The embedded security for IoT market will hit $18.3bn by 2033 driven by 5G, edge AI and connected device adoption, according to SNS Insider.

The market is expanding steadily as rising industrial IoT, connected vehicles and 5G-enabled platforms increase the need for secure device-level protection, with the US market projected to grow from $1.73bn in 2025 to $3.64bn by 2033.

The global market was valued at $7.63bn in 2025 and is projected to reach $18.3bn by 2033, representing a CAGR of 11.56%.

As businesses progressively integrate connected devices throughout the industrial, automotive and commercial sectors, the market for embedded security for IoT is expanding. The growth is driven by the increasing adoption of connected devices across industrial, automotive and smart home sectors, coupled with rising cyber-security threats targeting IoT networks.

Controller chips remain the dominant component segment holding a market share of 51.25% in 2025 due to their essential role in securing IoT devices, enabling data processing and managing communications across connected systems. Controller chips also emerge as the fastest-growing segment at a CAGR of 13.46%, driven by rising demand for advanced, high-performance and secure IoT options across industries.

Hardware security remains the dominant technology segment holding a share of 29.38% in 2025, driven by its critical role in protecting IoT devices against cyber threats and ensuring secure communication. Identity and access management emerges as the fastest-growing segment at a CAGR of 14.56%, fuelled by increasing adoption of cloud-based, scalable and AI-enabled authentication.

Smart factories and networking equipment held the largest application market share of 24.63% in 2025 due to extensive industrial IoT deployment and critical infrastructure networking. Connected car applications are the fastest-growing segment at a CAGR of 14.56%, supported by rapid adoption of autonomous, connected and AI-driven vehicles requiring advanced embedded security.

Automotive remains the dominant end-user segment holding a share of 25.38%, driven by connected, electric and autonomous vehicle deployments. It is also the fastest-growing end-user segment at a CAGR of 13.4%, fuelled by increasing regulatory requirements, cyber-security needs and adoption of smart vehicle technologies across global markets.

The North America region dominates the embedded security for IoT market, holding the largest share in 2025 due to technological infrastructure, strong industrial IoT adoption and extensive investments in cyber security.

Asia Pacific is the fastest-growing region, experiencing rapid expansion from 2026 to 2033. Growth is fuelled by increasing IoT adoption, industrial automation, smart city initiatives, rising investments in connected devices and expanding digital infrastructure across countries such as China, India, Japan and South Korea.

The increasing demand for automated, high-coverage testing frameworks that guarantee device security, dependability and regulatory compliance is driving the market. Traditional manual testing is no longer sufficient to handle firmware updates, heterogeneous hardware and changing threat environments as IoT deployments spread into smart homes, industrial automation and linked devices.

By enabling methodical validation of device behaviour, security procedures and interactions with cloud and mobile applications, model-based testing lowers operational risks and vulnerabilities. This encourages the use of strong embedded security, which enable businesses to protect confidential information, uphold legal requirements and improve operational effectiveness throughout extensive IoT ecosystems.

For more on the report, go to www.snsinsider.com/reports/embedded-security-for-iot-market-9279.