Global 5G Security Market By Component (Solutions, Services), By Network Security (Radio Access Network Security, Mobile Core Security), By Architecture (5G NR Standalone, 5G NR Non-Standalone), By Industry Vertical (Manufacturing, IT and Telecom, Healthcare, Retail, Energy and Utilities, Automotive, Media and Entertainment, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global 5G Security Market size is expected to be worth around USD 39.5 Billion By 2033, from USD 1.6 Billion in 2023, growing at a CAGR of 37.8% during the forecast period from 2024 to 2033.

5G technology brings significant advancements in connectivity, speed, and capacity, enabling a wide range of applications and services. However, as with any new technological development, ensuring security in the 5G network is a critical concern. 5G security refers to the measures and protocols implemented to protect the integrity, confidentiality, and availability of data and communications within the 5G network infrastructure.

The 5G security market has emerged as a crucial sector due to the growing complexity and potential vulnerabilities associated with the deployment of 5G networks. With the increased number of connected devices and the massive amount of data transmitted, securing the network against cyber threats becomes paramount. The market encompasses various solutions and services aimed at safeguarding 5G networks, including network security, authentication mechanisms, encryption protocols, and threat intelligence.

One of the primary challenges in 5G security is the sheer volume and diversity of connected devices. The Internet of Things (IoT) ecosystem, which is expected to grow significantly with the advent of 5G, introduces a vast number of endpoints that need to be secured. Each connected device represents a potential entry point for attackers, necessitating robust security measures to protect the network and the data transmitted across it.

Additionally, the higher data speeds and lower latency of 5G networks introduce new security risks. The increased speed and capacity enable faster and more sophisticated cyberattacks, making it essential to implement advanced security mechanisms to detect and mitigate these threats in real-time. Moreover, the integration of virtualized and software-defined network components in 5G networks introduces additional complexities in ensuring security across the network infrastructure.

The 5G security market offers significant opportunities for innovative solutions and services. As the adoption of 5G continues to expand globally, there is a growing need for comprehensive security solutions that can address the unique challenges of this new network paradigm. Companies specializing in network security, threat detection, encryption, and authentication technologies are actively developing products tailored to the specific requirements of 5G networks.

Government regulations and industry standards also play a crucial role in shaping the 5G security market. Regulatory bodies and standards organizations are actively working to establish guidelines and best practices for securing 5G networks. Compliance with these regulations and adherence to industry standards are essential for organizations operating in the 5G ecosystem, creating opportunities for security solution providers to develop and offer compliant solutions.

Key Takeaways

• The 5G Security Market size is estimated to reach USD 39.5 billion in the year 2033 with a CAGR of 37.8% during the forecast period and was valued at USD 1.6 billion in the year 2023.
• Based on the component, the solution segment has dominated the market with a share of 67.4% in the year 2023.
• Based on the Network Security, the Radio Access Network Security segment has dominated the market with a share of 65% in the year 2023.
• Based on the Architecture, the 5G NR Non-Standalone segment has dominated the market with a share of 61.5% in the year 2023.
• Based on the industrial vertical, the IT & Telecom segment has dominated the market with a share of 23.4% in the year 2023.
• In 2023, North America held a dominant market position in the 5G Security sector, capturing more than a 36.4% share.

Component Analysis

Based on the component, the market is segmented into solution and service segments, where the solution segment has dominated the market with a share of 67.4% in the year 2023. This segment’s leadership can be attributed primarily to the critical need for robust security frameworks that are integral to the deployment and operation of 5G networks.

Solutions in this segment include firewall, antivirus, intrusion detection systems (IDS), and intrusion prevention systems (IPS), all tailored to address the unique security vulnerabilities of 5G technology. The complexity and openness of 5G networks expose them to a wide range of cyber threats, making advanced security solutions essential for protecting network integrity and user data.

The demand for these solutions is further driven by the rapid expansion of 5G infrastructures, which require specialized security measures to manage higher data speeds and increased traffic volume. As 5G networks facilitate a greater number and variety of connected devices, the potential points of vulnerability multiply, necessitating comprehensive security solutions that can preemptively identify and mitigate threats.

The substantial market share of the Solution segment underscores its critical role in the broader 5G security landscape. By providing the foundational security architecture for 5G networks, this segment not only ensures the operational efficacy of these networks but also enhances trust among users and service providers. This trust is crucial for the sustained adoption of 5G technology, further reinforcing the segment’s leading position in the market.

