The global Internet of Things (IoT) security solutions market is expected to reach more than $11.4 billion by 2021 from nearly $3.7 billion in 2016 — at a compound annual growth rate (CAGR) of 25.6 percent over the next five years.
The above chart on IoT security market is from Zion Research.
The size of hardware-based IoT security solutions will reach $8.1 billion by 2021 from $2.8 billion in 2016, with a CAGR of 23.4 percent.
The size of software-based IoT security solutions will be $3.3 billion by 2021 against $825 million in 2016, with a CAGR of 32 percent.
The largest sub-segment of IoT security market was the device layer security at nearly $2.4 billion, accounting for 65 percent of the market revenues in 2016.
Hardware-based solutions such as network security appliances, chip level security form the largest type of security solutions, with 77 percent of solutions falling in this category.
The above chart is prepared by McKinsey
The industrial IoT (IIoT) achieved 41 percent adoption for IoT security solutions. On the other hand, consumer IoT is lagging in the deployment of security solutions.
Cisco, IBM, Microsoft and AT&T have set up IoT innovations centers.
Intel, Gemalto, NXP Semiconductors, Microchip, Cisco and Symantec are the top commercial security solution vendors, accounting for nearly 30 percent of the market.
The largest regional market will be North America. The maturity of the U.S. IoT market will continue to be a driver for growth in the North American market.
