Internet of Things (IoT) Security Market Size, Share, Growth, and Industry Analysis, By Type (Network Security, Endpoint Security, Application Security), By Application (Building and Home Automation, Supply Chain Management, Customer Information Security), and Regional Forecast from 2026 to 2035

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INTERNET OF THINGS (IOT) SECURITY MARKET OVERVIEW

In 2026, the global Internet of Things (IoT) Security Market is estimated at USD 3.63 Billion. With consistent expansion, the market is projected to attain USD 19.46 Billion by 2035. The market is forecast to grow at a CAGR of 20.3% over the period from 2026 to 2035.

The Internet of Things (IoT) Security Market is expanding rapidly as organizations deploy connected devices across manufacturing, healthcare, transportation, energy, and smart infrastructure. More than 19 billion IoT devices are active worldwide, creating a significant need for device authentication, network protection, and endpoint monitoring. Approximately 61% of enterprises identify IoT security as a top cybersecurity priority, while nearly 58% of industrial organizations have increased spending on connected device protection. The growing integration of artificial intelligence, edge computing, and cloud-connected sensors continues strengthening demand for advanced IoT security platforms capable of protecting complex digital ecosystems from evolving cyber threats.

The United States remains one of the largest adopters of IoT security technologies because of widespread implementation across healthcare, industrial automation, smart buildings, and critical infrastructure. More than 72% of large U.S. enterprises utilize IoT-enabled operational systems, while approximately 67% have implemented dedicated IoT cybersecurity policies. Around 63% of utility companies have deployed secure smart grid monitoring systems, and nearly 59% of healthcare providers use connected medical devices requiring continuous cybersecurity protection. Federal cybersecurity initiatives, expanding smart city projects, and increasing enterprise investment continue accelerating IoT security adoption throughout the U.S. market.

KEY FINDINGS

LATEST TRENDS

Increasing Adoption of Connected Devices Across Various Sectors to Drive Market Growth

The Internet of Things (IoT) Security Market is witnessing rapid technological transformation as organizations strengthen protection across connected ecosystems. Artificial intelligence has become a core capability within IoT security platforms, enabling automated threat detection, anomaly monitoring, and predictive risk analysis. Approximately 57% of enterprise security teams now utilize AI-assisted monitoring for connected devices, while nearly 46% have implemented zero-trust frameworks specifically designed for IoT infrastructure. Cloud-native security solutions continue gaining popularity because enterprises increasingly manage geographically distributed connected assets through centralized monitoring platforms. Device identity management, encrypted communication protocols, and secure firmware updates have become standard features across modern IoT deployments.

Industrial IoT security is another important trend as manufacturers continue expanding connected production facilities and smart factories. Around 52% of industrial organizations have deployed continuous device monitoring systems, while approximately 43% have introduced automated vulnerability management for operational technology environments. Healthcare providers are strengthening cybersecurity for connected medical equipment, and utility companies continue expanding secure smart grid deployments. Edge computing security, secure boot technology, hardware-based encryption, and blockchain-enabled device authentication are becoming increasingly common as organizations prioritize protection against ransomware, unauthorized access, and sophisticated cyberattacks targeting connected infrastructure.

• According to the National Institute of Standards and Technology (NIST) U.S. government source, the catalogue of IoT device cybersecurity requirements identifies 7 core technical capabilities for IoT devices and supporting functions.

• According to a UK government survey of consumer IoT device usage, 57% of UK households reported an increase in use of smart devices since March 2020.

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INTERNET OF THINGS (IOT) SECURITY MARKET SEGMENTATION

The Internet of Things (IoT) Security Market is segmented by security type and application to address diverse cybersecurity requirements across connected ecosystems. Network security remains the largest segment because it protects communication between millions of connected devices and enterprise infrastructure, accounting for approximately 37% of deployment activity. Endpoint security follows with nearly 29% as organizations expand connected sensors, industrial controllers, and smart equipment. By application, building and home automation, healthcare information management, energy utilities, supply chain management, and customer information security represent the primary deployment areas. Approximately 64% of enterprises now implement multi-layered IoT cybersecurity strategies combining cloud security, endpoint monitoring, and network protection to reduce operational cyber risks while supporting secure digital transformation initiatives.

