The Europe IoT security market reached around USD 1.79 Billion in 2024. The market is projected to grow at a CAGR of 24.20% between 2025 and 2034 to reach nearly USD 15.63 Billion by 2034.
Europe IoT Security Market Growth
In 2021, a total of 474 million individuals in Europe, representing 86% of the population, were utilising mobile services, with projections indicating an increase to 480 million by 2025. Reportedly, the average adoption rate of 5G technology across Europe is anticipated to reach 44% by 2025. The United Kingdom and Germany are expected to lead in 5G adoption rates, with estimates of 61% and 59%, respectively.
The deployment of 5G technology throughout Europe is promoting the expansion of IoT ecosystems by providing quicker and more dependable connections. However, this advancement also broadens the potential attack surface, highlighting the need for strong IoT security measures to safeguard emerging networks and interconnected devices.
The adoption of IoT security systems in e-government plays a crucial role in safeguarding sensitive information, ensuring the uninterrupted delivery of public services, thwarting cyber threats to critical infrastructure, preserving public trust, and adhering to data protection laws. In 2022, 42% of individuals in the European Union who accessed the internet in the preceding year utilised it to gather information from the websites of public authorities. This percentage exhibits considerable variation among EU member states. In 13 of these countries, more than 50% of the population accessed such websites for information, with Finland (79%), Denmark (74%), and the Netherlands (73%) at the forefront. Consequently, implementing robust IoT security protocols significantly bolsters the resilience and dependability of e-government initiatives.
Key Trends and Developments
Increased cybersecurity threats, growing adoption of IoT in different sectors, stringent data protection regulations, swift digital transformation, and rapid adoption of 5G networks are the major trends impacting the Europe IoT security market growth
February 2024
Asimily partnered with IT2Trust to offer its comprehensive solution for IoT security and risk management in the Nordic region. Through this, the company reinforces its commitment to expand its global presence and offer unique advanced cybersecurity solutions to organisations.
March 2024
The European Union approved the Cyber Resilience Act, ensuring that products with digital features such as connected doorbells, Wi-Fi routers, and baby monitors, among others, are secure to use and resilient against cyberattacks.
July 2024
Rome-based embedded IoT cybersecurity company, Exein, announced that it raised EUR 15 million in a Series B round led by 33N. Through the fresh capital, the company aims to boost its expansion across Europe, Asia, and the United States.
Increased Cybersecurity Threats
The rise in sophisticated cyberattacks targeting IoT networks, such as DDoS attacks, ransomware, and data breaches, is prompting organisations in Europe to invest heavily in IoT security solutions to protect critical infrastructure and sensitive data.
Growing Adoption of IoT in Various Sectors
Sectors including BFSI, manufacturing, healthcare, transportation, and smart cities are progressively integrating IoT technology. This integration necessitates strong security measures to protect the safety and integrity of interconnected devices and networks, thereby increasing the demand for IoT security solutions.
Stringent Data Protection Regulations
Europe is subject to some of the most stringent data protection regulations globally, including the General Data Protection Regulation (GDPR). These laws mandate that organisations adopt robust security protocols for all interconnected devices, thereby playing a crucial role in the expansion of the market.
Swift Digital Transformation
The rapid advancement of digital transformation in sectors like finance, retail, and healthcare is driving the implementation of IoT devices throughout various operations. This digital growth requires sophisticated security measures to protect these devices and maintain data privacy and regulatory compliance.
Rapid Adoption of 5G Network
The deployment of 5G technology throughout Europe is promoting the expansion of IoT ecosystems by providing quicker and more dependable connectivity. This advancement also broadens the potential attack surface, highlighting the need for strong IoT security measures to safeguard emerging networks and interconnected devices.
Europe IoT Security Market Trends
The rapid proliferation of interconnected devices across various sectors is significantly driving the demand for robust security measures. As these sectors increasingly rely on the Internet of Things (IoT) and smart technologies to enhance efficiency, streamline operations, and improve service delivery, the volume of sensitive information being transmitted and processed has surged, consequently driving the demand for IoT security solutions.
Additionally, the rapid advancement of digital transformation in multiple sectors is driving the widespread use of IoT devices in various operations. This digital shift requires enhanced security measures to protect these devices, maintain data privacy, and comply with regulatory standards.
Europe IoT Security Industry Segmentation
Europe IoT Security Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Component:
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