The global 5G security marketsize was valued at USD 1.40 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 39.6% from 2022 to 2030. The growth of the 5G security market can be attributed to the growing attacks on critical infrastructure, rising ransom ware attacks on IoT devices, and growing security concerns in the 5G network.
The fifth generation (5G) network is a wireless technology that includes a whole ecosystem of radio frequencies, data transfers, and technical communications, which needs better security. Network slicing and significant security expansion over 4G and LTE are also expected to create more demand for 5G security solutions. Moreover, stringent government regulations to prevent data thefts by using 5G applications are also expected to create lucrative growth opportunities for the market during the forecast period.
Telecom operators across the globe are focusing on adopting 5G security solutions to protect their networks against security threats. Moreover, prominent 5G security solution players across the world are also focusing on developing 5G security labs' efforts to expand in the increasingly competitive market. For instance, in December 2022, SecurityGen, a telecom security solution provider, launched the new 5G Cyber-security Lab. This 5G Cyber Security Lab is a cutting-edge tool created to assist Mobile Network Operators (MNOs) security teams in researching and comprehending 5G networks, enabling them to set up and safeguard their networks against potential security threats.
Technological advancements and the expansion of networks beyond 5G Radio Access Networks (RAN) are anticipated to have a substantial impact on security, such as edge computing, Network Function Virtualization (NFV), and Software-defined Networking (SDN). Security solutions must evolve to protect vital infrastructure from the rising hazards posed by the nation-states and other sophisticated players, as well as the real dangers they bring to mobile network operators (MNOs) and their suppliers.
The 5G 3GPP standard is adaptable enough to support many forms of physical and virtual overlap between the radio access network (RAN) and core network, such as from a remote device to the core network. Rapid technological change, including virtualization, disaggregation, cloud computing, Artificial Intelligence (AI), the Internet of Things (IoT), and Industry 4.0, is affecting telecom networks which are met by a broad and challenging cyber security environment.
Cyber security has evolved with the introduction of 5G. International Mobile Subscriber Identity (IMSI) encryption is a feature of a 5G cyber security toolbox or solution that enhances network security. To further ensure optimum data security, all traffic data sent over the 5G network is integrated, secured, encrypted, and adheres to a mutual authentication standard.
Additionally, the deployment of artificial intelligence (AI), the internet of things (IoT), cloud computing, etc., benefits from 5G security's stronger foundation. It makes use of deep packet inspection (DPI), which includes hardware and software resources into a single entity, and meticulously examines data being delivered over a computer network, as well as network virtualization.
For businesses, technology offers enormous opportunities by enabling novel use cases. The development of smart infrastructures, the rising demand to revolutionize the mobile broadband experience, and the rise of the worldwide 5G services industry are the key drivers for expanding the market. On the other side, there are sizable growth prospects for 5G security solutions providers.
The future of the 5G security market is expected to be shaped by the increasing demand for the high reliability and low latency networks, releasing a massive IoT ecosystem, critical communications services, and growing demand for private 5G networks across governments, industries, and industrial sectors. However, high costs associated with deploying 5G services and a lack of awareness in developing economies are expected to hinder the growth of the market during the coming years.
The COVID-19 affected the 5G security market growth during the forecast period. Due to the delays in additional trials and necessary testing of the solutions to confirm the stability and processing capability of 5G standalone networks, the COVID-19 outbreak is undoubtedly expected to postpone the introduction of the 5G infrastructure, thereby impacting the 5G security market. The ongoing epidemic has also caused telecom regulatory authorities to postpone their plans for the 5G spectrum auction, which negatively affected the market growth.
The solution segment led the market and accounted for more than 71.0% share of the global revenue in 2021. One of the main factors fueling the segment's growth is the quick adoption of 5G security solutions by the end-user companies to protect their own personal networks. To secure the networks, major market competitors are concentrating on developing 5G security solutions to further protect the enterprise network architecture.
For instance, in December 2021, AT&T Intellectual Property, a telecommunication company, launched the 5G Managed Advanced Security Capabilities to prevent advanced attacks at the application layer specifically for 5G-enabled IoT devices. Such factors are anticipated to create more growth opportunities for the segment during the forecast period.
The services segment is anticipated to register the highest CAGR during the forecast period. The widespread use of 5G services is responsible for expansion of the services market. Applications that support the Internet of Things (IoT), real-time communications (RTC), ultra-reliable communications, and broadcast-like services are accessible to businesses using 5G services.
Fifth-generation services also satisfy rising consumer demand for in-vehicle services and help during vehicle diagnostics and autonomous driving applications that are integrated into mobile on-the-go vehicles.
The cloud segment led the market and accounted for more than 67.0% share of the global revenue in 2021. Cloud-based deployments have become more popular in recent years as a way to offer security services remotely. Significant performance improvements across applications like cloud-based resources, network slicing, virtualization, and other emerging technologies are just a few advantages that 5G security offers.
