The Internet of Things (IoT) environment is constantly evolving. Many IoT services have emerged, improving living conditions. Smart homes were among the first developments, and smart buildings, smart factories, and smart cities are attracting increasing attention. Smart cities represent the ultimate convergence of the IoT, the Cloud, big data, and mobile technology. Smart homes, buildings, and factories create smart cities. In addition, the IoT finds applications in traffic control, public safety, and medical services, permitting group-based communication. As the scale of service grows, the number of things (devices) constituting the service also increases. However, security vulnerabilities arise in group-based communication environments. A device may require authentication when entering a gateway; to secure environments with large numbers of devices (such as those featuring IoT smart metering), the gateways bear heavy loads. Therefore, efficient authentication of group leaders and devices is essential. Here, we develop a dynamic group authentication and key exchange scheme for group-based IoT smart metering environments which enables efficient communication among secure IoT services. Our group authentication scheme increases the computational efficiency of the group leader and the participating devices, based on a threshold secret sharing technique.