Securing smart homes is a large, growing -- and often ignored -- opportunity for service providers, new research finds.
Total global spending on Internet of Things cybersecurity solutions will reach more than $6 billion by 2023, according to "Internet of Things for Security Providers: Opportunities, Strategies & Forecasts 2018-2023," a report released today by Juniper Research. Between 2018 and 2023, spending will increase at a compound annual growth rate (CAGR) of 31%, the analyst firm said. IoT connections will have a CAGR of 25% during that period, Juniper Research predicted.
Over this forecast timespan, spending will expand almost 300%. On the consumer side, product and service providers will drive spending; end-customers will play that role in areas such as industry and public service, the research firm said.
Enter the home
Typically, there is poor long-term device support and few fears about the ramifications if a breach occurs within the smart home, said research author Steffen Sorrell. By comparison, businesses recognize they must protect trade secrets, brand reputations, customer and partner data, and continue operating -- something difficult, if not impossible, with a Distributed Denial of Service (DDoS) or ransomware.
Residential IoT devices, on the other hand, may at first seem merely inconvenient if they're taken offline by an attack. But consumers -- and the providers looking to become trusted advisors to smart home subscribers -- should delve deeper into the perils they face and the confidence a smart-home managed security service provides.
"The interconnected nature of the IoT means that even innocuous devices like the connected fridge can become a threat. Vendors see that risk as low, while little has been done from a regulatory perspective to protect consumers," he added.
While government officials ponder these issues and vendors discuss the merits of one approach over another, service providers should educate smart-home dwellers of the dangers they face and the steps they can take to protect themselves. Immediately changing factory pre-set passwords, for example, is one of the first items any smart device owner should do -- and can be one of the initial value-added services providers supply.
The worldwide market for all managed security services will reach $47.65 billion by 2023, versus $24.05 billion this year, predicted MarketsandMarkets earlier this year. While smart home security is only a small percentage of the entire segment, it will only grow larger -- especially as healthcare devices and data become a more prevalent part of connected homes.
When that occurs, those service providers already delivering secured solutions will be far ahead of competitors: While they may or may not be HIPAA-compliant, those operators well-versed in managed IoT security will be steps away, not miles away, from meeting stringent government rules for data governance, privacy and security. While they may be lacking in today's smart home arena, that scenario won't last long and it's not the case in many related verticals such as healthcare and education.
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