Embedded Security for IoT Market Report Scope & Overview:

The Embedded Security for IoT Market size was valued at USD 7.63Billion in 2025E and is projected to reach USD 18.30 Billion by 2033, growing at a CAGR of 11.56% during 2026–2033.

The Embedded Security for IoT market is gaining momentum as enterprises increasingly integrate connected devices across industrial, automotive, and enterprise sectors. Advanced 5G connectivity platforms, such as Qualcomm’s Dragonwing, enable seamless real-time communication, edge AI processing, and IoT deployments, driving the need for robust embedded security solutions. The growing reliance on industrial IoT, smart manufacturing, and connected vehicles exposes networks to cybersecurity threats, emphasizing the demand for end-to-end device protection, secure data transmission, and compliance with evolving regulatory standards. Vendors providing scalable, high-performance embedded security platforms are positioned to capitalize on the rapid adoption of next-generation IoT ecosystems.

In March 2025 – Qualcomm unveils its Dragonwing brand at MWC Barcelona, introducing advanced 5G modems and IoT connectivity platforms for industrial, automotive, and enterprise applications, supporting edge AI integration.

Embedded Security for IoT Market Size and Forecast:

• Market Size in 2025E: USD 7.63 Billion

• Market Size by 2033: USD 18.30 Billion

• CAGR: 11.56% from 2026 to 2033

• Base Year: 2025E

• Forecast Period: 2026–2033

• Historical Data: 2022–2024

The United States Embedded Security for IoT Market size was valued at USD 1.73 Billion in 2025E and is projected to reach USD 3.64 Billion by 2033, growing at a CAGR of 9.75% during 2026–2033. driven by the increasing adoption of connected devices across industrial, automotive, and smart home sectors, coupled with rising cybersecurity threats targeting IoT networks. Enterprises are prioritizing real-time threat detection, secure data transmission, and regulatory compliance, fueling demand for advanced embedded security solutions. Growing deployment of edge computing, AI-enabled IoT devices, and remote device management further accelerates market growth and investment in robust security platforms.

Embedded Security for IoT Market Highlights:

• Automated security adoption is driven by growing IoT complexity, increasing demand for high-coverage testing frameworks that enhance device reliability, security, and regulatory compliance

• Model-Based Testing (MBT) enables systematic validation of device behavior, security protocols, and cloud/mobile interactions, reducing vulnerabilities and operational risks across large-scale IoT deployments

• Rising cybersecurity threats targeting IoT devices boost demand for real-time monitoring, threat mitigation, and compliance-focused embedded security solutions

• Market restraints include high implementation costs, complex integration with heterogeneous IoT devices, and limited standardization, which impede adoption, particularly for SMEs and resource-constrained devices

• Growth opportunities arise from AI-enabled, connected systems and remote device management, enabling vendors to provide scalable, end-to-end security platforms in expanding IoT ecosystems

• Regional expansion in APAC emphasizes real-time security, visibility, and cyber risk management for enterprise IoT devices

Embedded Security for IoT Market Drivers:

• Rising IoT Complexity Drives Adoption of Automated Embedded Security Solutions

The Embedded Security for IoT market is propelled by the growing need for automated, high-coverage testing frameworks that ensure device reliability, security, and regulatory compliance. As IoT deployments expand across smart homes, industrial automation, and connected devices, traditional manual testing becomes inadequate for managing firmware updates, heterogeneous hardware, and evolving threat landscapes. Model-Based Testing (MBT) enables systematic validation of device behavior, security protocols, and interactions with cloud and mobile applications, reducing vulnerabilities and operational risks. This drives adoption of robust embedded security solutions, allowing enterprises to safeguard sensitive data, maintain compliance, and enhance operational efficiency across large-scale IoT ecosystems.

In December 2025 – Mellonne highlights Model-Based Testing as a transformative solution for IoT, enabling automated, high-coverage testing, enhanced security, and regulatory compliance across smart home and industrial IoT deployments.

Embedded Security for IoT Market Restraints:

• Rising Costs and Complexity Impede Adoption of Embedded Security in IoT

The Embedded Security for IoT market faces several challenges that may hinder growth. High implementation costs of advanced security solutions and complex integration with heterogeneous IoT devices can limit adoption, particularly for small and medium enterprises. Additionally, rapidly evolving cybersecurity threats require continuous updates, increasing operational burden. Limited standardization across devices and protocols complicates interoperability and compliance with regional regulations. Resource-constrained IoT devices, such as low-power sensors, often struggle to support robust security features without affecting performance. These factors collectively create barriers for widespread deployment of embedded security solutions in diverse IoT ecosystems.

