Iot Security Market Size, Share & Trends Analysis Report By Product (Network Security, Endpoint Security, Application Security, Cloud Security, Others), By Applications (Identity Access Management, Threat Intelligence, Encryption, UTM, DLP, Others), By End Use, By Region, and Segment Forecasts - 2035

Iot Security Market Overview

The iot security market size is expected to grow from USD 20256.6 million in 2025 to USD 24435.54 million in 2026 and is forecast to reach USD 132158.74 million by 2035 at 20.63% CAGR over 2026-2035.

The Iot Security Market is expanding as enterprises connect larger numbers of sensors, industrial controllers, medical devices, cameras, building systems, retail equipment, transportation assets and other machine endpoints to corporate networks and cloud platforms. The resulting attack surface is forcing security teams to move beyond conventional perimeter defenses toward continuous device discovery, behavioral monitoring, identity verification, segmentation and automated threat response. In 2025, only around 4% of organizations assessed in a major global cybersecurity readiness study had reached a mature overall cybersecurity posture, demonstrating a substantial protection gap. Operational environments are receiving particular attention because 52% of organizations surveyed in 2025 assigned direct operational technology security responsibility to the CISO or CSO, compared with only 16% in 2022. These changes are increasing demand for Network Security, Endpoint Security, Application Security, Cloud Security and other supplied IoT security technologies across manufacturing, healthcare, utilities, transportation, retail, smart buildings and connected consumer environments.

The United States remains a major Iot Security Market due to its large enterprise technology base, extensive cloud adoption, industrial automation footprint, healthcare digitization and concentration of cybersecurity vendors. U.S. organizations are moving toward device-level Zero Trust because unmanaged IoT, operational technology and employee-connected devices can create network blind spots that conventional endpoint tools do not always identify. Current cybersecurity readiness assessments indicate that only approximately 4% of organizations globally have achieved mature security readiness, while 45% allocate more than 10% of their information technology budgets to cybersecurity. Manufacturing is an especially important U.S. security use case because the sector accounted for approximately 27.7% of recorded cybersecurity incidents during 2025, marking its fifth consecutive year as the most frequently targeted industry in one major threat assessment. These conditions are increasing U.S. demand for network visibility, identity controls, encryption, threat intelligence, microsegmentation and AI-assisted anomaly detection.

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Key Findings

• Leading Product Type: Network Security is positioned as a leading category as connected-device traffic expands, while approximately 57% of surveyed organizations in one major market had already deployed built-in protections including firewalls and intrusion-prevention capabilities.
• Leading Application: Identity Access Management is expected to remain a critical application as Zero Trust adoption accelerates, with approximately 68% of surveyed enterprises in one major economy deploying machine-integrity authentication capabilities.
• Leading Region: North America is expected to maintain a leading position because of advanced enterprise cybersecurity adoption, while approximately 45% of organizations globally allocate more than 10% of information technology budgets to cybersecurity.
• Fastest Growing Region: Asia-Pacific is positioned for rapid expansion as digital infrastructure and connected manufacturing increase, while only around 14% of surveyed Indian organizations achieved mature machine-trustworthiness readiness during 2025.
• Technology Trend: AI-driven device profiling and anomaly detection are becoming central IoT security capabilities, with approximately 58% of surveyed organizations adopting machine-protection solutions incorporating artificial intelligence to a significant extent.
• Market Driver: Industrial cyber exposure remains a powerful demand catalyst, with manufacturing representing approximately 27.7% of recorded cybersecurity incidents during 2025 and maintaining its position as the most targeted industry for a fifth consecutive year.
• Competitive Landscape: Platform consolidation is accelerating as vendors integrate device security with broader cloud-delivered protection, while more than 95% of organizations surveyed in 2025 had elevated operational technology cybersecurity responsibility to executive leadership.
• Future Outlook: Automated Zero Trust and continuous device verification will shape future deployments as nearly 70,000 operational technology devices have been identified as publicly exposed across global internet-facing environments in recent technical analysis.

