IoT Security Services Market to Reach $8 B by 2026 Amid 5G Expansion

The expanding Internet of Things (IoT) landscape is bringing a surge of network security threats, pushing the market for IoT security services toward new heights by the mid‑2020s.

ABI Research projects that by 2026 there will be over 3 billion IoT cellular connections—primarily on 4G and low‑power wide‑area networks. The growth of 5G, largely driven by IoT and edge‑computing deployments, is poised to generate roughly $8 billion in demand for IoT security solutions.

Emerging cellular standards—including 5G Massive Machine‑Type Communications (MMTC), LTE‑M, and Narrowband IoT—offer new security platforms that can bolster trust in networks handling sensitive data.

"New target markets will emerge that will require dedicated point solutions and customized service offerings for communication service providers and enterprises directly," said Michela Menting, digital security research director at ABI Research.

"An expanded threat landscape, new standard‑defined security protocols, and the potential for revenue generation through the sale of value‑added security services all combine to drive a dynamic and highly competitive security market for cellular IoT protection," added Menting.

Asset managers, along with automotive, energy, healthcare, and utility industries, are expected to reap the most benefits from enhanced IoT security. The rising demand is also drawing network equipment vendors—such as Ericsson, Nokia, and ZTE—alongside pure‑play cybersecurity firms like Fortinet and IoTerop.

With the shift toward 5G NR accelerating, ABI highlights that security must be woven into the fabric of future IoT networks. “Security integration is essential for building trusted networks,” said Menting.

Semiconductor Equipment Billings Hit Record

In other news, SEMI reported a new quarterly record for semiconductor equipment billings. Driven by a sharp uptick in orders from Chinese chipmakers, the organization noted that Q2 billings rose 48 % year‑over‑year to a record $24.9 billion, and increased 5 % versus the prior quarter.

Worldwide Semiconductor Equipment Market Statistics noted that China’s bookings surged 79 % year‑over‑year and 38 % quarter‑over‑quarter.

Billings in Europe, South Korea, and Taiwan also held steady as manufacturers scale production to meet growing demand across nearly all electronics segments.

>> This article was originally published on our sister site, EE Times.