5G Security Market Expected to Reach $37.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “5G Security Market," The 5G security market was valued at $1.3 billion in 2021, and is estimated to reach $37.8 billion by 2031, growing at a CAGR of 40.5% from 2022 to 2031.

The world is moving toward 5G technology. As 5G becomes more prevalent and usable, its adoption in businesses is anticipated to grow rapidly. The promise of 5G technology makes it an ideal choice for organizations that need to monitor and control solutions at remote locations. However, many of these organizations such as critical infrastructure, healthcare, and similar industries are the ones that are most targeted and vulnerable to cyber threats. Furthermore, 5G security provides solutions that can aid these organizations to securely deploy IoT and other devices on 5G networks. This includes IoT security solutions tailored to industry-specific needs and capable of protecting IoT devices from their initial connection to the network to blocking both known and zero-day attacks. Such factors provide lucrative opportunities for the market growth during the forecast period.

Moreover, 5G’s ability to support a much higher density of devices means that many IoT devices can be effectively deployed in a location without negatively impacting each other’s network connectivity. As a result, 5G makes the widespread deployment of IoT devices possible, especially in remote locations where traditional network connectivity is unavailable or expensive. Such trends are projected to positively impact the 5G security market forecast.

On the basis of industry vertical, IT and telecom sector dominated the 5G security market sizee in the 2021, owing to surge in need for improvement and optimization of infrastructure among telecom operators and continuous innovation in the IT & telecom sector. IT and Telecom industry is able to focus on providing excellent service to their clients, which would provide lucrative growth opportunities for the market. However, the energy and utilities sector witness the market growth in the upcoming years and is expected to continue this trend during the forecast period. The adoption of 5G security solution in this sector, improves the digital transformation roadmap that is reliable, secure, scalable, and it allows the utilities to deliver improved customer experience and enhance performance, which would boost the growth of the market nearly future.

Region-wise, North America dominated the market share in 2021 for the 5G security market. Adoption of 5G security solution growing steadily to meet increasing demands from today’s businesses to enhance their business process and improve the customer experience is expected to fuel the market growth in this region. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. Surge in digitalization toward business operation, is projected to provide lucrative growth opportunities for the 5G security market in Asia-Pacific region.

The COVID-19 outbreak positively impacted the growth of the 5G security market. This is attributed to investment in advanced technologies such as AI, big data, cloud platforms, 5G, machine learning and other technology by various organizations across the globe. In addition, increasing digital transformation initiatives in various sectors to enhance their operation are expected to provide lucrative opportunities for 5G security industry growth. Furthermore, the ever-evolving threat landscape facing 5G and beyond networks and the anticipated increasing complexity in operating and managing those networks demand for advancements in the current security management achievements to cope with the new cybersecurity requirements while taking advantage of the promising concepts/technologies, such as ZSM, AI/ML, Blockchain, TEE, that are gaining momentum due to their ability to deliver actionable results for a better, safer and smarter security for 5G. This section is expected to explore the potential of those concepts/technologies to come up with fully new breed of security solutions in support of 5G security. For instance, in April 2021. Fujitsu Limited and Trend Micro Incorporated collaborated to focus on the security of private 5G networks. The companies demonstrate the effectiveness of Trend Micro's security for private 5G using a simulated smart factory environment and an operational Fujitsu environment prior to the product's public availability. Fujitsu and Trend Micro have incorporated Trend Micro's 5G security solution into a private 5G system that simulates an actual smart factory environment equipped with high-definition monitoring cameras and automatic guided vehicles (AGV) at the Fujitsu collaboration lab in Kawasaki, Japan.

KEY FINDINGS OF THE STUDY

• By component, the solution segment accounted for the largest 5G security market share in 2021.
• By deployment mode, the on-premises segment accounted for the largest 5G security market share in 2021.
• On the basis of organization size, the large enterprise segment accounted for the largest 5G security market share in 2021.
• By network component security, the radio access network security segment accounted for the largest 5G security market share in 2021.
• On the basis of architecture, the 5G NR non-standalone segment accounted for the largest 5G security market share in 2021.
• Depending on industry vertical, the IT and Telecom sector accounted for the largest 5G security market share in 2021.
• Region wise, North America generated highest revenue in 2021.

The key players that operate in the 5G security market analysis AT&T Inc., Huawei Technologies Co. Ltd., IBM Corporation, Intel Corporation, Juniper Networks Inc., Nokia Corporation, Palo Alto Networks, Qualcomm Incorporated, Telefonaktiebolaget LM Ericsson, and Trend Micro, Inc.. These players have adopted various strategies to increase their market penetration and strengthen their position in the 5G security industry.