By Type

Based on Type, the global market can be categorized into network security, endpoint security, application security,Cloud Security.

• Network Security: Network security represents the largest segment of the Internet of Things (IoT) Security Market, accounting for approximately 37% of overall demand. The segment protects communication channels between connected devices, gateways, cloud platforms, and enterprise networks through firewalls, intrusion detection systems, virtual private networks, and encrypted communication protocols. Around 64% of industrial IoT deployments rely on secure network segmentation to isolate critical operational assets from public networks, while nearly 52% of enterprises have upgraded network monitoring systems to detect abnormal traffic patterns in real time. The expansion of smart factories, connected transportation systems, and intelligent utility infrastructure continues increasing demand for scalable network security platforms. Organizations are also integrating AI-driven traffic analytics and zero-trust network access to minimize cyber risks while supporting secure data exchange across millions of connected endpoints.

• Endpoint Security: Endpoint security accounts for nearly 29% of the Internet of Things (IoT) Security Market due to the rapid increase in connected sensors, cameras, industrial controllers, and smart consumer devices. Approximately 61% of organizations prioritize endpoint authentication to prevent unauthorized device access, while around 46% have implemented automated firmware verification for connected equipment. Modern endpoint security solutions include device identity management, secure boot technology, malware detection, and remote patch management to improve operational resilience. Industrial automation, connected healthcare equipment, and smart retail systems continue expanding the need for endpoint protection. Vendors are increasingly embedding hardware-based encryption and AI-assisted behavioral monitoring into IoT devices, helping organizations reduce vulnerabilities while maintaining secure and uninterrupted device operations.

• Application Security: Application security contributes approximately 19% of the market as enterprises increasingly protect software applications running across connected IoT ecosystems. Around 58% of organizations perform regular application vulnerability assessments before deploying connected solutions, while nearly 43% have implemented secure software development practices for IoT applications. The segment focuses on protecting mobile applications, cloud dashboards, industrial control software, and web interfaces against cyber threats such as unauthorized access, malicious code, and API attacks. Continuous software updates, code integrity verification, and runtime application monitoring are becoming standard practices. Increasing adoption of smart healthcare platforms, connected logistics systems, and intelligent manufacturing software continues supporting strong demand for application-level cybersecurity solutions.

• Cloud Security: Cloud security represents approximately 15% of the Internet of Things (IoT) Security Market as enterprises increasingly manage connected devices through cloud-based platforms. Nearly 63% of organizations utilize cloud environments for centralized IoT device management, while about 48% have adopted cloud-native security monitoring for real-time visibility across distributed networks. Cloud security solutions protect sensitive operational data through encryption, identity and access management, threat intelligence, and compliance monitoring. Growing adoption of multi-cloud environments and edge computing has further increased the need for secure cloud architectures capable of handling billions of connected data transactions. Continuous innovation in AI-powered cloud monitoring and automated incident response is strengthening this market segment across industrial and commercial applications.

By Application

Based on application, the global market can be categorized into Building and Home Automation,Supply Chain Management,Patient Information Management,Energy and Utilities Management,Customer Information Security,Others.

• Building and Home Automation: Building and home automation accounts for approximately 24% of the Internet of Things (IoT) Security Market as residential and commercial buildings increasingly deploy connected lighting, HVAC systems, surveillance cameras, access control, and smart appliances. Around 57% of newly installed smart building systems now incorporate encrypted communication protocols, while nearly 45% utilize centralized cybersecurity monitoring platforms. Secure identity verification, firmware management, and network segmentation are becoming standard security practices for intelligent buildings. Growing smart city projects and expanding residential automation continue driving investments in IoT security solutions designed to protect connected infrastructure against unauthorized access and cyberattacks.

• Supply Chain Management: Supply chain management represents nearly 17% of market demand because logistics companies increasingly depend on connected tracking devices, warehouse automation, fleet monitoring, and intelligent inventory systems. Approximately 54% of logistics providers have strengthened IoT cybersecurity controls for connected assets, while around 42% utilize real-time monitoring platforms to secure transportation data. Advanced authentication systems, encrypted communications, and cloud-based monitoring help reduce operational risks across global supply chains. As international trade continues becoming more digitized, organizations increasingly prioritize secure IoT infrastructure to ensure uninterrupted logistics operations and protect sensitive shipment information.

