By 2026, 23 Billion IoT Connections will Present New Threat Vectors and Generate $16 Billion in IoT Security Revenues

Today there are 8.6 billion IoT connections. By 2026, that number will nearly triple to 23.6 billion. In its new whitepaper, Connected & Protected: The Vulnerabilities and Opportunities of IoT Security, global tech market advisory firm ABI Research explores how the exponential growth in IoT connections will usher in a new era of connectivity and productivity along with a slew of new threat vectors and vulnerabilities. At the same time, the looming security gaps offer a tremendous revenue potential for players in IoT security.

“Concerns about security of the Internet of Things (IoT) are widespread,” says Michela Menting, Digital Security Research Director at ABI Research. Security gaps run the gamut from devices that are incapable of being secured to Original Equipment Manufacturers (OEMs) and vendors often choosing to accept the risk rather than remediate it, as well as functional safety-type IoT devices that prioritize availability and cannot simultaneously ensure confidentiality. “There are limited IoT security solutions in the market, due in large part to the fragmented nature of the IoT itself,” Menting explains.

While these security gaps pose a significant challenge for companies and end-users, they also represent a tremendous opportunity for players in the IoT space, including IoT service providers, vendors, platform operators, and Information Technology (IT)/Operational Technology (OT) security organizations. “Much like the number of IoT connections is set to explode, so too is the revenue opportunity in IoT security. ABI Research market data shows that total revenue in the space will reach US$16.8 billion by 2026,” Menting says.

The sheer number of new IoT connections over the next 5 years, the increased digitization capabilities of certain IoT markets (e.g., utilities, industrial, infrastructure, and smart cities), the increase in connected users and assets along with the increased connectivity needs brought forth by the COVID-19 pandemic are all fair predictors for digital security overall.

The amount of IoT security revenue, however, does not always correlate with the amount of IoT connections, and some markets are expected to experience disproportional revenue. Menting points out, “This is due to the multi-faceted level of security and management requirements that provide the foundation for other key operations and valuable services, including for intelligence operations and analytics, life cycle management and predictive maintenance, firmware updates, and device and data integrity.”

“ABI Research forecasts that digital security services will enter the Return on Investment (ROI) equation significantly faster in the next 3 years, as both security vendors and IoT players will better understand how to protect the key monetization applications related to their IoT strategies,” Menting concludes.

To learn more about IoT security, what is driving the revenue, and ABI Research’s strategic recommendations for companies and end-users, download Connected & Protected: The Vulnerabilities and Opportunities of IoT Security.

Featured

  • Just as Expected

    GSX produced a wonderful tradeshow earlier this week. Monday was surprisingly strong in the morning, and the afternoon wasn’t bad at all. That’s Monday’s results and asking attendees to travel on Sunday. Just a quick hint, no one wants to give up their weekend to travel and set up an exhibit booth. I’m just saying. Read Now

    • Industry Events
    • GSX
  • NOLA: The Crescent City

    Twenty years later we finds ourselves in New Orleans. Twenty years ago the aftermath of Hurricane Katrina forced exhibitors and attendees to look elsewhere for tradeshow floor space. Read Now

    • Industry Events
    • GSX
  • Nothing Artificial About this Intelligence

    I have been looking forward to this year’s GSX show in New Orleans, the Cresent City, or if you prefer The Big Easy. It seems like quite a while since we’ve been here. Twenty years ago, ASIS, as it was known then was literally washed out of the city by someone known as Katrina. It is a good thing to come back to NOLA. Read Now

  • From Monitors to Mission Control

    Security Operations Centers (SOC) were once defined by rows of static monitors, each displaying a single feed with operators quietly watching for issues. That model has become obsolete. Incidents evolve too quickly, data comes from multiple locations, and decisions must be made in seconds—not minutes. Read Now

  • New Gas Monkey Garage Venue Uses AI-Enhanced Video Technology

    Gas Monkey Garage, the automotive custom shop and entertainment brand founded by Richard Rawlings of Fast N’ Loud TV fame, has opened a vibrant new restaurant and bar in South Dakota, equipped with advanced, AI-enhanced video tech from IDIS Americas. Read Now

New Products

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction.