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Mobile IoT security market to be worth $8bn by 2026

The advent of Internet of Things (IoT) applications on 4G and 5G networks will drive the development of an $8 billion market for security services.

Cellular is one of several technologies competing to connect the IoT. LPWAN technology is ideal for mass IoT projects spread across a wide geographic area, often in hard-to-reach places, and designed to be untouched for several years.

Any change to that plan, such as a battery replacement, is either logistically challenging or upsets the economics of the entire project.

Mobile IoT security

Meanwhile, the capacity and ultra-low latency of 5G will make it ideal for more bandwidth-intensive industrial applications that require absolute reliability. Both NB-IoT

ABI Research predicts that there will be more than 3 billion cellular IoT connections within five years, with the majority powered by 4G and Low Power Wide Area Network (LPWAN) technology like LTE-M and Narrowband IoT (NB-IoT). Both standards will play a critical role in 5G IoT too.  

However analysts say this opportunity is dependent on the availability of security services and products that protect connections and ensure trust. Demand is coming from a range of industries, including automotive, logistics and utilities, as well as from public sector organisations rolling out smart city and health applications.

This demand is driving a market now populated not just by cybersecurity firms but also traditional technology vendors and telco equipment manufacturers like Ericsson and Nokia.

 “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,” said Michela Menting, Digital Security Research Director at ABI Research.

“While LPWANs are still nascent, and 5G NR quite a few years from maturity, early understanding and integration of security is critical to developing trusted networks and will enable the creation of high-value revenue opportunities for the entire industry.”

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.