The global 5G network security market is expected to reach US$11.6 billion (~AUD$16 billion) by 2026 and will increasingly shift towards software and services, according to a recent report by ‘ABI Research.
Sales of network security appliances to telecom operators will initially drive the market growth as they invest in building the infrastructure.
“Communication Service Providers (CSPs) purchase the required solutions primarily from network equipment vendors and pure-play cybersecurity vendors. Over time, other specialized third parties will enter the market as CSPs evolve into standalone 5G,” said Michela Menting, director of digital security research at ABI Research.
However, as these companies begin to offer enterprise applications designed to take advantage of these networks, the market will shift towards enterprise-grade security service offerings as CSPs aim to recoup some of their spending. safety initials.
ABI Research warns that this pivot will be challenging for communications service providers, as they must consider their own security posture to serve certain industries that may have stringent requirements.
“For the most part, CSPs will likely obtain the required technology and skills either through acquisitions or by partnering with security-focused companies. As such, partnerships will be key for communications service providers to seize the opportunity in security software and services,” Menting said.
Research shows that telcos and network equipment vendors (NEPs) will work closely together to develop 5G infrastructure and deliver enterprise offerings.
However, it will be the role of cybersecurity specialists and hyperscalers to help bridge the skill gap in integrating network security into complex systems that rely on virtualization and cloud environments.
ABI names hyperscalers as “the biggest threats to NEPs” because of the cloud’s fundamental importance to 5G, and because their security and service experience is complementary to 5G-powered offerings.
“Their only limitation is their lack of traditional experience with CSPs, so they’ll have to prove they can deliver carrier-grade security. But they’re agile, they’re competitive, and they’re very keen to commit to this. The opportunity is there, and market competitors are already jostling for space,” Menting said.
ABI Research focuses on how technology affects industries, economies and the workforce.