Smart grid and home & building IoT security product revenues will reach $26.8 billion by 2027.

Global Internet of Things (IoT) security product market is projected to be increasing rapidly, experiencing a 14.9 per cent compound annual growth rate (CAGR) through 2027, according to new research from Future Market Insights (FMI).

Asia Pacific Excluding Japan (APEJ) will continue to be the fastest growing market for IoT security products, registering a high double-digit CAGR through 2027. The growing number of connected devices is leading toward expansion of IoT ecosystem in APEJ.

Although smart grid will remain sough-after among applications, home and building automation is expected to witness fastest expansion in the market through 2027. Revenues amassed from smart grid and home & building automation applications of IoT security products will collectively account for revenues worth $26.8 billion the end of 2027.

The manufacturing sector is estimated to remain the largest vertical for IoT security products in the global market. Revenues amassed from sales of IoT security products in manufacturing are expected to reach $15.1 billion the end of 2027. Other sectors to lead adoption are healthcare, followed by energy & utility and transportation & logistics.

In 2017, the IoT security product market generated revenues worth more than $12 billion. The market is now estimated to reach nearly $50 billion the end of 2027. The research found cyber security would be the market’s greatest inhibitor.

Increasing adoption of digital technologies including web-based services, online education and online banking has accelerated adoption of smartphones, which in turn has necessitated security of such technologies against cyber-attacks.

Various governments across the globe have imposed stringent laws in order to ensure secure environment and maintain privacy for connected devices. In addition, several enterprises are focusing on implementation of IoT-based solutions, encouraging employees in bringing their own devices for flexibility, FMI says.

The market’s rapid growth is primarily attributed to continuous launches of IoT security offerings by enterprises, soaring number of service providers and emergence of niche players in the market.

North America will remain dominant in the global IoT security product market, with sales estimated to reach nearly $16 billion in revenues by the end of 2027. North American governmental organizations have entered into partnership with major technology companies in order to implement IoT across urban cities.

Network security will remain preferred solution for IoT security products, with sales anticipated to account for nearly $15 billion 2027-end. End-point/device security will continue to be the second largest solution for IoT security products. In addition, vulnerability management solution for IoT security products will register fastest expansion through 2027. By component, software will continue to retain its dominance in the global IoT security product market, with sales expanding at 15.2% CAGR through 2027.