As Albert Verhoeven wrote in his post last year, Two Reasons the IoT Will Be Disruptive Sooner than You Think, “the Internet of Things is developing rapidly on a global scale and has the potential to be as disruptive as the Internet and mobile phones. A true disruption can, and will, be achieved if these IoT sensors can transmit and receive data in order to make them more than just another source for gathering data.”
That shows the potential – and also highlights the potential risks associated with IoT, one of the reasons research firm Gartner expects that, by 2020, more than 25% of identified attacks within enterprises will involve IoT.
According to Gartner, spending on IoT security will reach $348 million this year, a 23.7% increase from last year. This market will reach $547 million by 2018 and then, according to Gartner, IoT security spending will accelerate in about five years. Though overall spending will initially be moderate, Gartner predicts the market will increase at a faster rate after 2020, as improved skills, organizational change and more scalable service options improve execution.
“The market for IoT security products is currently small but it is growing as both consumers and businesses start using connected devices in ever greater numbers,” said Ruggero Contu, research director at Gartner. “Gartner forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from 2015, and will reach 11.4 billion by 2018. However, considerable variation exists among different industry sectors as a result of different levels of prioritization and security awareness.”
Despite IoT security growing to consume an estimated 10% of enterprise IT security budgets, security vendors will find it difficult to serve the market. Initially, security budget won’t be specifically earmarked for IoT.
“The effort of securing IoT is expected to focus more and more on the management, analytics and provisioning of devices and their data. IoT business scenarios will require a delivery mechanism that can also grow and keep pace with requirements in monitoring, detection, access control and other security needs,” Contu said.
“The future of cloud-based security services is in part linked with the future of the IoT. In fact, the IoT’s fundamental strength in scale and presence will not be fully realized without cloud-based security services to deliver an acceptable level of operation for many organizations in a cost-effective manner. By 2020, Gartner predicts that over half of all IoT implementations will use some form of cloud-based security service,” he said.