Internet of Things (IoT) Cybersecurity Market By Component (Solutions, and Services), By Security Type, By Deployment Mode¸, By Enterprise Size, and By End-User - Global Industry Outlook, Key Trends and Forecast 2025-2034

Market Overview

The Global Internet of Things (IoT) Cybersecurity Market is projected to reach USD 11.3 billion in 2025 and is expected to expand at an impressive compound annual growth rate (CAGR) of 24.9% from 2025 to 2034, achieving a market value of approximately USD 83.5 billion by 2034.

The market’s growth is fueled by the increasing adoption of connected devices, smart infrastructure, and industrial IoT networks, which elevate the need for robust security frameworks to prevent cyber threats. Rising concerns over data breaches, ransomware, and network vulnerabilities, coupled with regulatory compliance requirements and the adoption of AI-driven security analytics, are driving demand for advanced IoT security solutions, identity management, and endpoint protection systems globally.

The global Internet of Things cybersecurity landscape is expanding rapidly, fueled by the unprecedented proliferation of connected devices across consumer and industrial sectors. This hyper-connectivity introduces a vast and complex attack surface, making robust security protocols not just an advantage but a fundamental necessity.

The escalating frequency and sophistication of cyber threats targeting critical infrastructure, from smart grids to healthcare systems, are compelling organizations to move beyond perimeter defense and adopt a zero-trust architecture. This paradigm shift is underpinned by the integration of advanced technologies like artificial intelligence and machine learning for predictive threat detection and automated incident response, creating a more resilient and adaptive security posture for dynamic IoT environments.

Significant opportunities for market advancement lie in the untapped potential of emerging economies and specific verticals such as autonomous vehicles and smart cities. The development of sophisticated security-as-a-service models also presents a lucrative pathway, offering scalable and cost-effective solutions for small and medium enterprises.

Furthermore, the increasing regulatory pressure and the introduction of mandatory security standards for IoT devices are creating a compliance-driven demand, encouraging manufacturers to embed security at the hardware design level rather than as an afterthought, thereby fostering a more secure ecosystem from the ground up.

The US IoT Cybersecurity Market

The US IoT Cybersecurity Market is projected to reach USD 3.5 billion in 2025 at a compound annual growth rate of 23.3% over its forecast period.

The United States IoT cybersecurity landscape is shaped by its position as a global technology leader and a prime target for sophisticated cyber threats. Federal initiatives, led by agencies like the National Institute of Standards and Technology (NIST), provide critical frameworks for securing connected ecosystems.

The NIST Cybersecurity for IoT program has developed foundational guidance, including the widely adopted "Core Cybersecurity Feature Baseline for Securable IoT Devices" (NIST IR 8259), which outlines voluntary security standards for federal procurements and private sector adoption. This proactive, standards-based approach is crucial for mitigating risks across the nation's vast and diverse digital infrastructure.

Demographic and economic advantages, such as a highly concentrated tech industry and early adoption rates, drive the market. However, this also attracts significant attention from state-sponsored and criminal threat actors. In response, the Cybersecurity and Infrastructure Security Agency (CISA) actively publishes alerts and resources, such as its "Strategic Principles for Securing the Internet of Things," and collaborates with industry to protect critical national assets.

The Federal Communications Commission (FCC) also contributes through efforts like the "U.S. Cyber Trust Mark" program, a proposed voluntary labeling initiative to help consumers identify more secure IoT products, thereby encouraging manufacturers to enhance built-in security.

The Europe IoT Cybersecurity Market

The Europe IoT Cybersecurity Market is estimated to be valued at USD 1,695 million in 2025 and is further anticipated to reach USD 9,370 million by 2034 at a CAGR of 22.0%.

The European IoT cybersecurity market is fundamentally structured by a robust and evolving regulatory environment, with the European Union Agency for Cybersecurity (ENISA) playing a pivotal role. ENISA has developed the "EU Cybersecurity Certification Scheme for Cloud Services" and is actively working on frameworks for IoT, which will be critical under the Cyber Resilience Act.

This proposed legislation aims to establish mandatory cybersecurity requirements for products with digital elements throughout their lifecycle, creating a harmonized standard across the single market and compelling manufacturers to enhance the security integrity of devices sold in the region.

Europe's demographic advantage includes a highly digitized population with a strong cultural emphasis on data privacy, as exemplified by the General Data Protection Regulation (GDPR). The interconnection between data protection and IoT security is a key market driver, as breaches of IoT devices can lead to significant GDPR fines.