• Patient Information Management: Patient information management contributes approximately 16% of the Internet of Things (IoT) Security Market due to widespread deployment of connected healthcare devices, wearable monitors, and remote patient monitoring systems. Around 66% of hospitals have implemented secure medical device authentication, while nearly 51% utilize encrypted healthcare data transmission for connected clinical systems. IoT security platforms protect confidential patient records, connected diagnostic equipment, and hospital networks against cyber threats. The increasing adoption of telemedicine, smart medical devices, and digital healthcare infrastructure continues creating strong demand for advanced cybersecurity solutions throughout healthcare organizations.

• Energy and Utilities Management: Energy and utilities management accounts for nearly 18% of the market as utility providers deploy connected smart meters, grid automation systems, renewable energy monitoring platforms, and industrial control equipment. Approximately 62% of utility companies have implemented secure operational technology monitoring, while around 47% utilize automated threat detection for critical infrastructure. Strong cybersecurity practices help protect electricity distribution networks, water management systems, and renewable energy assets from cyberattacks. Expanding digital transformation initiatives across energy infrastructure continue increasing investments in specialized IoT security technologies.

• Customer Information Security: Customer information security represents approximately 15% of the Internet of Things (IoT) Security Market because organizations increasingly collect customer data through connected retail systems, smart devices, and digital service platforms. Around 59% of enterprises have enhanced identity management capabilities to protect customer information, while nearly 44% utilize AI-powered fraud detection for connected applications. Secure authentication, encrypted communications, and access control systems help organizations maintain customer trust while complying with evolving privacy regulations. Growing adoption of personalized digital services continues expanding the importance of this application segment.

• Others (Manufacturing, Healthcare, Transportation, Agriculture, and Smart Cities): The remaining application segment contributes approximately 10% of the Internet of Things (IoT) Security Market through manufacturing automation, intelligent transportation, connected agriculture, environmental monitoring, and smart city infrastructure. Approximately 56% of industrial organizations have implemented connected asset monitoring with integrated cybersecurity controls, while nearly 41% utilize predictive threat analytics across operational environments. Governments and enterprises continue investing in secure connected infrastructure to improve operational efficiency while protecting public services, industrial facilities, and critical assets from increasingly sophisticated cyber threats.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.     

Driving Factor

Rapid expansion of connected devices across industries

The growing deployment of connected devices across manufacturing, healthcare, transportation, retail, and smart infrastructure remains the strongest growth driver for the Internet of Things (IoT) Security Market. More than 19 billion connected devices are currently operating worldwide, creating expanding cybersecurity requirements across enterprise environments. Approximately 68% of organizations have increased investments in IoT device security following higher cyber risk exposure, while nearly 55% report continuous expansion of connected operational technology networks. Increasing implementation of Industry 4.0, smart manufacturing, autonomous systems, and intelligent energy management further increases demand for secure communication protocols, endpoint monitoring, and identity management solutions capable of protecting large-scale IoT deployments against evolving cyber threats.

• According to the UK government’s manufacturer survey on IoT security, 64% of surveyed consumers reported owning a smart TV and 11% reported owning a smart speaker — reflecting rising connected-device adoption and hence greater security demand.

• According to the Internet of Things Security Foundation (IoTSF) association source, manufacturers under its survey improved vulnerability disclosure rates from 9.7% in 2018 to 18.9% in 2020.

Restraining Factor

Complexity of securing heterogeneous IoT environments

The diversity of IoT devices, operating systems, communication standards, and legacy infrastructure creates significant deployment challenges for cybersecurity providers. Approximately 49% of enterprises experience compatibility issues when integrating security platforms across multiple device manufacturers, while nearly 38% report delayed implementation due to outdated connected equipment. Limited computing resources within many IoT devices also restrict deployment of advanced security software. Organizations managing thousands of connected assets must balance operational efficiency with continuous monitoring, software updates, and compliance requirements, making large-scale IoT security implementation increasingly complex across industrial and commercial environments.

• According to a study analysing IoT device protocols, 99.84% of MQTT- and XMPP-speaking IoT back-ends did not use TLS encryption, showing widespread insecure communications in IoT deployments.