Network Security Analysis

Based on the Network Security, the market is segmented into Radio Access Network Security, Mobile Core Security segments, where the Radio Access Network Security segment has dominated the market with a share of 65% in the year 2023 which is being attributed to different factors.

This significant market share is primarily due to the essential role of RAN security in protecting the communication between users’ mobile devices and the core network. RAN security is crucial for mitigating risks associated with eavesdropping, man-in-the-middle attacks, and other cyber threats that can compromise the integrity and confidentiality of data transmissions in a 5G network.

The dominance of the RAN security segment is further reinforced by the increasing deployment of new and more complex 5G networks, which are inherently more susceptible to advanced cyber-attacks. This susceptibility arises from the diverse and distributed nature of RAN architectures, which include a vast number of base stations and other network elements that must be secured. The complexity of securing these elements drives demand for specialized RAN security solutions that can ensure comprehensive coverage and robust protection against potential breaches.

Moreover, the strategic importance of RAN security in enabling safe and reliable 5G services contributes to its leading position in the market. As 5G networks continue to evolve, offering higher data speeds and supporting more IoT devices, the role of RAN security becomes increasingly critical. This growing dependency on secure and uninterrupted connectivity underscores the need for advanced security measures within the RAN, thereby sustaining the segment’s significant market share and emphasizing its pivotal role in the broader 5G security landscape.

Architecture Analysis

Based on the Architecture, the market is segmented into 5G NR Standalone and 5G NR Non-Standalone segments, where the 5G NR Non-Standalone segment has dominated the market with a share of 61.5% in the year 2023 attributing to factors including its advantages from strategic application and economic feasibility.

This leading position can be attributed to the segment’s practical deployment strategy, where 5G infrastructure is built upon existing 4G LTE networks. This approach allows for quicker and more cost-effective 5G rollouts, leveraging established 4G capabilities while integrating 5G’s enhanced functionalities. As a result, many network operators initially adopt the NSA architecture to accelerate their 5G services’ market entry, thereby driving the high adoption rate of this segment.

The 5G NR NSA architecture’s predominance is further bolstered by its ability to provide immediate improvements in bandwidth and speed, which are critical for today’s data-driven applications. This architecture supports a wide range of applications, from enhanced mobile broadband to industrial IoT, which require significant bandwidth and lower latency.

The transition to NSA is seen as a vital step for operators looking to rapidly monetize their investments by offering new and improved services without the full infrastructure overhaul required for a standalone setup. Furthermore, the security solutions tailored for the 5G NR NSA architecture are crucial for protecting the dual connectivity with 4G networks, addressing vulnerabilities that could potentially be exploited in the integration points between 4G and 5G systems.

As the deployment of 5G NR NSA continues to grow, driven by its efficiency and lower barriers to entry, the demand for robust security solutions in this segment is expected to surge, reinforcing its market dominance and highlighting its pivotal role in the transition towards comprehensive 5G deployments.

Industrial Vertical Analysis

In 2023, the IT & Telecom segment held a dominant position in the 5G Security market, capturing more than a 23.4% share. This substantial market share can primarily be attributed to the escalating demand for secure and rapid communication networks.

The proliferation of 5G technology in IT and Telecom not only enhances network speeds but also significantly increases network complexity and connectivity, thereby elevating the potential risk of cyber threats such as data breaches and unauthorized access. Consequently, robust security solutions have become imperative to protect sensitive data and maintain network integrity.

The leadership of the IT & Telecom segment in the 5G security market is further reinforced by the ongoing digital transformation initiatives across various industries, driving the need for secure communication platforms that can support large volumes of data and interconnected devices. Moreover, regulatory compliance concerning data security is more stringent in the IT and Telecom sectors, which propels the adoption of advanced security measures.

For instance, regulations such as the General Data Protection Regulation (GDPR) in Europe and similar laws in other regions mandate strict data security measures, pushing telecom operators to prioritize investments in 5G security solutions to avoid hefty penalties and reputational damage. Overall, the IT & Telecom sector’s leading position in the 5G security market is poised to strengthen as the deployment of 5G networks expands globally.

The growing reliance on mobile networks for not only communication but also for critical applications such as remote operations, IoT connectivity, and smart infrastructure management highlights the importance of comprehensive security frameworks. Therefore, the sector’s focus on enhancing cybersecurity measures will continue to drive innovation and market growth in the foreseeable future.