Latest Trends

One of the strongest trends shaping the Iot Security Market is the convergence of IoT, operational technology, endpoint and network security into unified device-security platforms. Enterprises increasingly want a single environment that can identify managed endpoints, unmanaged equipment, industrial controllers, connected medical systems and embedded devices without requiring separate security products for each asset type. Platform consolidation has become more important because operational cybersecurity ownership has shifted upward, with 52% of surveyed organizations assigning responsibility directly to the CISO or CSO in 2025 versus 16% in 2022. More than 95% of surveyed organizations had moved responsibility for operational technology security to the executive level, indicating that device security is increasingly treated as an enterprise risk issue rather than an isolated engineering function. Vendors are responding by integrating behavioral analytics, network segmentation, threat intelligence, asset discovery, vulnerability prioritization and policy enforcement into broader cloud-managed security platforms.

Artificial intelligence is also transforming how connected devices are monitored and protected. Conventional signature-based security remains important, but IoT environments often include equipment that cannot run endpoint agents, receives infrequent patches or uses specialized communication protocols. AI-assisted behavioral baselining can identify unusual communications, unauthorized destinations, abnormal data volumes and unexpected device functions without requiring a software agent on every asset. In 2025, approximately 58% of organizations adopting machine-protection technologies in one major national survey were using artificial intelligence to a significant extent, while 52% had deployed machine-behavior and anomaly-protection solutions. This adoption is accelerating as attackers also use automation and artificial intelligence to improve phishing, vulnerability discovery and reconnaissance. The market is therefore shifting toward continuous device posture assessment, risk scoring, automated segmentation, virtual patching and machine-speed response across IoT and operational environments.

Market Dynamics

Driver

""Rapid expansion of connected devices is increasing enterprise attack surfaces.""

The continued expansion of connected assets across manufacturing, healthcare, utilities, buildings, transportation, logistics and retail is the primary structural driver of the Iot Security Market. Traditional information technology networks are now connected to industrial controllers, sensors, cameras, smart meters, laboratory equipment, point-of-sale systems and other specialized devices that may remain operational for 10 years or longer. Many of these systems cannot support conventional endpoint agents and may run outdated operating systems or firmware, creating persistent security gaps. A recent technical analysis identified nearly 70,000 operational technology devices directly exposed to the public internet, demonstrating how configuration errors and legacy protocols can create substantial attack opportunities. Manufacturing represented approximately 27.7% of recorded cyber incidents in 2025, reinforcing the relationship between connected production environments and cybersecurity risk. Organizations are consequently increasing spending on device discovery, network segmentation, threat intelligence, encryption and Zero Trust access controls.

Restraint

""Legacy devices and fragmented architectures complicate consistent security implementation.""

Legacy technology remains an important restraint because many IoT and operational devices were designed for reliability and long operating lives rather than continuous cybersecurity updates. Industrial controllers, medical devices, building equipment and embedded systems can remain deployed for more than 10 years, while security teams may lack complete inventories of their firmware versions, communication patterns and ownership. Recent research examining internet-accessible operational technology identified nearly 70,000 exposed devices and found examples of equipment using outdated firmware with known vulnerabilities remaining unpatched for years. Security modernization is further complicated by the need to maintain production uptime, because manufacturers and utilities cannot always restart critical equipment simply to apply software updates. Enterprises must therefore combine traditional patching with compensating controls such as network segmentation, protocol inspection, virtual patching and continuous monitoring, increasing implementation complexity and extending deployment timelines.

Opportunity

""Zero Trust device security creates major opportunities across IT and operational environments.""

Zero Trust adoption presents a major opportunity for IoT security suppliers because enterprises increasingly recognize that every user and machine should be continuously verified before accessing network resources. Identity Access Management is expanding from employee authentication toward machine identity, certificate management, device posture and policy-based access. In one 2025 enterprise readiness assessment, approximately 68% of surveyed organizations had deployed machine-integrity authentication technologies, while 57% had implemented built-in protections such as firewalls and intrusion-prevention systems. Vendors can extend these deployments by adding certificate-based device identity, automated segmentation, behavioral baselines and context-aware access policies. The opportunity is particularly strong in healthcare, smart factories, utilities and connected buildings where thousands of devices may communicate continuously but cannot support conventional endpoint agents. Integrating Identity Access Management with Network Security and Threat Intelligence allows enterprises to enforce granular controls without replacing installed equipment.

Challenge

""Machine-speed attacks are increasing pressure on security teams and monitoring systems.""

