The worldwide Internet of Things (IoT) security sector is projected to reach $106.4 billion by 2031 — a compound annual growth rate of 20.8% — according to a new report by Insight Partners.
The report says that the global IoT security market is divided into five regions. North America is dominant due to its strength across multiple verticals.
The region’s leadership is primarily attributed to the widespread implementation of digital tools, coupled with significant investments in advanced technologies by both the public and private sectors.
Government initiatives promoting smart infrastructure and cybersecurity have created a strong foundation for market expansion. R&D spending is high in technologically advanced economies such as the United States and Canada.
Key drivers identified in the report:
Proliferation of IoT Devices: More devices make it increasingly difficult for organizations to manage security risks using traditional IT security frameworks. IoT environments are inherently complex, often comprising a mix of legacy systems, low-power devices, and real-time data transmission across heterogeneous networks.
Threats include data breaches, device hijacking, ransomware and distributed denial-of-service (DDoS) attacks. Many IoT devices have little built-in security. Therefore, there is growing demand for robust, scalable, and context-aware security solutions that offer authentication, encrypted communication, anomaly detection, and real-time threat response.
Rising Cybersecurity Threats and Data Breaches: Business must come to grips with an increase in the number and high quality of threats. Bad actors target weak security protocols, outdated firmware, and unmonitored device networks. Ransomware attacks, botnets, and unauthorized data access are among the most prevalent threats.
Expansion of Cloud-Based IoT Platforms: The rapid adoption of cloud-based platforms for managing, processing, and storing IoT data is a major catalyst for growth in the IoT security market. The shift to IoT infrastructure to the cloud is creating a new set of security challenges and vulnerabilities. Cloud-based IoT platforms expand the attack surface, making it imperative to implement robust end-to-end security protocols.