The Internet of Things or IoT refers to multiple devices within a network that can communicate and transmit data. The IoT connects embedded software, hardware devices, communication services, and IT services, which helps to remotely monitor and manage several interconnected devices.
Growing Opportunities with IoT
A number of opportunities are emerging in various sectors thanks the adoption of the IoT:
- Consumers: Enhances use of smart homes, which helps consumers use energy more efficiently
- Retail: Helps retailers understand the peak times when customers visit their stores, which helps them enhance the productivity of their employees
- Medical: Helps doctors monitor patients remotely through the use of wearable devices
- Military: Can be used for proper resource allocation in times of war, in threat analysis, and for monitoring troops
- Industrial: Is used for SCM, monitoring of all the industrial devices, production process optimization, and energy control
- Automotive: Helps in managing traffic at peak times
- Environment: Is being used to predict weather and track endangered species
- Agriculture: Is being used in crop irrigation, monitoring of environmental changes, and in crop logistics
But as the IoT makes our homes, malls, healthcare and transportation smarter, it can also leave us vulnerable to data security threats. The increasing sophistication and complexity of threats is actually resulting in massive growth in the global IoT security market, which is expected to post a CAGR of 54.93% from 2014-2019.
More connected devices than ever before could leave us open to security threats
It is estimated that by 2020, there will be 50 billion connected people, devices and things. Our smart homes are soon going to expand into smart cities, where interconnected technology is used to enhance communication between devices, and help in efficient use of resources.
The sheer number of interconnected devices is the main reason for demand for better IoT security. It has become more and more difficult to monitor, manage, and maintain these devices and the data they send and receive, so key end users-including utilities, healthcare providers and automotive manufacturers- are picking up security solutions to protect themselves against any potential data theft or loss.
In 2014, the utilities segment was by far the biggest segment in the IoT security market, accounting for a 38.05% market share. This can be attributed to the high adoption of the IoT in residences, water management utilities, and energy plants. Utilities are critical services, so a security breach can lead to huge losses and impact on users.
The market also saw high adoption in the automotive and healthcare sector, as these were also significant investors in IoT security products, and will continue to contribute to market growth through the projected period.
