The latest global forecast to 2031 for the IoT security market is projected to show growth from USD 28.67 billion in 2025 to USD 80.30 billion by 2031 at a CAGR of 18.7% during the forecast period. This is according to a newly published report on the subject from research business Marketsandmarkets.
The authors suggest that the increasing deployment of connected devices across industrial, enterprise, and consumer environments is significantly expanding the cyber attack surface. As IoT ecosystems grow in scale and complexity, threats such as botnet attacks, unauthorised device access, firmware exploitation, and data interception are driving organisations to adopt advanced security frameworks.
Enterprises are increasingly shifting toward device-centric and lifecycle-based security strategies that protect devices from onboarding to updates and decommissioning. The rise of remote operations, edge computing, and cloud-connected platforms is also accelerating the adoption of zero-trust architectures. Modern platforms now incorporate AI-driven threat detection, device behaviour monitoring, and automated response capabilities, helping organisations secure connected ecosystems, protect data, and maintain operational continuity.
The increasing complexity of IoT ecosystems and the growing number of connected devices are driving demand for specialised security services. Organisations often lack the in-house expertise required to manage device security, monitor threats, and respond to vulnerabilities across large IoT deployments. As a result, services such as security consulting, risk assessment, integration, and managed security services are gaining significant traction. These services help organisations design secure IoT architectures, ensure continuous monitoring, manage device vulnerabilities, and maintain regulatory compliance across connected environments.
Data encryption and tokenization solutions play a critical role in securing sensitive information generated and transmitted by IoT devices. As connected devices continuously exchange operational and personal data across networks and cloud platforms, organizations are prioritising strong encryption and data protection mechanisms. These solutions help ensure secure communication, prevent data breaches, maintain privacy, and support regulatory compliance across large-scale IoT ecosystems.
North America is expected to lead the IoT security market due to early adoption of advanced digital technologies, widespread deployment of connected devices, and strong cyber security regulatory frameworks. Industries across manufacturing, healthcare, transportation, energy, and smart infrastructure are rapidly implementing IoT technologies to improve operational efficiency and enable data-driven decision-making. The region benefits from the presence of major IoT technology providers, strong innovation ecosystems, and high investments in cloud computing, edge computing, and industrial automation. Additionally, rising concerns around cyber attacks targeting connected devices and critical infrastructure are driving organisations to deploy advanced IoT security platforms that provide comprehensive protection across devices, networks, and cloud environments.
