• In August 2023, Renesas Electronics acquired Sequans Communications, a move aimed at enhancing its IoT capabilities. This acquisition, valued at $249 million, focuses on integrating Sequans’ cellular IoT products into Renesas’ existing portfolio, further expanding its reach in the IoT market.

• The adoption of sustainability and ESG initiatives has had a notable impact on the IoT and embedded security sectors. For instance, Europe introduced several regulations in 2023, including the Corporate Sustainability Reporting Directive (CSRD), which mandates companies to report on IoT,related environmental impacts. This regulatory shift emphasizes the need for secure, reliable IoT systems that meet sustainability standards​.

In this report, the Embedded Security For Internet of Things (IoT) Market has been segmented by Component, Application, Vertical, and Geography.

Embedded Security For Internet of Things (IoT) Market, Segmentation by Component

The Embedded Security For Internet of Things (IoT) Market has been segmented by Component into Software and Controller Chip

Software
The software component plays a vital role in the embedded security ecosystem for IoT, managing encryption algorithms, secure boot, and firmware updates. It accounts for nearly 45% of the market as organizations prioritize robust, adaptable security layers within IoT frameworks.

Controller Chip
Controller chips provide the hardware backbone for embedded security, ensuring tamper resistance and secure key storage. Representing about 55% of the market, their growing adoption is driven by the demand for low-latency protection in mission-critical IoT applications.

Embedded Security For Internet of Things (IoT) Market, Segmentation by Application

The Embedded Security For Internet of Things (IoT) Market has been segmented by Application into Smart Factory, Smart Grid, Connected Car, and Others

Smart Factory
In smart factories, embedded security is essential for protecting industrial IoT devices and securing automation networks. This segment constitutes around 35% of the market, reflecting increased adoption of Industry 4.0 technologies and the need for resilient cyber defenses.

Smart Grid
Smart grids utilize embedded security to ensure data integrity and prevent cyberattacks on critical infrastructure. Making up approximately 25% of the market, this segment benefits from the integration of real-time monitoring and secure communication protocols.

Connected Car
Embedded security in connected cars safeguards vehicle-to-everything (V2X) communication and in-vehicle networks. This segment accounts for nearly 20% of the market, driven by the surge in autonomous and electric vehicles.

Others
The "Others" segment includes diverse applications like smart homes, wearables, and medical devices. Contributing around 20%, this category showcases the growing relevance of embedded protection across personal and consumer IoT ecosystems.

Embedded Security For Internet of Things (IoT) Market, Segmentation by Vertical

The Embedded Security For Internet of Things (IoT) Market has been segmented by Vertical into Retail, Aerospace and Defence, Healthcare, Gaming, and Others

Retail
In the retail sector, embedded security helps safeguard POS systems, RFID tags, and smart inventory solutions. Holding about 18% of the market, it is increasingly vital for protecting consumer data and enabling secure transactions.

Aerospace and Defence
Embedded security in aerospace and defense ensures mission-critical system integrity and secure communication across IoT-enabled devices. Representing roughly 24% of the market, this segment thrives on the need for high-assurance protection in sensitive environments.

Healthcare
In healthcare, embedded security supports connected medical devices and patient monitoring systems. Making up close to 20% of the market, it addresses challenges related to data privacy, HIPAA compliance, and device authentication.

Gaming
The gaming industry uses embedded security for anti-tampering mechanisms and to secure connected gaming consoles. Holding nearly 10% of the market, it focuses on protecting digital assets and ensuring secure online gameplay.

Others
This segment includes smart agriculture, transportation, and education technology, comprising about 28% of the market. Growth is driven by the widespread deployment of IoT across non-traditional sectors requiring scalable security frameworks.

Embedded Security For Internet of Things (IoT) Market, Segmentation by Geography

In this report, the Embedded Security For Internet of Things (IoT) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Embedded Security For Internet of Things (IoT) Market Share (%), by Geographical Region

North America
North America dominates the market with over 35% share, driven by early adoption of IoT technologies and strong investment in cybersecurity infrastructure. The region benefits from a robust presence of key embedded security providers and regulatory frameworks.

Europe
Europe accounts for nearly 25% of the market, propelled by stringent data protection laws and initiatives in smart manufacturing and smart energy systems. Countries like Germany and France are at the forefront of embedded IoT security deployment.

Asia Pacific
Asia Pacific holds about 22% share, fueled by rapid expansion in consumer IoT devices, smart cities, and automotive innovation. Nations such as China, Japan, and South Korea are key contributors to regional growth.

Middle East and Africa
This region captures approximately 10% of the market, driven by emerging adoption in smart grid infrastructure, industrial automation, and digital transformation initiatives across the Gulf countries.

Latin America
Latin America contributes around 8% of the global share, with growth supported by increasing investment in retail automation, smart healthcare, and IoT-integrated logistics across Brazil, Mexico, and Chile.