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Better IoT Security Could Grow Device Market

Enterprise customers would buy more IoT devices if their concerns about cybersecurity risks were addressed.

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Better IoT Security Could Grow Device Market
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The Internet of Things continues to grow rapidly, but concerns about security are hindering the adoption of IoT devices. Research by Bain & Company finds that enterprise customers would buy more IoT devices if their concerns about cybersecurity risks were addressed—on average, at least 70% more than what they might otherwise buy. What’s more, 93% of the executives we surveyed said they would pay an average of 22% more for devices with better security (see Figure). Taken together, Bain estimates that improving security solutions for these devices could grow the IoT cybersecurity market by $9 billion to $11 billion. Device manufacturers can help move the market by learning more about their customers’ cybersecurity capabilities and improving the security and quality of their devices to meet customers’ needs.

Syed Ali is an expert vice president with Bain & Company in the Houston office. Ann Bosche is a partner with Bain in San Francisco, and Frank Ford is a Bain partner in London. Ali and Ford are experts in cybersecurity and partners with the Global Information Technology practice, and Bosche works with Bain’s Global Technology practice.

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Cybersecurity Is the Key to Unlocking Demand in the Internet of Things

Enterprise customers would buy more IoT devices if vendors could ensure better security.

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