IoT security services market to reach US$8bn by 2026
Global tech market advisory firm ABI Research forecasts that by 2026, IoT cellular connections will number more than 3bn, with 4G LTE and LPWA networks bearing the brunt of these new connections and driving a US$8bn 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, ABI Research said.
New cellular standards such as NB-IoT, LTE-M, and 5G MMTC emerge into the industry, there is an opportunity to create new platform solutions focused on network security to enhance trust in IoT deployments.
Michela Menting, Digital Security Research Director at ABI Research, said: "Specifically, new target markets will emerge that will require dedicated point solutions and customised service offerings for communication service providers and enterprises directly. 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.”
The demands of the IoT security services market
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 telco network equipment providers and network solution providers to offer secure IoT solutions to mobile network operators and enterprises in their respective markets.
Companies at the fore of delivering such solutions include 1NCE, Allot, Ericsson, FirstPoint, Fortinet, G+D, IoTerop, Kudelski, Mobileum, Netscout, Nokia, Thales, Transatel, and ZTE.
"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 concludes.
These findings are from ABI Research's Secure IoT Cellular Connectivity (LPWAN & 5G) application analysis report. This 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.