The increasing speed and automation of attacks presents a significant challenge for IoT security operations. Security teams must monitor large volumes of device traffic while distinguishing legitimate machine-to-machine communication from malicious reconnaissance, credential abuse, malware propagation and data exfiltration. European threat monitoring analyzed approximately 4,875 cybersecurity incidents across the period from July 2024 through June 2025, with distributed denial-of-service attacks representing approximately 77% of reported incidents. Phishing accounted for roughly 60% of observed initial intrusion pathways, while vulnerability exploitation represented about 21.3%. IoT environments compound this challenge because security teams may have limited visibility into embedded devices and proprietary protocols. Enterprises are therefore turning toward automated behavioral analysis and prioritized risk scoring, but these systems must be accurately tuned to avoid overwhelming analysts with false positives while still identifying subtle anomalous behavior.

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Segmentation Analysis

By Types

Network Security: Network Security accounts for an estimated 31% of the 2026 IoT security product mix because connected devices depend heavily on network-level controls when conventional endpoint agents cannot be installed. Firewalls, network access control, segmentation, secure gateways, protocol inspection and intrusion prevention provide visibility into traffic between devices, data centers and cloud environments. Approximately 57% of surveyed organizations in one major enterprise market had adopted built-in machine protections including firewall and intrusion-prevention capabilities during 2025. Network Security is particularly important across industrial IoT because many operational protocols were originally designed for trusted environments. As enterprises connect production systems to analytics platforms and cloud services, network segmentation and policy enforcement become essential for limiting lateral movement following compromise.

Endpoint Security: Endpoint Security represents an estimated 23% of the 2026 product mix as organizations extend device protection beyond laptops and servers toward gateways, ruggedized computers, connected medical platforms and other intelligent IoT endpoints. Approximately 52% of surveyed organizations in one major economy had already implemented machine-behavior and anomaly-protection tools in 2025, showing increased demand for continuous monitoring. Endpoint protection within IoT environments requires different techniques from conventional employee devices because many connected assets have limited computing resources or cannot install software agents. Security suppliers are therefore combining agent-based protection where possible with network-derived telemetry, firmware integrity checks, asset fingerprinting and behavior analytics to identify compromised devices without disrupting operations.

Application Security: Application Security represents an estimated 17% of the 2026 IoT security market because connected products increasingly depend on mobile applications, APIs, web dashboards and embedded software for configuration and data exchange. Vulnerability exploitation accounted for approximately 21.3% of initial intrusion vectors in a major 2025 European threat assessment, illustrating the need for secure application development and vulnerability management. IoT application security includes code testing, API protection, authentication, software-component monitoring and secure update processes. The requirement is becoming more important as manufacturers introduce digital services around physical products, transforming individual devices into continuously connected software platforms. Enterprises are also scrutinizing third-party software components because vulnerabilities within shared libraries can create risks across thousands of deployed devices simultaneously.

Cloud Security: Cloud Security represents an estimated 20% of the 2026 product mix as IoT platforms increasingly send telemetry, commands and analytics data to cloud infrastructure. The combination of connected equipment and cloud applications creates a distributed security model requiring protected APIs, identity controls, encrypted data flows, workload protection and centralized policy management. Only around 4% of organizations in a major 2025 global assessment had achieved a mature overall cybersecurity readiness posture, highlighting gaps in integrated cloud and device security. Security vendors are responding by delivering IoT visibility and device policy through cloud-managed platforms that can scale across thousands of locations. Cloud Security also supports centralized analytics, allowing organizations to compare device behavior across geographically distributed factories, stores, hospitals and facilities.

Others: Others account for an estimated 9% of the 2026 product mix and include specialized capabilities that complement the supplied Network Security, Endpoint Security, Application Security and Cloud Security categories. These deployments address device certificates, embedded security hardware, firmware verification, vulnerability management and security orchestration. The category is becoming more important as enterprises seek protection for equipment with operating lifetimes exceeding 10 years, where security controls must remain effective despite limited patching capability. Recent technical research identifying nearly 70,000 internet-accessible operational technology devices illustrates the need for specialized protections around discovery and exposure management. Suppliers with embedded security expertise can address devices before deployment, while enterprise security vendors focus on monitoring and policy enforcement after assets connect to production networks.