The cloud deployment model also provides advantages for managing DNS, rerouting traffic, and protecting website traffic. Additionally, the cloud services are implemented in accordance with the needs of the client, depending on the usage volume of cloud-based 5G security services. Such factors bode well for the growth of the segment during the forecast period.
The on-premise segment is anticipated to register the significant CAGR throughout the forecast period. The ability of the on-premise 5G security solutions to verify and protect the 5G network connections in organization's premises is a significant factor driving the growth of the segment. On-premise solutions make it easier for the businesses to check any possible dangers on their site.
Along with offering fast speed for 5G networks, 5G security solutions also helps to ensure better privacy of the client data. Due to these reasons, businesses are adopting on-premises 5G security solutions to stop fraud on 5G networks.
The 5G NR non- standalone segment led the market and accounted for more than 63.0% share of the global revenue in 2021. Growing demand for 5G mobile phone usage, increase in demand for fast and dependable networks, and rising investments in 5G services are the major factors driving the growth of the segment. Market players across the globe are implementing 5G NR non-standalone technology on existing LTE infrastructures in order to meet an increase in customer demand for better and reliable network connectivity.
Manufacturers of mobile phones are now concentrating more on creating smartphones that are 5G enabled. Hence, 5G NR non-standalone architecture has expanded because of the rising adoption of the smartphones with 5G capabilities.
The 5G NR standalone segment is anticipated to register the significant CAGR during the forecast period. The benefits offered by the 5G NR standalone architecture to offer higher speeds, wider coverage, ultra-low latency, higher stability, and better services compared to 5G NR non-standalone is a major factor driving the segment growth. Standalone 5G uses a 5G New Radio access network, which incorporates standards that replace the LTE network 4G wireless communications standard.
The end-to-end core 5G network serves as the foundation of the independent 5G architecture. Equipment of 5G architecture hardware and network features were created, keeping 5G requirements in mind.
The RAN security segment led the market and accounted for more than 68.0% share of the global revenue in 2021. The ability of the RAN (Radio Access Network) component to connect devices to auxiliary network components via radio connection is a major factor driving the segment growth. Mobile network operators (MNOs) and network service providers are increasingly implementing centralized RAN and virtual RAN (VRAN) to minimize overall infrastructure costs and network complexity.
Furthermore, the RAN enables corporations and mobile network operators employing private 5G to offer network slicing solutions allocating capabilities to particular firms to separate network utilization inside a public mobile network. As RAN offers the capability of network slicing, providing security is also of utmost importance, which in turn creates lucrative growth opportunities for the 5G security solution providers during the coming years.
The core security segment is anticipated to register the significant CAGR throughout the forecast period. The broad use of modern technologies such as machine learning and artificial intelligence along with the quick advancement of the networks for machine-to-machine communication is a significant factor driving the growth of the segment.
5G core has the capability to perform a variety of tasks, including subscriber data management, authentication & authorization, connection & mobility management, and policy management. As 5G core is responsible for various functions, 5G security solutions for the core would help prevent potential security threats to the end-users.
The telecom operators segment led the market and accounted for more than 57.0% share of the global revenue in 2021. The segment growth can be attributed to the expanding number of mobile users, skyrocketing need for the high-speed data connectivity, and the rising demand for value-added managed services. During the past few decades, the global communication network has clearly been one of the most significant areas for continuing technical breakthroughs.
Telecom operators are using multi-vendor networks based on cloud-native technology to accelerate and cost-effectively roll out 5G services along with improve user experience. Moreover, to ensure better security for 5G, telecom operators are leveraging network slicing, dividing a single network design into numerous independent logical networks with distinct features.
The Industries segment is anticipated to register the significant CAGR during the forecast period. The growing demand among Industries for better network connectivity between machine-to-machines is a major factor driving the segment growth. As the deployment of IoT-based devices is increasing day by day in industries, the demand to keep the data secure over the 5G networks is also growing, thereby creating an opportunity for the 5G security solution providers. At the same time, as industries focus more on identifying possible attacks on 5G networks, they are increasingly searching for the 5G security solutions.
The manufacturing segment led the market and accounted for more than 24.0% share of the global revenue in 2021. The increasing implementation and use of Industry 4.0 are driving the need for 5G services to operate the machines remotely, thereby contributing to more demand for security solutions. Development in automation and software-based procedures has increased the use of better connectivity solutions in the manufacturing sector.
Moreover, to tackle current difficulties and needs, manufacturing companies are employing augmented reality, virtual reality, machine learning, artificial intelligence, and a variety of other modern technologies to meet more customer demands. For instance, in July 2021, Qualcomm began using its sophisticated 5G technology as a way of smart manufacturing by releasing the potential of IoT.
The healthcare segment is anticipated to register the fastest CAGR throughout the forecast period. The Internet of Medical Things (IoMT), a network of connected medical equipment, software programs, health systems, and services, is quickly transforming the role of medical technology in healthcare. Healthcare businesses are leveraging the internet of medical things to improve remote patient care and automate clinical workflow management through 5G connectivity.