• According to the Victorian public sector guidance (Australia) on IoT and privacy, wearable and home IoT devices frequently collect biometric and personal preference data, which raises complex data-protection issues and can restrain deployment due to regulatory/privacy concerns.

Expansion of AI-driven cybersecurity and edge computing

Opportunity

Artificial intelligence, machine learning, and edge computing create substantial opportunities for next-generation IoT security platforms. Approximately 58% of enterprises plan to integrate AI-assisted threat detection into connected environments, while nearly 45% are expanding edge-based cybersecurity capabilities to reduce response time. The rapid adoption of 5G-enabled IoT networks, connected healthcare devices, autonomous transportation systems, and industrial automation continues generating demand for intelligent security solutions capable of real-time anomaly detection. Cloud-based security orchestration, automated patch management, behavioral analytics, and hardware-level encryption further expand commercial opportunities across global enterprise markets.

• According to NIST guidance (SP 800-213A) the IoT device cybersecurity requirement catalogue covers both technical capabilities and non-technical supporting capabilities, thereby opening new service-and-support opportunities for manufacturers and integrators.

• According to the UK government “Consumer Survey on App Stores, Internet of Things and Connected Places”, 71% of respondents reported a higher level of awareness of IoT device security after experiencing a device-security issue.

Rising sophistication of cyberattacks targeting IoT devices

Challenge

Cybercriminals increasingly target connected devices because of inconsistent security configurations and expanding digital infrastructure. Approximately 53% of organizations identify ransomware and botnet attacks as primary IoT security concerns, while nearly 41% report attempted attacks against connected operational technology systems. Many enterprises continue operating legacy devices without modern encryption or automated firmware updates, increasing overall cyber risk. Rapid device proliferation, expanding attack surfaces, regulatory compliance requirements, and shortages of experienced cybersecurity professionals collectively challenge organizations attempting to maintain comprehensive protection across large IoT ecosystems.

• According to the IoT Vulnerabilities & Risk Mitigation overview (association/industry) more than 50% of IoT devices are reported to have critical vulnerabilities that hackers could exploit.

• According to the real-world backend deployment study for IoT protocols, 30.38% of CoAP-speaking back-ends were vulnerable to Denial-of-Service attacks.

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INTERNET OF THINGS (IOT) SECURITY MARKET REGIONAL INSIGHTS

The Internet of Things (IoT) Security Market demonstrates strong regional variation based on digital infrastructure, connected device adoption, industrial automation, and cybersecurity investments. Asia-Pacific leads global connected device deployment with approximately 41% of the market, while North America accounts for nearly 29% because of advanced enterprise cybersecurity adoption. Europe maintains approximately 23% supported by strict regulatory compliance and industrial digitization. The Middle East & Africa contributes nearly 7%, driven by expanding smart city projects, digital government initiatives, and increasing cybersecurity investments across critical infrastructure, healthcare, utilities, manufacturing, and transportation sectors.

• North America

North America accounts for approximately 29% of the Internet of Things (IoT) Security Market owing to widespread deployment of connected technologies across manufacturing, healthcare, energy, financial services, and government agencies. Around 72% of large enterprises across the region have adopted comprehensive IoT cybersecurity frameworks, while nearly 61% utilize zero-trust security architectures to protect connected operational environments. The United States leads regional adoption because organizations continue expanding Industry 4.0 initiatives, smart healthcare systems, connected logistics, and intelligent utility infrastructure. Industrial manufacturers increasingly implement AI-assisted cybersecurity monitoring, automated threat intelligence, and secure edge computing solutions to protect operational technology. Healthcare providers continue strengthening cybersecurity for connected medical equipment and patient monitoring systems. Strong cybersecurity regulations, continuous investment in cloud security, and advanced digital infrastructure further support long-term market expansion throughout North America.

• Europe

Europe represents approximately 23% of the global Internet of Things (IoT) Security Market due to increasing implementation of connected manufacturing, smart transportation, digital healthcare, and energy management systems. Approximately 65% of industrial organizations have deployed secure IoT monitoring platforms, while nearly 49% continue strengthening cybersecurity compliance through advanced encryption and identity management solutions. Countries including Germany, France, the United Kingdom, Italy, and the Netherlands remain major adopters of industrial IoT security technologies. Manufacturers increasingly deploy secure industrial automation, predictive maintenance systems, and cloud-connected production equipment. Strict cybersecurity regulations and growing investment in digital infrastructure continue encouraging enterprises to strengthen endpoint protection, network security, and cloud-based monitoring across connected environments.

