IoT identity, device management: a $21.5 billion opportunity by 2022
Small businesses do better at IoT security than larger enterprises

IoT identity, device management: a $21.5 billion opportunity by 2022

Vendors are investing more in encryption and device management, according to a new analyst report.

IoT identity and management revenues could reach $21.5 billion by 2022, according to analysts.

A new report from ABI Research says that IoT platform services, along with security, cryptography, digital certificate management, and data exchange, are propelling a boom market over the next five years.

Most of the revenues are being driven by industrial, manufacturing, and automotive applications, according to the research.

Dimitrios Pavlakis, industry analyst at ABI Research, said that through smarter gateways, cloud services, and API-focused solutions, ‘thing’ identity and management services are “steadily finding their way in a wider spectrum of IoT verticals.”

He added that although certain verticals are still lagging behind in terms of security, IoT vendors are finally starting to invest more in encryption and device certificate management.

Aftermarket and OEM telematics, fleet management, metering, home security, and automation are among the most important sectors, accounting for more than 60 per cent of total revenues worldwide.

“This brings us one step closer to the realisation of IAM [Identity and Access Management] 2.0 “, said Pavlakis. “We are entering a transformational period where device, system, and user IDs are forced to merge under the hyperconnected IoT paradigms, effectively altering the way Identity of Things [IDot] services will be perceived from now on.”

Reducing friction

The analyst company said that open IoT standards and frameworks like OCF [Open Connectivity Foundation], OneM2m and DeviceHive are an attempt to create OS/RTOS/vendor-agnostic solutions and reduce friction for more interconnected and secure ecosystems.

While some vendors choose to offer generalised or wide-ranging IoT solutions, most are now seeing the merit of specialising in IDoT, including: enterprise and industrial systems (e.g., Microsoft Azure); connected agriculture (e.g., Bosch); advanced analytics and machine learning (e.g., SAP); cryptography and device management (e.g., Rambus); and energy and manufacturing (e.g., GE Predix).

ABI Research said that given the recent Public Key Infrastructure (PKI) success stories in securing IoT devices, this specialisation trend extends to most of the certification authorities too. These include: smart cities, transportation and healthcare (e.g., DigiCert); cloud services (e.g., GlobalSign); banking and finance (e.g., IdenTrust); and enterprise and consumer sectors (e.g., Comodo).

Full findings can be found in ABI Research’s Thing Identity and Management Services report.

Internet of Business says

Security, trust, consent, and identity management will be the cornerstones of IoT success over the next decade: it’s not about the devices, but about the trusted and authenticated services they offer.

For more on the Manufacturing sector, see our major international event this week. Internet of Manufacturing takes place in Munich from 6-8 February. #IoTMan