Embedded Security for IoT Market Trends Shaped by Smart Factory and Connected Car Deployments

Market Overview

The embedded security for IoT market was estimated at USD 5.02 billion in 2023 and is likely to grow at a CAGR of 11.35% during 2024-2030 to reach USD 10.65 billion in 2030.

The momentum behind embedded security for IoT market growth is being driven by the increasing volume of connected devices worldwide. Industries such as healthcare, retail, automotive, and industrial automation are investing in stronger security infrastructures to safeguard sensitive information. Continuous innovation in embedded hardware capabilities and cybersecurity technologies is creating new opportunities for long-term value creation and operational resilience.

The increasing adoption of connected devices across industries and the growing focus on securing IoT ecosystems are contributing to the demand for embedded security solutions. As organizations seek stronger protection against cyber threats, embedded security technologies are becoming a critical part of IoT infrastructure.

What is Embedded Security for IoT?

Embedded security refers to a strategic approach to protecting software operating in embedded systems from potential threats. It utilizes hardware and software components, including controller chips, to secure devices and networks connected through the Internet of Things (IoT).

Embedded security for IoT is used across applications such as smart factories, smart grids, networking equipment, computing devices, and connected cars. These systems are designed to perform specific security functions while safeguarding connected environments against cyber-attacks and malware.

Market Growth Drivers

Several factors are driving the growth of the embedded security for IoT market.

One of the primary growth drivers is the increasing number of connected devices across IoT networks. The adoption of IoT technologies has expanded significantly across healthcare, retail, smart cities, industrial automation, agriculture, and other sectors. As more devices communicate and exchange data, the need for embedded security solutions continues to rise.

Another major driver is the implementation of industry guidelines encouraging the adoption of embedded hardware security solutions. Various organizations have promoted best practices and security standards to strengthen device protection against cyber threats. These initiatives support the deployment of embedded chipsets and software solutions designed specifically for IoT environments.

Growing cybersecurity concerns and the increasing frequency of cyber-attacks are also accelerating the adoption of embedded security technologies worldwide.

Key Challenges

The market faces several challenges despite its strong growth outlook.

One major challenge is the growing volume of data exchanged through connected IoT devices. Delivering robust embedded security solutions capable of handling large-scale data traffic without compromising performance remains difficult for service providers.

Another challenge is the complexity of securing a diverse range of devices connected through extensive communication networks, from household devices to industrial automation systems.

The market is also affected by the non-compliance of regulatory guidelines. Many organizations and users do not fully follow recommended security practices, leading to security vulnerabilities and cyber-attacks.

In addition, limited computational power in IoT networks and difficulties associated with updating connected devices create operational challenges for embedded security implementation.

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Market Segmentation

The embedded security for IoT market is segmented as follows:

By Application Type

• Smart Factory
• Smart Grid
• Connected Car
• Network Equipment
• Computing Devices

The connected car sub-segment dominated the market in 2023, accounting for a 25.0% share in terms of value.

By Component Type

• Software
• Controller Chip

By Vertical Type

• Retail
• Aerospace and defense
• Healthcare
• Gaming
• Automotive

Regional Analysis

The market is analyzed across:

• North America
• Europe
• Asia-Pacific
• Rest of the World

The Asia-Pacific region is expected to become the largest market for embedded security. Growth in the region is supported by the increasing adoption of embedded security devices in wearables and automobiles, as well as rising cybersecurity concerns in countries such as India, China, Singapore, and Japan.

The region is home to billions of connected IoT devices and highly sensitive data, making security a critical requirement. Growing cybercrime incidents and increasing adoption of cybersecurity solutions are further supporting market expansion across Asia-Pacific.

Key Companies

The major players operating in the embedded security for IoT market include:

• Cisco Systems Inc.
• NXP Semiconductors N.V.
• Intel Corporation
• Gemalto NV
• Infineon Technologies AG
• Palo Alto Networks Inc.
• Check Point Software Technologies Ltd.
• ARM Holdings Plc. (SoftBank Corp)
• Synopsys, Inc.
• Trend Micro Incorporated
• Inside Secure

FAQ

What was the size of the embedded security for IoT market in 2023?

The embedded security for IoT market was estimated at USD 5.02 billion in 2023.

What is the forecasted value of the market by 2030?

The market is expected to reach USD 10.65 billion by 2030.

Which application segment dominated the market in 2023?

The connected car segment dominated the market in 2023, accounting for 25.0% of the market value.

Which region is expected to be the largest market?

The Asia-Pacific region is expected to become the largest market for embedded security.

Conclusion

The embedded security for IoT market is poised for substantial growth, expanding from USD 5.02 billion in 2023 to USD 10.65 billion by 2030 at a CAGR of 11.35%. Increasing adoption of connected devices, implementation of security guidelines, and rising cybersecurity concerns are driving demand for embedded security solutions. While challenges such as data management complexity and regulatory non-compliance remain, opportunities related to enhanced processing capabilities and secure device management are expected to support long-term market growth.