IoT Infrastructure Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The ioT infrastructure security market size is expected to increase from USD 45.15 billion in 2025 to USD 57.26 billion in 2026 and reach USD 187.84 billion by 2031, growing at a CAGR of 26.82% over 2026-2031. This report is Segmented by Security Type (Network Security, Endpoint Security, and More), Deployment (On-Premises, Cloud-Based, and More), Infrastructure Layer (Device/Endpoint Layer, and More), Organization Size (Large Enterprises, and Small and Medium Enterprises), Industry Vertical (Manufacturing, Healthcare, and More), and Geography. The Market Forecasts Provided in Terms of Value (USD).

Global IoT Infrastructure Security Market Trends and Insights

Increasing Attack Surface Due to Massive IoT Adoption

The scale of connected device growth is changing the economics of cyber defense across the IoT infrastructure security market. Vectra AI reported 13.6 billion IoT attacks between January and October 2025, and it also noted that more than 50% of connected devices ship with critical firmware vulnerabilities.That mix of rising device counts and weak default security makes manual patching and manual inventory processes increasingly unworkable in enterprise environments. The result is a stronger demand for automated asset discovery, device identity controls, network segmentation, and zero-trust enforcement, especially in environments with large fleets of unmanaged or lightly managed devices. Palo Alto Networks also highlighted a 332% rise in exposed devices over the past year and stated that 70% of cyber incidents originated in IT environments through unprotected IoT entry points, which helps explain why this remains the strongest growth engine in the IoT infrastructure security market.

Convergence of OT and IT Networks Elevating Security Needs

The convergence of OT and IT networks is increasing risk in the IoT infrastructure security market, as events that begin on the corporate side can now spread directly into plant, utility, and infrastructure operations. SANS research found that 58% of initial ICS and OT attacks began as IT compromises, underscoring how deeply enterprise and operational environments are now linked.Shared credentials, connected communication paths, and centralized management tools improve efficiency, but they also create common entry points, such as phishing or weak remote access, that can compromise critical production systems. This forces OT and IT teams to share accountability for outcomes, and that change is supporting a move away from isolated tools toward unified platforms with broader visibility and policy control. As more operators build converged environments, the IoT infrastructure security market is seeing larger enterprise deals that bundle discovery, monitoring, segmentation, compliance reporting, and managed response into a single buying decision.

Limited Security Budgets for Legacy Industrial Assets

Legacy industrial assets slow the IoT infrastructure security market because the cost of replacement is still too high for many operators. TXOne Networks stated that replacing a single legacy industrial control system can cost USD 2.4 million in hardware alone, require 6 months of revalidation, and create 2 weeks of production downtime. SANS research also showed that 34% of respondents were unsure about their overall security budget allocations, while 41% allocated only 0-25% of their total budgets to ICS and OT security. Those conditions make full modernization difficult, even when leadership understands the risk exposure tied to older control systems and long asset life cycles. Compensating controls such as virtual patching, passive monitoring, and network microsegmentation can extend the secure operating life, but adoption still depends on proving operational returns, which tempers growth in the IoT infrastructure security market.

Other drivers and restraints analyzed in the detailed report include:

• Regulatory Mandates such as US IoT Cybersecurity Improvement Act
• Integration of AI-Powered Anomaly Detection in IoT Endpoints
• Fragmented Standards Across IoT Ecosystem

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Network security retained 35.4% of the IoT infrastructure security market in 2025, a position that reflects the continued exposure that begins at the connectivity layer. Routers, gateways, and other network-facing components remain the first point of control when enterprises try to identify unmanaged devices, isolate risky behavior, and contain lateral movement. For many buyers, the first wave of spending still goes to visibility, segmentation, and protocol-aware monitoring because those functions create immediate value across mixed device estates. Network security indicates that buyers still treat the network layer as the primary enforcement plane for large-scale IoT defense. The broader direction of the IoT Infrastructure Security Market also shows that organizations are shifting away from traditional perimeter tools toward network detection and response platforms that can analyze industrial traffic at wire speed.

Cloud security is the fastest-growing security type, with a projected CAGR of 31.2% through 2031, because enterprises increasingly want centralized operations, continuous updates, and managed support. This growth is closely tied to cloud-native zero-trust models, where policy management, device context, and automated response can be coordinated more efficiently across distributed sites. Palo Alto Networks moved its legacy IoT Security portal into Device Security within Strata Cloud Manager, setting August 2026 as the portal's shutdown date, demonstrating how leading vendors are consolidating discovery, classification, virtual patching, and compliance reporting into shared workflows. Endpoint security, application security, and other categories continue to drive meaningful demand, especially as AI-enabled applications, unmanaged devices, and regulated workloads expand. Across this mix, the IoT infrastructure security market is clearly moving toward unified platforms that share asset intelligence across network, endpoint, application, and cloud controls.

