IoT security market seen reaching $126 billion by 2035

The IoT Security Market is projected to surge from $9.50 billion in 2025 to $126.03 billion by 2035 as connected devices, 5G, cloud computing and industrial automation expand attack surfaces. The forecast highlights rising demand for AI-driven threat detection, zero-trust tools and compliance-focused security platforms across industries.

Why it matters: - Connected devices are multiplying across homes, factories, hospitals, transport systems and critical infrastructure, creating more opportunities for cyberattacks. - The market forecast points to sustained demand for tools that protect devices, data and operations as organizations expand IoT deployments. - Security spending is becoming a core requirement for digital transformation, not an optional add-on.

What happened: - The IoT Security Market reached $9.50 billion in 2025 and is forecast to rise to $12.30 billion in 2026. - The market is projected to reach $126.03 billion by 2035, implying a 29.5% compound annual growth rate during the forecast period. - Market Research Future released the forecast on Aug. 3, 2026, from Paris. - A sample report is available through the sample PDF request. - The full report is available through the full market report.

The details: - IoT security demand is being driven by ransomware, malware, botnet attacks and unauthorized access targeting connected networks. - Governments, enterprises and technology providers are investing in endpoint protection, identity management, network security, encryption and AI-driven threat detection. - Cloud computing, 5G, edge computing and industrial automation are increasing the need for security platforms that can protect diverse environments while meeting compliance requirements. - The main market drivers include rapid device growth, stronger cybersecurity regulations and expanding use of remote monitoring, digital healthcare, smart manufacturing and intelligent transportation systems. - Market restraints include legacy IoT devices without built-in security, budget limits at small and medium-sized enterprises, and the lack of standardized security protocols across manufacturers. - Growth opportunities are emerging in artificial intelligence, machine learning, behavioral analytics, edge security, zero-trust architecture, blockchain-based device authentication and automated security orchestration. - The market is segmented by component into solutions and services. - Security types include network security, endpoint security, cloud security, application security, identity and access management, and data encryption. - Deployment options include cloud-based and on-premises systems. - Organization-size segments include large enterprises and small and medium-sized enterprises. - Application areas include smart manufacturing, smart healthcare, smart homes, connected vehicles, smart energy and utilities, retail, transportation and logistics, and industrial IoT. - End users include manufacturing, healthcare, BFSI, government, retail, energy and utilities, IT and telecommunications, and automotive. - The report covers North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

Between the lines: - The forecast suggests IoT security is shifting from a niche cybersecurity category to a broad infrastructure market tied to industrial digitization and consumer connectivity. - Vendors that combine AI, cloud-native security and automated response tools may have an edge as buyers look for simpler platforms across fragmented IoT environments. - The compatibility gap between legacy devices and modern security systems remains a major friction point that could slow adoption in some sectors.

What's next: - North America is expected to remain the largest regional market because of strong digital infrastructure, cybersecurity investment and stricter regulations. - Asia-Pacific is expected to grow fastest as smart city projects, 5G deployment and industrialization accelerate. - Europe should continue to expand on the back of data protection rules and industrial automation spending. - Security providers are expected to keep rolling out AI-powered platforms, zero-trust tools, secure firmware updates and blockchain-based identity management. - Telecom operators, semiconductor firms, cloud providers and industrial automation companies are likely to deepen partnerships around 5G-enabled IoT security.

The bottom line: - IoT security is emerging as a high-growth cybersecurity market because every new connected device expands the attack surface and raises the stakes for compliance, uptime and trust.