• Asia-Pacific

Asia-Pacific leads the Internet of Things (IoT) Security Market with approximately 41% of global deployment owing to rapid industrialization, expanding smart cities, increasing connected manufacturing, and large-scale digital transformation initiatives. Around 68% of newly deployed industrial IoT devices across the region incorporate embedded cybersecurity capabilities, while approximately 54% of enterprises utilize centralized cloud-based IoT security platforms. China, Japan, South Korea, India, and Singapore continue investing heavily in industrial automation, intelligent transportation, connected healthcare, and renewable energy infrastructure. Government-supported digital economy programs and expanding 5G connectivity further accelerate IoT deployment. Rising cybersecurity awareness, growing enterprise cloud adoption, and increasing smart infrastructure projects continue strengthening regional demand for advanced IoT security technologies.

• Middle East & Africa

The Middle East & Africa accounts for approximately 7% of the Internet of Things (IoT) Security Market as governments and private enterprises expand digital transformation across utilities, transportation, healthcare, and public infrastructure. Around 52% of smart city initiatives within the region now include integrated IoT cybersecurity platforms, while nearly 38% of utility providers have strengthened operational technology security through advanced monitoring systems. Countries across the Gulf region continue investing in connected infrastructure, intelligent transportation systems, and digital public services. African economies are gradually expanding industrial automation, mobile connectivity, and smart agriculture initiatives requiring secure connected ecosystems. Increasing cybersecurity awareness, national digital transformation programs, and modernization of critical infrastructure continue creating new opportunities for IoT security vendors throughout the region.

KEY INDUSTRY PLAYERS

The Internet of Things (IoT) Security Market remains highly competitive, with global cybersecurity companies investing heavily in artificial intelligence, cloud security, endpoint protection, threat intelligence, and zero-trust architectures. Leading vendors continue expanding integrated platforms capable of securing connected devices, industrial control systems, cloud environments, and enterprise networks through centralized monitoring and automated response capabilities. Strategic partnerships with cloud service providers, telecom operators, and industrial automation companies continue strengthening market competitiveness. Companies are also investing in hardware-based encryption, secure device identity management, and AI-powered threat analytics to address increasingly sophisticated cyber threats. Continuous innovation, acquisitions, research investments, and global service expansion remain essential competitive strategies.

List of Top Internet Of Things (Iot) Security Companies

• Cisco Systems
• Intel Corporation
• IBM Corporation
• Symantec Corporation
• Trend Micro
• DigiCert
• Infineon Technologies
• ARM Holdings
• Gemalto NV
• Kaspersky Lab
• Check Point Software Technologies
• Sophos Plc
• Advantech
• Verizon Enterprise Solutions
• Trustwave
• INSIDE Secure SA

List of Top Two Companies with Highest Market Share

• Cisco Systems: Cisco Systems holds approximately 12% of the global Internet of Things (IoT) Security Market. The company maintains its leadership through integrated network security, secure access service edge (SASE), zero-trust architecture, industrial IoT protection, and AI-powered threat intelligence. Its broad enterprise customer base and extensive cybersecurity portfolio support strong adoption across manufacturing, healthcare, telecommunications, and critical infrastructure.

• IBM Corporation: IBM Corporation accounts for approximately 10% of the global Internet of Things (IoT) Security Market. IBM's leadership is supported by AI-driven security analytics, cloud security platforms, managed detection and response services, and enterprise threat intelligence. The company continues expanding its cybersecurity ecosystem through automation, hybrid cloud integration, and advanced security operations center solutions serving large enterprises worldwide.

Investment Analysis and Opportunities

Investment activity within the Internet of Things (IoT) Security Market continues expanding as governments and enterprises strengthen protection for connected infrastructure. Approximately 64% of enterprise cybersecurity budgets now include dedicated funding for IoT security initiatives, while nearly 49% of industrial organizations have increased investments in operational technology cybersecurity. Manufacturing, healthcare, transportation, utilities, and financial services remain among the most active investment sectors due to rapid deployment of connected devices and digital transformation programs. Organizations are allocating additional resources toward AI-powered threat detection, cloud-native security platforms, secure edge computing, and automated incident response capabilities.

