The IoT security market will grow from $28.7bn in 2025 to $80.3bn by 2031 at a CAGR of 18.7%, according to Markets & Markets.

The increasing deployment of connected devices across industrial, enterprise and consumer environments is expanding the cyber-attack surface. As IoT ecosystems grow in scale and complexity, threats such as botnet attacks, unauthorised device access, firmware exploitation and data interception are driving organisations to adopt security frameworks.

Enterprises are increasingly shifting towards device-centric and lifecycle-based security strategies that protect devices from onboarding to updates and decommissioning. The rise of remote operations, edge computing and cloud-connected platforms is also accelerating the adoption of zero-trust architectures. Modern platforms now incorporate AI-driven threat detection, device behaviour monitoring and automated response capabilities, helping organisations secure connected ecosystems, protect data and maintain operational continuity.

Key players include Microsoft (USA), Fortinet (USA), AWS (USA), IBM (USA), Intel (USA), Cisco (USA), Thales (France), Infineon (Germany), Allot (Israel), Atos (France), Checkpoint (USA), Palo Alto Networks (USA), Mobileum (USA), Entrust (USA), NXP (Netherlands) and Kaspersky (Switzerland)

The increasing complexity of IoT ecosystems and the growing number of connected devices are driving demand for specialised security services. Organisations often lack the in-house expertise required to manage device security, monitor threats and respond to vulnerabilities across large IoT deployments. As a result, services such as security consulting, risk assessment, integration and managed security services are gaining significant traction. These services help organisations design secure IoT architectures, ensure continuous monitoring, manage device vulnerabilities and maintain regulatory compliance across connected environments.

Data encryption and tokenisation play a critical role in securing sensitive information generated and transmitted by IoT devices. As connected devices continuously exchange operational and personal data across networks and cloud platforms, organisations are prioritising strong encryption and data protection mechanisms. These help ensure secure communication, prevent data breaches, maintain privacy and support regulatory compliance across large-scale IoT ecosystems.

North America is expected to lead the IoT security market due to early adoption of digital technologies, widespread deployment of connected devices and strong cyber-security regulatory frameworks. Industries across manufacturing, healthcare, transportation, energy and smart infrastructure are rapidly implementing IoT technologies to improve operational efficiency and enable data-driven decision-making.

The region benefits from the presence of major IoT technology providers, strong innovation ecosystems and high investments in cloud computing, edge computing and industrial automation. Additionally, rising concerns around cyber attacks targeting connected devices and critical infrastructure are driving organisations to deploy IoT security platforms that provide comprehensive protection across devices, networks and cloud environments.

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