Furthermore, initiatives like the EU's "Coordinated Plan on Artificial Intelligence" and the "Digital Europe Programme" allocate substantial funding towards strengthening cybersecurity capacities, including for cross-border critical infrastructure and the development of a skilled workforce, ensuring the region builds a resilient and sovereign digital economy.

The Japan IoT Cybersecurity Market

The Japan IoT Cybersecurity Market is projected to be valued at USD 678 million in 2025. It is further expected to witness subsequent growth in the upcoming period, holding USD 4,490 million in 2034 at a CAGR of 23.0%.

Japan's approach to IoT cybersecurity is heavily influenced by its status as a hyper-aged society and a global manufacturing powerhouse, creating unique demographic and industrial drivers. The government's "Society 5.0" initiative, which aims to integrate cyberspace and physical space to solve social challenges, places a strong emphasis on building a trustworthy and secure IoT infrastructure.

The National Center of Incident Readiness and Strategy for Cybersecurity (NISC) acts as the central coordinating body, implementing and updating the "Cybersecurity Strategy" to protect citizens and critical infrastructure, including the burgeoning IoT ecosystem essential for smart factories and remote healthcare.

Recognizing vulnerabilities in consumer IoT devices, the Japanese government, through the Ministry of Internal Affairs and Communications (MIC), launched the "Security by Design" campaign. This initiative encourages manufacturers to implement security measures at the design phase.

A notable action was MIC's investigation into widespread IoT device vulnerabilities, which led to guidance for improving security. This proactive, government-led stance, combined with the pressing need to secure technologies supporting an aging population, creates a focused and compliance-driven market for robust IoT cybersecurity solutions tailored to Japan's specific socio-economic context.

Global IoT Cybersecurity Market: Key Takeaways

• Global Market Size Insights: The Global IoT Cybersecurity Market size is estimated to have a value of USD 11.3 billion in 2025 and is expected to reach USD 83.5 billion by the end of 2034.
• The Global Market Growth Rate: The market is growing at a CAGR of 24.9 percent over the forecasted period of 2025.
• The US Market Size Insights: The US IoT Cybersecurity Market is projected to be valued at USD 3.5 billion in 2025. It is expected to witness subsequent growth in the upcoming period as it holds USD 22.8 billion in 2034 at a CAGR of 23.3%.
• Regional Insights: North America is expected to have the largest market share in the Global IoT Cybersecurity Market with a share of about 36.4% in 2025.
• Key Players: Some of the major key players in the Global IoT Cybersecurity Market are Armis, Amazon Web Services (AWS), AT&T Cybersecurity, Broadcom (Symantec), Check Point Software, Cisco Systems, Claroty, CrowdStrike, Darktrace, Entrust, Forescout Technologies, and many others.

Global IoT Cybersecurity Market: Use Cases

• Smart Grid Protection: Cybersecurity systems safeguard national power grids from disruptive attacks. They monitor smart meters and distribution automation systems, detecting anomalies that could indicate manipulation, preventing widespread blackouts, and ensuring the reliability of critical energy infrastructure for millions of consumers and businesses, thus maintaining economic and national security.
• Connected Vehicle Security: Advanced security protocols are embedded in modern vehicles to protect against remote hijacking. These systems secure the communication between electronic control units (ECUs), ensuring the safety of critical functions like braking and steering from malicious actors, thereby protecting passenger lives and preventing potentially catastrophic incidents on public roadways.
• Medical Device Integrity: In healthcare, IoT cybersecurity is vital for protecting connected devices like insulin pumps and patient monitors. It ensures the integrity and availability of life-sustaining equipment, preventing unauthorized access that could alter dosages or steal sensitive patient data, thereby upholding patient safety and compliance with strict health data privacy regulations.
• Industrial Control System (ICS) Defense: In manufacturing, cybersecurity solutions create air-gapped or heavily fortified networks for operational technology. They defend programmable logic controllers (PLCs) and SCADA systems from ransomware and sabotage, ensuring continuous production, protecting intellectual property, and preventing massive financial losses and physical damage from industrial espionage or attacks.
• Smart City Infrastructure Resilience: IoT security platforms protect the interconnected systems of a smart city, including traffic management and water treatment facilities. They defend against coordinated cyber-attacks that could cause urban chaos, ensuring the continuous, safe operation of essential public services and safeguarding the data and well-being of the entire citizen population.

