IoT security market to hit $8bn by 2026 – to protect LTE, NB-IoT, LTE-M networks
The market for IoT security services will pass $8 billion by 2026, according to ABI Research, spurred by the need to secure spiralling numbers of IoT connections, mostly on LTE-based 4G mobile broadband, and NB-IoT and LTE-M based low-power IoT networks.
The company reckons the total number of cellular IoT connections will reach more than more than three billion in 2026, with cellular-based LTE (4G) and low-power wide-area (LPWA) networks (NB-IoT and LTE-M) supporting most of the growth in connection numbers and driving the interest in additional network security solutions.
ABI Research said secure IoT communications on these networks “will be key to the successful deployment of connected things on a global scale”, and also for the transition to massive machine-type communications (mMTC) for large-scale IoT deployments with the arrival of 5G New Radio (NR).
Michela Menting, digital security research director at ABI Research, said: “There is a dynamic opportunity to create new platform solutions focused on network security to enhance trust in IoT. New markets will emerge that will require dedicated point solutions and customized service offerings for communication 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.”
Demand for higher-security cellular IoT is coming from the automotive, asset management, smart cities, utilities, and energy, payments, and healthcare sectors. The vendor landscape is expanding with the diversity of demand, with pure-play cybersecurity vendors, alongside telco equipment vendors and network providers.
ABI Research has issued a new report, available here, on the growing security market for cellular IoT. It highlights solutions from companies including 1NCE, Allot, Ericsson, FirstPoint, Fortinet, G+D, IoTerop, Kudelski, Mobileum, Netscout, Nokia, Thales, Transatel, and ZTE.
Menting commented: “While LPWANs are still nascent, and 5G NR [is] 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.”