Spending on cybersecurity solutions for the Internet of Things (IoT) will surpass $6 billion globally by 2023, according to a new report by Juniper Research.
The research claims that this rapid growth – which is predicted to increase by 300% over the next five years – will be driven by an increased risk to businesses and regulatory minimum standards, driving the need for enterprises across the globe to upgrade their IoT cybersecurity measures.
Differences across markets
The report highlights that there are major differences when it comes to how IoT business risk is perceived and how regulations should be applied.
For example, smart home IoT security spending is predicted to make up less than 17% of the consumer market by 2023, as the threat to tech in the home is viewed as low-risk by vendors.
Research author Steffen Sorrell explained: "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."
In contrast, smart energy security spend is set to make up a significant chunk of spending, given that it's forecast to reach $1 billion annually in 2023. Spending will be driven by a requirement to adhere to strict minimum standards, such as those applied by the EU's General Data Protection Regulation(GDPR).
Another major driver of industry spend will be edge computing services, according to the report.
The rise of edge computing services to enable near-real-time IoT applications is forecast to present additional security issues, which will therefore serve to drive spend.
An increased attack surface is liable to raise the risk for businesses – which will also lead to an increase in spend.
To discover more about security for the IoT and how businesses can safely connect, keep an eye out for our forthcoming longform microsite dedicated to security for the IoT in business