Global IoT Cybersecurity Market: Stats & Facts

ENISA (European Union Agency for Cybersecurity)

• ENISA counted 19,754 vulnerabilities identified between July 2023 and June 2024.
• Of those 19,754 vulnerabilities, 9.3% were rated Critical.
• Of the same vulnerability set, 21.8% were rated High.
• ENISA’s 2024 Threat Landscape identified “availability” (e.g., DDoS/ransomware) as the top threat, listing seven prime cybersecurity threats for 2024.
• ENISA analysed 4,875 publicly reported incidents for the period 1 July 2024–30 June 2025 in its 2025 Threat Landscape release.
• In ENISA’s 2025 analysis, nearly 70% of vulnerability-based cases culminated in intrusions.
• ENISA found that ~73% of phishing cases were classified as “unknown” while 27% led to intrusions.
• ENISA analysed 488 publicly reported incidents affecting the European finance sector (Jan 2023–Jun 2024).

NIST (U.S. National Institute of Standards & Technology)

• NIST published NIST IR 8425 (“Profile of the IoT Core Baseline for Consumer IoT Products”) on 19 Sep 2022.
• NIST published the IoT Device Cybersecurity Capability Core Baseline (NIST IR 8259A) in 2020 to identify device cybersecurity capabilities.
• NIST released the initial public draft (consumer-grade router profile) and followed up with drafts in late 2023 / Feb 2024 as part of the recommended requirements for consumer routers.
• NIST continued IoT guidance into 2024–2025 (e.g., SP 800-213A / updates and new IoT-related IRs).

CISA (U.S. Cybersecurity & Infrastructure Security Agency)

• CISA publishes dedicated IoT guidance (e.g., “Internet of Things (IoT) Acquisition Guidance Document”) highlighting elevated risks in procurement and lifecycle management.
• CISA published “Guidance and Strategies to Protect Network Edge Devices” (Feb 4, 2025) to help organizations protect edge/IoT devices.
• CISA’s internet-exposure / exposure-reduction guidance (published Jun 4, 2025) explicitly lists IoT/edge exposures as a high-priority area for mitigation.

FTC (U.S. Federal Trade Commission)

• FTC staff found ~89% of smart products surveyed did NOT disclose on their websites how long they would receive software updates (Nov 26, 2024).
• In its 2023 privacy/data-security update, the FTC reported 89 data-security enforcement cases and continuing enforcement activity around consumer device/security issues.

U.S. Dept. of Justice / FBI

• DOJ/FBI documents note the Mirai botnet at its peak consisted of “hundreds of thousands” of compromised IoT devices.
• In related court filings, operators infected >100,000 primarily U.S.-based Internet-connected devices (Dec 2016–Feb 2017) as part of Mirai variants.

ITU (International Telecommunication Union)

• ITU’s 2024 facts/reference material reports ~5.5 billion people (≈68% of world population) were Internet users in 2024, increasing the exposed population for IoT risk.
• ITU published Recommendation ITU-T X.1354 (Security controls for Internet of Things systems) (Sep 6, 2024) — a formal international standard recommending practical IoT security controls.

OECD (Organisation for Economic Co-operation & Development)

• OECD analysis cites historical estimates that connected IoT devices rose from ~3.6 billion (2015) to ~11.3 billion (2020).
• OECD noted that over the last five years, the number of connected devices grew on average by ~33% per year, stressing rapidly expanding IoT exposure.

INTERPOL

• INTERPOL’s regional reporting (Africa Cyberthreat Assessment) reported that monthly ransomware detections rose in 2024 vs. the prior year, highlighting ransomware as a leading cyber threat affecting IoT-connected infrastructure.
• INTERPOL notes the exponential growth of digital evidence from IoT devices and the consequent burden on policing/forensics.

UK NCSC (National Cyber Security Centre)

• The UK’s NCSC flagged regulatory action: from 29 April 2024 new UK law requires smart devices to meet basic cybersecurity requirements (including stating product support end dates).
• NCSC’s 2024 Annual Review reports the centre produced/distributed “thousands” of highly secure cryptographic keys and other operational outputs in 2024.

European Commission / EU Policy

• The EU Cyber Resilience Act (CRA) entered into force on 10 Dec 2024, establishing common cybersecurity rules for products with a digital element.

