The worldwide spending on Internet of Things (IoT) security will reach $1.5 billion in 2018 — a 28 percent increase from the 2017 spending of $1.2 billion, according to a Gartner forecast on 21 March.
Global spending on IoT security is expected to reach $3.1 billion in 2021, the report, titled "Forecast: IoT Security, Worldwide, 2018", said.
IoT-based attacks are already a reality and a recent Gartner survey found that nearly 20 percent of organisations observed at least one IoT-based attack in the past three years.
"In IoT initiatives, organisations often don't have control over the source and nature of the software and hardware being utilised by smart connected devices," said Ruggero Contu, Research Director at Gartner.
"We expect to see demand for tools and services aimed at improving discovery and asset management, software and hardware security assessment, and penetration testing," Contu said.
"In addition, organisations will look to increase their understanding of the implications of externalizing network connectivity. These factors will be the main drivers of spending growth for the forecast period with spending on IoT security expected to reach $3.1 billion in 2021," he added.
Despite the steady year-over-year growth in worldwide spending, the market research firm predicts that through 2020, the biggest inhibitor to growth for IoT security will come from a lack of prioritisation and implementation of security best practices and tools in IoT initiative planning.
But by 2021, Gartner predicts that regulatory compliance will become the prime influencer for IoT security uptake.
Industries having to comply with regulations and guidelines aimed at improving critical infrastructure protection are being compelled to increase their focus on security as a result of IoT permeating the industrial world, the report said.
"Interest is growing in improving automation in operational processes through the deployment of intelligent connected devices, such as sensors, robots and remote connectivity, often through cloud-based services," said Contu.
"This innovation, often described as Industrial Internet of Things (IIoT) or Industry 4.0, is already impacting security in industry sectors deploying operational technology (OT), such as energy, oil and gas, transportation, and manufacturing," he added.