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  • Embedded Security for IoT Market Analysis | 2024-2030

    Embedded Security for IoT Market Analysis | 2024-2030

    Embedded Security for IoT Market Analysis | 2024-2030
    Report code - SR2456 Delivery - 2 Weeks
    Embedded Security for IoT Market Size, Share, Trends, Forecast, & Growth Analysis:&nbs See more...

    Market Insights

    The embedded security for IoT market was estimated at USD 5.02 billion in 2023 and is likely to grow at a CAGR of 11.35% during 2024-2030 to reach USD 10.65 billion in 2030.

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    What is embedded security for IoT?

    Embedded security refers to a strategic method for safeguarding software operating in embedded systems against potential threats. This technique involves the use of both hardware and software components, including controller chips, to provide security for devices and networks connected through the Internet of Things (IoT).

    Embedded security for IoT can be applied in various settings, such as smart factories, smart grids, networking equipment, computing devices, and connected cars. These security systems are specifically designed to perform certain functions, and their widespread adoption is primarily driven by the escalating number of cyber-attacks on IoT devices around the world.

    Embedded Security for IoT Market Report Highlights

    Market Size in 2023

    5.02 billion

    Market Size in 2030

    10.65 billion

    Market Growth (2024-2030)

    11.35% CAGR

    Base Year of Study

    2023

    Trend Period

    2018-2022

    Forecast Period

    2024-2030

    Market Dynamics

    During the forecast period, the global embedded security for IoT market is anticipated to experience significant growth, primarily driven by the increasing number of connected devices through IoT networks. The adoption of IoT has grown substantially worldwide, resulting in a greater number of devices being connected, communicating, and exchanging data across several industry verticals, such as healthcare, retail, smart cities, industrial automation, agriculture, and more.

    According to Cisco Systems, Inc., a US-based provider of IoT solutions, it is expected that devices connected through IoT will account for around 7% of global mobile traffic data by 2025, up from 2% in 2020. Consequently, the expanding number of connected devices through IoT networks is likely to accelerate the market growth in the coming years.

    The global embedded security for IoT market is expected to be propelled during the forecast period by the implementation of industry guidelines aimed at adopting embedded hardware solutions. In response to the significant increase in cyber-attacks in recent times, various organizations have issued guidelines advocating the adoption of essential security solutions and best practices. One such guideline promotes the use of embedded chipsets and embedded software to facilitate the adoption of embedded security systems for IoT.

    For instance, in December 2016, the Smart Card Alliance, a non-profit, non-industry association promoting best practices for smart card applications in the U.S. and Latin America, released guidelines for the adoption of embedded hardware security solutions for end devices. These guidelines were designed to incorporate hardware functions and features to ensure that the required security standards are established and maintained.

    The growing volume of data being exchanged through a growing number of connected IoT devices has become a significant challenge for service providers to provide enhanced embedded security systems. Providing robust embedded security solutions that can handle large data traffic without compromising quality has become increasingly difficult.

    Additionally, providing such enhanced embedded security solutions to diverse devices connected through vast communication networks, ranging from household devices to industrial automation networks, is a daunting task. These challenges are expected to hinder the market growth of embedded security for IoT over the forecast period.

    During the forecast period, the global embedded security for IoT market growth is expected to be hindered by the non-compliance of regulatory guidelines. Despite regulatory authorities issuing guidelines related to the protection of IoT devices against cyber-attacks, many organizations and users are not strictly following these guidelines and taking the necessary precautions.

    The lack of compliance with these guidelines often leads to security lapses, which can result in cyber-attacks. Consequently, the market growth of embedded security for IoT is expected to be hampered by such non-compliance during the forecast period.

    The limited availability of high computational power for IoT networks is expected to create lucrative growth opportunities for market players. Network security applications typically consume a high amount of power, and the use of lower power embedded hardware can put the overall system at risk.

    Furthermore, the processing capabilities of IoT networks are currently limited in terms of processing security applications algorithms. These limitations in existing embedded hardware solutions present an opportunity for chipset makers to provide enhanced embedded solutions with features such as high processing capabilities and power.

    For instance, in April 2020, Intel Corporation launched Xeon CPUs packaged with FPGA (field-programmable gate array) chips that can be programmed to alter computational powers for specific applications and workloads. These chips can be used to provide IoT devices with high processing capabilities, thereby addressing the lack of high computational power in IoT networks and presenting growth opportunities for market players.

    The unavailability of set-up mechanisms to update connected IoT devices is expected to offer significant growth opportunities for key players. Given the constant threat of cyber-attacks and malware, IoT devices require regular upgrades to ensure they remain protected. However, such upgrades require support infrastructure from companies and technical expertise.