Key Market Segments

By Component

• Solutions
• Services

By Network Security

• Radio Access Network Security
• Mobile Core Security

By Architecture

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

By Industry Vertical

• Manufacturing
• IT and Telecom
• Healthcare, Retail
• Energy and Utilities
• Automotive
• Media and Entertainment
• Others

Drivers

Increasing security concern in the 5G network

The increasing security concerns in the 5G network is a main factor driving the global 5G security market. The utilization of 5G networks has a more intricate infrastructure as compared to traditional infrastructure, making it more vulnerable to cyber threats. As 5G networks has a enormous number of connected devices, comprising IoT devices, the probable attack significantly increases, demanding vigorous security methods.

5G networks are effective and supports various critical uses, such as smart grids, healthcare systems, and autonomous vehicles. This makes it  highly required to target the cybercriminals. 5G facilitates high-speed, low-latency communication for these applications and allows any security breach from data theft to service disruptions to severe consequences​​​​.

Furthermore, the use of network sharing in 5G networks has allowed the operators to create numerous virtual networks within a single physical network, where each network is tailored for specific applications or services as it enhances efficiency and flexibility. However, it also presents new security challenges and hence each network part must be secured to prevent illegal access and safeguard the reliability of the data transmitted within it​​​​.

Restraints

Lack in standardization of the spectrum allocation

The lack of standardization in spectrum allocation poses a crucial challenges to the global 5G security market thus acting as a major limitation for the market. Spectrum allocation includes transfer of precise frequency bands for usage in 5G networks, which is vital for safeguarding well-organized and dependable network processes. Though, the lack of unchanging standards transversely dissimilar countries and regions generates a uneven landscape, foremost to numerous matters that delay the placement and safety of 5G networks.

The unpredictable spectrum allocation interrupts the formation of worldwide security procedures. Across the globe, every region tends to adopt unlike frequency bands and the regulatory frameworks. This makes it problematic for global telecom operators to adopt the standardized security measures. This can lead to security gaps and susceptibilities, as operators might not be able to regularly secure their networks across different regions​​​​.

Opportunities

Increasing investment done by operators for a dynamic infrastructure

The growing speculation by workers in lively infrastructure presents a noteworthy occasion for the global 5G security market. As operators tends to invest in promotion and increasing their 5G infrastructure, they generate a composite and unified network environment that requires robust safety solutions. This lively infrastructure comprises the positioning of advanced technologies such as network slicing, edge computing, and the addition of IoT devices, all of which need improved security actions.

Furthermore, the necessity to secure these investments from sophisticated cyber threats has also been a huge opportunity for the market. As different operators tends to implement network slicing to offer committed virtual networks for dissimilar applications and industries, the safety of each slice becomes critical. This segmentation permits custom-made security protocols, guaranteeing that specific necessities for data protection and privacy are met. Therefore, the demand for all-inclusive 5G security solutions that can achieve and secure these various and active environments is expected to rise.

Challenges

Uncertainty about Return on Investment

Uncertainty about Return on Investment (ROI) offers a noteworthy challenge for the global 5G security market. This uncertainty arises from several factors, including the high initial costs of using 5G infrastructure, the developing nature of 5G technology, and the uncertain economic benefits that can be attributed to improved security measures.

The utilization of 5G networks necessitates extensive investment in infrastructure, with the development of new base stations, network equipment, and security solutions. These high sincere costs make it tough for operatives to forecast when they will accomplish a profitable return on their funds. The capital-intensive nature of 5G projects often leads to spending, especially in indeterminate economic environments​.

Growth Factors

• Improved Deployment of 5G Networks: The quick rollout of 5G networks internationally requires advanced security actions to guard these new infrastructures from growing cyber threats​​.
• Increasing Occurrence of Cyber Threats: The propagation of cyberattacks directing 5G networks, predominantly due to the amplified connectivity and advanced data rates, drives the demand for vigorous 5G security keys​​.
• Increase of IoT Devices: The addition of IoT devices within 5G networks produces a larger attack surface, demanding heightened security protocols to stop illegal access and data breaches​​.
• Implementation of Network Slicing: Network slicing allows the formation of numerous virtual networks within a only physical 5G network, each with detailed security necessities, thus dynamic the need for inclusive security explanations​​.
• Improvements in Edge Computing: The utilization of edge computing to sustenance low-latency applications presents new security challenges, demanding advanced security actions to protect data treated at the edge​​.

