NEWSBYTE Worldwide Internet of Things (IoT) security spending is to increase by 300 percent to $6 billion by 2023, according to a new study by Juniper Research.
This significant uptick will occur among consumer markets’ product and service providers, and customers in industrial and public services, according to the report, The Internet of Things for Security Providers: Opportunities, Strategies & Forecasts 2018-2023.
The rapid growth will be fuelled by growing business risks and more stringent regulatory standards, says the company.
However, while spending growth will be significant, not every sector will see the same levels of investment. For example, in the smart home market, companies are not as fearful of a data breach, so security spending will only increase by 17 percent in the consumer space.
But this is an error on vendors’ part, suggests the report. “The interconnected nature of the IoT means that even innocuous devices like the connected fridge can become a threat. Vendors see that risk as low, while little has been done from a regulatory perspective to protect consumers,” said the report’s author, Steffen Sorrell.
In contrast, strict minimum standards and the EU’s General Data Protection Regulation (GDPR) will drive further expenditure in the smart energy market. As a result, security spending will hit $1 billion annually in this sector alone by 2023.
Meanwhile, the overall IoT security market will be shaken up by the rise of edge computing services that enable near real-time applications.
Juniper believes that this will present organisations with new security challenges, such as an increased attack surface and the need to ensure data reliability. As a result, these will be among the major drivers of increased IoT security spending.
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Juniper Research’s report is one of several that have predicted a significant increase in IoT security spending. In March, Gartner suggested that worldwide IoT security spending would hit $1.5 billion this year, while fellow analyst firm IDC suggested that spending on the overall IoT market – including IoT security – would hit $1.2 trillion by 2022.