Security and the IoT ecosystem

A recent global survey of 100 IoT ‘user organizations’

This new KPMG International report aims to catalyze the debate and extend the body of knowledge on IoT security.

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Tech firms and IoT service providers need to work quickly, diligently and decisively to deal with security, privacy and trust concerns before they become problems - KPMG International

When it comes to the Internet of Things (IoT), you can believe the hype. In fact, according to a new report from KPMG International, IoT will likely be even bigger than most people think. But, as the KPMG International report ‘Security and the IoT ecosystem’ explains, success in the IoT space will take more than slick applications, connected devices and advanced analytics; it will also require a robust approach to security, privacy and trust.

“We believe that the technology sector must come together with other vertical and horizontal players in the IoT ecosystem to create a unified approach to security and standards that everyone can live by, and grow with. Today’s current state of fragmentation and competition on standards will only result in greater complexity for users and reduced growth for the sector.”  - Gary Matuszak, KPMG’s Global Chair, Technology, Media and Telecommunications

This new KPMG International report aims to catalyze the debate and extend the body of knowledge on IoT security. Based on a recent survey of IoT users and supported by one-on-one interviews with industry leaders, academics and KPMG’s own IoT professionals, this report hones in on IoT security, privacy and trust issues, providing practical and actionable advice for all players in the emerging ecosystem. 

The report provides five key takeaways:

  • The IoT market is evolving. The IoT sector is growing rapidly and will likely undergo several iterations of transformation. Similarly, concerns related to security, privacy and trust will also evolve and transform as the market changes. As such, security strategies should be broad-based to anticipate and respond to potential disruptions that could impact current market positions.  
  • The IoT ecosystem plays a critical role in securing IoT. Businesses should carefully evaluate their third party suppliers, identify qualified partners, and invest in integrating security, privacy and trust across the eco-system. Business should consider different approaches to building the capabilities they require within the ecosystem including whether they can buy, build, partner, invest, or create an alliance to achieve their goals.
  • Security must be built-in from the ground up with the customer in mind. Consumers and business partners will expect security to be built into the system and so technology architects should follow an ‘always-on’ principle that provides high levels of control with appropriate fail-safes. Given the scale and velocity of IoT growth, security vulnerabilities can become large liabilities to the company.
  • Look for opportunities to drive value from security. Security architects should reconsider the security models to identify potential to enhance the value of security. Consider, for example, using premium concepts of security, privacy, and trust to differentiate the product. Security for IoT is not just about protecting valuable data, it’s also about finding opportunities to monetize the intelligence.
  • Engage in industry and regulatory groups to accelerate the normalization and standardization of IoT. Collaboration will reduce ambiguity and accelerate a company’s ability to launch products and services within a sustainable business ecosystem. At the same time, regulators will also need to participate in industry discussion in order to protect market and consumer interests. Technology companies should be proactive to help regulators to support IoT.

Please visit to download a copy of the KPMG International survey: Security and the IoT ecosystem. 

For more information, please contact:

Carolyn Forest

KPMG International 

+ 1 416 777 3857

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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