A new study from Juniper Research shows that global spending on Internet of Things cybersecurity solutions could reach more than $6bn (~€5.1bn) by 2023.
Such an increase in expenditure on Internet of Things cybersecurity would represent a 300% increase over 2018 spending, according to the new report, titled “The Internet of Things for Security Providers: Opportunities, Strategies & Forecasts 2018-2023”. The company expects particular growth in spending by product and service providers, as well as end consumers, especially in industrial and public services markets.
The reasons for this growth in spending are manifold, but it is clear that the changing nature of cyber threats combined with a continual increase in the number of connected devices could lead to greater risk, particularly for businesses.
What’s more, the report anticipates the introduction of minimum regulatory standards for products, which will encourage many service and product providers to spend more on cybersecurity, in order to ensure they meet these standards.
Which sectors will be the most affected by cybersecurity spending growth?
The primary area in which spending is expected to increase is the smart energy market, in which the report identified a number of critical security problems that must be addressed. The introduction of new regulatory standards, similar to those mandated by the EU’s General Data Protection Regulation, will drive spending on security for smart energy applications to more than $1bn per year by 2023.
In contrast, the report estimates that smart home Internet of Things cybersecurity spending will comprise less than 17% of the consumer market in 2023, mainly driven by the relatively low impact created in the event of a data breach, and the challenges of poor long-term device support.
The author of the report, Steffen Sorrell, explained the perspective of consumer product developers when faced with such security challenges: “The interconnected nature of the Internet of Things means that even innocuous devices like the connected fridge can become a threat. Vendors see that risk as low, while little has been done from a regulatory perspective to protect consumers.”