Cloud service providers, semiconductor manufacturers, telecommunications companies, and cybersecurity vendors continue forming strategic partnerships to develop integrated IoT protection platforms. Around 46% of new cybersecurity investments focus on zero-trust architecture and identity management for connected devices, while approximately 38% target hardware-based encryption and secure device authentication technologies. Smart city projects, 5G network expansion, industrial automation, and connected healthcare systems continue creating long-term opportunities for cybersecurity solution providers. Venture capital investment in cybersecurity startups specializing in IoT analytics, behavioral monitoring, and AI-assisted threat intelligence also continues supporting innovation across global markets.

New Product Development

Product innovation remains one of the strongest competitive strategies within the Internet of Things (IoT) Security Market. Approximately 57% of newly introduced IoT security platforms integrate artificial intelligence for automated threat detection, while nearly 45% include behavioral analytics capable of identifying abnormal device activity in real time. Vendors continue enhancing cloud-native security management, endpoint visibility, secure firmware updates, and centralized policy administration to simplify protection across large connected ecosystems. The growing adoption of edge computing has also encouraged development of lightweight security solutions capable of protecting devices with limited processing capacity.

Manufacturers are introducing advanced identity management platforms supporting device authentication throughout the entire operational lifecycle. Around 41% of newly launched cybersecurity products now include automated vulnerability assessment capabilities, while approximately 36% incorporate secure software update mechanisms designed to minimize operational disruption. Companies are also expanding hardware-based encryption, blockchain-enabled device identity verification, AI-assisted threat intelligence, and quantum-resistant cryptographic technologies. Continuous innovation in industrial IoT, connected healthcare, autonomous transportation, and smart utility infrastructure continues accelerating demand for highly scalable cybersecurity platforms capable of protecting billions of connected devices worldwide.

Five Recent Developments (2023-2025)

• February 2025: DigiCert expanded its IoT device identity management portfolio by introducing enhanced certificate lifecycle automation, reducing manual certificate administration by approximately 27% while strengthening connected device authentication.
• June 2025: Cisco Systems enhanced its Industrial IoT Security platform with AI-powered network anomaly detection and automated policy enforcement, improving real-time threat visibility across industrial operational technology environments.
• September 2025: IBM Corporation upgraded its QRadar security platform with advanced AI-driven IoT threat intelligence and automated response capabilities, accelerating incident investigation and strengthening enterprise cyber resilience.
• January 2026: Trend Micro introduced next-generation IoT security solutions featuring predictive behavioral analytics and expanded edge device protection, improving threat detection accuracy and reducing security response times for connected ecosystems.
• April 2026: Check Point Software Technologies expanded its zero-trust IoT security portfolio with enhanced device identity verification and AI-assisted risk assessment, helping organizations strengthen protection for large-scale connected device deployments.

Report Coverage of Internet of Things (IoT) Security Market

The Internet of Things (IoT) Security Market report provides detailed analysis of the global industry by evaluating market structure, technological advancements, deployment trends, security architecture, application sectors, and regional developments. The report examines security solutions covering network security, endpoint security, application security, and cloud security while assessing their implementation across manufacturing, healthcare, utilities, transportation, retail, and government sectors. Approximately 68% of enterprise organizations now prioritize integrated cybersecurity strategies for connected environments, while nearly 53% continue strengthening operational technology security to address increasingly sophisticated cyber threats.

The report also evaluates competitive positioning of leading cybersecurity providers, recent product launches, strategic partnerships, technological innovation, and investment activities influencing market development. Regional analysis highlights adoption patterns across North America, Europe, Asia-Pacific, and the Middle East & Africa by examining industrial automation, connected infrastructure, regulatory frameworks, and enterprise cybersecurity maturity.

Approximately 44% of new enterprise cybersecurity deployments now incorporate AI-assisted threat intelligence, while nearly 39% include automated response capabilities for connected devices. The study further analyzes future opportunities associated with 5G connectivity, edge computing, cloud-native security, zero-trust architecture, digital transformation, and expanding deployment of intelligent connected ecosystems across multiple industries.