August 07, 2015 By CI Staff

The global Internet of Things (IoT) security market is expected to grow from $6.89 billion in 2015 to $28.90 billion by 2020, according to a new market forecast.

Published by research and consulting firm MarketsandMarkets, the report projects the global IoT market will increase at a compound annual growth rate (CAGR) of 33.2% from 2015 to 2020. In the current scenario, North America is expected to be the largest market on the basis of market size and technological advancement.

The report consists of smart technology solutions and services aimed at securing the network of connected devices. Security issues started with the connection of computer systems, and with the growth of networking the number of cyberattacks also increased. To safeguard IoT networks, hardware and software providers are working toward the integration of efficient security solutions.

The rise in critical infrastructure security concerns, such as utilities, smart grids and manufacturing facilities, is expected to remain the key driver of the IoT security market in the coming years. Security issues in critical infrastructures can lead to huge losses such as power hacks, loss of life and malfunction of nuclear reactors. Therefore, proper security implementation is essential and companies are increasing their investments for the same, according to the report.

Read: Internet of Things: Boom or Bust for Business?

Regulatory bodies in North America and Europe have mandated security standards for the disclosure of information and privacy. As a result, solution providers are shifting toward IoT security solutions to safeguard connected devices.

Cloud-based security solutions are also providing good opportunities for the growth of the IoT security market by minimizing implementation and maintenance costs and organizations are shifting towards the deployment of cloud-based security solutions. However, developing countries remain mostly unaware of IoT-based cyberattacks and resulting adverse effects, which act as a factor restraining the growth of the market, according to the report.

The report segments the IoT market on the basis of applications, solutions, services and regions. Applications include wearables, building and home automation, supply chain management, patient information management, energy and utilities management, customer information security, asset optimization, manufacturing process management, communication technology management, and telematics.