Utilities Sector Demand for IoT Security Leads to 55% Market Growth by 2020

The IoT security market is expected to reach compound annual growth of 55% by 2020, a Market Research Reports study reveals.

Global Internet of Things Security Market 2016-2020 is a comprehensive outlook on the global IoT security market between 2016 and 2020. The forecast is based on growing demand of the health, automotive, and utilities sectors to protect their devices and infrastructure from hackers in areas such as the Americas, EMEA, and APAC.

“Extensive implementation of smart meters and IoT for utility management systems such as gas, energy, water, and oil will contribute towards the growth of the market,” the report says. “However, high total cost of ownership of IoT security solutions will negatively impact the growth of the market during the forecast period. The emergence of integrated security solutions will open new opportunities for the market in the near future.”

The research rests on analysis conducted of high-profile IoT security companies and agrees with an earlier Gartner study. Due to the growth of connected devices, “Gartner forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30% from 2015, and will reach 11.4 billion by 2018.” Gartner research director Ruggero Contu said, though, that “considerable variation exists among different industry sectors as a result of different levels of prioritization and security awareness.”

After 2020, IoT-related security attacks are expected to increase due to the high number of vulnerabilities and overall adoption by enterprises, reaching a 25% margin. With further developments in the IoT software sector and expected high spending, security companies will have to better focus their efforts on developing robust solutions to protect smart devices for both consumers and enterprises, Gartner reports.