NEW YORK, June 26, 2017 /PRNewswire/ -- Highlights
· The global market for Internet of Things (IoT) security solutions reached nearly $3.7 billion in 2016, and it is expected to grow at a compound annual growth rate (CAGR) of 25.6% over the next five years to reach a market size of more than $11.4 billion by 2021.
· The era of the Internet of Things (IoT) has arrived, and it brings with it numerous opportunities and challenges for various IoT market players.
· Security of IoT systems has become one of the biggest challenges, and it is even threatening a global slowdown in the adoption of IoT.
· With the exponential growth in connected devices, security of these IoT devices and their data has become an urgent and concerning issue for the IoT industry.
· This report provides an overview of the most recent developments in the IoT industry, along with a basis for expectation of its growth over the next five years.
- The global market for Internet of Things (IoT) security solutions reached nearly $3.7 billion in 2016, and it is expected to grow at a compound annual growth rate (CAGR) of 25.6% over the next five years to reach a market size of more than $11.4 billion by 2021.
- Hardware-based solutions as a segment reached $2.8 billion in 2016 and should reach $8.1 billion by 2021, with a CAGR of 23.4%.
- Software-based solutions as a segment reached $825 million in 2016 and $3.3 billion by 2021, with a CAGR of 32.0%.
The era of the Internet of Things (IoT) has arrived, and it brings with it numerous opportunities and challenges for various IoT market players. Security of IoT systems has become one of the biggest challenges, and it is even threatening a global slowdown in the adoption of IoT.
With the exponential growth in connected devices, security of these IoT devices and their data has become an urgent and concerning issue for the IoT industry. This report therefore addresses the key issues faced by the IoT industry from a security standpoint, as well as the technology used to secure IoT device data and an analysis of the different market players that provide these IoT security solutions.
Based on the need for different types of solutions across the different layers in an IoT system, this market has been broadly segmented into:
- Device layer security (providing hardware based root of trust, identification, authentication and encryption).
- Security for data across the connectivity layer (secure wireless connectivity and IoT gateways).
- Security of data across the application and cloud layers.
- Real-time threat management solutions that provide the extra layer of security.
- End-to-end security platforms that weave all the different solutions into a single platform solution.
Study Goals and Objectives
This report provides an overview of the most recent developments in the IoT industry, along with a basis for expectation of its growth over the next five years.
IoT security solutions provide a set of security features developed to meet the unique security needs of a large network of low-cost, resource-constrained embedded IoT devices. Therefore, this report will focus on hardware- and software-based IoT-specific security solutions that address these needs.
Market estimates are based on revenues generated by the sale of these solutions to the original equipment manufacturers (OEMs), which integrate these solutions into their IoT devices, IoT platform developers, network connectivity operators, cloud platforms and system integrators as consumers of the solution despite the fact that the solutions maybe further deployed after value addition. The report covers revenues reported from the actual deployment and sale of the software and hardware solutions and excludes services to integrate the solutions.
This report will analyze IoT security solution technologies and the markets they serve. Analysis provided in this report will address:
- The key market players in the IoT security solutions market, their 2016 revenue trends from these solutions and their estimated market shares. An analysis of the top 10 market players, as well as the top vendors by different solution subsegments is also included.
- A short discussion of the various market solutions and the different security features is included to give an understanding of how security technologies are provided through these solutions.
- The market has been segmented by solutions to secure data at the device layer and data being transported across the connectivity networks, application and the cloud, as well as threat detection and IoT security platforms.
- An analysis of security features for top IoT platforms by type is included to provide an understanding of the ways security solutions support IoT platforms.
- An overview of the trends in regional adoption of these solutions and pointers toward growth markets until 2021 is included.
- The application of these solutions in vertical industries such as the healthcare, automotive, smart homes, smart energy, and the manufacturing and industrial sectors is discussed, with an overview of some solutions that provide IoT security for these verticals.
Reasons for Doing This Study
The IoT security solutions market is a nascent market, but it shows great promise as a game changer in the connected IoT world. Businesses are exploring the various facets of certain IoT security solutions and methods for securing their data assets, so it is prudent to understand the market for IoT security solutions, as well the different data security technologies shaping present and future solutions.
It is crucial for the solution provider to gain a holistic view of the overall market conditions, insights into competition, growth markets and technology developments. This report provides some good insights and perspectives from industry experts and market players that will help to provide a better understanding of the market and its technologies. This report aims to provide a holistic understanding of the different facets of the IoT security solutions market and gauge the market potential for these solutions today and in the next five years.
This study provides an understanding of forces driving the IoT security solutions market and their evolution over the forecast period from 2017 through 2021. This study will also address who, how and what will impact the growth of this market segment and next opportunities for market growth.
Scope of Report
This report analyzes the market for commercialized IoT security solutions. It helps readers to understand how the IoT security solutions market will evolve, as well as the trends that will impact its adoption. The report focuses on security solutions that have been developed or customized to meet the unique needs of IoT systems. Services provided for integrating such solutions or managed security services are not included in the scope of this report.
This BCC Research study was conducted with a global perspective in terms of the IoT security solution technology and its applications. Market projections have been conducted for five geographic regions: North America, South America, Europe, Middle East and Africa, and Asia-Pacific. All market reported revenues are in constant 2016 U.S. dollars.
The report also provides an understanding of the technologies used for IoT security solutions and the roles that new standards may have on these solutions in the foreseeable future.
