Global Embedded Security For Internet of Things (IoT) Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In August 2023, Renesas Electronics acquired Sequans Communications, a move aimed at enhancing its IoT capabilities. This acquisition, valued at $249 million, focuses on integrating Sequans’ cellular IoT products into Renesas’ existing portfolio, further expanding its reach in the IoT market.

• The adoption of sustainability and ESG initiatives has had a notable impact on the IoT and embedded security sectors. For instance, Europe introduced several regulations in 2023, including the Corporate Sustainability Reporting Directive (CSRD), which mandates companies to report on IoT,related environmental impacts. This regulatory shift emphasizes the need for secure, reliable IoT systems that meet sustainability standards​.

Applications of embedded security in IoT encompass a broad spectrum, including smart homes, connected healthcare devices, industrial automation, transportation systems, and smart cities. Each application area requires robust security measures to protect sensitive data, ensure device integrity, and safeguard against cyber threats.

Vertical segmentation highlights the industry-specific implementations of IoT embedded security. For instance, in healthcare, embedded security is crucial for protecting patient data and ensuring the confidentiality of medical records transmitted between devices and healthcare providers. In industrial automation, IoT security solutions are essential for maintaining operational continuity and preventing unauthorized access to critical manufacturing processes and equipment. Similarly, in transportation systems, embedded security enhances the safety and reliability of connected vehicles by securing communication networks and preventing potential cyber-attacks.

Geographically, the market exhibits varied growth patterns across different regions. North America leads in IoT embedded security adoption, driven by stringent regulatory requirements, high IoT device penetration, and significant investments in cybersecurity infrastructure. Europe follows closely, focusing on implementing robust security standards across industries like automotive, healthcare, and smart infrastructure. The Asia-Pacific region is experiencing rapid growth, propelled by increasing IoT deployment in smart cities and manufacturing sectors, alongside advancements in digital infrastructure and connectivity.

Global Embedded Security For Internet of Things (IoT) Segment Analysis

In this report, the Global Embedded Security For Internet of Things (IoT) Market has been segmented by Application, Vertical and Geography.

Global Embedded Security For Internet of Things (IoT) Market, Segmentation by Application

The Global Embedded Security For Internet of Things (IoT) Market has been segmented by Application into Smart Factory, Smart Grid, Connected Car, and Others.

In smart factories, embedded security plays a critical role in safeguarding industrial automation systems from cyber threats, ensuring the integrity of production processes and protecting sensitive manufacturing data. Security measures are essential for preventing unauthorized access and maintaining operational continuity in these highly automated environments.

The smart grid sector relies on embedded security to secure communication networks and IoT devices used in energy distribution and management. Protecting critical infrastructure from cyber-attacks is paramount to ensure reliable electricity supply and grid resilience. Embedded security solutions in smart grids encompass encryption protocols, authentication mechanisms, and intrusion detection systems to detect and mitigate potential threats.

Connected cars represent another significant application area where embedded security is vital. These vehicles rely on IoT connectivity for navigation, entertainment systems, and autonomous driving features, making them susceptible to cyber threats. Embedded security solutions in connected cars focus on securing vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, protecting passenger safety and privacy, and preventing unauthorized access to vehicle controls.

Global Embedded Security For Internet of Things (IoT) Market, Segmentation by Vertical

The Global Embedded Security For Internet of Things (IoT) Market has been segmented by Vertical into Retail, Aerospace and Defence, Healthcare, Gaming and Others.

Aerospace and defense industries rely on embedded security to protect critical systems and communications networks from cyber threats. Embedded security solutions in this vertical focus on securing mission-critical data, preventing unauthorized access to sensitive information, and ensuring the resilience of defense infrastructure against sophisticated cyber-attacks.

In healthcare, embedded security is essential for safeguarding patient data privacy, securing medical devices, and protecting healthcare providers' networks from cyber threats. IoT-enabled medical devices such as pacemakers, insulin pumps, and remote patient monitoring systems require stringent security measures to ensure patient safety and regulatory compliance.

The gaming industry leverages embedded security to protect online gaming platforms, secure in-game transactions, and prevent cheating and piracy. IoT devices such as gaming consoles and virtual reality headsets rely on embedded security solutions to provide a secure gaming experience and protect intellectual property rights.

Global Embedded Security For Internet of Things (IoT) Market, Segmentation by Geography

In this report, the Global Embedded Security For Internet of Things (IoT) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Embedded Security For Internet of Things (IoT) Market Share (%), by Geographical Region, 2024

North America leads the market due to its advanced technological infrastructure, stringent regulatory frameworks, and high adoption rates of IoT devices across various industries. The region is characterized by significant investments in cybersecurity initiatives and a robust ecosystem of technology companies driving innovation in embedded security solutions. Industries such as healthcare, automotive, and smart cities are major contributors to the demand for secure IoT deployments in North America.

Europe follows closely, propelled by stringent data protection regulations such as GDPR (General Data Protection Regulation) and strong emphasis on cybersecurity standards. Countries within Europe are at the forefront of implementing secure IoT solutions across sectors such as manufacturing, aerospace, and energy management. The region's focus on privacy and security drives the adoption of embedded security measures to protect sensitive data and ensure compliance with regulatory requirements.

Asia Pacific is experiencing rapid growth in the embedded security market for IoT, fueled by expanding digital infrastructure, increasing IoT deployments, and growing investments in smart city projects. Countries like China, Japan, and South Korea are leading in the adoption of IoT technologies across sectors such as healthcare, transportation, and manufacturing. The region's diverse market presents opportunities for innovative security solutions tailored to local regulatory frameworks and industry-specific requirements.

The Middle East and Africa are emerging markets for embedded security in IoT, driven by investments in digital transformation initiatives and increasing connectivity across urban centers. The region's focus on smart infrastructure projects and cybersecurity initiatives is driving the demand for secure IoT deployments in sectors such as oil and gas, utilities, and healthcare.

Latin America, although a smaller market compared to other regions, is witnessing growth in IoT adoption driven by developments in smart agriculture, transportation, and urban development projects. The region's evolving regulatory landscape and increasing awareness of cybersecurity risks present opportunities for embedded security solutions that address specific market needs and enhance IoT deployment security.