The Embedded Security For Internet of Things (IoT) Market, estimated at USD 8.66 Bn in 2025, is expected to exhibit a CAGR of 12% and reach USD 19.14 Bn by 2032.
Information and Communication Technology continues to be a key driver of global growth, as organizations accelerate digital transformation and invest in advanced solutions. Breakthroughs in automation, data analytics, and next-generation networks are reshaping industries, boosting competitiveness, and opening new avenues for innovation and collaboration.
The Embedded Security for Internet of Things (IoT) Market: Drivers
Increase In Data Breaching & Cyber-Attack Incidents
The proliferation of connected devices and the Internet of Things (IoT) has given rise to significant security risks. In response, embedded security solutions have emerged as a crucial means to protect against unauthorized access, tampering, and other security threats. These solutions play a vital role in safeguarding the integrity and security of data processed and transmitted by IoT devices. Consequently, there is a growing need for embedded security solutions in industries such as healthcare, automotive, and industrial automation, where data security is paramount. The global embedded security for IoT market is further fueled by factors like increasing cyber-attacks, data breaches, and the ongoing digitalization and automation trends across various sectors. As the number of interconnected devices continues to rise, the demand for robust and dependable embedded security solutions is projected to witness sustained growth in the foreseeable future.
Embedded Security for Internet of Things (IoT) Market: Opportunities
Increase in Demand for Embedded Security in Hybrid as well as Electric Vehicles.
The electric vehicle (EV) market is experiencing continuous growth and maturation, driven by customer demand for eco-friendly vehicles that are cost-effective. To meet these requirements, there is a need for an extensive deployment of electric charging points at both residential and public locations. However, ensuring the security of these charging points is crucial to protect the integrity of critical infrastructure.
The complex architecture and safety challenges associated with EVs and charging points pose significant difficulties in managing security threats within the system. To address this issue, an embedded device security system emerges as a viable solution. With the proliferation of embedded and connected software in EVs, the security of these vehicles becomes increasingly important. Additionally, the expanding number of electric vehicles and connected devices in smart and hybrid cars amplifies the necessity for embedded device security hardware within the EV ecosystem.
Embedded Security for Internet of Things (IoT) Market: Restraints
Lack of Professional workforce and high initial investment.
In recent years, embedded security systems have gained popularity. However, the initial cost of individual physical security devices and communication security devices is higher compared to conventional security systems. The expensive internal components, such as transmitters, receivers, and sensors used in these systems, directly contribute to the higher retail price. As a result, the renewal of existing security systems and the adoption of new embedded technology are not cost-effective for small and medium-sized enterprises (SMEs) and individual users. Additionally, the scarcity of skilled workers required for manufacturing embedded devices could impede the growth of the embedded security for internet of things (IoT) market throughout the forecast period.
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Key Takeaways:
The Embedded Security for Internet of Things (IoT) Market was valued at US$ 8.66 Bn in 2025 and is forecast to reach a value of US$ 19.14 Bn by 2032 at a CAGR of 12.0% between 2025 and 2032.
Connected Cars segment held dominant position in the Embedded Security for Internet of Things (IoT) Market in 2025, accounting for 33% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Embedded Security for Internet of Things (IoT) Market Trends:
Increase in Demand Due To Increasing Number of Applications of IoT
In the present era, technology is experiencing an unprecedented boom, continuously evolving with new techniques and functionalities. The scope of technology has expanded beyond computers and mobile apps to include IoT-based devices and artificial intelligence, which have become integral to daily human life. The widespread adoption of IoT is observed across various industry verticals, such as healthcare devices, industrial automation, airplanes, wearable technology, smart home units, and automobiles.
In the context of smart homes, authentication and access management have become crucial considerations. The growing utilization of IoT devices amplifies the likelihood of encountering security issues concerning connected devices. Furthermore, it heightens the risk of external cyber threats targeting operational systems, potentially leading to device malfunctions and data loss. To mitigate these risks, there is an increasing trend towards incorporating embedded security devices. These devices play a pivotal role in safeguarding IoT-enabled systems and protecting against potential security breaches.
Embedded Security for Internet of Things (IoT) Market: Competitive Landscape
Intel Corporation, Trend Micro Incorporated, Cisco System Inc., Inside Secure, NXP Semiconductors N.V., Synopsys, Inc., Infineon Technologies AG, ARM Holdings Plc. (Softbank Corp), Gemalto NV, Palo Alto Networks Inc., Check Point Software Technologies Ltd., and others
Embedded Security for Internet of Things (IoT) Market: Recent Developments
For instance, In Feburary 2025, Secure IC, a company specializing in comprehensive Cybersecurity solutions and trusted platforms for connected objects and embedded systems, has entered into a partnership with MosChip Technologies, a provider of semiconductor and system design services. This strategic collaboration aims to offer Turnkey ASIC solutions and extend the reach of global IC security solutions in India.
In Feburary 2025, NXP Semiconductor, a leading provider of semiconductor and IoT services across different industry sectors, has unveiled its latest offering, the EdgeLock 2GO IoT service platform. This comprehensive platform is specifically designed to facilitate the deployment and maintenance of IoT devices, enabling customers to effectively and securely manage all their embedded systems.
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