IoT Security: A Complete Industry Overview of 2020 | Growth Market Reports
                     IoT Security: A Complete Industry 
Overview of 2020
What is Internet of Things (IoT)?
The Internet of Things, or IoT, is defined as the billions of physical 
devices all around the world that are now connected to the 
internet, all fetching and sharing data. Thanks to the arrival of 
super-cheap computer chips and the pervasiveness of wireless 
networks, it's possible to transform anything, from something as 
small as a pill to something as big as an airplane, into a part of 
the IoT. Linking up all these different objects and adding sensors 
to them integrates a level of digital intelligence to devices that 
would be otherwise dumb, enabling them to communicate real-
time data without involving a human being. The Internet of 
Things is making the fabric of the world around us smarter and 
more responsive, combining the digital and physical universes.
In a nutshell, IoT involves integrating internet connectivity to a 
system of interrelated computing devices, mechanical and digital 
machines, objects, animals and/or people. Each "thing" is offered 
a unique identifier and the ability to automatically shift data over 
a network. Enabling devices to connect to the internet opens 
them up to a number of serious vulnerabilities if they are not 
properly protected.
IoT Need Security:
IoT security is the technology area focused on protecting the 
connected devices and networks in the internet of things (IoT).IoT 
security has become the topic of heavy scrutiny after a number of 
high-profile incidents occurred where a common IoT device was 
utilized to infiltrate and attack the larger network. Implementing 
security measures is of utmost importance in ensuring the safety 
of networks with IoT devices connected to them.
 8 Types of IoT Security Threats
Botnets:
A botnet is a network that integrates several systems together to 
remotely take control over a victim’s system and distribute 
malware. Cybercriminals control botnets with the help of 
Command-and-Control-Servers to steal confidential and important 
data, steal online-banking data, and perform cyber attacks such 
as DDoS and phishing. Cybercriminals can use botnets to attack 
IoT devices that are linked to various other devices such as 
laptops, desktops, and smartphones.
Denial of service:
A denial-of-service (DoS) attack persistently tries to execute a capacity 
overload in the target system by sending multiple requests. Unlike 
phishing and brute-force attacks, attackers who implement denial-of-
service don’t focus on stealing critical data. However, DoS can be 
utilized to slow down or paralyze a service to hurt the reputation of a 
business. For example, an airline that is attacked with denial-of-service 
will be unable to process requests for booking a new ticket, checking 
flight status, and canceling a ticket. In such cases, customers may 
switch to other airlines for air travel. Similarly, IoT security threats such 
as denial-of-service attacks can completely hamper the reputation of 
businesses and affect their revenue generation plans.
Man-in-the-Middle:
In a Man-in-the-Middle (MiTM) attack, a hacker infiltrates the 
communication channel between two individual systems in an attempt 
to intercept messages among them. Attackers gain control over their 
communication and send illegitimate messages to participating 
systems. Such attacks can be utilized to hack IoT devices such as 
smart refrigerators and autonomous vehicles.
Identity and Data Theft:
Multiple data breaches surfaced in 2018 for 
compromising the data of millions of people. 
Confidential information such as personal details, 
credit and debit card credentials, and email addresses 
were stolen in these data breaches. Hackers can now 
attack IoT devices such as smart watches, smart 
meters, and smart home devices to gain additional 
data about various users and organizations. By 
fetching such data, attackers can perform more 
sophisticated and detailed identity theft.
Social engineering:
Hackers use social engineering to control and 
manipulate people into giving up their sensitive 
information such as passwords and bank details. 
Alternatively, cybercriminals may utilize social 
engineering to access a system for secretly installing 
malicious software. Most of the time, social 
engineering attacks are performed using phishing 
emails, where an attacker has to generate convincing 
emails to manipulate people. However, social 
engineering attacks can be simpler to perform in case 
of IoT devices.
Advanced persistent threats:
Advanced persistent threats (APTs) are major security 
concern for several organizations. An advanced 
persistent threat is a focused cyber attack, where an 
intruder gains illegal access to a network and stays 
undetected for a prolonged period of time. Attackers 
focus on monitoring network activity and steal crucial 
data using advanced persistent threats. Such cyber 
attacks are difficult to prevent, detect, or mitigate.
Ransomware:
Ransomware attacks have become one of the most 
infamous cyber threats. In this attack, a hacker uses 
malware to encrypt data that may be needed for 
business operations. An attacker will decrypt critical 
data only after receiving a ransom.
Remote recording:
Documents rolled out by WikiLeaks have exhibited that intelligence 
agencies know about the existence of zero-day exploits in IoT 
devices, smartphones, and laptops. These documents infer that 
security agencies were planning to record public conversations 
secretly. These zero-day exploits can also be utilized by 
cybercriminals to record conversations of IoT users. For example, a 
hacker can attack a smart camera in an organization and record 
video footage of everyday business activities. With this approach, 
cybercriminals can secretly fetch confidential business information. 
