Just like any other network infrastructure, the IoT infrastructure has its security risks regarding data. There will soon be a point even in this setting where it will be a standard requirement for data to be encrypted. Because IoT endpoints will be numerous, authentication will play a vital role.
Real life examples where authentication of IoT endpoints is necessary will be in smart metering, heavy machinery, and factory automated equipment. Authentication is based entirely on the encryption keys. The IoT data as well as the IoT endpoint authentication will require the proper management for the lifecycle of all these various types of keys.