5G Security Market Size, Share, Analysis & Forecast [2031]

5G Security Market Size, Share, Analysis & Forecast [2031]

Segments - 5G Security Market by Deployment Mode (On-Premises and Cloud), Component (Solution and Services), Network Component Security (Radio Access Network Security and Core Security), Organization Size (Large Enterprises and Small & Medium-sized Enterprises), Architecture (5G NR Standalone and 5G NR Non-Standalone), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

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Author : Raksha Sharma
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Fact-checked by : Vineet Pandey
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Editor : Shruti Bhat

Upcoming | Report ID :ICT-SE-5933 | 4.8 Rating | 68 Reviews | 165 Pages | Format : PDF Excel PPT

Report Description


5G Security Market Outlook 2031

The global 5G security market size was valued at USD 1.95 Billion in 2022 and is likely to reach USD 39.01 Billion by 2031, expanding at a CAGR of 39.5 % during 2023 – 2031. The market growth is attributed to growing cyberattacks on IoT-connected devices and increasing need to strengthen network security.

Increasing need to strengthen network security is projected to boost the demand for 5G security in the coming years. 5G security works on new IP and cloud security standards that help strengthen security posture of the network. It enhances network security by encrypting all signal traffic, ensuring that traffic sent from one network operator to another is encrypted. Thus, the growing demand for strengthening networks is propelling the market.

5G Security Market Outlook

5G security is the combination of cyber and physical protection for the underlying 5G network infrastructure. It includes software & hardware, users of the network, and the traffic traversing it. 5G security includes five core properties communication security, identity management, resilience, privacy, and security assurance. It allows the diversity of applications and significant performance benefits, as it leverages cloud-based resources, virtualization, network slicing, and other emerging technologies.

The COVID-19 pandemic propelled the demand for 5G security. The increasing prevalence of COVID-19 infection led to the closure of offices and non-essential activities, which encouraged the need for remote working. Remote working increased the usage of cloud infrastructure and adoption of remote workspace applications, increasing 5G internet traffic. This significantly boosted the demand for 5G security. For instance,

  • According to a report, 70% of full-time workers were working from home or remotely during COVID-19.

Impact of Artificial Intelligence (AI) on 5G Security

The combination of artificial intelligence with 5G security improves the security of 5G networks by analyzing network traffic in real-time and detecting potential security threats, such as cyberattacks or malware. This helps network operators to respond and detect security threats quickly, reducing the risk of network breaches and protecting user data. AI in 5G security is estimated to improve the consumer experience by ensuring network uptime and downtime configuration according to needs of a user.

5G Security Market Dynamics

Major Drivers

Growing security concerns in the 5G network are expected to drive the market during the forecast period. 5G networks are currently more reliant on software in comparison to older networks, which makes it increasingly vulnerable to hackers. 5G security uses anti-tracking and spoofing features, which make it hard for hackers to track and manipulate the 5G network. It also uses a unique identification number, eliminating the need for a SIM card, resulting in strengthening the 5G network. This enhances the demand for 5G security in 5G networks.

Increasing cyberattacks on IoT-connected devices are projected to boost the demand for 5G security. 5G security reduces cyberattacks on IoT-connected devices through international mobile subscriber identity (IMSI) encryption. It leverages network virtualization, which combines deep packet inspection (DPI) and software & hardware resources into a single entity that carefully inspects data being sent over a computer network, reducing cyberattacks on IoT-connected devices. Therefore, rising incidence of cyberattacks on IoT-connected devices is estimated to propel the market in the coming years. For instance,

  • The number of Internet of Things (IoT) cyberattacks across the globe amounted to over 112 million in 2022. The year-over-year increase in the number of Internet of Things (IoT) malware incidents was 87% in 2022.

Existing Restraints

High cost of investment associated with 5G security is expected to restrict the market during the forecast period. 5G security requires heavy investment in infrastructure, including the installation of base stations & new towers, fiber optic cables, and other networks. Moreover, insufficient global coverage of the 5G network is projected to hamper the market in the coming years. 5G network has a spotty global reach and is currently only available in a few locations, which reduces the adoption of 5G security, as it is deployed to secure 5G networks.