Embedded Security for IoT Market Opportunities:

• Rising IoT Threats Drive Demand for Advanced Embedded Security Solutions

The Embedded Security for IoT market presents significant opportunities as enterprises increasingly adopt connected devices across automotive, utilities, and industrial sectors. Rising cybersecurity threats targeting IoT devices drive demand for solutions offering real-time monitoring, threat mitigation, and regulatory compliance. Vendors can capitalize on this trend by providing scalable, end-to-end embedded security platforms that enhance operational efficiency, secure sensitive data, and support the growing deployment of AI-enabled, connected systems, particularly in regions with expanding IoT ecosystems. Increasing reliance on remote device management and cloud integration further fuels the need for robust, flexible IoT security solutions.

In July 2025: Aeris Communications and Bridge Alliance launch Aeris IoT Watchtower in APAC, offering real-time security and visibility for enterprise IoT devices, enhancing cyber risk management and compliance.

Embedded Security for IoT Market Segment Highlights:

• By Component: Dominant – Controller Chip (51.25% in 2025 → 58.75% in 2033); Fastest-Growing – Controller Chip (CAGR 13.46%)

• By Technology: Dominant – Hardware Security Technologies (29.38% in 2025 → 25.63% in 2033); Fastest-Growing – Identity & Access Management (IAM) (CAGR 14.56%)

• By Application: Dominant – Smart Factory / Networking Equipment (24.63% in 2025 → 22.38% in 2033); Fastest-Growing – Connected Car (CAGR 14.56%)

• By End User: Dominant – Automotive (25.38% in 2025 → 28.95% in 2033); Fastest-Growing – Automotive (CAGR 13.40%)

Embedded Security for IoT Market Segment Analysis:

By Component, Controller Chips Dominating and Fastest-Growing

Controller Chips remain the dominant component segment in both 2025 and 2033, capturing the largest market share due to their essential role in securing IoT devices, enabling data processing, and managing communications across connected systems. Simultaneously, Controller Chips also emerge as the fastest-growing segment, driven by rising demand for advanced, high-performance, and secure IoT solutions across industries.

By Technology, Hardware Security Technologies Dominating and IAM Fastest-Growing

Hardware Security Technologies remain the dominant technology segment in both 2025 and 2033, driven by their critical role in protecting IoT devices against cyber threats and ensuring secure communication. In contrast, Identity & Access Management (IAM) emerges as the fastest-growing segment, fueled by increasing adoption of cloud-based, scalable, and AI-enabled authentication solutions.

By Application, Smart Factory / Networking Equipment Dominating and Connected Car Fastest-Growing

Smart Factory and Networking Equipment hold the largest market share in 2025 and 2033 due to extensive industrial IoT deployment and critical infrastructure networking. Meanwhile, Connected Car applications are the fastest-growing segment, supported by rapid adoption of autonomous, connected, and AI-driven vehicles requiring advanced embedded security solutions.

By End User, Automotive Dominating and Fastest-Growing

The Automotive sector remains the dominant end-user segment in both 2025 and 2033, driven by connected, electric, and autonomous vehicle deployments. It also emerges as the fastest-growing end-user segment, fueled by increasing regulatory requirements, cybersecurity needs, and adoption of smart vehicle technologies across global markets.

Embedded Security for IoT Market Regional Highlights:

• Dominant Region – North America: In 2025 34.38% → 30.63% in 2033, Mature Market, Moderate Decline (CAGR 9.95%)

• Fastest-Growing Region – Asia-Pacific: In 2025 21.25% → 28.75% in 2033, Emerging Market, Rapid Growth (CAGR 15.77%)

• Europe: In 2025 24.75% → 23.25%, Mature Market, Slight Decline (CAGR 10.69%)

• South America: In 2025 9.88% → 9.13%, Developing Market, Moderate Decline (CAGR 10.46%)

• Middle East & Africa: In 2025 9.75% → 8.25%, Developing Market, Moderate Decline (CAGR 9.23%)

Embedded Security for IoT Market Regional Analysis:

North America Embedded Security for IoT Market Insights:

The North America region dominates the Embedded Security for IoT market, holding the largest share in 2025 due to advanced technological infrastructure, strong industrial IoT adoption, and extensive investments in cybersecurity solutions. Despite moderate decline by 2033, the region remains key, supported by ongoing innovation, smart manufacturing, and robust regulatory frameworks.

U.S. Embedded Security for IoT Market Insights:

The U.S. leads the Embedded Security for IoT market, driven by advanced IoT adoption, strong cybersecurity infrastructure, and significant investments in smart devices, industrial applications, and connected technologies across sectors.