U.S. Federal Policy / IoT Act

• The Internet of Things Cybersecurity Improvement Act of 2020 directed NIST to publish guidelines for federal use of IoT devices and for vulnerability handling.

Global IoT Cybersecurity Market: Market Dynamic

Driving Factors in the Global IoT Cybersecurity Market

Proliferation of Connected Devices and Expanding Attack Surface
The primary catalyst for market growth is the exponential increase in deployed IoT devices, projected to reach tens of billions globally. Each connected sensor, smart appliance, and industrial controller represents a potential entry point for cybercriminals, creating an almost limitless attack surface. This massive digital expansion forces organizations across all sectors from manufacturing and energy to healthcare and municipal services to invest heavily in cybersecurity solutions simply to manage their inherent risk, driving consistent and non-discretionary demand for technologies that can provide visibility, control, and protection across this sprawling and complex device landscape.

Stringent Government Regulations and Compliance Mandates
Governments worldwide are enacting rigorous cybersecurity regulations that directly impact the IoT market. Mandates like the EU's Cyber Resilience Act and NIST's guidelines for federal IoT procurement are creating a compliance-driven purchasing environment. These regulations compel device manufacturers to embed security features by design and require end-users in critical infrastructure sectors to demonstrate due diligence in protecting their networks. Failure to comply results in severe financial penalties and reputational damage, making investment in certified IoT cybersecurity solutions a legal and operational imperative rather than a voluntary best practice.

Restraints in the Global IoT Cybersecurity Market

High Implementation Costs and Budgetary Constraints
The total cost of ownership for comprehensive IoT cybersecurity can be prohibitive, acting as a major barrier to adoption, especially for smaller enterprises. Costs extend beyond initial software licensing to include specialized hardware, continuous system integration with legacy operational technology, and ongoing expenses for threat intelligence feeds and professional services.

This significant financial outlay forces many organizations to make difficult trade-offs, often leading to fragmented security postures where only the most critical assets are protected, leaving significant portions of the IoT network vulnerable to exploitation.

Lack of Standardized Protocols and Skills Shortage
The absence of universally accepted security standards and interoperability protocols across the IoT ecosystem creates a fragmented and insecure environment. Devices from different manufacturers often cannot communicate securely, leading to complex integration challenges and security gaps.

Compounding this issue is a severe global shortage of cybersecurity professionals with specialized skills in both IT and operational technology (OT) security. This skills gap leaves organizations unable to properly manage, monitor, and respond to threats within their IoT infrastructure, rendering even the most advanced security tools less effective without expert personnel to operate them.

Opportunities in the Global IoT Cybersecurity Market

Emergence of Security-as-a-Service for SMBs
A significant growth avenue lies in delivering IoT cybersecurity through subscription-based, cloud-managed Security-as-a-Service (SecaaS) models. Small and medium-sized businesses (SMBs) are rapidly adopting IoT but often lack the capital and expertise for on-premise security solutions. SecaaS offers these organizations access to enterprise-grade threat intelligence, managed detection and response, and security policy management without upfront hardware costs. This democratizes advanced security, tapping into a vast and previously underserved market segment and creating a recurring revenue stream for security providers.

Expansion in Critical Infrastructure and Smart City Projects
Massive global investments in national critical infrastructure modernization and smart city development present a monumental opportunity. These projects, involving smart grids, intelligent transportation systems, and connected public utilities, are high-value targets for nation-states and cyber-terrorists. The absolute necessity to ensure the resilience, safety, and continuous operation of these services creates a non-negotiable demand for sophisticated, scalable, and robust IoT cybersecurity frameworks, opening up large, long-term government and municipal contracts for security vendors capable of meeting these high-stakes requirements.

Trends in the Global IoT Cybersecurity Market

Adoption of AI and ML for Predictive Threat Intelligence
The integration of Artificial Intelligence and Machine Learning is revolutionizing IoT security by enabling a shift from reactive to predictive defense mechanisms. These technologies analyze vast streams of behavioral data from millions of devices in real-time, identifying subtle anomalies and deviations from established baselines that signal a zero-day attack or an advanced persistent threat. This allows for automated containment and response before a breach can escalate, providing a dynamic security layer that is essential for protecting large-scale, heterogeneous IoT networks where traditional signature-based antivirus solutions are insufficient and manual monitoring is impractical.