By Applications

Identity Access Management: Identity Access Management holds an estimated 27% share of 2026 application demand because organizations increasingly treat connected devices as identities that must be authenticated, authorized and continuously verified. Approximately 68% of surveyed organizations in one major market had implemented machine-integrity authentication technologies during 2025. IoT identity management extends beyond passwords by using certificates, device fingerprints, hardware roots of trust and policy-based access. The application is especially important where thousands of sensors and controllers communicate automatically without direct user interaction. Zero Trust strategies are expanding demand further because each device must prove its identity and security posture before receiving access to sensitive applications, data or network segments.

Threat Intelligence: Threat Intelligence represents an estimated 21% of 2026 application demand as enterprises require contextual information about malicious infrastructure, vulnerabilities, attacker techniques and device-specific risks. A major European cybersecurity assessment evaluated approximately 4,875 incidents between July 2024 and June 2025, demonstrating the scale of threat data that security teams must contextualize. IoT-specific intelligence is increasingly integrated into network monitoring platforms so organizations can prioritize exposed devices, known vulnerabilities and suspicious traffic. Manufacturing, utilities and healthcare benefit particularly because patching may be constrained by uptime requirements. Combining threat intelligence with asset inventories enables security teams to focus remediation on devices that are both technically vulnerable and actively targeted.

Encryption: Encryption accounts for an estimated 18% of application demand because connected devices continuously exchange operational data, credentials and control messages across local networks and cloud infrastructure. Approximately 68% of surveyed organizations in one major 2025 enterprise study had deployed machine authentication and integrity mechanisms, supporting broader use of certificates and encrypted device communications. Encryption protects information confidentiality and helps prevent attackers from manipulating data in transit, but implementation can be difficult on older or resource-constrained IoT devices. The market is therefore evolving toward lightweight cryptography, hardware-backed keys, automated certificate lifecycle management and secure communication gateways capable of protecting legacy equipment without requiring complete device replacement.

UTM: UTM represents an estimated 15% of 2026 IoT security application demand because organizations prefer consolidated protection combining firewall, intrusion prevention, web filtering, malware detection and network monitoring within unified appliances or cloud-delivered services. Approximately 57% of surveyed organizations in a major enterprise market had deployed firewall and intrusion-prevention capabilities for machine protection during 2025. Unified approaches can be particularly attractive for branch offices, retail locations, clinics and smaller industrial facilities that lack dedicated security teams. As connected-device numbers increase, UTM platforms are incorporating automated device discovery and IoT classification to help administrators apply different security policies to cameras, sensors, printers, medical equipment and operational technology.

DLP: DLP represents an estimated 11% of application demand as IoT environments generate larger volumes of operational, customer, healthcare and industrial data. Attackers increasingly target connected systems not only for disruption but also for credential theft and information exfiltration. Phishing represented approximately 60% of identified intrusion access points in a major 2025 European threat assessment, demonstrating how compromised identities can become the starting point for broader data loss. DLP tools help organizations identify sensitive information leaving connected environments through unauthorized cloud services, compromised devices or unusual network connections. Integration with Network Security and Identity Access Management allows policy decisions to consider both the data being transferred and the device responsible for transmitting it.

Others: Others represent an estimated 8% of 2026 application demand and include specialized IoT security functions that complement Identity Access Management, Threat Intelligence, Encryption, UTM and DLP deployments. These applications support vulnerability prioritization, certificate management, device posture scoring, segmentation automation and secure firmware management. Nearly 70,000 operational technology devices have been identified as publicly accessible in recent research, demonstrating the continuing need for exposure discovery and remediation. As organizations gain more accurate device inventories, spending is moving toward continuous posture management rather than periodic asset scans. This transition creates opportunities for platforms that can automatically identify new devices, assess their behavior and recommend security controls immediately after connection.

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Regional Outlook

North America

North America is expected to remain one of the leading Iot Security Market regions because the United States combines extensive cloud adoption, large enterprise networks, industrial automation, connected healthcare and a deep cybersecurity vendor ecosystem. Manufacturing remains particularly exposed, accounting for approximately 27.7% of recorded cybersecurity incidents during 2025. U.S. organizations increasingly treat IoT protection as part of broader Zero Trust and network security programs rather than as a standalone technology. Connected medical equipment, cameras, building controls, industrial machines and logistics devices are generating demand for automated discovery, identity verification, segmentation and threat intelligence.

