IoT Security Solutions Set to Hit $6 Billion by 2023

The Internet of Things (IoT) is gearing up to explode in the next five years. According to a new report from Juniper Research, an analytics firm based an hour outside of London, spending in developing IoT security will reach $6 billion by 2023.

Rise in Risks = Rise in Spending

The company says the 300% rise from now until 2023 will largely depend on spending by product and service providers as well as end customers, with North America spending the most. This equates to 5% of all cybersecurity spending being dedicated to IoT solutions in five years.

Juniper Research says Western Europe, China, and the Far East will follow North America in spending. Year-over-year, IoT security spending will increase by 30%, while IoT connectivity will grow annually at a rate of 25%. As technology becomes exceedingly more complex, cybersecurity plays a very large role in ensuring it and the data it utilizes are kept safe.

“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,” says Steffen Sorrell, one of the research authors at Juniper Research.

Additionally, regulators are placing higher minimum standards on cybersecurity, leading companies to up their cybersecurity game or risk losing their business. Juniper Research also found that spending in smart home IoT cybersecurity will hover around 15% of the consumer market in 2023. That same year, annual IoT smart energy security spending will reach $1 billion.

Broader Concerns

Kaspersky Lab, a cybersecurity and anti-virus company, recently released results from its annual survey, called the “State of Industrial Cybersecurity 2018,” which shows 65% of surveyed companies around the world think that security risks are increasing in IoT through 2019.

For those organizations that know how large the risk of getting hacked is, managing connected devices is a major priority for 53%. And 77% of industrial businesses say they feel unsafe and fear that their industrial control networks will be hit with a cybersecurity attack.

“With the sector embracing more digital trends, such as cloud and IoT, to further drive efficiencies, the challenge and importance of cybersecurity becomes even more vital to keep critical systems running and businesses operational. The good news is that we are seeing more and more businesses improving their cybersecurity policies to include dedicated measures toward safeguarding their industrial control networks,” says Georgy Shebuldaev, who is the brand manager of Kaspersky Industrial Cybersecurity.

“While this is a step in the right direction, action needs to go further to keep up with the pace of digitalization.”

While most businesses have the intention of implementing a strong cybersecurity protocol, many put it on the back-burner until it’s too late. In this situation, being proactive pays in spades.