IoT Security Revenue

Wide-Area Network (WAN) IoT connections, including cellular 2G, 3G, 4G, 5G, analog fixed line, LPWA Long Term Evolution (LTE), LPWA proprietary, and satellite-connected IoT, are expected to generate the primary concentration of security revenue versus non-WAN connections (Bluetooth, Wi-Fi, or 802.15.4). The amount of IoT security revenue, however, is not always correlated with the amount of IoT connections and some markets are expected to experience disproportionate revenue. This is due to the multi-faceted level of security and management requirements that provide the foundation for other key operations and valuable services, including for intelligence operations and analytics, lifecycle management and predictive maintenance, firmware updates, and device and data integrity.

Device security revenue will be primarily attributed to secure device provisioning and management followed by encryption and hardware security services (secure Root of Trust (RoT), bootstrap, System-on-Chip (SoC) secure firmware, and eSIM management). Additionally, most markets will be subject to increased oversight and data protection endeavors by IoT vendors, partly due to established IT-borne regulations crossing over slowly to the IoT like the European Union (EU) General Data Protection Regulation (GDPR) and the U.S. Health Insurance Portability and Accountability Act of 1996 (HIPAA), but also due to increased mobility from policy makers and standardization entities like NIST and the International Organization for Standardization (ISO). Data security will be driven primarily by secure data hosting/storage, compliance, and data management/governance. Security analytics and data privacy/anonymization services will also see an increase in more user-focused IoT markets.