An IoT security forecast from Future Market Insights (FMI) calls for annual Internet of Things revenues to reach 16.7 billion by 2020. Researchers put a value of $7.8 billion on the global IoT security products market today and projected a 16.5% compound annual growth rate (CAGR) from 2015-2020.
IoT devices and equipment are being rolled out across various industries. In particular, demand from the banking and financial services sector (BFSI) is a key growth driver, according to FMI’s ¨Internet of Things (IoT) Security Market: Global Industry Analysis and Opportunity Assessment, 2015-2020.¨
IoT Security Forecast
FMI breaks its market valuation and forecast down into IoT security hardware and software products, valuing both at $3.9 billion as of end 2014. New data privacy and security regulations are the primary growth driver for IoT security hardware, the market which FMI forecasts to increase at a 15.9% CAGR over the period.
The market for IoT security software will grow faster, FMI expects, increasing at a 17.2% CAGR from 2015-2020. Growing awareness of IoT security risks is on the rise as deployments expand across industry verticals.
IoT device manufacturers are increasingly adding embedded security systems in their products in order to shield them from data and application threats, FMI notes. The market researcher identifies Symantec, IBM, Intel, Cisco, Infineon, Trend Micro, Check Point Software Technologies and Inside Secure as leading IoT security vendors.
Network and device security needs will multiply exponentially in tandem with a forecast that 50 billion connected devices will have been installed worldwide by 2020, Security Coverage director of marketing Mike Fleming highlighted in an April 2015 blog pose. Furthermore, security threats will increase correspondingly as global IoT revenues soar, perhaps as high as a forecast $3 trillion by the end of the decade.