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

  • May 10, 2021

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

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

  • Cost: Reactive vs. Proactive Security

    Security breaches often happen despite the availability of tools to prevent them. To combat this problem, the industry is shifting from reactive correction to proactive protection. This article will examine why so many security leaders have realized they must “lead before the breach” – not after. Read Now

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

Most   Popular

New Products

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.

  • 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.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.