Over time, technological advancements have created tools and resources that have enabled users to get all useful information at their fingertips. One such technology is IoT, which connects everything to the Internet. It has not only helped in improving the connected lifestyle, by delivering several benefits to individuals but also created new business values for organizations.
The application of IoT in several verticals has enabled users to interconnect everything, from sprinkler systems to refrigerators. However, drawbacks such as the possibility of creating new attack vectors for hackers have led to growing concerns among users. IoT devices are expected to gain more popularity than smartphones in future.
These devices would have the ability to collect and share data which could potentially be misused for personal gains. Moreover, IoT devices would have access to private data such as banking information and social security number. In light of the importance of what these devices have access to, it is crucial to understand their security risk across the network, cloud, and application areas.
According to IoT Security Market study by Grand View Research, the security type segment was valued at USD 1,242.3 million in 2017 and is expected to reach USD 9,881.2 million by 2025.
IoT involves four significant steps — capturing data using sensors, processing the captured data, connecting the data to the network, and making use of the information to improve the productivity of smart applications. Allowing devices to connect to the Internet makes them prone to serious vulnerabilities if not adequately protected.
IoT security is a technology area that focuses on protecting networks and connected devices in the Internet of things. These devices are the number one target for cyberattacks, surpassing application & web servers, databases, and email servers.
Security is an essential factor to consider for operating IoT devices or systems, particularly for the industrial Internet. An additional aspect that has triggered the growth of IoT is the concept of Industry 4.0. It is described as the latest revolution in manufacturing, powered by IoT technology and smart factories.
The growing demand for enhanced privacy is driving the growth of IoT security market. Increasing government efforts are being made to implement stringent regulations for limiting the volume of data being collected by IoT devices in industries such as retail, BFSI, and healthcare.
This is a prominent factor that is expected to boost market growth. Additionally, configuring the necessary/next-generation security features, increasing transparency, and providing consumers with a choice to opt-out of data collection option are some key factors that are likely to drive the market growth in the next five years.
Common attacks in the IoT ecosystem include steal key certification, fake firmware, and data breaches. Besides, IoT is a growing market and many product designers and manufacturers are more interested in getting their products to the market quickly. As a result, security is of least importance during the design phase of a product.
IoT network security is more challenging as compared to the traditional network security as it involves a broader range of standards, communication protocols, and device capabilities, thereby increasing complexity.
The IoT security market is characterized by the presence of major dominant players such as Cisco Systems Inc., IBM, Symantec Corporation, Gemalto NV, and McAfee, LLC. Companies are focusing on enhancing their product portfolios to stay ahead in this competitive market.
Key Drivers for IoT Security
High number of ransomware attacks on IoT devices
The rise in the adoption of IoT has increased the potential of cyberattacks. Cybercriminals seek to exploit susceptibilities in smart devices manufactured with poor security practices. It is estimated that over 30 million IoT attacks were done in 2018, an increase of 200% than that recorded in 2017.
By the end of 2025, approximately 30 billion devices are expected to be connected to the Internet. This has led to the growing need for avoiding ransomware attacks and reinforcing security.
Additionally, the increasing adoption of cloud-based technologies by a large number of organizations for storing confidential data has given rise to the risk of unauthorized data access.
Moreover, the growing trend of Bring Your Own Device (BYOD) has led to increased concerns regarding the security of data among enterprises and organizations. This, in turn, has unfolded numerous opportunities for security providers to offer effective security solutions, such as device and data security, implementation of security operations at IoT scale, and meeting compliance requirements along with performance requirements.
Growing number of IoT security regulations
The growing popularity of 3G and 4G networks and wireless technologies has led to an increasing number of cyberattacks. In order to address this, governments across the globe are focusing on implementing stringent regulations regarding data security and privacy.
Advancements in technology have led manufacturers to connect consumer goods, right from toys to lights and other major appliances, to the Internet. This indicates that there is a wide range of exposure to potential vulnerabilities with multiple attack surfaces, making it easier for hackers to gain control. Thus, implementation of IoT security regulations to safeguard data is anticipated to enhance the use of IoT enabled devices.
Various regulations have been introduced to strengthen the security of IoT devices and avoid misuse of data. For instance, in September 2018, California was the first state to pass a law addressing the security of connected devices.
The law, which is likely to come into effect by 2020, has mandated manufacturers to equip their internet-connected devices with sound security features. Moreover, the Federal government has introduced the IoT Cybersecurity Improvement Act of 2019 to encourage cybersecurity practices for IoT devices.
The act would also help in preventing the use of any default passwords for IoT devices sold to the U.S. government. Moreover, it would offer a mechanism to patch the devices and not have any known vulnerabilities.
The extensive use of IoT technology has given rise to a number of challenges. Additionally, its unprecedented interaction with the physical world is negatively impacting the privacy and safety of individuals. The right to privacy needs are required to be protected on the IoT device and private network.
The increasing popularity of IoT products in applications such as artificial intelligence, wireless networking, and machine learning has made it necessary to enhance security for reliable technological operations. The proliferation of smart and connected devices is leading to the generation of substantial data, which can be used for creating new business models, such as automated real-time decision making.
Security is a major concern for organizations that are looking to adopt IoT and cloud solutions. Hence, the growing need for preventing frauds and cyberattacks is contributing to market growth.
Article Contributed by Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.