Embedded Security for IoT Market to Hit USD 18.30 Billion by 2033 Owing to 5G, Edge AI, and Connected Device Adoption | SNS Insider

The Embedded Security for IoT Market is expanding steadily as rising industrial IoT, connected vehicles, and 5G-enabled platforms increase the need for secure device-level protection, with the U.S. market projected to grow from USD 1.73 billion in 2025E to USD 3.64 billion by 2033.

Austin, Jan. 23, 2026 (GLOBE NEWSWIRE) — The Embedded Security for IoT Market size was valued at USD 7.63 Billion in 2025E and is projected to reach USD 18.30 Billion by 2033, growing at a CAGR of 11.56% during the forecast period.

As businesses progressively integrate connected devices throughout the industrial, automotive, and commercial sectors, the market for embedded security for IoT is expanding.

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The U.S. Embedded Security for IoT Market size was valued at USD 1.73 Billion in 2025E and is projected to reach USD 3.64 Billion by 2033, growing at a CAGR of 9.75% during 2026–2033.      

The growth is driven by the increasing adoption of connected devices across industrial, automotive, and smart home sectors, coupled with rising cybersecurity threats targeting IoT networks.

Segmentation Analysis:

By Component

Controller Chips remain the dominant component segment holding a market share of 51.25% in 2025 due to their essential role in securing IoT devices, enabling data processing, and managing communications across connected systems. Controller Chips also emerge as the fastest-growing segment at a CAGR of 13.46%, driven by rising demand for advanced, high-performance, and secure IoT solutions across industries.

By Technology

Hardware Security Technologies remain the dominant technology segment holding a share of 29.38% in 2025, driven by their critical role in protecting IoT devices against cyber threats and ensuring secure communication. Identity & Access Management (IAM) emerges as the fastest-growing segment at a CAGR of 14.56%, fueled by increasing adoption of cloud-based, scalable, and AI-enabled authentication solutions.

By Application

Smart Factory and Networking Equipment hold the largest market share of 24.63% in 2025 due to extensive industrial IoT deployment and critical infrastructure networking. Connected Car applications are the fastest-growing segment at a CAGR of 14.56%, supported by rapid adoption of autonomous, connected, and AI-driven vehicles requiring advanced embedded security solutions.

By End-User

The Automotive sector remains the dominant end-user segment holding a share of 25.38%, driven by connected, electric, and autonomous vehicle deployments. It is also the fastest-growing end-user segment at a CAGR of 13.40%, fueled by increasing regulatory requirements, cybersecurity needs, and adoption of smart vehicle technologies across global markets.

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Regional Insights:

The North America region dominates the Embedded Security for IoT market, holding the largest share in 2025 due to advanced technological infrastructure, strong industrial IoT adoption, and extensive investments in cybersecurity solutions.  

Asia Pacific is the fastest-growing region in the Embedded Security for IoT market, experiencing rapid expansion from 2026 to 2033. Growth is fueled by increasing IoT adoption, industrial automation, smart city initiatives, rising investments in connected devices, and expanding digital infrastructure across countries such as China, India, Japan, and South Korea.

Rising IoT Complexity is Propelling the Adoption of Embedded Security Solutions Globally

The increasing demand for automated, high-coverage testing frameworks that guarantee device security, dependability, and regulatory compliance is driving the market for embedded security for IoT. Traditional manual testing is no longer sufficient to handle firmware updates, heterogeneous hardware, and changing threat environments as IoT deployments spread into smart homes, industrial automation, and linked devices. By enabling methodical validation of device behavior, security procedures, and interactions with cloud and mobile applications, Model-Based Testing (MBT) lowers operational risks and vulnerabilities. This encourages the use of strong embedded security solutions, which enable businesses to protect confidential information, uphold legal requirements, and improve operational effectiveness throughout extensive IoT ecosystems.

Key Players:

• NXP Semiconductors
• STMicroelectronics
• Infineon Technologies AG
• Texas Instruments
• Renesas Electronics
• Microchip Technology Inc.
• Qualcomm Technologies, Inc.
• Gemalto (Thales Group)
• IDEMIA
• Cisco Systems, Inc.
• Intel Corporation
• ARM Holdings
• Synopsys, Inc.
• Trustonic Limited
• On Semiconductor Corporation
• Cypress Semiconductor Corporation
• Silex Technology America, Inc.
• Thales e-Security, Inc.
• Samsung Electronics
• Nuvoton Technology Corporation

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Recent Developments:

In May 2025, STMicroelectronics completed GSMA certification for its ST4SIM-300 eSIM, enabling secure, flexible remote provisioning for IoT devices in healthcare, energy, and asset tracking. The certified eSIM supports SGP.32, ensuring interoperability with global networks and optimized management of large IoT device fleets.

In Dec 2025, Qualcomm acquired RISC-V chip designer Ventana Micro Systems to enhance CPU engineering and support its custom Oryon CPU development. The acquisition strengthens Qualcomm’s technology leadership in AI, PCs, and servers, leveraging RISC-V to drive innovation across multiple product lines.

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