The seemingly endless series of network security breaches is likely to grow worse as more smart devices are linked via the Internet of Things. Those evolving threats are expected to drive the market for IoT security services to new heights by mid-decade.
New York-based ABI Research estimates more than 3 billion IoT cellular connections by 2026, initially via 4G and low-power, wide-area networks. That in turn is expected to fuel demand for IoT security defenses in the range of $8 billion by 2026 as more 5G networks are deployed, many driven by IoT and other edge computing rollouts.
Cellular standards such as 5G MMTC (Massive Machine-Type Communications), LTE for Machines and Narrowband IoT are seen as emerging security platforms. They and others could help build badly needed trust in IoT networks transporting sensitive data.
“New target markets will emerge that will require dedicated point solutions and customized service offerings for communication service providers and enterprises directly,” said Michela Menting, digital security research director at ABI Research.
“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,” added Menting.
Asset managers along with the automotive, energy, healthcare and utility sectors are seen as the key beneficiaries of beefed up IoT security. Meanwhile, growing demand for IoT protections is attracting network equipment vendors as well as a expanding list of pure-play cyber security vendors. The former includes Ericsson, Nokia and ZTE; the former, Fortinet and IoTerop, ABI said.
As the transition to 5G New Radio networks gains momentum, the market tracker emphasizes that security must be baked into future IoT networks. “Integration of security is critical to developing trusted networks,” Menting stressed.
IC gear binge
Elsewhere this week, SEMI reported yet another quarterly record for semiconductor equipment billings. Fueled by a huge increase in orders from Chinese chipmakers, the industry group said second quarter IC gear billings jumped 48 percent year-on-year to a record high of $24.9 billion. Orders jumped 5 percent over the previous quarter.
Bookings from China soared 79 percent over the same period last year, and 38 percent from the previous quarter, according to Worldwide Semiconductor Equipment Market Statistics.
Equipment billings from Europe, South Korea and Taiwan also remained strong as chipmakers ramp up production to meet surging demand across nearly all electronics sectors.
>> This article was originally published on our sister site, EE Times.
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