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IoT Security Services Market will Reach $8 Billion

The adoption of fifth-generation (5G) wireless technology apps will create demand for new categories of software and related services. Topping that list of requirements is securing connections and devices from cyber threats.

ABI Research forecasts that by 2026, Internet of Things (IoT) cellular wireless network connections will number more than 3 billion -- with 4G LTE and LPWA networks bearing most of these connections -- driving the $8 billion market for IoT security services.

IT Security Services Market Development

The opportunity to deliver secure IoT communications on these networks will be key to the successful deployment of connected things on a global scale, and for the eventual transition to 5G New Radio (NR).

According to the ABI assessment, the security industry is amid significant new technology developments to provide secure cellular connectivity solutions to IoT stakeholders across the board.

With the emergence of new cellular standards such as NB-IoT, LTE-M and 5G MMTC, there is a dynamic opportunity to create new platform solutions focused on network security to enhance trust in IoT deployments.

Specifically, new target markets will emerge that will require dedicated point solutions and customized service offerings for communication service providers and enterprises directly.

"An expanded threat landscape, new standard-defined security protocols, and the potential for revenue generation through the sale of value-added security services all combine to drive a dynamic and highly competitive security market for cellular IoT protection," said Michela Menting, research director at ABI Research.

Market demands for secure cellular IoT solutions are coming from automotive, asset management, smart cities, utilities, and energy as well as from payments and healthcare applications.

The diversity of the demand means the vendor landscape is expanding considerably, with pure-play cybersecurity vendors and traditional technology providers competing alongside telco network equipment providers and network solution providers to offer secure IoT solutions to mobile network operators and enterprises in their respective markets.

Companies at the fore of delivering such solutions include 1NCE, Allot, Ericsson, FirstPoint, Fortinet, G+D, IoTerop, Kudelski, Mobileum, Netscout, Nokia, Thales, Transatel, and ZTE.

Outlook for IoT Security Applications Growth

"While LPWANs are still nascent, and 5G NR quite a few years from maturity, early understanding and integration of security is critical to developing trusted networks and will enable the creation of high-value revenue opportunities for the entire industry," Menting concludes.

That said, I believe we'll see more unified endpoint management solutions that provide the ability to secure every IoT device for a variety of use cases. Plus, deliver unprecedented levels of process automation, improved application monitoring, and superior security protection.

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