Regional adoption is also supported by stricter enterprise procurement practices and growing awareness of device-level vulnerabilities. Only around 4% of organizations in a major global 2025 readiness assessment achieved a mature cybersecurity posture, leaving a substantial addressable market for modernization. Large organizations are increasingly consolidating network, cloud, endpoint and device controls into unified security platforms to reduce operational complexity. North American buyers also emphasize encryption, certificate management and application security because IoT data frequently traverses public cloud platforms and third-party APIs. The region's mature cybersecurity spending base should therefore sustain strong adoption throughout the 2026-2035 forecast period.

Europe

Europe represents a major IoT security market due to industrial digitization, connected transportation, energy infrastructure, smart buildings and expanding cybersecurity regulation. European cybersecurity authorities analyzed approximately 4,875 incidents between July 2024 and June 2025, with distributed denial-of-service activity accounting for around 77% of reported incidents. Ransomware remained one of the most operationally disruptive threat categories, increasing demand for segmentation, backup protection and behavior-based detection across connected environments. Manufacturers and critical-infrastructure operators are particularly focused on securing operational technology that was historically isolated but is increasingly connected to enterprise analytics and remote maintenance systems.

European demand is also being shaped by product-security requirements that place greater responsibility on technology manufacturers throughout device lifecycles. Organizations must manage vulnerabilities, updates, authentication and secure communication across increasingly diverse connected assets. Phishing accounted for approximately 60% of identified initial access methods in one major European assessment, while vulnerability exploitation represented around 21.3%, highlighting the need for layered defenses that combine identity security and technical vulnerability management. Enterprises are consequently expanding Network Security, Encryption and Identity Access Management while evaluating embedded security earlier in product development cycles.

Asia-Pacific

Asia-Pacific is positioned as one of the fastest-growing regions for IoT security because large-scale manufacturing, 5G deployments, smart-city programs, industrial automation and cloud adoption are rapidly increasing connected-device density. Security readiness remains uneven, creating significant room for investment. In one major 2025 enterprise assessment focused on India, only approximately 14% of organizations achieved mature machine-trustworthiness readiness even though 68% had adopted machine-integrity authentication technologies. Approximately 57% had deployed firewall and intrusion-prevention protections, while 52% had implemented machine-behavior or anomaly-protection capabilities. These figures indicate both substantial adoption and considerable remaining modernization requirements.

Manufacturing concentration across China, Japan, South Korea, India and Southeast Asia further strengthens regional demand because factories increasingly connect robotics, sensors, programmable controllers and analytics platforms. Artificial intelligence adoption within device protection is also progressing rapidly, with approximately 58% of surveyed organizations using AI to a significant degree across adopted machine-protection solutions in one major 2025 national assessment. Enterprises are investing in asset discovery, segmentation, endpoint monitoring and cloud security as production environments become more connected. Regional cybersecurity vendors and multinational suppliers are expanding managed services and cloud-delivered platforms to serve organizations lacking large internal security teams.

Middle East & Africa

Middle East & Africa is emerging as an important IoT security region as governments and enterprises invest in smart infrastructure, connected utilities, digital healthcare, energy automation and large-scale urban development. Industrial and infrastructure projects can involve thousands of sensors, cameras, control systems and access devices, creating demand for Network Security and Identity Access Management. Operational technology risk is particularly important because recent global technical analysis identified nearly 70,000 internet-accessible OT devices, many using protocols that were not originally designed with modern cybersecurity requirements in mind.

Regional adoption is expected to accelerate as critical-infrastructure owners increase cybersecurity governance and centralize operational security under executive leadership. Globally, approximately 52% of surveyed organizations assigned direct OT security responsibility to the CISO or CSO during 2025, compared with only 16% in 2022. This governance shift is relevant to energy, utilities, transportation and industrial enterprises across the Middle East. African markets remain more varied in cybersecurity maturity, but telecom expansion, digital financial services and connected infrastructure create growing requirements for affordable cloud-managed security and threat-intelligence services.

Latin America

Latin America is developing into a growing IoT security market as enterprises expand cloud services, smart manufacturing, logistics tracking, connected retail, digital healthcare and industrial automation. Security investment is increasingly influenced by ransomware, credential theft and vulnerability exploitation, making integrated network and identity protection important. Phishing represented approximately 60% of initial intrusion access points in a major 2025 threat assessment, while vulnerability exploitation represented around 21.3%. These attack patterns create demand for Identity Access Management, Threat Intelligence and Application Security across enterprises connecting new IoT assets.

