The growth of IoT in the Asia Pacific region is propelled by rising government initiatives in smart cities by countries including India, China, Japan, and others.

IoT in the Asia Pacific was valued at US$69.3 billion in 2018 and is predicted to expand to US$143.8 billion by 2023 at over 12.4% CAGR from 2019 to 2023. The Asia Pacific is estimated to be one of the major markets for the growth of the IoT market. The Asia Pacific grows owing to factors such as increasing internet penetration, growing adoption of cloud-based services among small and medium enterprises, and government policies to promote digitalization and smart city developments. Additionally, the introduction of high-speed networking technologies has been the major factor driving the market. Moreover, the increasing interest of multinational players in the region and rising demand from developing economies such as India and China are also estimated to drive the growth of the market.

The market growth is propelled by rising government initiatives and investments in smart cities by countries including India, China, Japan, and others. For instance, the Government of Seoul is planning to deploy around 1,000 LoRaWAN gateways in the city to enhance municipal Wi-Fi and develop next-generation smart cities. Several government initiatives to improve cybersecurity will drive the expansion opportunities for IoT networks. In February 2020, the Government of Japan released a new regulation that authorizes the government to test IoT devices that can be exploited during cyberattacks.

The rise in connectivity between companies in the region has exposed vulnerabilities in hardware and software environments, giving cybercriminals greater attack surfaces to exploit. This includes employees' smaller, personal IoT devices, which can provide a potential backdoor into more well-protected systems. Further, several countries have attempted to impose data protection laws and data breach notification laws, but as a whole, cybersecurity regulation in APAC is still in the early stages of development and tends to focus primarily on critical infrastructure and regulated industries.