Emerging Opportunities

Increasing spending on data centers creates an immense opportunity in the market. Data centers are deploying 5G networks to deliver high multi-Gbps peak data speeds and reduce latency, which increases the demand for 5G security. 5G security in data centers protects 5G networks and the confidentiality, integrity, or availability of business information assets. Therefore, increasing spending on data centers is propelling the market. For instance,

  • According to a report, in 2022, the spending on data center systems increased by 11.1% from the previous year, amounting to USD 212 billion.

    5G Security Market Dynamics

Scope of the 5G Security Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

5G Security Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Deployment Mode (On-Premises and Cloud), Component (Solution and Services), Network Component Security (Radio Access Network Security and Core Security), Organization Size (Large Enterprises, Small and Medium-sized Enterprises), and Architecture (5G NR Standalone and 5G NR Non-Standalone)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

A10 Networks, Inc.; Allot; AT&T Intellectual Property; Check Point Software Technologies Ltd; Cisco Systems, Inc.; F5, Inc.; Fortinet, Inc. Huawei Technologies Co., Ltd; IBM; Juniper Networks, Inc.; Nokia; Palo Alto Networks; Spirent Communications; Telefonaktiebolaget LM Ericsson; and Thales.

5G Security Market Segment Insights

Deployment Mode Segment Analysis

Based on deployment mode, the 5G security market is bifurcated into on-premises and cloud. The cloud segment dominated the market in 2022 and is projected to continue its dominance throughout the forecast period, due to its ability to offer improved security systems.

The cloud-based 5G security system helps in managing domain name systems (DNS), rerouting traffic, and safeguarding website traffic by detecting and mitigating network cyberattacks.

Additionally, the cloud services are implemented according to the needs of the client, depending on the usage volume of cloud-based 5G security services, which encourages people to adopt cloud technology for 5G security.

Component Segment Analysis

In terms of components, the global market is categorized into solutions and services. The services segment accounted for a major share of the market in 2022, due to the widespread use of 5G services. 5G security services deliver reliable and fast communications as well as open new opportunities for autonomous driving, broadband fixed wireless, Internet of Things networks, and fast video viewing, which enhances its demand.

The solution segment is anticipated to expand at a considerable pace in coming years, owing to rising adoption of 5G security solutions by companies and governments to protect their networks. Moreover, major companies in the market are concentrating on developing 5G security solutions to protect the enterprise network architecture, which is estimated to propel the demand for 5G solutions and 5G security. For instance,

  • On October 26, 2021, AT&T launched 5G-managed advanced security capabilities to further protect enterprise network infrastructure. These advanced security capabilities provide threat visibility, prevention of advanced attacks at the application layer, and security policy enforcement, specifically for 5G-enabled IoT, OT, and IT use cases.

    5G Security Market Component

Network Component Security Segment Analysis

Based on network component security, the 5G security market is divided into radio access network security and core security. The radio access network security segment accounted for a major share of the market in 2022, due to large customer preferences, low equipment costs, and improved network performance.

5G radio access network is dependent on a numerous-layer network with high, mid, and low-band to provide wireless connectivity to devices for delivering efficient network performance. It is a key component of a wireless telecommunications system, which connects other parts of a network to individual devices through a radio link.


The core security segment is expected to expand at a significant pace over the projected period, owing to its potential to offer high security. The 5G core collects data traffic, provides extra layers of security with user equipment, and delivers essential network services. 5G core is responsible for authentication, authorization, and data management within the mobile network, which increases its adoption.

Organization Size Segment Analysis

In terms of organization size, the global market is segregated into large enterprises and small & medium-sized enterprises. The large enterprises segment held a large share of the market in 2022, due to rising industrialization and growing infrastructure. Large enterprises are adopting 5G security to enhance security and speed, as it uses advanced encryption and authentication protocols to keep sensitive business data safe from hackers and other malicious action.

Small and medium-sized enterprises segment is expected to witness a high CAGR during the assessment period, owing to increasing disposable income in emerging nations and growing government initiatives. 5G security in small and medium-sized enterprises enables enhanced encryption methods, which helps small and medium-sized enterprises safeguard sensitive data, benefitting both manufacturers and customers.

