Security Market Share, by Security Type, 2025 (%) |
FIGURE 6 IoT Security Market Share, by Component, 2025 (%) |
FIGURE 7 IoT Security Market Share, by End-User Industry, 2025 (%) |
FIGURE 8 IoT Security Market Share, by Deployment Mode, 2025 (%) |
FIGURE 9 IoT Security Market Share, by Region, 2025 (%) |
FIGURE 10 North America IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 11 Europe IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 12 Asia-Pacific IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 13 South America IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 14 Middle East & Africa IoT Security Market Size Trend (USD Billion), 2021–2035 |
FIGURE 15 Competitive Landscape — Market Share Analysis, 2025 |
FIGURE 16 Competitive Positioning Matrix — IoT Security Market, 2025

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SEGMENTATION QUICK REFERENCE

Dimension	Sub-Segments	Dominant Segment	Fastest Growing Segment
Security Type	Network Security, Endpoint/Devices Security, Application Security, Cloud/Virtual Security	Network Security	Cloud/Virtual Security
Component	Solutions, Services	Solutions	Services
End-User Industry	Smart Manufacturing, Connected Healthcare, Automotive and Mobility, Energy and Utilities, Other End Users	Smart Manufacturing	Energy and Utilities
Deployment Mode	On-Premise, Cloud/SECaaS, Hybrid Edge	Cloud/SECaaS	Hybrid Edge
Geography	North America, Europe, Asia-Pacific, South America, Middle East & Africa	North America	Asia-Pacific

MARKET SEGMENTATION OVERVIEW

By Security Type

Sub-Segment	Key Trend
Network Security	Deep-packet inspection expanding to OT-native industrial protocols
Endpoint/Devices Security	Lightweight agents and firmware attestation for resource-constrained devices
Application Security	API security and runtime application self-protection for IoT microservices
Cloud/Virtual Security	Multi-tenant cloud-native access brokers and workload protection platforms

Network Security leads the IoT Security Market by revenue share, driven by enterprises prioritizing traffic inspection and lateral-movement containment at the network perimeter. Cloud/Virtual Security is the fastest-growing sub-segment as organizations migrate device-management planes to hyperscaler environments, seeking elastic scalability and centralized policy enforcement.

By Component

Sub-Segment	Key Trend
Solutions	Consolidation into unified XDR platforms spanning IT, OT, and IoT telemetry
Services	Managed-detection-and-response contracts and compliance-advisory engagements

Solutions account for the majority of revenue in the IoT Security Market, though the Services segment is outpacing it in growth as enterprises outsource 24/7 monitoring, vulnerability assessments, and regulatory-certification support to specialist providers.

By End-User Industry

Sub-Segment	Key Trend
Smart Manufacturing	ICS/SCADA segmentation and real-time anomaly detection on production lines
Connected Healthcare	Medical-device security aligned to HIPAA and FDA premarket cyber guidance
Automotive and Mobility	V2X communication security and in-vehicle network intrusion detection
Energy and Utilities	Grid-edge device protection and NERC CIP compliance automation
Other End Users	Retail point-of-sale, smart-building BMS, and logistics-fleet monitoring

Smart Manufacturing holds the largest share of end-user spending in the IoT Security Market, reflecting the high cost of operational downtime and regulatory pressure on industrial-control-system environments. Energy and Utilities is the fastest-growing vertical, propelled by distributed energy resource deployment and grid-modernization programs.

By Deployment Mode

Sub-Segment	Key Trend
On-Premise	Retained by data-sovereignty-sensitive industries and ultra-low-latency use cases
Cloud/SECaaS	OpEx-friendly consumption model with automatic policy and signature updates
Hybrid Edge	Edge-compute inspection paired with cloud-based analytics for fleet-wide correlation

Cloud/SECaaS dominates the IoT Security Market deployment landscape, offering scalability and reduced management overhead. Hybrid Edge is the fastest-growing mode, reflecting industrial and healthcare demand for localized threat response combined with centralized intelligence aggregation.

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