The report contains:
- An in-depth analysis of the market for technologies used in most IoT security solutions by different applications.
- New technology developments for IoT security solutions that will impact the development of future products.
- Current and potential demand for such solutions across different verticals such as automotive, healthcare, smart homes and smart cities.
- Current and future market projections for IoT security solutions from 2015 to 2021
- Profiles of current industry players, including IoT security solution providers and industry groups working toward developing industry standards.
- Overview of partnerships, important acquisitions and venture capital funding activity in IoT security solution startups.
- A review of the market opportunities and challenges for current and new industry participants.
The material presented in this report is based on information gathered from primary contact with participants within the IoT security solutions industry, as well as an analysis of the technologies, issues and concerns gathered from technical papers and industry conferences. The final analysis and projections combine the consensus of primary contacts and derived assumptions regarding the impact of both historical and emerging trends.
Additional data were obtained from analysis of secondary sources, including trade publications, trade associations, company literature and online databases. This research was done to supplement the understanding of applications, markets and trends in the IoT security industry. All dollar estimates in this report are based on 2016 constant dollars.
The market numbers provided in this report are based on a bottom-up methodology of research analysis. First data from secondary and primary sources was gathered on the various solutions and players in the market. This data was analyzed to determine the key technology segments and their applications.
Data regarding regional markets addressed by each of the players, total revenues from IoT security solutions and the vertical markets they target was analyzed to develop a market data model. The data were then validated through primary research and discussion with market experts.
In this report, the regions considered for market analysis include:
- South Korea
Middle East and Africa
- Saudi Arabia
- South Africa
Summary and Highlights
The market for commercial Internet of Things (IoT) security solutions is still in a nascent stage, but it is rapidly growing, as the threat of IoT data security breaches is becoming a major roadblock to overall growth of the IoT market. The global market for these security solutions was estimated to reach nearly $3.7 billion in 2016, and it is expected to grow at a steady pace of 25.6% over the next five years to a market size of more than $11.4 billion by 2021.
The key segments of IoT security on which most of these solutions focus are providing a strong root of trust at the device layer, crypto-authentication of data (both in motion and at rest) from the edge and across the connectivity network to the cloud, real-time threat detection and IoT security platforms. The largest market subsegment (65% of the market revenues) in 2016 was for the device layer security at nearly $2.4 billion.
Solutions that secure IoT device data through hardware (i.e., silicon)-based secure environments, identity access management (IAM) and crypto-authentication solutions that use public key infrastructure (PKI) techniques form the majority of solutions in this subsegment. PKI solutions are also expected to continue to be the dominant technologies for future IoT security solutions, with a handful of vendors such as DigiCert, Symantec and GlobalSign already providing end-to-end IoT PKI solutions with an expectation that more players will be joining this technology space in the next few years.
Hardware-based solutions (e.g., network security appliances, chip level security) form the largest type of security solutions, with 77% of solutions falling in this category. This is not surprising, as it is commonly known that software-based solutions are easier to hack, whereas hardware-embedded security is more secure and provides a higher trust level.
The industrial IoT (IIoT) had seen the highest adoption (41%) for IoT security solutions until recently, as the value of lost business due to data security breaches is considered to be high. Consumer IoT, however, is still lagging in its uptake of security solutions, which is a paradox, as these were the easiest targets for most of the malicious IoT data breaches that took place in 2016. These vertical markets will continue to grow in importance as new niche solutions that address the unique needs of IoT applications emerge in the next five years.
In 2016, the IoT security solutions marketspace was highly fragmented with a handful of established security solution vendors followed by numerous growing small private vendors and startups. Looking ahead, the North America and European region will continue to dominate the startup scene for IoT solutions and be the technology innovation hotbed, with the establishment of many IoT innovations centers by such entities as Cisco, IBM, Microsoft and AT&T.
The 2016 market leaders for commercial security solutions were Intel, Gemalto, NXP Semiconductors, Microchip, Cisco and Symantec. Together these vendors accounted for nearly 30% of the market.
Further consolidation of players in this market is expected, as the next few years will be ripe for acquisitions and mergers with large IT services and network solution companies trying to build comprehensive and profitable IoT solution portfolios. This is a move already seen with numerous IoT- related acquisitions by Intel, Cisco, Qualcomm and IBM within the last two years.
On the technology front, IoT security platforms are seeing good traction and will likely comprise the winning strategy in the next five years. Blockchain and hypervisors are seeing a considerable push in application for IoT security.
With the establishment of data security standards and device security regulations, the market is expected to see further activity and growth potential, especially in the European and Asia-Pacific region. The largest regional market will continue to be North America. The maturity of the U.S. IoT market will continue to be a driver for growth in the North American market.
The IoT security solutions market is also moving gradually to the cloud-based model, a trend that is expected to only become stronger in the overall IoT market. Many current IoT security solutions vendors are already offering cloud-based subscription model pricing and deployment for their solutions. This trend is expected to be a growth driver as these solutions become more cost-efficient for small- and medium-sized IoT projects.
The strong collaboration between the business, government and consumer sides of IoT for standards and better security for the connected world is the key driver for the IoT security solutions market, and it will help build new innovative security solutions and standards that will give a strong foundation for the development of this market in the future.
Read the full report: http://www.reportlinker.com/p04959557/Global-Markets-for-Security-Technologies-for-the-Internet-of-Things-IoT.html
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