Architecture Segment Analysis

Based on architecture segment analysis, the 5G security market is bifurcated into 5G NR standalone and 5G NR non-standalone. The 5G NR non-standalone segment registered significant growth in 2022, due to an increase in the demand for fast, economical, and dependable networks. 5G NR non-standalone does not deploy a completely new end-to-end 5G network.

It allows users to leverage their existing network, as it works on 4G networks. Companies across the globe are executing 5G NR non-standalone technology on existing LTE networks to meet the demand from customers for increasingly reliable and improved network connectivity.


The 5G NR standalone is projected to expand at a high CAGR in the coming years, owing to its ability to provide high control, wide coverage, high speed, ultra-low latency, and high stability. 5G standalone is an implementation of 5G that solely uses a 5G core network instead of relying on the 4G network or infrastructure for signaling and data transfer, which offers high control to the user.

5G Security Market Architecture

Regional Outlook

Based on region, the 5G security market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022, due to the increasing adoption of 5G networks, rising number of data centers, and the presence of key market players such as Palo Alto Networks, AT&T Intellectual Property, and A10 Networks, Inc.

Moreover, increasing incidence of internet crimes and cyberattacks in the region is boosting the demand for 5G security, as it improves network security by encrypting all signal traffic.

  • For instance, according to a report published by the Federal Bureau of Investigation Internet Crime on March 22, 2023, around 800,944 complaints regarding cyberattacks and Internet crimes were reported in 2022.

The market in Asia Pacific is expected to witness a high CAGR during the assessment period, owing to the increasing inclination for digitalization and a large pool of mobile subscribers for telecom companies. Governments in the region are introducing 5G networks to fulfill the demand for high-speed internet connectivity, which significantly propels the 5G security market. For instance, on October 1, 2022, Government of India launched 5G services in India to make India digitalized.

5G Security Market Regions

Segments

The 5G security market has been segmented on the basis of

Deployment Mode

  • On-Premises
  • Cloud

Component

  • Solution
  • Services

Network Component Security

  • Radio Access Network Security
  • Core Security

Organization Size

  • Large Enterprises,
  • Small and Medium-sized Enterprises

Architecture

  • 5G NR Standalone
  • 5G NR Non-Standalone

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • A10 Networks, Inc
  • Allot
  • AT&T Intellectual Property
  • Check Point Software Technologies Ltd
  • Cisco Systems, Inc
  • F5, Inc
  • Fortinet, Inc
  • Huawei Technologies Co., Ltd
  • IBM
  • Juniper Networks, Inc
  • Nokia;
  • Palo Alto Networks
  • Spirent Communications
  • Telefonaktiebolaget LM Ericsson
  • Thales

Competitive Landscape

Key players competing in the global market are A10 Networks, Inc.; Allot; AT&T Intellectual Property; Check Point Software Technologies Ltd; Cisco Systems, Inc.; F5, Inc.; Fortinet, Inc. Huawei Technologies Co., Ltd; IBM; Juniper Networks, Inc.; Nokia; Palo Alto Networks; Spirent Communications; Telefonaktiebolaget LM Ericsson; and Thales.

These companies adopted development strategies, including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion, to expand their consumer base globally. For instance,

  • On December 7, 2021, Telefonaktiebolaget LM Ericsson launched the authentication Security Module solution to broaden security for user privacy. This security model solution is based on a physical dedicated module for central management of authentication procedures in 5G Core networks.

  • On October 26, 2021, IBM collaborated with Palo Alto Networks, Boston Dynamics, and Cisco to strengthen 5G security. IBM AI-powered automation software, including IBM Cloud Pak for Network Automation, and services from IBM Consulting help businesses in digital transformation.

