Market Trends of Latin America IoT Security Industry
This section covers the major market trends shaping the Latin America IoT Security Market according to our research experts:
Solution Segment to Record a Larger Market Share
- IoT security solutions are expected to record a larger market share during the forecast period. Security is integral to any IoT network to ensure data confidentiality and authorized control over connected devices. With the increasing reach of IoT in multiple industries in the region and the growing number of IoT deployments, the intensity of cyberattacks is also growing, driving the growth of IoT security in the region.
- IoT security solutions ensure security using various solutions, including identity access management, data encryption, and tokenization, intrusion detection system/intrusion prevention system, device authentication and management, secure software and firmware update, secure communications, PKI lifecycle management, DDoS protection, security analytics, and other solutions (virtual firewall and incidence response system).
- Internet of Things (IoT) devices are increasing in popularity, but they show various serious cyber security challenges for large enterprises. However, even though wearables, smart thermostats, routers, printers, and other devices connected to the internet can be hacked, just like laptop and desktop computers, scant attention has been paid to IoT security solutions.
- Large enterprises especially lack IoT security solutions because they do not manufacture their equipment. These enterprises purchase connected devices from third-party manufacturers and assume they are secure. IoT device manufacturers in Latin America operate in an environment with few regulations or oversight. This is increasing the demand for IoT security solutions in the region.
- The rising number of internet users in the region also exposes the users' data to certain security threats. According to Hootsuite, Brazil had approximately 165.3 million internet users in January this year. Additionally, South America had a 75% internet penetration rate in the same year.
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Brazil Witnesses Significant Market Growth Opportunities
- Brazil has taken a huge step towards encouraging innovation by promoting Internet of Things (IoT) technologies and IoT security implementation across companies and industries. Instances involving compromised devices, botnets, and vulnerabilities have become ordinary occurrences, where IoT devices are being used as part of a botnet or a scanning activity in Brazil, where Brazilian Hackers are targetting IoT Devices with malware.
- According to IBM, the major attack type for Latin America last year was ransomware, making up 29% of attacks, followed by BEC (21%) and credential harvesting (21%). Manufacturing was the most-targeted industry in Latin America last year, but at 22% led by only a small margin. Retail and wholesale (20%), finance and insurance (15%), and perhaps most surprisingly, mining (11%) followed closely behind.
- According to the SonicWall report, Brazil also stands out in terms of malware attacks, with a more than 61% increase in 2021 and 210 million attacks last year, compared to about 130 million in the previous year.
- In July last year, the Brazilian government launched a new technology development center focusing on the Internet of Things (IoT) approach, robotics, and 5G. According to the Ministry for Science, Technology, and Innovation (MCTI), the center is the first government research facility to employ the quintuple innovation helix framework, which describes university-industry-government-public-environment interactions within a knowledge economy. Such research and development activities by the government are expected to fuel the growth of IoT security in the region.
- Brazil's National IoT Plan was announced as one of the country's Digital Transformation Strategy pillars, created in March 2018, which provides a mechanism for strengthening the IoT's national innovation ecosystem and development. Some other recent developments in the IoT front in Brazil include launching a USD 45 million venture capital fund in May last year focused on early-stage investments in companies active in the Internet of Things (IoT) and connectivity space.
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