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%.
Introduction
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.
Information Sources
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.
Methodology
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.
Geographic Breakdown
In this report, the regions considered for market analysis
include:
North America
- U.S.
- Mexico
- Canada
South America
- Brazil
- Argentina
Europe
- France
- Germany
- Italy
- U.K.
- Spain
Asia-Pacific
- Australia
- China
- India
- Japan
- South Korea
Middle East and Africa
- Israel
- 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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