Shift Towards Zero-Trust Architecture in IoT Networks

The crumbling perimeter defense model is being replaced by a Zero-Trust framework, which operates on the principle of "never trust, always verify." This is particularly critical for IoT, where devices often have weak inherent security. Every device and user, whether inside or outside the network, must continuously authenticate and authorize its access to applications and data. This approach significantly contains the lateral movement of attackers, ensuring that a compromised smart sensor in a building's system cannot be used as a pivot point to access the core corporate financial database, thereby compartmentalizing risk and enhancing overall security posture.

Global IoT Cybersecurity Market: Research Scope and Analysis

By Component Analysis

In the global IoT cybersecurity market, the Solutions are projected to hold the dominant position within the component segment. IoT cybersecurity solutions encompass security analytics, identity and access management (IAM), data encryption, device authentication, intrusion detection systems (IDS/IPS), and network protection tools that safeguard the complex ecosystem of connected devices.

The growing sophistication of cyber threats, combined with the expanding IoT ecosystem in industrial automation, healthcare, smart homes, and connected vehicles, drives organizations to invest heavily in integrated and scalable security solutions. These solutions enable real-time threat detection, predictive analytics, and centralized visibility across distributed IoT environments. In particular, network and endpoint protection solutions have become fundamental to mitigate ransomware, malware, and data exfiltration attacks targeting connected endpoints.

Moreover, the rising adoption of zero-trust security frameworks and AI-based threat analytics has reinforced the value proposition of IoT cybersecurity solutions over services. Large enterprises prefer end-to-end, customizable security architectures, fueling the dominance of the solutions segment.

Although managed security services are growing rapidly, especially among SMEs, solutions account for a higher revenue share due to their upfront implementation costs, long-term software licensing, and integration complexity. As connected devices exceed 30 billion globally by 2030, organizations are prioritizing robust IoT security platforms over ad-hoc service engagements, sustaining the leadership of the solutions sub-segment throughout the forecast period.

By Security Type Analysis

Network Security is poised to dominate the IoT cybersecurity market by security type, as it forms the foundational layer for protecting communication pathways between interconnected IoT devices, gateways, and cloud systems. IoT ecosystems are highly network-dependent, relying on continuous data transmission that exposes devices to various vulnerabilities such as denial-of-service (DoS) attacks, man-in-the-middle (MITM) exploits, and packet sniffing.

As industrial IoT, smart grids, and connected healthcare systems expand, network security becomes indispensable in safeguarding data integrity and availability. Advanced firewalls, intrusion detection systems (IDS), intrusion prevention systems (IPS), and secure communication protocols like TLS and SSL are extensively deployed to mitigate these risks. The rise in IoT-enabled critical infrastructure and edge computing networks amplifies the need for dynamic and adaptive network defenses.

Furthermore, enterprises are leveraging AI-driven network traffic analysis and behavior-based anomaly detection to identify malicious activities in real-time. The adoption of Software-Defined Networking (SDN) and Network Function Virtualization (NFV) has also boosted investment in network security frameworks that offer scalability and centralized policy control.

While endpoint and cloud security are growing in importance, network security maintains dominance due to its pivotal role in ensuring the secure exchange of data across IoT nodes. The increasing number of IoT devices operating in mission-critical sectors—such as manufacturing, energy, and healthcare—ensures that network security remains the highest revenue-generating sub-segment through 2034.

By Deployment Mode Analysis

The Cloud-Based is expected to dominate the IoT cybersecurity market in terms of deployment mode, driven by the rapid migration of IoT infrastructure to cloud environments. Cloud-based IoT security solutions provide scalability, flexibility, and centralized control—key requirements for organizations managing millions of connected devices. The cloud model supports real-time analytics, remote monitoring, and automated patch management, enabling organizations to mitigate threats without extensive on-premise hardware investments.

Enterprises across manufacturing, healthcare, and BFSI sectors are increasingly leveraging cloud-native security tools for their lower operational costs and high adaptability. The rise of multi-cloud and hybrid architectures further strengthens demand for cloud-based cybersecurity platforms that can integrate seamlessly with IoT device management systems.

Furthermore, the integration of Artificial Intelligence (AI) and Machine Learning (ML) within cloud-based security enables predictive threat analysis, faster incident response, and continuous improvement through data-driven insights. As cyberattacks on cloud IoT environments become more sophisticated, cloud security providers are enhancing their offerings with zero-trust access controls, cloud encryption gateways, and identity management frameworks.

