IoT Security Market Expected to Be Worth $8B By 2026
Friday, September 10, 2021 | Comments

Global tech market advisory firm ABI Research forecasts that by 2026, internet of things (IoT) cellular connections will number more than 3 billion, with 4G LTE and low-power wide-area (LPWA) networks bearing the brunt of these new connections and driving a $8 billion market for IoT security services.

The opportunity to deliver secure IoT communications on these networks will be key to the successful deployment of connected things on a global scale and for the eventual transition to 5G New Radio (NR). As such, the security industry is amid significant new technology developments to provide secure cellular connectivity solutions to IoT stakeholders across the board.

With the emergence of new cellular standards such as narrowband IoT (NB-IoT), LTE-M and 5G massive machine type communications (mMTC), there is a dynamic opportunity to create new platform solutions focused on network security to enhance trust in IoT deployments.

"Specifically, new target markets will emerge that will require dedicated point solutions and customized service offerings for communication service providers and enterprises directly,” said Michela Menting, digital security research director at ABI Research. “An expanded threat landscape, new standard-defined security protocols, and the potential for revenue generation through the sale of value-added security services all combine to drive a dynamic and highly competitive security market for cellular IoT protection.”

Market demands for secure cellular IoT solutions are coming from automotive, asset management, smart cities, utilities and energy, as well as from payments and healthcare applications. The diversity of the demand means the vendor landscape is expanding considerably, with pure-play cybersecurity vendors and traditional technology providers throwing their hat in the ring alongside telecommunications network equipment providers and network solution providers to offer secure IoT solutions to mobile network operators and enterprises in their respective markets.

"While LPWANs are still nascent, and 5G NR quite a few years from maturity, early understanding and integration of security is critical to developing trusted networks and will enable the creation of high-value revenue opportunities for the entire industry," Menting said.

These findings are from ABI Research's “Secure IoT Cellular Connectivity (LPWAN & 5G)” application analysis report. The report is part of the company's digital security research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, application analysis reports present in-depth analysis on key market trends and factors for a specific application, which could focus on an individual market or geography.

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