Information technology research analyst Gartner says that worldwide spending on Internet of Things (IoT) security will reach $348 million in 2016, a 23.7% increase from 2015.
"The market for IoT security products is currently small, but it is growing as both consumers and businesses start using connected devices in ever greater numbers," said Ruggero Contu, research director at Gartner.
It is predicted there will be a gap between IoT endpoint spending and security attacks, and IoT IT budget allocation. Gartner predicts that by 2020, more than 25% of identified attacks in enterprises will involve the IoT, although it will account for less than 10% of IT security budgets.
Organizations taking a decentralized approach to the IoT - as has been the case in early IoT implementations - will result in a challenge to vendors to provide usable IoT security features. Gartner predicts that vendors risk focussing too much on spotting vulnerabilities and exploits, to the detriment of segmentation and other long-term means that better protect the IoT.
"The effort of securing the IoT is expected to focus more and more on the management, analytics and provisioning of devices and their data," adds Contu. "The IoT's fundamental strength in scale and presence will not be fully realized without cloud-based security services to deliver an acceptable level of operation for many organizations in a cost-effective manner."
Gartner predicts that, by 2020, more than half of IoT implementations will use a cloud-based security service.