    Installing updated embedded chipsets can reduce the need for updating these devices on a regular basis, offering excellent growth opportunities for embedded hardware solutions providers to promote their products for IoT security. As a result, addressing the issue of unavailability of set-up mechanisms for updating connected IoT devices presents a significant growth opportunity for key players in the market.

    Embedded-Security-for-IoT-Market-Dynamics

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    Segment Analysis

    By Application Type

    In 2023, the connected car sub-segment dominated the global embedded security for IoT market in terms of value, accounting for a 25.0% share. This was followed by the smart factory, smart grid, networking equipment, and computing devices sub-segments, respectively.

    Regional Insights

    By 2023, the Asia Pacific region is expected to become the largest market for embedded security, owing to the increasing adoption of embedded security devices in various wearables and automobiles being manufactured in the region. This is fueled by the growing cybersecurity concerns in many of the region's emerging economies, such as India, China, Singapore, and Japan.

    For example, India ranks fifth in the world for overall DNS hijackings and has experienced significant growth in cybercrime registrations. Additionally, according to Gemalto, India is responsible for 37% of global data breaches in terms of stolen or compromised data. The Asia Pacific region is home to highly sensitive data and billions of devices connected to IoT, making security a major concern.

    Due to the recent outbreak of COVID-19, the Asia Pacific cybersecurity market is expected to experience significant growth, as there has been a rise in cyber-attacks via malware and ransomware in the context of COVID-19. This has forced organizations to adopt cybersecurity solutions as many have shifted to remote work environments amid lockdowns in various countries. Microsoft reported that between February and May 2020, there were 19 million identified ransomware and phishing attacks in Asia Pacific region.

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    Key Players

    The major players operating in the global market are:

    • Cisco Systems Inc.
    • NXP Semiconductors N.V.
    • Intel Corporation
    • Gemalto NV
    • Infineon Technologies AG
    • Palo Alto Networks Inc.
    • Check Point Software Technologies Ltd.
    • ARM Holdings Plc. (SoftBank Corp)
    • Synopsys, Inc.
    • Trend Micro Incorporated
    • Inside Secure

    Research Methodology

    • This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s embedded security for IoT market realities and future market possibilities for the forecast period.
    • The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
    • The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
    • This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
    • More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
    • We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the Embedded Security for IoT Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirements?

    10% free customization

    Report Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

    Recent Developments

    • In January 2023, Infineon and Green Hills Software collaborated to deliver comprehensive automotive safety and security solutions for Infineon’s TRAVEO™ T2G microcontrollers (MCU) families.
    • In September 2022, Kinara, the AI processor developer for edge computing applications, collaborated with NXP Semiconductors, a leading vendor of secure connectivity solutions for embedded applications. Through this, customers of NXP Semiconductors’ AI-enabled product portfolio can further scale their AI acceleration needs by using the Kinara Ara-1 Edge AI processor for high-performance inferencing with deep learning models.

    Frequently Asked Questions (FAQs)

    Embedded security refers to a strategic method for safeguarding software operating in embedded systems against potential threats. This technique involves the use of both hardware and software components, including controller chips, to provide security for devices and networks connected through the Internet of Things (IoT). Embedded security for IoT can be applied in various settings, such as smart factories, smart grids, networking equipment, computing devices, and connected cars. These security systems are specifically designed to perform certain functions, and their widespread adoption is primarily driven by the escalating number of cyber-attacks on IoT devices around the world.

    The embedded security for IoT market was estimated at USD 5.02 billion in 2023.

    The embedded security for IoT market is likely to reach USD 10.65 billion in 2030.

    The embedded security for IoT market is likely to grow at a CAGR of 11.35% during 2024-2030.

    The major players operating in the global market are Cisco Systems Inc., NXP Semiconductors N.V., Intel Corporation, Gemalto NV, Infineon Technologies AG, Palo Alto Networks Inc., Check Point Software Technologies Ltd., and ARM Holdings Plc. (SoftBank Corp), Synopsys, Inc., Trend Micro Incorporated, Inside Secure.

    By 2022, the Asia Pacific region is expected to become the largest market for embedded security, owing to the increasing adoption of embedded security devices in various wearables and automobiles being manufactured in the region. This is fueled by the growing cybersecurity concerns in many of the region's emerging economies, such as India, China, Singapore, and Japan. For example, India ranks fifth in the world for overall DNS hijackings and has experienced significant growth in cybercrime registrations.