5G technology is expected to enable telemedicine due to the low latency it provides. Furthermore, because of the reduced latency it provides, as well as advancements in robotics and data analysis of the patients, 5G is projected to enable tele-surgery. Such aspects bode positively for the segment expansion.
North America dominated the 5G security market and accounted for more than a 28.0% share of the global revenue in 2021. Palo Alto Networks., A10 Networks, Inc., and AT&T are among the leading industry participants driving the regional growth. The increasing use of 5G security solutions by the manufacturing companies, in order to prevent potential threats on 5G networks, offers growth prospects for 5G solutions providers in the area, supporting the market growth of North America. Furthermore, the increasing inclination for the digitalization is expected to fuel demand for the novel solutions from retail, healthcare, and other financial organizations. During the foreseeable term, such variables are expected to increase regional growth.
Asia Pacific is expected to emerge as the fastest-growing regional market during the forecast period. The geographic expansion might be ascribed to the growing awareness of 5G security solutions in emerging economies such as India and Japan. Simultaneously, growing 5G connections and strict government rules requiring 5G security processes are likely to boost regional growth. For instance, according to the GSM Association's Mobile Economy Asia-Pacific 2022 study, 5G adoption is expected to increase across Asia-Pacific, with more than 400 million 5G connections, or slightly more than 14.0% of the total mobile connections, by 2025. (GSMA).
Leading market competitors are concentrating on providing 5G security solutions that may assist Industries in increasing operational efficiency and work conditions. Market players are focusing on methods such as collaboration and product launch to expand their product offerings. The product launch aims to validate security in the 5G networks. For instance, in January 2022, CTIA launched 5G Security Test Bed (STB) for validating the security in the commercial 5G networks. The site also provides an environment in which academics may examine possible vulnerabilities to 5G security.
The firms operating in the 5G security industry are seeking to combine advanced technologies such as AI low latency, and others in their 5G security solutions. This integration of advanced technology allows businesses to strengthen their competitive advantage and customer experience. The use of network slicing in 5G solution provides a more trustworthy, dependable, and highly dynamic network speed and connectivity. Some of the prominent players in global 5G security market include:
Palo Alto Networks
A10 Networks, Inc.
Check Point Software Technologies Ltd.
Market size value in 2022
USD 1.91 billion
Revenue forecast in 2030
USD 27.59 billion
CAGR of 39.6% from 2022 to 2030
Base year of estimation
2020 - 2021
2022 - 2030
Revenue in USD million, CAGR from 2022 to 2030
Revenue forecast, company market share, competitive landscape, growth factors, trends
Component, deployment, architecture, network security, end-user, industries region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; Germany; U.K.; France; China; India; Japan; South Korea; Brazil
Key companies profiled
ERICSSON; Palo Alto Networks; Thales; A10 Networks, Inc.; Allot; AT&T; F5, Inc.; Check Point Software Technologies Ltd.; Fortinet, Inc.; Spirent Communications
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The report forecasts revenue growth at global, regional, and country levels in addition to provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2020 to 2030. For this study, Grand View Research has segmented the global 5G security market report based on the component, deployment, architecture, network security, end-user, industries and region:
Component Outlook (Revenue, USD Million, 2020 - 2030)
Next Gen Firewall
Distributed Denial of Service Protection (DDoS)
Support & Maintenance
Deployment Outlook (Revenue, USD Million, 2020 - 2030)
Architecture Outlook (Revenue, USD Million, 2020 - 2030)
5G NR Standalone
5G NR Non-Standalone
Network Security Outlook (Revenue, USD Million, 2020 - 2030)
End-user Outlook (Revenue, USD Million, 2020 - 2030)
Industry Outlook (Revenue, USD Million, 2020 - 2030)
Automotive And Transportation
Regional Outlook (Revenue, USD Million, 2020 - 2030)
Middle East & Africa
b. The global 5G security market size was estimated at USD 1.40 billion in 2021 and is expected to reach USD 1.91 billion in 2022.
b. The global 5G security market is expected to grow at a compound annual growth rate of 39.6% from 2022 to 2030 to reach USD 27.59 billion by 2030.
b. The 5G NR non- standalone segment led the market and accounted for more than 63.0% of the global revenue in 2021. Growing demand for 5G mobile phone usage, increase in demand for fast and dependable networks, and rising investments in 5G services are the major factors driving the growth of the segment.
b. Some key players operating in the 5G security market include ERICSSON, Palo Alto Networks, Thales, A10 Networks, Inc., Allot, AT&T, F5, Inc., Check Point Software Technologies Ltd., Fortinet, Inc., and Spirent Communications.
b. Key factors that are driving the 5G security market growth include the growing attacks on critical infrastructure, rising ransomware attacks on IoT devices, and growing security concerns in the 5G network.
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