Such IoT security threats will also result in major privacy violations.
Challenges Associated with IoT Security
Since the idea of networking appliances and other objects is a 
relatively new concept there are several challenges that prevent 
the securing of IoT devices and establishing end-to-end security in 
an IoT environment. During a product's design phase security is 
always given the least amount of priority. Additionally, because IoT 
is a nascent market, many product designers and manufacturers 
are more eager in getting their products to market quickly, rather 
than taking the needed steps to build security in from the 
beginning.
A major issue associated with IoT security is the 
utilization of hardcoded or default passwords, 
which can result in security breaches. Even if 
passwords are changed, most of the time they are 
not that strong to prevent the infiltration.
Another common concern facing IoT devices is 
that most of the time they are resource-
constrained and do not have the computational 
resources essential to implement strong security. 
As such, many devices do not or cannot provide 
advanced security features. For instance, sensors 
that monitor humidity or temperature cannot 
handle advanced encryption or other security 
measures.
Plus, as many IoT devices are "set it and forget it" 
-- placed in the field or on a machine and left 
untouched until end of life -- they hardly ever get 
any security updates or patches. From a 
manufacturer's perspective, building security in 
from the start can be costly, slow down 
development and cause the device not to function 
as it should.
Connecting legacy assets not inherently engineered for 
IoT connectivity is another security challenge. Swapping 
legacy infrastructure with connected technology is 
considered cost-prohibitive; which will result in many 
assets being retrofitted with smart sensors. However, as 
legacy assets that likely have not been updated or ever 
had security against modern threats, the attack surface 
is expanded.
IoT security is also infected by a deficiency of industry-
accepted standards. While several IoT security 
frameworks exist, there is no ideal framework agreed-
upon. Big companies and industry organizations may 
have their personalized specific standards, while certain 
segments, such as industrial IoT, have proprietary, 
incompatible standards from industry leaders. The 
variety of these standards makes it difficult to not only 
secure systems, but also ensure interoperability 
between them.
Experts Recommend following ways to overcome 
these challenges:
When releasing data systems in any environment, 
security teams are traditionally provided with three 
options: fast, secure, and cheap. Unfortunately, reality 
often forces organizations to choose only two, leaving 
security out of the equation while cost and convenience 
remain the bane of data protection efforts for years to 
come. Therefore experts recommend to get rid of 
“connect first, secure later” attitude.
As physical device life cycles inevitably eclipse the 
manufacturer's security maintenance life cycles, 
organizations must set up their own comprehensive 
strategies for secure IoT deployment. Sharing 
responsibility for safety is crucial
Deficiency of cohesive and comprehensive industry 
legislation and standards, organizations can develop 
and enforce their personalized practices for IoT security.
The inclusion of 5G technologies will truly 
revolutionize the IoT market by freeing its 
potential through greater bandwidth, lower 
latency, increased capacity, reduced costs, and a 
slew of other benefits. While this is projected to 
increase device management capabilities from 
thousands of devices per square mile to millions, 
poor security practices are estimated to boost the 
threat landscape exponentially.
Market Perspective for IoT Security
The Global IoT Security Market was valued at 
around USD 8.7 billion in 2019 and is projected to 
reach at USD 5.8 billion by the end of 2027 
registering a substantial CAGR of 27.0% over the 
forecast period, 2019-2027.
Hackers are targeting IoT devices and leveraging on 
known vulnerabilities, such as those related to 
default username, password, and static code 
backdoor. Nowadays, all the verticals are adopting 
automation with the integration of IoT. Critical 
infrastructures, such as electricity, water, and other 
important resources, are among the early adopters 
of IoT and are in the phase of automation. 
Automation, while making the operations much more 
efficient, has also made the systems open to cyber-
attacks. The growing vulnerability of critical systems 
is now the major concern of all governments. Either 
accidental or notorious interference with the controls 
of a nuclear reactor poses a gruesome threat to 
human life and property.
Impact of COVID-19 on the Market
As for current market environments, considering the ongoing coronavirus 
pandemic, it is expected that industrial markets will continue to drive IoT 
demand; however, growth in the communications and medical fields is 
anticipated to accelerate. Overall, only a few markets are estimated to 
remain strong amid COVID-19, and IoT security is definitely one of them. 
Security surrounding IoT deployments in crucial infrastructure such as in 
the commercial and industrial markets is fundamentally essential. 
Because of government-imposed restrictions and a deficiency of available 
cybersecurity personnel, adversaries are expected to aim at critical 
infrastructure more aggressively, with fewer resources able to respond to 
evolving threats.