Major vendors such as Microsoft, Cisco, and IBM continue to expand their IoT security portfolios through SaaS-based models. Although hybrid and edge deployments are gaining attention for latency-sensitive applications, the cloud-based model remains dominant due to its affordability, scalability, and compatibility with enterprise digital transformation strategies worldwide.

By Enterprise Size Analysis

Within the enterprise size segment, Large Enterprises are poised to dominate the global IoT cybersecurity market due to their extensive deployment of connected devices, higher data sensitivity, and greater security budgets. Large organizations across manufacturing, healthcare, BFSI, and energy sectors rely on complex IoT ecosystems to drive automation, operational efficiency, and data-driven decision-making.

This interconnected infrastructure introduces diverse attack surfaces, compelling enterprises to invest in robust, multi-layered cybersecurity frameworks. Large enterprises typically adopt advanced solutions such as AI-powered threat analytics, identity access management (IAM), zero-trust architecture, and blockchain-based authentication to safeguard their IoT networks.

Their capacity to allocate significant capital expenditure for in-house security operations centers (SOCs) and integrated risk management platforms further solidifies their dominance. In contrast, SMEs often depend on outsourced or managed security services due to budget constraints.

Moreover, regulatory mandates such as GDPR, HIPAA, and NIST guidelines impose stringent data protection obligations on large corporations, driving proactive adoption of IoT cybersecurity measures. Cloud migration, smart manufacturing, and digital twin technologies have intensified the cybersecurity requirements of these enterprises.

Vendors like Cisco Systems, Palo Alto Networks, and IBM primarily target large enterprise clients with end-to-end IoT security suites, highlighting their influence in the market. Thus, the sophistication of operations, compliance requirements, and financial capability collectively ensure large enterprises remain the leading contributors to market revenue in the forecast period.

By End-User Industry Analysis

The Manufacturing industry is expected to dominate the global IoT cybersecurity market by end-user industry, accounting for the largest revenue share due to the widespread implementation of Industrial IoT (IIoT) systems, smart factories, and Industry 4.0 initiatives. Manufacturers increasingly deploy connected sensors, robotics, and predictive maintenance systems to enhance production efficiency and reduce downtime.

However, this connectivity also exposes critical operational technology (OT) and industrial control systems (ICS) to cyber threats such as ransomware, data breaches, and industrial espionage. As a result, manufacturing enterprises prioritize cybersecurity frameworks that protect both IT and OT environments. Network segmentation, device authentication, and real-time anomaly detection are heavily utilized to safeguard machinery and process data.

The integration of AI-driven security analytics and blockchain ensures data transparency and tamper resistance in production environments. Additionally, stringent industry standards such as IEC 62443 and NIST guidelines compel manufacturers to adopt robust IoT cybersecurity practices. High-profile attacks, such as ransomware incidents on automotive and semiconductor facilities, have further emphasized the need for resilient IIoT defense systems.

Major solution providers like Siemens, Honeywell, and Rockwell Automation are leading the deployment of industrial IoT security platforms tailored for manufacturing ecosystems. Given the sector’s pivotal role in global economic productivity and its vulnerability to cyber disruptions, manufacturing continues to be the dominant and fastest-growing end-user sub-segment in the IoT cybersecurity landscape.

The Global IoT Cybersecurity Market Report is segmented on the basis of the following:

By Component

• Solutions
  • Identity and Access Management (IAM)
  • Device Authentication and Management
  • Data Encryption and Tokenization
  • Intrusion Detection and Prevention Systems (IDPS)
  • Security Analytics
• Services
  • Consulting
  • Integration
  • Managed Security Services 

By Security Type

• Network Security
• Endpoint Security
• Application Security
• Cloud Security 

By Deployment mode

• Cloud-Based
• On-Premise
• Hybrid Edge 

By Enterprise Size

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs) 

By End-User Industry

• Manufacturing
• Healthcare
• Energy and Utilities
• Automotive and Mobility
• Consumer
• Retail
• Banking, Financial Services, and Insurance (BFSI)
• Telecommunication
• Government and Defense
• Infrastructure and Cities
• Other End Users

