5G network security market to reach $16 billion by 2028

Estimates reveal that the 5G network security market is projected to grow significantly at a CAGR of 41.82% to reach a valuation of US$16.159 billion by 2028, up from US$1.986 billion in 2022. This is according to a study from Knowledge Sourcing Intelligence.

It appears that the escalating level of cyber threats is a major catalyst for the growth of the 5G network security market. The more advanced and sophisticated cyber threats have become with the introduction of 5G networks, the higher the demand for cyber security measures to protect vital and confidential data. In the global scope, cyberattacks threatened around $5.2 trillion in value, according to the World Bank. It is concerning that about 10.5 million files are lost or stolen each month, equating to 438,000 every hour. A single large-scale attack has the potential to deal $53 billion in financial losses.

In defining 5G network security, it represents measures and protocols employed to protect fifth-generation (5G) wireless networks from potential threats and vulnerabilities. Network security comes in various forms such as firewall, SSE, SWG, and WAF to provide protection in numerous industry sectors.

The 5G Network security market has also seen numerous product introductions and collaborations which are pushing its growth. An example is the 5Guard security service launched by Atos in February 2023. It offers businesses deploying private 5G networks and telecommunications companies a way to better safeguard their assets and customers. In November 2023, Palo Alto Networks introduced five new ML-powered Next-Generation Firewalls (NGFWs) designed to address highly evasive threats in 5G service networks.

The 5G network security market can be broken down based on its form factor into three main categories: physical, virtual, and SaaS. Among these, the physical form factor currently has the largest market share. It's also segmented into five categories based on type, namely firewall, SSE, SWG, WAF, and others. WAFs are particularly popular for protecting web applications against specific threats. As for industries, the sectors of banking, telecommunications, government, manufacturing, and others rely on 5G network security, with the telecommunications industry being the largest user of these solutions.

Geographically, North America is anticipated to contribute a significant share to the 5G network security market. This expectation comes in view of the extensive investment in cybersecurity by many governments in the region. For example, according to the White House, the bipartisan infrastructure act allocates $1 billion towards cybersecurity for state, local, tribal, and territory governments. Furthermore, Canada's Minister of Innovation, Science, and Industry disclosed a new Cyber Security Innovation Network programme in May 2021 that provides an $80 million boost for Canada's cybersecurity research and development.

The study identifies key players including Nokia Corporation, Palo Alto Networks, F5 Inc., Fortinet, Mobileum Inc., SecurityGen, and AT&T Inc. as fundamental contributors to the 5G network security market's progression.