    5G Security Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. 5G Security Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. 5G Security Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. 5G Security Market - Supply Chain
  4.5. Global 5G Security Market Forecast
     4.5.1. 5G Security Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. 5G Security Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. 5G Security Market Absolute $ Opportunity
5. Global 5G Security Market Analysis and Forecast by Region
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Region
     5.2.2. Y-o-Y Growth Projections by Region
  5.3. 5G Security Market Size and Volume Forecast by Region
     5.3.1. North America
     5.3.2. Latin America
     5.3.3. Europe
     5.3.4. Asia Pacific
     5.3.5. Middle East and Africa (MEA)
  5.4. Absolute $ Opportunity Assessment by Region
  5.5. Market Attractiveness/Growth Potential Analysis by Region
  5.6. Global 5G Security Demand Share Forecast, 2019-2026
6. North America 5G Security Market Analysis and Forecast
  6.1. Introduction
     6.1.1. Basis Point Share (BPS) Analysis by Country
     6.1.2. Y-o-Y Growth Projections by Country
  6.2. North America 5G Security Market Size and Volume Forecast by Country
     6.2.1. U.S.
     6.2.2. Canada
  6.3. Absolute $ Opportunity Assessment by Country
  6.4. Market Attractiveness/Growth Potential Analysis
     6.4.1. By Country
     6.4.2. By Product Type
     6.4.3. By Application
  6.5. North America 5G Security Demand Share Forecast, 2019-2026
7. Latin America 5G Security Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
     7.1.3. Latin America Average Pricing Analysis
  7.2. Latin America 5G Security Market Size and Volume Forecast by Country
      7.2.1. Brazil
      7.2.2. Mexico
      7.2.3. Rest of Latin America
   7.3. Absolute $ Opportunity Assessment by Country
  7.4. Market Attractiveness/Growth Potential Analysis
     7.4.1. By Country
     7.4.2. By Product Type
     7.4.3. By Application
  7.5. Latin America 5G Security Demand Share Forecast, 2019-2026
8. Europe 5G Security Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Europe Average Pricing Analysis
  8.2. Europe 5G Security Market Size and Volume Forecast by Country
     8.2.1. Germany
     8.2.2. France
     8.2.3. Italy
     8.2.4. U.K.
     8.2.5. Spain
     8.2.6. Russia
     8.2.7. Rest of Europe
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. Market Attractiveness/Growth Potential Analysis
     8.4.1. By Country
     8.4.2. By Product Type
     8.4.3. By Application
  8.5. Europe 5G Security Demand Share Forecast, 2019-2026
9. Asia Pacific 5G Security Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Asia Pacific Average Pricing Analysis
  9.2. Asia Pacific 5G Security Market Size and Volume Forecast by Country
     9.2.1. China
     9.2.2. Japan
     9.2.3. South Korea
     9.2.4. India
     9.2.5. Australia
     9.2.6. Rest of Asia Pacific (APAC)
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Market Attractiveness/Growth Potential Analysis
     9.4.1. By Country
     9.4.2. By Product Type
     9.4.3. By Application
  9.5. Asia Pacific 5G Security Demand Share Forecast, 2019-2026
10. Middle East & Africa 5G Security Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Middle East & Africa Average Pricing Analysis
  10.2. Middle East & Africa 5G Security Market Size and Volume Forecast by Country
     10.2.1. Saudi Arabia
     10.2.2. South Africa
     10.2.3. UAE
     10.2.4. Rest of Middle East & Africa (MEA)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Market Attractiveness/Growth Potential Analysis
     10.4.1. By Country
     10.4.2. By Product Type
     10.4.3. By Application
  10.5. Middle East & Africa 5G Security Demand Share Forecast, 2019-2026
11. Competition Landscape
  11.1. Global 5G Security Market: Market Share Analysis
  11.2. 5G Security Distributors and Customers
  11.3. 5G Security Market: Competitive Dashboard
  11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     11.4.1. A10 Networks, Inc
     11.4.2. Allot
     11.4.3. AT&T Intellectual Property
     11.4.4. Check Point Software Technologies Ltd
     11.4.5. Cisco Systems, Inc
     11.4.6. F5, Inc
     11.4.7. Fortinet, Inc
     11.4.8. Huawei Technologies Co., Ltd
     11.4.9. IBM
     11.4.10. Juniper Networks, Inc
     11.4.11. Nokia;
     11.4.12. Palo Alto Networks
     11.4.13. Spirent Communications
     11.4.14. Telefonaktiebolaget LM Ericsson
     11.4.15. Thales

Methodology

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