Impact of Artificial Intelligence in the Global IoT Cybersecurity Market

• Real-Time Threat Detection and Response: AI analyzes massive IoT networks in real time, detecting anomalies, malware, and zero-day attacks instantly. It automates threat identification and response, minimizing damage, downtime, and operational risks across industries like healthcare, manufacturing, and smart cities.
• Predictive Threat Intelligence: AI predicts potential IoT threats using historical data, network behavior, and attack patterns. Organizations can proactively deploy patches, update access controls, and mitigate vulnerabilities, reducing reliance on reactive security measures and strengthening overall IoT network resilience.
• Automated Security Management: AI automates device authentication, vulnerability scanning, and access management in IoT ecosystems, reducing human intervention, operational costs, and errors. Large-scale deployments benefit from faster incident response and continuous monitoring across complex networks.
• Advanced Anomaly and Behavioral Analysis: AI creates behavioral baselines for IoT devices, detecting deviations like unusual traffic or unauthorized access. It identifies advanced persistent threats and insider risks that conventional systems may miss, improving the accuracy and efficiency of threat detection in diverse IoT networks.
• Enhanced Integration with Cloud and Edge Security: AI enables intelligent cybersecurity across cloud, edge, and hybrid IoT environments. It supports fast, context-aware threat detection, reduces latency, and ensures coordinated protection across distributed networks, critical for applications like autonomous vehicles, smart cities, and industrial IoT.

Global IoT Cybersecurity Market: Regional Analysis

Region with the Largest Revenue Share

North America is projected to exert its dominance in the IoT cybersecurity market, with 36.4% of market share in 2024 is anchored in a powerful confluence of technological leadership, stringent regulatory pressures, and a high concentration of target-rich critical infrastructure. The region, particularly the United States, is home to the world's largest tech firms and a mature digital economy that is an early adopter of IoT across sectors like healthcare, finance, and manufacturing. This early and deep integration creates a sophisticated and immediate demand for advanced security solutions.

Furthermore, the regulatory environment is a significant driver; mandates from bodies like the National Institute of Standards and Technology (NIST) and alerts from the Cybersecurity and Infrastructure Security Agency (CISA) establish a high baseline for security practices. Federal acquisition regulations often make robust cybersecurity a prerequisite for government contracts, compelling vendors and enterprises alike to invest heavily.

The presence of a well-funded and highly skilled cybersecurity ecosystem, including major solution providers, threat intelligence firms, and venture capital, creates a virtuous cycle of innovation and adoption. This is compounded by a high level of awareness among C-suite executives regarding cyber risks, translating into larger security budgets.

The constant threat of state-sponsored attacks and sophisticated cybercrime targeting the region's extensive critical infrastructure—from power grids to financial networks—cements cybersecurity not as a discretionary IT expense but as a core component of operational resilience and national security, ensuring sustained market leadership.

Region with the Highest CAGR

The Asia Pacific region is poised to register the highest Compound Annual Growth Rate in the IoT cybersecurity market, fueled by explosive digital transformation, massive government-led smart nation initiatives, and a rapidly expanding industrial and consumer base. Countries like China, India, Japan, and South Korea are investing billions in national projects to build smart cities, connected manufacturing hubs (Industry 4.0), and digital public infrastructure, which inherently multiplies the number of connected devices and the associated attack surface.

This breakneck pace of IoT adoption, while driving efficiency, often outpaces the initial implementation of embedded security, creating a vast and urgent need for retroactive and integrated cybersecurity solutions. Supportive government policies, such as Japan's "Society 5.0" and India's "Digital India," actively promote IoT integration while simultaneously bringing cybersecurity to the forefront of national policy.

The region's demographic advantage, featuring a massive, tech-savvy young population and a growing middle class, accelerates the consumption of connected devices, from smartphones to smart home appliances. This rapid growth, however, also makes the region a prime target for cyberattacks, highlighting security vulnerabilities and forcing both public and private sectors to rapidly increase their cybersecurity investments. Unlike the more saturated North American market, the Asia Pacific is in a high-growth phase, where the low initial market size, combined with this unprecedented surge in connectivity and subsequent security awareness, creates the perfect conditions for the world's most rapid market expansion.

By Region

North America

• The U.S.
• Canada

Europe

• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America

Middle East & Africa

• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA

Global IoT Cybersecurity Market: Competitive Landscape

The global IoT cybersecurity market is characterized by a fiercely competitive and fragmented landscape, featuring a dynamic interplay between established security giants, specialized IoT security vendors, and major technology conglomerates. Large, diversified cybersecurity firms like Palo Alto Networks, Cisco, and Fortinet leverage their extensive product portfolios, global sales channels, and strong brand recognition to offer integrated solutions that bundle IoT security with their traditional network and cloud security offerings.

