Spending on IoT (Internet of Things) cybersecurity solutions is set to spike to over $6 billion globally by 2023, according to a new report from Juniper Research.
The report reckons that spending by product and service providers (in consumer markets) and end-customers (in industrial and public services markets) will rise nearly 300% over the forecast period (from 2018 to 2023). Key spending drivers include growing business risk and regulatory minimum standards.
Juniper claimed that there are major differences in the way in which IoT business risk is perceived and perceptions on how regulation should be applied. The report cites the home as an example of where poor long-term device support and little fear of ramifications in case of a breach would serve to keep spending low, said research author Steffen Sorrell.
“The interconnected nature of the 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”, Sorrell said.
As a result, Juniper forecasts that smart home IoT security spending would be less than 17% of the consumer market in 2023.
In contrast, the research identified glaring security issues in the smart energy market. However, it noted that strict minimum standards, such as those applied by Germany and the EU’s General Data Protection Regulation (GDPR), would drive spending impetus, with IoT smart energy security spend reaching $1 billion annually in 2023.
The report also forecasts that the rise of edge computing services to enable near-real-time IoT applications would present additional security challenges, as edge computing creates an increased attack surface, thus raising business risk, which in turn will drive industry spend. Meanwhile, the need to ensure data reliability will emphasize the need for lifecycle management and device security solutions, the report says.