The recent outbreak of COVID-19 has resulted in most of the 
organizations to set up remote working of the employees. This has 
resulted in a major upsurge in the Bring Your Own Device (BYOD) trend. 
As these devices are potentially vulnerable because of lack of efficient 
security solutions, the demand for endpoint security is amplifying during 
the lockdown period. Also, COVID-19 has also propelled the demand for 
managed IoT security services to protect the data of employees as well 
as organizations. According to a survey, 67% of the companies are 
anticipating the “Work from Home” norm to be permanent. Well, this is 
expected to change the business models and bring out creative 
strategies to capture the market.
Latest Developments by Some Prominent Players 
in the Market
 Cisco (US):
The Valor Games Southeast community—a group of 
veterans with disabilities—understands what it’s like to 
experience difficult challenges. Since 2013, the annual 
adapted sports competition for these veterans has 
focused on redefine disability through sports and 
competition. Because of the global pandemic, the Valor 
Games Southeast has had to innovate once again by 
pivoting the in-person event to fully virtual 
through video conferencing with the help of Cisco 
Webex. 
IBM (US):
IBM launched, X-Force Red that can test any IoT devices, 
backend infrastructure and mobile applications to 
uncover and help fix vulnerabilities that elevate risk the 
most.
Infineon (Germany):
In July 2020, Cypress, an Infineon Technologies 
company, announced production availability of its 
PSoC 64 Standard Secure Amazon Web Services (AWS) 
microcontroller (MCU). This new MCU includes pre-
validated security firmware that helps designers 
substantially reduce design risks and R&D costs, and 
accelerate time-to-market. 
Intel (US):
Intel has gotten into a partnership group with First 
Book to roll out the Creating Learning Connections 
Initiative, which is engineered to fuel education by 
supporting students in Title I-eligible school districts hit 
by the COVID-19 pandemic. The program provides 
underserved students and educators access to 
important tools and resources, consisting of internet 
connectivity, technology devices and hands-on STEAM 
learning solutions.
Other prominent players include Symantec (US), Allot 
(Israel), , Mocana (US), SecuriThings (Israel), CENTRI 
(Germany), Armis (US), ForgeRock (US), and NewSky 
(US).
Regional analysis of the Market
North America Region:
In 2019, North America accounted for an 
impressive market share and is anticipated to 
follow the trend during the forecast period. The 
presence of major players in the market and early 
adoption of the latest technologies such as IoT 
and AI is driving the growth of the market. Various 
retail and healthcare companies are extensively 
integrating wireless network security solutions to 
protect the data and avoid malicious attacks. This 
market region is observing the emergence of 
several industry players as many IT companies 
are expanding their portfolio in the security 
solutions. The surging number of smart homes is 
also acting as a major growth driver in the market. 
Moreover, the growing trend of cloud-based 
solutions is augmenting the growth of the market.
Asia Pacific Region:
The Asia Pacific region is projected to provide lucrative 
opportunities in the coming future. This region is expected 
to expand at a CAGR of more than the global growth rate. 
To be precise, emerging economies such as India and 
China is projected to offer opportunities to the new 
entrants and emerging players in the market region. 
Government initiatives to support the local players in these 
countries are anticipated to encourage new players and 
companies to expand their product portfolio. For example, 
in the lockdown period, Indian Government rolled out the 
campaign name “Vocal for Local” which stated to support 
or choose local companies over international ones.
Middle East & Africa Region:
This market region is projected to grow at an exponential 
rate in the forecast period attributing to the swift growth in 
the IT infrastructure. According to the research, the Wi-Fi 
as a Service (WaaS) market is speculated to expand at a 
substantial CAGR during the forecast period. Several 
foreign companies are setting up their base in the Middle 
East & Africa which is expected to fuel the growth of the 
wireless network security market. Moreover, the swift 
growth of the BFSI and retail sector in this region is 
spurring market growth.
Also, Europe and Latin America region is expected to 
grow at a robust rate owing to the expansion of IT 
infrastructure and innovation in the manufacturing 
facilities.
In a Nutshell
IoT security calls for the protection of both private and 
public sectors from professional cybercriminals and 
sophisticated IoT threats. Cybercriminals are utilizing 
multi-layered cyber-attacks to monitor the intelligence 
and commercial aspects of individuals, enterprises, 
and even nations. Hence, organizations are searching 
for integrated security solutions. Fresh integrated 
security solutions enable organizations to both cut the 
cost and improve the safety of their facility. Standalone 
security solutions are not capable of handling such 
types of unified threats. Above all, the cost of 
implementation and monitoring of individual solutions 
is pricey. Hence, the requirement for integrated 
security solutions is anticipated to amplify and 
eventually lead to higher market demand for all the 
individual security components.