They compete by acquiring smaller innovators to rapidly embed specialized IoT capabilities into their broader security platforms. In parallel, a cohort of dedicated IoT security specialists, such as Armis, Claroty, and Vdoo, has emerged, focusing exclusively on the unique challenges of device visibility, vulnerability management, and operational technology (OT) protection. Their deep expertise and agentless technologies provide a competitive edge in complex industrial and healthcare environments.

Furthermore, cloud hyperscalers like Microsoft (Azure Sphere), Amazon (AWS IoT Device Defender), and Google are increasingly influential, baking security directly into their IoT cloud platforms and leveraging their vast data analytics capabilities. This creates a multi-faceted competition where success hinges on technological specialization, the ability to provide comprehensive platform solutions, and strategic partnerships across the device-to-cloud spectrum to address the entire IoT lifecycle.

Some of the prominent players in the Global IoT Cybersecurity Market are:

• Armis
• Amazon Web Services (AWS)
• AT&T Cybersecurity
• Broadcom (Symantec)
• Check Point Software
• Cisco Systems, Inc.
• Claroty
• CrowdStrike
• Darktrace
• Entrust
• Forescout Technologies Inc.
• Fortinet
• IBM Corporation
• Infineon Technologies AG
• Intel Corporation
• Kaspersky
• Microsoft
• Nozomi Networks
• Palo Alto Networks
• Rapid7
• Other Key Players

Recent Developments in the Global IoT Cybersecurity Market

• May 2024: The U.S. Cybersecurity and Infrastructure Security Agency (CISA) announces the launch of a new voluntary labeling program for consumer IoT products, aimed at helping Americans choose secure devices.
• April 2024: Palo Alto Networks announces the acquisition of an early-stage startup specializing in agentless security for medical IoT devices, aiming to bolster its offerings in the healthcare sector.
• March 2024: At the annual RSA Conference in San Francisco, several leading IoT cybersecurity firms, including Claroty and Armis, unveil new integrations with generative AI for automated threat investigation and response playbooks.
• February 2024: The European Union finally ratifies the Cyber Resilience Act, setting strict mandatory cybersecurity requirements for all hardware and software products, including IoT devices, sold in the EU market.
• January 2024: A major collaboration is announced between Cisco and a leading European automotive manufacturer to develop a next-generation, secure connectivity platform for its future fleet of electric vehicles.
• November 2023: Amazon Web Services (AWS) launches a significant update to its AWS IoT Core service, adding new device defense features for real-time anomaly detection based on machine learning.
• October 2023: During Cybersecurity Awareness Month, the U.S. Department of Energy announces a new multi-million dollar funding opportunity for research and development projects focused on securing the energy sector's IoT infrastructure.
• September 2023: Mergers & Acquisitions activity sees Fortinet acquire a specialized OT security firm to deepen its capabilities in protecting industrial control systems (ICS) and critical infrastructure.

Report Details

Report Characteristics
Market Size (2025)	USD 11.3 Bn
Forecast Value (2034)	USD 83.5 Bn
CAGR (2025–2034)	24.9%
The US Market Size (2025)	USD 3.5 Bn
Historical Data	2019 – 2024
Forecast Data	2026 – 2034
Base Year	2024
Estimate Year	2025
Report Coverage	Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors, etc.
Segments Covered	By Component (Solutions, and Services), By Security Type (Network Security, Endpoint Security, Application Security, and Cloud Security), By Deployment Mode (Cloud-Based, On-Premise, Hybrid Edge), By Enterprise Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs)), By End-User Industry (Manufacturing, Healthcare, Energy and Utilities, Automotive and Mobility, Consumer, Retail, Banking, Financial Services and Insurance (BFSI), Telecommunication, Government and Defense, Infrastructure and Cities, and Other End Users)
Regional Coverage	North America – US, Canada; Europe – Germany, UK, France, Russia, Spain, Italy, Benelux, Nordic, Rest of Europe; Asia-Pacific – China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, Rest of MEA
Prominent Players	Armis, Amazon Web Services (AWS), AT&T Cybersecurity, Broadcom (Symantec), Check Point Software, Cisco Systems, Claroty, CrowdStrike, Darktrace, Entrust, Forescout Technologies, Fortinet, IBM Corporation, Infineon Technologies, Intel Corporation, Kaspersky, Microsoft, Nozomi Networks, Palo Alto Networks, Rapid7, and Other Key Players
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