Spending on security related to the Internet of Things (IoT) is set to reach over $6 billion globally by 2023, up 300% from 2018, said a recent study by high-tech communications consultancy Juniper Research.
The study highlighted that the rapid growth in spending would come from product and service providers in consumer markets and end-customers in industrial and public services markets.
Juniper’s study claimed that growing business risk and regulatory minimum standards would be the key spending drivers.
Juniper Research claimed that there are huge differences in the way in which IoT business risk is perceived and perceptions on how regulation should be applied.
“The interconnected nature of 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,” said Steffen Sorrell, research author at Juniper.
The research identified security issues in the smart energy market. However, it noted that strict standards, such as those imposed by Germany and the European Union, would drive spending.
The research estimated that the security spending would also go up with the rise of computing services to enable near real-time IoT applications.
IoT, as a market, is set to witness growth.
In early July, a report by Research and Markets said the size of the global market for public safety IoT is estimated to grow to $2.04 billion in the next five years.
The market is currently worth $979 million and will grow at a compound annual rate of 15.9% here on, said the report.
The number of smart city projects is on the rise worldwide and there is a massive demand for automated public safety solutions, including unmanned devices and remote surveillance.
The report pointed out, however, that budget limitations could affect growth.