Growth

• Worldwide spending on IoT security will initially be "moderate", increasing by 23.7 percent to $348 million this year, before rising to $547m in 2018.
• Security analytics, threat intelligence, mobile security and cloud security are expected to see the most significant growth.
• Internet of Things (IoT) security will account for 20 percent of annual security budgets by 2020.
• North America is expected to have the largest cybersecurity spending and adoption.
• The emergence of integrated security solutions will open new opportunities for the IoT security market in the near future.
• High total cost of ownership of IoT security solutions will negatively impact the growth of the IoT security market during the forecast period.
• Rising demand for safety and security will propel growth of the smart home M2M market.
• Annual cyber insurance premiums will more than double over the next four years.

Risks

• Security practitioners are overwhelmed with a flood of alerts about possible threats to their networks.
• Malware and hacking are now recognised daily global threats to every kind of infrastructure.
• Malware that encrypts key data and demands a ransom for its release has emerged as a top threat to business.
• Despite implementation of a broad range of security measures, wireless LAN infrastructure and access are considered to be at the greatest risk to security breaches.
• News of vulnerabilities in high-profile IoT products will end up making consumers feel their products are opening them up to more security risks instead of protecting them.
• The security of connected devices and threats to them will soon take a central place within the minds of individuals and the priorities of governments around the world.
• Utilities will be among the sectors rushing to keep their fast-growing Internet of Things (IoT) systems safe from hackers and will drive growth in the IoT security market by 55% between 2016 and 2020.
• Online crime gangs are trying to hack newsfeeds in order to affect stock prices for their benefit. Algorithmic news will certainly be targeted by similar attacks.
• Cybercriminals will move from "card present" to the "card not present" space.
• Online transaction fraud will more than double by 2020 as point-of-sale system security and chip and PIN card use increases.
• Intangible digital assets are at risk from economic espionage.
• Shadow IT is emerging as a serious threat to creating a secure IAM system as companies digitally transform.

Responses

• IBM Security have declared a cognitive war against cyber security threats with the world's first solution offering mass-cognition of structured and unstructured security data.
• IBM's respected X-Force research library will be a central part of the materials fed into Watson for Cyber Security and includes 20 years of security knowledge.
• EU data protection regulations will be implemented across all European nations and will offer security and storage re-sellers a $ billion (€ billion) sales opportunity.
• Russia's data localization policies will reduce its GDP by 0.27 percent and reduce investment by $2.6 billion.
• All phones in India will have to have some form of panic button to improve the security of women in the country.
• Identity and access management will move centre stage as the main defence against cyber-attacks in the digital age.
• Big Data will allow banks to make sure that no unauthorized transactions will be made.
• The Department of Homeland Security wants private-sector companies to get under the agency's information-sharing umbrella in order to manage and mitigate cyber risks to critical infrastructure in a better way.

Defenses

• IBM's new Watson for Cyber Security could very well become a valuable resource for cities that want their systems to be more secure.
• Aftermarket security could become important soon.
• While behavior analysis and AI are smart ways to tackle the challenges of security, they require significant computation power to effectively protect the user while simultaneously providing a positive user experience.

Threats

• Semi-autonomous vehicles could lure people into a false sense of security.
• Security is only just beginning to explore the potential of voice authentication.
• Social learning for AIs introduces the risk that malicious teachers could trick the AI or even subvert it into helping attackers.
• Customers should expect to see audit information relating to any cloud service provider they plan to use.
• The sheer number of new threats that are being identified on a daily basis is slowly convincing vendors that sharing threat intelligence may prove to be the only way they can protect their interests.
• Facial recognition technology could lead to more effective security and access control systems.
• Changes to Net Neutrality rules may well see new risks emerge.