Latest Trends

• Implementation of AI and Machine Learning: AI and ML are gradually being integrated into 5G security solutions to improve threat uncovering capabilities. These technologies enable real-time examination and automated risk mitigation​​​​.
• Operation of Zero Trust Architecture: The Zero Trust model is flattering widespread in 5G security approaches, underlining continuous verification of user and expedient identities, irrespective of their location within or outdoor the network border​​.
• Advance of Cloud-Based Security Solutions: There is a important shift in the course of cloud-based security solutions due to their scalability, flexibility, and cost-efficiency. These explanations support the dynamic and expansive nature of 5G networks​​​​.
• Emphasis on Endpoint Security: With the propagation of IoT devices, guaranteeing the security of endpoints has become critical. Progressive endpoint security solutions are being organized to protect against malware, unauthorized access, and data breaches​​​​.
• Network Slicing Safety: Network slicing, which lets multiple virtual networks to function on a single corporeal network, requires personalized security measures for each slice. This tendency is driving the development of particular security solutions for dissimilar network slices​​.

Regional Analysis

In 2023, North America held a dominant market position in the 5G Security sector, capturing more than a 36.4% share. This substantial market share is largely due to the rapid deployment of 5G networks across the region, combined with the high concentration of leading technology and telecom companies. The region’s strong emphasis on cybersecurity, driven by increasing incidents of cyber-attacks and stringent regulatory standards, further propels the adoption of 5G security solutions.

The demand for 5G Security in North America was valued at USD 0.5 billion in 2023 and is anticipated to grow significantly in the forecast period. For instance, regulations such as the United States’ National Defense Authorization Act (NDAA), which includes provisions for network security, significantly influence market dynamics.

Furthermore, the leadership of North America in the 5G security market can be attributed to its advanced technological infrastructure and the early adoption of innovative technologies. The region has been at the forefront of implementing IoT and cloud technologies, which require robust network security to protect vast amounts of generated data. The integration of artificial intelligence and machine learning in 5G security systems is also more pronounced in North America, enhancing threat detection and response capabilities.

Looking ahead, the North American market for 5G security is expected to maintain its leading position due to ongoing investments in technology upgrades and cybersecurity enhancements. The increasing dependence on digital technologies and the expansion of 5G in industrial applications such as automated manufacturing and smart transportation will further drive the need for comprehensive 5G security solutions, ensuring sustained growth in this regional segment.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The 5G Security market features a robust array of key players, each contributing uniquely to the technology’s evolving landscape. Among these, Cisco Systems, Ericsson, and Nokia are prominent for their comprehensive 5G solutions that address both network performance and security. Cisco Systems, in particular, is known for its extensive portfolio of networking equipment and cybersecurity services, which are essential for protecting complex 5G infrastructures. Similarly, Ericsson and Nokia not only provide infrastructure technology but also security solutions tailored to the 5G ecosystem.

Companies like Palo Alto Networks and Check Point specialize in cybersecurity solutions and are pivotal in safeguarding 5G networks against sophisticated cyber threats. Their expertise in firewalls and threat prevention technologies is critical for securing the data integrity of 5G networks. On the other hand, AT&T and Huawei, both of which also play dual roles as service providers and technology suppliers, offer end-to-end 5G solutions that include both network infrastructure and security components.

Top Key Players in the Market

• A10 Networks
• Akamai, Allot
• AT&T
• Avast
• Check Point
• Cisco Systems
• Ericsson
• F5 Networks
• ForgeRock
• Fortinet
• G+D Mobile Security
• Huawei
• Juniper Networks
• Nokia
• Palo Alto Networks
• Other Key Players

Recent Developments

• November 2023: Ericsson announced a strategic partnership with a leading cloud provider to integrate its 5G security solutions with cloud-native applications, aiming to streamline secure deployments for enterprises.
• October 2023: Akamai Technologies introduced its Zero Trust architecture for 5G networks, aimed at improving security and reducing risks associated with mobile network deployments.
• September 2023: Cisco launched its new SecureX platform extension designed specifically for 5G networks, enhancing threat detection and response capabilities across distributed network environments.
• June 2023: Huawei introduced its 5G Smart Core Security Solution, which focuses on providing end-to-end security for 5G core networks, addressing critical issues such as data protection, threat detection, and network slicing security.

Report Scope