High Configurability, Multi-Application Enablement, and Remote Updatability Push Secure Microcontrollers as the Driving Force in the IoT Embedded Security Market

The digital authentication and embedded security market for the Internet of Things (IoT) is largely being driven by demand from the secure microcontroller (MCU) space. ABI Research, a global technology intelligence firm, forecasts Secure MCU shipments to reach 1.5 billion by the end of 2024. Despite the chipset shortage of the last couple of years, secure MCUs are a high-margin product that has borne the headwinds.

“Demand for secure MCUs, as well as chipsets with Trusted Execution Environment capabilities, has continued on a consistent growth trajectory. Much of that demand comes from high-end edge devices that need secure enclaves and containerization capabilities to protect confidential processes, whether that is machine learning algorithms or sensitive data analytics, explains Michela Menting, Senior Research Director at ABI Research.

Better edge compute capabilities, concerns over latency and bandwidth limitations, as well as the desire to limit data usage, are driving more processes, including highly confidential ones, to the edge. As a result, the market is seeing accompanying demand for secure edge technologies, and secure MCUs and TEEs are coming to answer that call, led by companies including NXP, STMicroelectronics, Infineon, Silicone Labs, Renesas, Microchip, Analog Devices, and Nuvoton.

With the added concern of the growing threat landscape targeting industrial IoT and increased regulation in the IoT security space, the demand for embedded security will continue to be strong. This, in turn, drives more competition in a growing market, with greater focus on usability and development, but most importantly, on flexible updatability in the field. Secure device lifecycle management is the key to the broader IoT market, and security must closely align with it.

“More standalone technologies, such as TPMs and Secure Elements, still have their own market interest, but the future of embedded security is in its ability to be configurable and changeable in the field, aligning with the changing nature of IoT devices. Wireless connectivity is a key driver to the future success of embedded security technologies, and multi-application enablement will ensure technologies like secure MCUs remain relevant long into the future,” Menting concludes.   

These findings are from ABI Research’s Digital Authentication and Embedded Security: IoT Cybersecurity market data report. This report is part of the company’s IoT Cybersecurity research service, which includes research, data, and ABI Insights.