Spending on the Internet of Things (IoT) cyber security solutions is set to reach over $6 billion (£4.6 billion) globally by 2023.
This is among the findings of a new report by Juniper Research.
It also revealed that spending by product and service providers in consumer markets and end-customers in industrial and public services markets is likely to rise by almost 300 per cent over the forecast period.
The report, ‘The Internet of Things for Security Providers: Opportunities, Strategies & Forecasts 2018-2023’, found that growing business risk and regulatory minimum standards would serve as key spending drivers.
However, the researchers also claimed there are major differences in the way in which IoT business risk is perceived, as well as perceptions on how regulation should be applied. They highlighted 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.
Research author Steffen Sorrell commented: “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.”
As a result, Juniper forecasts that smart home IoT security spending would be less than 17 per cent of the consumer market in 2023.
In contrast, the report identified a number of “glaring” security issues in the smart energy market. However, it also pointed out that strict minimum standards, such as those applied by Germany as well as the EU’s General Data Protection Regulation, would drive spending, with IoT smart energy security spend reaching $1 billion annually in 2023.
The research also forecast that the rise of edge computing services to enable near-real-time IoT applications would present additional security challenges. Juniper said this will in turn drive industry spend.