Italy IoT Security Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Italy IoT security market size reached around USD 451.16 Million in 2024. The market is projected to grow at a CAGR of 15.00% between 2025 and 2034 to reach nearly USD 1825.19 Million by 2034.

Italy IoT Security Market Growth

Nearly 91.5% of all European companies view IoT as a business imperative as compared to just 85% of all American organisations. Italian businesses are leading users of IoT tools with an adoption rate of 95%. The manufacturing sector accounts for 26% of all ongoing IoT projects in Italy, where solutions mainly focus on accelerating the rate of industrial automation to boost quality of products. This results in significant operational efficiency and increases in production capacity which drives competitive advantage. As per the Italy IoT security market analysis, while 90.8% of all European businesses use IoT, Italy is expected to dominate the region, thereby witnessing a substantial demand for IoT security solutions.

The Italian BFSI industry is expected to make increasing investments in digital technology to modernise their existing infrastructure, thereby achieving smoother workflow and operational efficiency. Intesa Sanpaolo, Italy’s largest bank, is planning to spend nearly EUR 5 billion on switching towards a cloud-based banking system. UniCredit, Italy’s second largest bank, has invested around EUR 2 billion between 2022 and 2024 for adopting various new technologies. Online bank accounts can enable Italians to save 40% more money on maintenance, as compared to conventional bank accounts. This is expected to increase the use of IoT by Italy’s BFSI industry, thereby fuelling the Italy IoT security market development.

Key Trends and Developments

Increasing focus on embedded security services; rising preference for edge AI; growth of agricultural sector; and increasing incidence of cyber-attacks are factors favouring the Italy IoT security market growth.

Aug 20, 2024

Actelis Networks, Inc. introduced an AI-powered SaaS into its networking devices to facilitate real-time monitoring of physical assets and enhance the overall security of IoT networks.

July 19, 2024

The database of several organisations in Italy’s automotive, shipping, and media and entertainment industry were compromised by APT41 hacking group based in China. This incident accelerated the adoption of robust security solutions, thereby driving the Italy IoT security market value.

July 15, 2024

Exein, an Italian company specialising in embedded IoT cybersecurity services, raised EUR 15 million in a Series B funding round.

May 22, 2024

France-based company Actility which is engaged in selling LoRaWAN infrastructure, collaborated with an Italian IoT specialist ‘Urbana Smart Solutions’ to “overhaul” and expand Italy’s existing IoT infrastructure. This led to Italy IoT security market development.

Rising preference for edge AI

Edge AI can enable real-time threat detection of IoT devices operational across numerous industries, including the aerospace and automotive sectors, thereby enhancing response capabilities.

Increasing focus on embedded security services

Major IoT companies advocate security-by-design to drive their product adoption, which has emerged as a one of the key Italy IoT security market trends over time.

Growth of agricultural sector

The adoption of IoT devices for ensuring adequate crop irrigation and nutrient delivery to the roots is expected to accelerate the demand for reliable IoT security solutions.

Increasing incidence of cyberattacks

In 2023, Italy witnessed a year-on-year surge of 29% in the number of cyberattacks. Rising number of cyberattacks has contributed to the market expansion.

Italy IoT Security Market Trends

In 2023, Italy saw a significant rise in cyberattacks, with over 85% of organisations experiencing at least one successful attack within a year, and 72.4% of companies anticipating further attacks in the next 12 months. The prevalence of ransomware is particularly concerning, as 68% of organisations reported being targeted by such attacks. Additionally, the financial sector remains highly vulnerable, with a notable increase in phishing incidents, which affected 96% of businesses. The Clusit 2024 Report highlighted that Italy recorded 2,779 serious cyber incidents in 2023, marking a 12% increase from the previous year. As the threat landscape continues to evolve, Italian companies are allocating over 10% of their IT budgets to IoT security measures in 2024, leading to Italy IoT security market growth. Moreover, in response, the Italian government is enhancing national cybersecurity measures through the National Cybersecurity Authority (ACN) and by investing in over 80 initiatives aimed at strengthening defense against these threats.

Italy IoT Security Industry Segmentation

The EMR’s report titled “Italy IoT Security Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component:

• Solutions

  

Identity and Access Management

  

Device Management

  

Data Encryption and Tokenization

  

Unified Threat Management (UTM)

  

Security analytics

  

Others

• Services

Market Breakup by Deployment Mode:

• On-Premises
• Cloud

Market Breakup by Organization Size:

• Large Enterprises
• Small and Medium Enterprise (SMEs)

Market Breakup by Security:

• Network Security
• Cloud Security
• End Point Security
• Application Security
• Others

Market Breakup by Industry Vertical:

• BFSI
• Government
• Healthcare and Life Sciences
• Energy and Power
• Manufacturing
• Others

Market Breakup by Region:

• North-West Region
• North-East Region
• Central Region
• South Region

Italy IoT Security Market Share

Based on region, the market is segmented into North-West, North-East, the Central region, and the South region. The Central region is projected to dominate the market, representing 21% of the overall market share. Over the forecast period, the North-West region is expected to grow at a CAGR of 17.1% because of increasing incidence of state-sponsored cyberattacks in the country and the widespread adoption of smart IoT devices by households and individuals.

Leading Companies in the Italy IoT Security Market

Major players are improving their Italy IoT security market share by catering to the demand for IoT security solutions in data encryption and tokenisation applications.

Cisco Systems Inc.

Cisco Systems Inc. is a software development company headquartered in California. United States. It was formed in 1984 and specialises in manufacturing and selling high-tech services and products, such as networking hardware solutions.

Infineon Technologies AG

Infineon Technologies AG is a German multinational company which was formed in April 1999. According to Italy IoT security market analysis, it is engaged in manufacturing advanced semiconductors for numerous applications, including consumer electronics and clean energy.

IBM Corporation

IBM Corporation is a multinational company that was established in June 1911 and is based in New York, United States. It operates in the IT services and IT consulting industry and is engaged in providing high-tech solutions to businesses for digital transformation projects.

Sophos Ltd.

Sophos Ltd. was established in 1985 and is based in Abingdon, United Kingdom. It operates in the software development industry with specialisation in providing IT security solutions to global businesses.

Other players included in the Italy IoT security market report are Broadcom Inc., Intel Corp., HP Inc., Trend Micro Inc., AT&T Inc., Palo Alto Networks Inc., and Thales S.A. (Gemalto), among others.
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