Cloud-based deployments accounted for 57.2% of revenue in 2025, confirming that centralized visibility and subscription economics remain highly attractive in the IoT infrastructure security market. Cloud-based deployment that leads reflects the value buyers place on elastic analytics capacity, integrated threat intelligence, and faster feature delivery. This model is especially appealing to enterprises that do not want to build large in-house security teams for every site, plant, or branch. Cloud delivery also aligns with the growing role of AI-driven security tools, which benefit from continuous model updates and broad telemetry pooling within vendor-managed environments. AWS Security Hub Extended, launched in February 2026, supports that direction by combining findings from AWS security services and curated partner solutions into a single interface with standardized outputs and unified billing.

Hybrid deployment is the fastest-growing model, with a projected CAGR of 32.2% through 2031, because many operators still need air-gapped or tightly controlled OT environments. These buyers are not rejecting cloud economics; they are blending local control with centralized threat intelligence and policy management. In practice, a hybrid architecture helps enterprises keep safety-critical processes and sensitive workloads on-site while using off-site tools for analysis, orchestration, and reporting. On-premises deployment remains relevant in defense, utilities, and some healthcare environments where sovereignty, resilience, or internal policy still limit wider cloud use. The IoT infrastructure security market is therefore undergoing a blended transition rather than a simple shift from on-premises to the cloud.

Complete Report Scope:

• By Security Type
  • Network Security
  • Endpoint Security
  • Application Security
  • Cloud Security
  • Other Security Types
• By Deployment Model
  • On-Premises
  • Cloud-based
  • Hybrid
• By Infrastructure Layer
  • Device / Endpoint Layer
  • Connectivity / Network Layer
  • Edge / Fog Layer
  • Cloud and Data Center Layer
  • Application / Platform Layer
• By Organization Size
  • Large Enterprises
  • Small and Medium Enterprises
• By Industry Vertical
  • Manufacturing
  • Healthcare
  • Energy and Utilities
  • Transportation and Logistics
  • Smart Cities and Infrastructure
  • Retail and Consumer IoT
  • BFSI
  • Government and Defense
  • Others Industry Verticals
• By Geography
  • North America
    • United States
    • Canada
  • South America
    • Brazil
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Rest of Asia-Pacific
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Rest of Middle East
  • Africa
    • South Africa
    • Rest of Africa

Geography Analysis

North America retained the largest regional position, with a 38.6% share in 2025, reflecting the region’s mature enterprise security budgets, regulatory density, and broad critical infrastructure exposure in the IoT Infrastructure Security Market. The region also benefits from substantial public cybersecurity spending that supports broader ecosystem demand. The US Department of Defense allocated USD 8.31 billion to cybersecurity programs in fiscal year 2026, while CISA set out fiscal year 2026 milestones for IoT and OT asset management within the Continuous Diagnostics and Mitigation program. Business 5G IoT connections in North America are expected to rise from 5 million in 2025 to 39 million by 2030, expanding both demand for secure edge connectivity and the attack surface for vendors and operators. Canada offers an opportunity of a different kind because more cautious OT and ICS budget allocation leaves room for managed service providers and lower-friction platform offerings.

Europe presents the most demanding compliance environment in the IoT Infrastructure Security Market, as several major digital and operational security frameworks are advancing simultaneously. NIS2, the Cyber Resilience Act, DORA, and the Radio Equipment Directive create a layered set of requirements that affect operators, manufacturers, and vendors selling connected products into the region. Germany adds another layer through KRITIS-related obligations that broaden accountability and push security deeper into essential infrastructure planning. This structure is making compliance timelines a direct buying trigger, especially for device manufacturers and operators that need vulnerability reporting, product hardening, and formal governance processes in place before deadlines arrive.

Asia-Pacific is projected to expand at a 32.2% CAGR in the Internet of Things (IoT) infrastructure security market through 2031, reflecting both the scale of deployment and the speed of new project formation in manufacturing and smart infrastructure. Japan remains important because telecom operators are positioning security as part of connectivity itself, as shown by NTT Docomo Business launching docomo business SIGN in December 2025, with built-in security features for IoT services. South America, the Middle East, and Africa represent a smaller base, but the direction is strong because industrial digitization and smart city programs are bringing security into new projects much earlier than before.

List of Companies Covered in this Report:

• Cisco Systems Inc.
• IBM Corporation
• Microsoft Corporation
• Palo Alto Networks Inc.
• Fortinet Inc.
• Check Point Software Technologies Ltd.
• Trend Micro Incorporated
• McAfee LLC
• Amazon Web Services Inc.
• Huawei Technologies Co. Ltd.
• Armis Inc.
• Broadcom Inc. (Symantec Enterprise Division)
• Thales Group
• Kaspersky Lab
• Forescout Technologies Inc.
• Rapid7 Inc.
• Zscaler Inc.
• Akamai Technologies Inc.
• Darktrace plc
• Claroty Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support