IoT Security Market Set to Surpass USD 75 Billion by 2031

Rising device connectivity and regulatory pressure drive demand for scalable, AI-enhanced security solutions.

The global Internet of Things (IoT) security technology market is projected to reach USD 75.3 billion by 2031, growing at a compound annual rate of 13.6 percent from 2025. As connected devices become more prevalent across industrial, commercial, and consumer sectors, the need for robust security frameworks continues to intensify. In 2024 alone, the market is expected to hit USD 25.6 billion, reflecting strong momentum. Key players such as Cisco, IBM, and Palo Alto Networks are leading efforts to meet this growing demand.

Technology Trends and Industry Applications

Security concerns related to data breaches, device tampering, and unauthorized access are prompting organizations to invest in comprehensive protection strategies. Solutions now emphasize encryption, secure onboarding, identity management, and continuous monitoring. Artificial intelligence and machine learning are increasingly integrated to enhance anomaly detection and enable real-time threat response. The expansion of edge computing and 5G networks has introduced new vulnerabilities, encouraging the adoption of layered security models.

Cloud-native platforms are gaining traction for their centralized policy control and scalability. Industries such as manufacturing, healthcare, and smart cities are driving innovation in embedded security and zero-trust architectures. Collaboration among hardware manufacturers, software developers, and service providers is accelerating the development of interoperable and standards-based technologies. These efforts are shaping a more resilient and adaptable security landscape for IoT ecosystems.

Market Dynamics and Regional Outlook

Forecasts suggest that regulatory mandates, rising cyber incidents, and digital transformation initiatives will sustain market growth through 2031. North America and Europe currently lead adoption due to early implementation of cybersecurity frameworks and mature infrastructure. In contrast, Asia-Pacific is emerging as a high-growth region, fueled by investments in smart infrastructure and expanding IoT deployments. Market competition is centered on delivering scalable, automated, and adaptive solutions that protect diverse device networks without sacrificing performance.

Vendors are enhancing their offerings with features like threat intelligence sharing, blockchain-based authentication, and secure firmware updates. Small and medium-sized businesses are turning to managed security services to address skill shortages and reduce complexity. Hardware-based and edge-focused approaches are gaining popularity as organizations seek low-latency protection. Strategic mergers and alliances are further integrating the ecosystem and extending technological capabilities.

Growth Drivers and Future Outlook

Several factors are contributing to the market’s upward trajectory. Technological advancements are improving functionality, reducing costs, and enabling new use cases across industries. The adoption of AI, advanced analytics, and automation is expanding the scope of IoT security applications. These innovations are not only enhancing existing systems but also creating new opportunities for long-term growth.

Government policies and infrastructure investments are also playing a crucial role. Initiatives promoting digital infrastructure, energy efficiency, and sustainability are increasing demand for advanced security technologies. Public-private partnerships and national programs like smart cities and Industry 4.0 are fostering favorable conditions, particularly in emerging markets. Increased funding for research and development is driving the creation of next-generation solutions with improved scalability and environmental performance.