Know Your Stats for 2022: Metaverse Markets and Telco Cybersecurity

As part of our continuous commitment to providing our clients with the actionable data they need to map growth and success, our whitepaper, 38 Technology Stats You Need to Know for 2022, highlights the most impactful forecasts for the year ahead.

We’ve seen digital transformation move at an unrelenting pace, with no signs of slowing down. COVID-19 has turned dozens of industries and sectors upside-down, from supply chain to autonomous driving, and we emphasize two more:

Telco Cybersecurity

Global 5G Security revenue will grow from US$2.067 billion in 2021 to US$11.689 billion in 2026 with a CAGR of 41.4%.

According to Michela Menting, Research Director at ABI Research, “Network Security Technologies (i.e., Firewalls, IDS/IPS, SIEM, Anti-DDoS, etc.) will be in strong demand to secure the 5G mobile infrastructure and to provide new security value propositions to enterprise clients, especially as URLLC and mMTC applications emerge.”

“There is a significant opportunity to meet the enterprise market demand for network cybersecurity through various sales models (direct sales as well as through partnerships) with plenty of room for a rich and diverse vendor ecosystem to thrive, from pure-play cybersecurity vendors to communication service and network equipment providers to hyperscalers.”

Worldwide eSIM shipments will grow from 412 million in 2021 to 872 million in 2026.

“Despite the market growing 12% between 2020 and 2021, post chip shortage annual growth was in the 45% range, demonstrating this limiting growth factor. In 2020 the eSIM market experienced a low level of impact from COVID-19. The result was not a market decline but a limiting impact on growth. This limiting growth theme is expected to continue in the early parts of the forecast period, as it relates to the chipset shortage,” explains Phil Sealy, Research Director at ABI Research.

For 2022, the focus remains firmly fixed on the chipset shortage and potential impacts on the eSIM market. Overall, ABI Research’s expectations are that the eSIM market will not be impacted by the chip shortage directly, though if OEMs cannot procure other components, then device manu­facturing will be slowed, resulting in an indirect market impact. Although supply of eSIMs may be healthy, the market risk is being presented by other chip component types and their subsequent availability.

Metaverse Markets and Technologies

The Extended Reality (XR) market spend will hit US$4.84 billion in 2024.

In 2024, the Extended Reality (XR) market spend will hit US$4.84 billion, up from US$630 million in 2020; 54.7% will derive from hardware, and the rest will be from software and content.

Jake Saunders, Vice President at ABI Research explains, “A rich ecosystem is developing with notable innovators, such as Nreal, VIVE, and Pico, producing XR kits for consumers and businesses.”

Content Delivery Network (CDN) revenue will increase from US$10 billion in 2021 to US$23.9 billion in 2030. 

For all the hype the metaverse receives around virtual worlds and assets, it is the build-up to this interconnected future where the physical and digital are merged that deserves more attention. Trends across digital media and advertising, immersive, hybrid workforces, and evolutions in technology (i.e., 5G advanced and upcoming 6G) are all coming together to change how we consume content, work, access services, and communicate. “These changing markets, especially as they come together, will create tremendous demands on networks (i.e., data and ultra-low latency connections) and computational resources. One market that stands to benefit from this build-up to the metaverse is the CDN market,” says Michael Inouye, Principal Analyst at ABI Research.