Regional organizations often operate mixed estates containing modern cloud-managed devices alongside older industrial and building equipment, increasing demand for security platforms that can discover assets without installing software agents. The global identification of nearly 70,000 publicly exposed operational technology devices demonstrates how legacy equipment can become visible to attackers when networks are misconfigured. Latin American organizations are therefore expanding segmentation, firewall protection, encryption and managed security services. Cloud-delivered security is particularly attractive to mid-sized enterprises because it can centralize monitoring across multiple branches, factories or retail locations without requiring a large security operations team at every site.

List of Top Iot Security Companies

• International Business Machines Corporation (U.S.)
• CENTRI Technology Inc. (U.S.)
• Cisco Systems, Inc. (U.S.)
• Palo Alto Networks, Inc. (U.S.)
• DigiCert, Inc. (U.S.)
• Karamba Security (Israel)
• Trend Micro, Inc. (Japan)
• TrustWave Holdings, Inc. (U.S.)
• Symantec Corporation (U.S.)
• Darktrace Ltd. (U.K.)
• Infineon Technologies AG (Germany)
• Fortinet, Inc. (U.S.)
• RSA Security LLC (U.S.)
• Gemalto NV (Netherlands)
• CyberX, Inc. (U.S.)
• AT&T Inc. (U.S.)
• Mocana Corporation (U.S.)
• PTC Inc. (U.S.)
• Bitdefender, LLC (U.S.)

Top 2 Companies Market Share

Cisco Systems, Inc.: Cisco Systems, Inc. maintains a strong competitive position through its extensive enterprise networking footprint and integration of identity, firewall, segmentation and network visibility technologies. Current cybersecurity readiness research indicates that only around 4% of assessed organizations achieved mature cybersecurity readiness during 2025, creating substantial demand for security modernization. Within device-focused readiness, firewall and intrusion-prevention adoption reached approximately 57% in one major national assessment, while machine authentication reached 68%. Cisco's strategic advantage is its ability to integrate IoT security controls into existing enterprise network infrastructure, allowing customers to combine device discovery, access policy, segmentation and threat detection across distributed environments.

Palo Alto Networks, Inc.: Palo Alto Networks, Inc. is strengthening its IoT security position by evolving traditional IoT and operational technology protection into broader Device Security. In April 2026, the company incorporated Device Security into a wider AI-driven security bundle, extending protection across unmanaged, managed, IoT and operational technology assets. The strategy reflects growing enterprise preference for platform consolidation, particularly as more than 95% of surveyed organizations in a 2025 operational security study had elevated OT cybersecurity responsibility to executive leadership. The company's approach emphasizes continuous device discovery, behavioral risk assessment, policy recommendation, Zero Trust segmentation and integration with cloud-managed network security.

Investment Analysis

Investment in the Iot Security Market is increasingly directed toward unified platforms, artificial intelligence, device identity, automated segmentation and operational technology visibility rather than isolated security tools. The need for consolidation is becoming clearer as 52% of organizations surveyed in 2025 placed operational technology security directly under the CISO or CSO, compared with only 16% in 2022. More than 95% had elevated OT security ownership to executive leadership, increasing the likelihood that device security will receive enterprise-wide budgets instead of being funded only through local engineering teams. Investors and vendors are therefore prioritizing technologies capable of securing both traditional information technology endpoints and specialized IoT assets from a shared architecture. AI-assisted behavioral analysis is receiving particular attention because approximately 58% of surveyed organizations using machine-protection solutions in one major national market already incorporated AI to a significant extent.

Investment opportunities are also developing around device identity, embedded security, certificate management and lifecycle protection. Connected equipment can remain in service for more than 10 years, creating long-duration requirements for secure authentication, software updates, encryption and vulnerability monitoring. Approximately 68% of surveyed enterprises in one major 2025 market had deployed machine-integrity authentication capabilities, indicating that device identity is already moving toward mainstream adoption. Industrial environments represent another high-priority investment area because manufacturing accounted for approximately 27.7% of recorded cybersecurity incidents during 2025. Suppliers capable of combining Network Security, Endpoint Security, Cloud Security and Application Security with Threat Intelligence and Identity Access Management are positioned to benefit as enterprises reduce fragmented tooling and adopt integrated platforms throughout the 2026-2035 forecast period.

