Market Trends of APAC IoT Security Industry
This section covers the major market trends shaping the APAC IoT Security Market according to our research experts:
Emergence of Smart City and Smart Home Developments to Drive the Market Growth
Increasing government focus on smart cities, smart buildings, and Industry 4.0 initiatives is driving the demand for digital IoT solutions in the Asia-Pacific region, such as in public transportation, eGovernment, smart traffic management systems, and smart power grids. The integration of edge-computing networks with IoT systems and narrow-band (NB) IoT deployments, along with rising investments in 4G/LTE and 5G, reduced IoT sensor costs, and governmental support, are fueling the growth of the market in the region.
- 5G is expected to accelerate the adoption of smart home IoT devices in the region. Companies such as China Mobile International (CMI) are supporting the transition to 5G with a global digital infrastructure encompassing more than 70 international cables, including various self-built submarine cables and invested terrestrial cables, with a total network capacity of over 98 terabits per second. It also has more than 180 overseas points of presence on key continents, 340 data centers in China, and four data centers that it owns in key centers outside of China.
- Government investment in smart cities accounts for almost one-third of the region's combined spending, followed by logistics, transportation, and manufacturing. Various governments in the region are promoting the adoption of "smart cities." According to the Government Technology Agency, a statutory board of the Singapore government, in the last year, the Singapore government planned to spend 13% of their ICT spending on accelerating the adoption and deployment of Artificial Intelligence (AI) for the public sector and 70% on transforming, integrating, and streamlining digital services. The planned ICT spending for the last year was USD 2.8 billion.
- However, the resource-constrained nature of various IoT devices in a smart home environment, such as meters, thermostats, and entertainment units, does not permit the implementation of standardized security solutions. Therefore, smart homes are currently vulnerable to security threats.
Also, the rise of high-tech smart devices that store and share personal information poses a serious threat to people's privacy in the region. Existing privacy laws don't do enough to deal with this problem, which could slow the growth of the smart home market in the region as a whole.
China Witnesses Significant Growth Opportunities in the Market
- The significant factors for the growth of the IoT security market in China are the high adoption of advanced technologies, increasing cyberattacks, and a growing number of connected devices in the country. The country is one of the dominant regions for IoT deployment. Other factors include the growth of digitalization and IoT security spending in the region.
- The Chinese Ministry of Industry and Information Technology published guidelines for creating a security standard system for the Internet of Things. The guidance seeks to outline a framework that will promote public network security risk mitigation and prevention, along with developing and implementing standards for the IoT. MIIT has a list of standard requirements that includes things like software security, access authentication, and data security.
- Companies such as China Mobile International (CMI) are also building an ecosystem to help industry partners capitalize on the flourishing market for smart solutions, with an initial focus on elevating the smart home experience for consumers. CMI develops and delivers international data services and solutions that lay the foundation for the rapid growth of IoT across key markets. CMI has provided IoT solutions to over 100 enterprises in 20 countries and regions, primarily in Asia Pacific, as of October last year. This can promote IoT connectivity and eSIM platform integration, enhancing IoT network capabilities around the world.
- The Chinese government informed companies last September about increased cyber-data security oversight on connected vehicles. According to the Ministry of Industry and Information Technology, the companies were asked to establish data security management systems and regularly assess risks from network attacks.
