The things in the term ‘Internet of Things’ (IoT) refers to the everyday objects you use. With help of IoT, these objects can be controlled by an application on your smartphone. The IoT has made it easy to control everyday things remotely, using your smartphone. With the rise in technological development, there will be an exponential increase in threats, hence the risk landscape of IoT is also increasing with some potential threats which are often unexpected.
With all these threats and cyber-attack on IoT, the embedded security for IoT market is also growing. Implementation of controller chipsets is something that can ensure the protection of IoT from cyber-attack and other threats. According to the report by Future Market Insights (FMI), controller chip segment in embedded security for IoT is expected to account more than 80% of global market revenue, growing at a CAGR of 14.7% by 2017 and 2027.
Increase in use of IoT devices will have a positive impact on controller chip segment
According to the Cisco Systems Inc., 7% of global mobile data traffic is expected to come from IoT connected devices. With the rise in IoT connected devices, focus on a component aspect of security is also fueling the growth of controller chip segment. Security software along with the reliable hardware for data processing and safe storage can protect IoT devices against cyber-attack, hence OEMs are searching for embedded component suppliers who can provide better security.
For example, in December 2016, a non-profit multi-industry association known as Smart Card Alliance issued guidelines in U.S. and Latin America for adopting embedded hardware security, i.e. controller chipset including hardware functions and features to ensure the security standards are maintained.
What is restricting the growth of embedded security?
Various authorities have issued some guidelines for the IoT device manufacturers against the cyber-attack on the connected devices. But many IoT device manufacturers do not strictly follow these guidelines or take any measures. Hence, non-adherence to these guidelines is resulting in an increase in cyber-attack on the connected devices and rise in access to unauthorized data. This is also hampering the revenue growth of embedded security for IoT market.
APEJ and North America are said to be the most attractive market for embedded security for Internet of Things. Moreover, embedded security market in Western Europe is expected to grow at CAGR of 13.1% during 2017-2027, as per the report by FMI.
Security concerns have been the major barriers to the adoption of IoT. Hence, the companies are looking forward to the security help in IoT. This is also creating an ideal opportunity for the security startups to provide solutions and ensure the data is protected.
IoT in future will converge with Blockchain technology which will provide security and privacy. It helps in tracking billions of connected devices, enabling the process of transaction and coordination between the devices. The Blockchain secure online transactions and records these transactions in such a way that it is impossible to alter these registered transactions retroactively. The Blockchain technology will be able to protect the data transmitted between connected devices.