Innovation in Virtualized and Cloud Security to Create US$8 Billion Market Opportunity for 5G Security Software & Services in 2027

With advancing 5G roll-outs, the opportunity for software and service-based security is emerging quickly due to the need to secure virtualized and cloud-based assets at the edge of the Radio Access Networks (RAN) and in the core. Global technology intelligence firm ABI Research expects a diverse multi-vendor cybersecurity market to leverage and adapt the best of digital security technologies to the 5G ecosystem, creating a rich and innovative market aimed at protecting all aspects of 5G networks.

Vendors are already proposing commercial solutions to authenticate Cloud and Virtual Network Functions, protect subscription identifiers with traditional Hardware Security Modules (HSMs), and secure container services in 5G core. “Numerous existing solutions in the traditional cybersecurity market can secure 5G networks, data, and devices. The critical success factor is to ensure that these technologies are adapted to the new context and can work with the architectural requirements defined by 5G standards,” explains Michela Menting, Telco Cybersecurity Research Director at ABI Research.

The resulting vendor ecosystem will consist of those coming from a telco background and are familiar with 5G networks, such as network equipment providers (such as Ericsson and Nokia) and telco software and network security companies (e.g.,  BroadForward, Allot, and SecurityGen), and those from the IT and enterprise markets, such as pure-play cybersecurity vendors (e.g.,  Thales, Fortinet, and Palo Alto Networks), cloud service providers, as well as systems integrators and managed security service providers.

While today’s market opportunity for 5G security currently lies in network security solutions targeted at telco operators, increasingly, this will be overshadowed by demand for software and service security, with the market expected to reach US$8.6 billion in revenues by 2027; a growing share of that will come from enterprise markets who will look to secure specific applications (e.g., URLLC, MMTC) and configurations (e.g., network slices). 

These findings are from ABI Research’s 5G Security: The Software & Service Opportunity report. This report is part of the company’s Telco Cybersecurity research service, which includes research, data, and ABI Insights.