Utilities will be among the sectors rushing to keep their fast-growing Internet of Things (IoT) systems safe from hackers will drive growth in the IoT security market by 55% between 2016 and 2020, according to a new study.

The report by MarketResearchReports.biz entitled “Global Internet of Things Security Market 2016-2020” found that IoT security will be driven by such end-use industries as automotive, healthcare – and especially utilities. It predicted a compound annual growth rate of 55.01% over the period.

“During the forecast period, the utilities sector is expected to drive the demand from the market with highest adoption of IoT security solutions,” the report media release stated. “Extensive implementation of smart meters and IoT for utility management systems such as gas, energy, water, and oil will contribute towards the growth of the market.”

This report follows a recent Gartner study that found similarly impressive growth prospects in the world of IoT security. Gartner predicted worldwide expenditures on IoT security will grow by 24% this year to $348 million, then grow to $547 million in 2018 and to $841 million in 2020.

Sensor tech propelling growth but also security concerns

The report sees recent advances in sensor technology propelling global IoT security market growth, which will lead to increased IoT security adoption in the future.

“However, high total cost of ownership of IoT security solutions will negatively impact the growth of the market during the forecast period,” said the report. “The emergence of integrated security solutions will open new opportunities for the market in the near future.”

In the report many of the key vendors in the worldwide IoT security space were profiled. These included: Nokia, NetComm Wireless, Palo Alto Networks, Cisco Systems, Intel, Broadcom, Sierra Wireless, Secure Crossing, Systech Solutions, Sophos, IBM, Gemalto, Kore Wireless, Numerex, Rockwell Automation, Symantec, Infineon Technologies, Axeda Machine Cloud, Fortinet, Eurotech, Tofino, Ventus Wireless, Digi International, Ericsson and Telit.

The geographic scope of the report covered such regions as: the Americas; Europe, the Middle East and Africa; and the Asia Pacific region.