Market Overview

The global embedded security for IoT market was estimated at USD 5.02 billion in 2023 and is projected to reach USD 10.65 billion by 2030, growing at a CAGR of 11.35% during 2024-2030.

The increasing integration of connected devices across enterprise operations continues to transform cybersecurity requirements worldwide. Evaluating the embedded security for IoT  industry outlook provides valuable perspective on emerging trends, investment priorities, and technology advancements. Market participants are actively enhancing security capabilities to address growing concerns surrounding data protection and network integrity.

The increasing adoption of IoT-enabled devices across industries, coupled with rising cybersecurity concerns, is driving demand for embedded security solutions. As organizations continue to connect devices and exchange critical data through IoT networks, embedded security technologies are becoming essential for protecting devices, networks, and digital infrastructure.

What is Embedded Security for IoT?

Embedded security refers to a strategic approach to protecting software and hardware operating within embedded systems from cyber threats. It combines hardware and software components, including controller chips, to safeguard devices and networks connected through the Internet of Things (IoT).

Embedded security for IoT is widely used across smart factories, smart grids, networking equipment, computing devices, and connected cars. These solutions are specifically designed to secure connected devices, ensure data integrity, and protect systems against cyber-attacks, malware, and unauthorized access.

Market Growth Drivers

Several factors are contributing to the growth of the embedded security for IoT market:

• Rapid growth in the number of connected devices across IoT networks.
• Increasing adoption of IoT technologies in healthcare, retail, smart cities, industrial automation, agriculture, and other sectors.
• Rising volume of data exchange between connected devices.
• Growing cyber threats and cyber-attacks targeting IoT ecosystems.
• Industry guidelines encouraging the adoption of embedded hardware security solutions.
• Increasing deployment of embedded chipsets and embedded software to improve security standards.
• Expanding demand for advanced security frameworks capable of protecting complex communication networks.

According to Cisco Systems, Inc., IoT-connected devices are expected to account for around 7% of global mobile traffic data by 2025, up from 2% in 2020, further strengthening demand for embedded security solutions.

Key Challenges

Despite strong growth prospects, the market faces several challenges:

• Managing the growing volume of data exchanged through connected IoT devices.
• Difficulty in providing enhanced security across diverse devices ranging from household electronics to industrial automation systems.
• Non-compliance with regulatory guidelines related to IoT security.
• Security lapses caused by insufficient implementation of cybersecurity best practices.
• Limited availability of high computational power in IoT networks for running advanced security applications.

However, opportunities are emerging through the development of advanced embedded hardware with higher processing capabilities and improved power efficiency, as well as solutions that reduce the need for frequent device upgrades.

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Market Segmentation

The embedded security for IoT market is segmented as follows:

By Application Type

• Smart Factory
• Smart Grid
• Connected Car
• Network Equipment
• Computing Devices

The Connected Car segment dominated the market in 2023, accounting for 25.0% of the global market share.

By Component Type

• Software
• Controller Chip

By Vertical Type

• Retail
• Aerospace and Defense
• Healthcare
• Gaming
• Automotive

Regional Analysis

Asia-Pacific

Asia-Pacific is expected to be the largest market for embedded security for IoT. Growth is driven by increasing adoption of embedded security devices in automobiles and wearables, along with rising cybersecurity concerns across countries such as China, India, Singapore, and Japan. The region also benefits from a large number of IoT-connected devices and increasing demand for cybersecurity solutions.

North America

North America remains an important market due to strong cybersecurity investments, technological advancements, and widespread deployment of IoT infrastructure.

Europe

Europe continues to witness adoption of embedded security technologies across multiple industries, supported by increasing focus on data protection and cybersecurity compliance.

Rest of the World

The Rest of the World market includes Latin America, the Middle East, and other regions where IoT adoption is gradually increasing, creating opportunities for embedded security providers.

Key Companies

Major companies operating in the embedded security for IoT market include:

• Cisco Systems Inc.
• NXP Semiconductors N.V.
• Intel Corporation
• Gemalto NV
• Infineon Technologies AG
• Palo Alto Networks Inc.
• Check Point Software Technologies Ltd.
• ARM Holdings Plc. (SoftBank Corp)
• Synopsys, Inc.
• Trend Micro Incorporated
• Inside Secure

FAQ

What was the size of the embedded security for IoT market in 2023?

The market was estimated at USD 5.02 billion in 2023.

What is the expected market value by 2030?

The embedded security for IoT market is expected to reach USD 10.65 billion by 2030.

What is the projected CAGR of the market?

The market is forecast to grow at a CAGR of 11.35% during 2024-2030.

Which application segment dominated the market?

The Connected Car segment dominated the market in 2023, accounting for 25.0% of the global market share.

Conclusion

The embedded security for IoT market is poised for robust growth through 2030, supported by the expanding number of connected devices, increasing cybersecurity threats, and growing adoption of IoT technologies across multiple industries. Valued at USD 5.02 billion in 2023 and projected to reach USD 10.65 billion by 2030, the market presents significant opportunities for technology providers. With Asia-Pacific leading regional demand and connected cars emerging as the dominant application segment, embedded security solutions are expected to play a critical role in protecting the next generation of connected ecosystems.