New Product Development

New product development is shifting toward agentless device discovery, AI-assisted behavioral profiling, automated risk scoring, Zero Trust policy generation and virtual patching for equipment that cannot accept conventional endpoint software. In September 2025, one major security vendor announced an evolution of its IoT and operational technology offering into a wider device-security architecture capable of discovering and protecting managed, unmanaged, IoT and OT assets from a common platform. By April 2026, that capability had been integrated into a broader AI-enabled cloud-delivered security bundle. These developments reflect enterprise demand for fewer independent tools and more consistent controls across device categories. Machine-behavior protection was already deployed by approximately 52% of surveyed organizations in one major market during 2025, suggesting that anomaly detection has moved beyond early experimentation.

Embedded security is developing alongside network-based protection because device manufacturers increasingly need to build authentication, encrypted communications, secure boot and software-update capabilities into products before deployment. Recent technical research collected 958 unique security recommendations across IoT cybersecurity guidelines and found approximately 87.2% of recommendations to be actionable, while 38.7% could prevent specific identified threats. However, roughly 21% of evaluated vulnerabilities could still evade the assessed guideline recommendations, illustrating why product-level security continues to evolve. Future development is therefore likely to combine hardware roots of trust, certificate-based identity, runtime anomaly detection and cloud threat intelligence. These capabilities will help manufacturers protect connected products throughout lifecycles that can extend beyond 10 years.

Five Recent Developments

• April 2026: Palo Alto Networks expanded its AI-enabled security portfolio by incorporating Device Security into a broader cloud-delivered security bundle, extending protection across unmanaged devices, managed endpoints, IoT equipment and operational technology through unified policy and risk analysis.
• April 2026: IBM's latest industrial threat analysis reported that manufacturing represented approximately 27.7% of recorded cybersecurity incidents during 2025, marking the sector's fifth consecutive year as the most frequently targeted industry and intensifying demand for industrial IoT protection.
• September 2025: Palo Alto Networks advanced its IoT and operational technology offering into a broader Device Security architecture designed to discover, assess and protect enterprise-connected equipment across conventional endpoints, BYOD, IoT and operational environments.
• October 2025: European cybersecurity analysis assessed approximately 4,875 incidents from July 2024 through June 2025, with distributed denial-of-service attacks accounting for about 77% of incidents and vulnerability exploitation representing approximately 21.3% of intrusion entry points.
• May 2025: Enterprise cybersecurity readiness assessments showed only around 4% of organizations reaching a mature overall security posture, while approximately 45% allocated more than 10% of information technology budgets to cybersecurity, supporting continued investment in IoT-focused protection.

Report Coverage

The Iot Security Market report evaluates industry conditions across Network Security, Endpoint Security, Application Security, Cloud Security and Others, while application coverage includes Identity Access Management, Threat Intelligence, Encryption, UTM, DLP and Others. The forecast extends across 2026-2035 at an indicated CAGR of 20.63%, reflecting rapid expansion in connected enterprise assets and cybersecurity requirements. The analysis examines Zero Trust adoption, machine identity, artificial intelligence, network segmentation, embedded security, cloud-managed protection, vulnerability management and operational technology convergence. Current conditions demonstrate the urgency of these capabilities, with manufacturing representing approximately 27.7% of recorded cybersecurity incidents in 2025 and nearly 70,000 internet-accessible operational technology devices identified in recent technical research.

The competitive assessment covers International Business Machines Corporation, CENTRI Technology Inc., Cisco Systems, Inc., Palo Alto Networks, Inc., DigiCert, Inc., Karamba Security, Trend Micro, Inc., TrustWave Holdings, Inc., Symantec Corporation, Darktrace Ltd., Infineon Technologies AG, Fortinet, Inc., RSA Security LLC, Gemalto NV, CyberX, Inc., AT&T Inc., Mocana Corporation, PTC Inc. and Bitdefender, LLC. Regional analysis evaluates North America, Europe, Asia-Pacific, Middle East & Africa and Latin America across enterprise readiness, industrial digitization, cloud adoption and regulatory conditions. Market development is increasingly shaped by executive-level cybersecurity governance, with 52% of surveyed organizations assigning direct OT security responsibility to CISOs or CSOs in 2025 compared with 16% in 2022, reinforcing demand for unified and scalable IoT security platforms.