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I have a typical IoT set up where a set of IoT devices running embedded Linux are connected to a cloud IoT server. The underlying carrier connection to the internet is over GSM. All communication to the server is secured with TLS implementation including the mutual authentication with server. The devices generate and store sensitive data, which is also secured with secure local storage (though that is not with TPM, rather software based secured storage).

In this scenario, does it make a good sense to also install an embedded firewall on my device? I mean doesn’t strong encryption and certificate based authentication ensure complete security to IoT device?

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I mean doesn’t strong encryption and certificate based authentication ensure complete security to IoT device?

Not at all. (Properly used) TLS only protects the communication against sniffing and modification. Mutual authentication only authenticates the IoT device against the server. None of this protects against bugs in the implementation, improper use of TLS, bugs in the server side which can be used to hijack clients, services which are exposed on the network, backdoors in some firmware you got from a third party, compromising the device with physical access etc.

But, an embedded firewall does not protect against most of these other threats either. If it makes sense to use one in your specific case depends on what the device actually does, what the threats are, what the attack surface of the device is and if a specific firewall implementation reduces the attack surface - none of this is known here.

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