Asia-Pacific Embedded Security for IoT Market Insights:

Asia-Pacific is the fastest-growing region in the Embedded Security for IoT market, experiencing rapid expansion from 2026 to 2033. Growth is fueled by increasing IoT adoption, industrial automation, smart city initiatives, rising investments in connected devices, and expanding digital infrastructure across countries such as China, India, Japan, and South Korea.

China Embedded Security for IoT Market Insights:

China is the dominant country in the Embedded Security for IoT market, driven by its massive IoT deployment, industrial automation, smart manufacturing initiatives, and government support for digital infrastructure and cybersecurity solutions.

Europe Embedded Security for IoT Market Insights:

The Europe Embedded Security for IoT market is witnessing emerging trends, fueled by growing adoption of industrial IoT, smart factories, connected vehicles, and stringent data protection regulations. Key countries like Germany, France, and the U.K. are driving innovation, cybersecurity integration, and deployment of advanced IoT solutions across various industries.

Germany Embedded Security for IoT Market Insights:

Germany dominates the Embedded Security for IoT market, driven by advanced industrial automation, strong cybersecurity infrastructure, widespread IoT adoption, and supportive government initiatives promoting smart manufacturing and secure connected technologies.

Latin America Embedded Security for IoT Market Insights:

The Latin America Embedded Security for IoT market is steadily expanding, supported by increasing industrial IoT adoption, smart city projects, and growing investments in connected devices and cybersecurity solutions. Countries like Brazil and Mexico are leading growth, driven by digital transformation initiatives and the demand for secure, efficient IoT deployments.

Brazil Embedded Security for IoT Market Insights:

Brazil dominates the Latin America Embedded Security for IoT market, driven by rapid industrial IoT adoption, smart city initiatives, robust digital infrastructure, and growing investments in secure connected devices and cybersecurity solutions.

Middle East & Africa Embedded Security for IoT Market Insights:

The Middle East and Africa Embedded Security for IoT market is witnessing moderate growth, supported by increasing adoption of IoT solutions in sectors such as energy, healthcare, and transportation. Investments in smart cities, digital infrastructure, and cybersecurity, particularly in countries like the UAE, Saudi Arabia, and South Africa, are driving the demand for secure, connected devices across the region.

United Arab Emirates (UAE) Embedded Security for IoT Market Insights:

United Arab Emirates (UAE) is dominating the Middle East and Africa Embedded Security for IoT market, driven by rapid smart city initiatives, strong digital infrastructure, government support, and increasing adoption of secure IoT solutions across industries.

Embedded Security for IoT Market Competitive Landscape:

STMicroelectronics is a global semiconductor Founded in 1987 leader specializing in microcontrollers, sensors, power management, and embedded solutions. The company provides innovative technologies for automotive, industrial, IoT, and consumer applications, focusing on energy efficiency, security, and connectivity, and delivering scalable, high-performance solutions to enable smart and connected devices worldwide.

• In May 2025, STMicroelectronics completed GSMA certification for its ST4SIM-300 eSIM, enabling secure, flexible remote provisioning for IoT devices in healthcare, energy, and asset tracking. The certified eSIM supports SGP.32, ensuring interoperability with global networks and optimized management of large IoT device fleets.

Qualcomm Inc. is a global leader Founded in 1985 in semiconductor and telecommunications technologies, specializing in mobile processors, 5G solutions, and IoT platforms. The company develops advanced chipsets, connectivity solutions, and AI-enabled processors for smartphones, PCs, automotive, and data center applications, driving innovation across wireless and embedded systems worldwide.

• In Dec 2025, Qualcomm acquired RISC-V chip designer Ventana Micro Systems to enhance CPU engineering and support its custom Oryon CPU development. The acquisition strengthens Qualcomm’s technology leadership in AI, PCs, and servers, leveraging RISC-V to drive innovation across multiple product lines.

Embedded Security for IoT Market Key Players:

• NXP Semiconductors

• STMicroelectronics

• Infineon Technologies AG

• Texas Instruments

• Renesas Electronics

• Microchip Technology Inc.

• Qualcomm Technologies, Inc.

• Gemalto (Thales Group)

• IDEMIA

• Cisco Systems, Inc.

• Intel Corporation

• ARM Holdings

• Synopsys, Inc.

• Trustonic Limited

• On Semiconductor Corporation

• Cypress Semiconductor Corporation

• Silex Technology America, Inc.

• Thales e-Security, Inc.

• Samsung Electronics

• Nuvoton Technology Corporation