ABI Research Sees 5G Network Security as $9B Opportunity
April 6, 2021
cloud-native nature of 5G networks will have a disruptive and
positive impact on the cybersecurity industry in the next few years.
According to ABI Research, 5G network security presents a US$9
billion enterprise market opportunity by 2025. The ushering-in of
cloud-native infrastructures and network-function virtualization,
API-driven platforms, and isolation capabilities through containers
and network slices provides significant opportunities for IT
cybersecurity offerings to find applications in 5G. Both security
software and services will be in demand from enterprises looking to
leverage trusted mMTC and URLLC applications.
“Initial spending on security will be by CSPs as they focus on
securing their own mobile infrastructure and network. As CSPs
advance, there is an opportunity for them to recoup that investment
and monetize it through enterprise security offerings. This will
most likely be in partnership with network equipment providers (NEPs)
and pure-play cybersecurity vendors. There is a substantial play for
hyperscalers here as well,” Michela Menting, Digital Security
Research Director at ABI Research, explains. 5G core will introduce
apps and data ecosystem into Mobile Edge Computing (MEC) distributed
environments (including app-level and interface API security). The
integration with the cloud will be key and allow value to be
delivered initially via software and eventually through services.
is serious potential to explore OPEX delivered security models
through the cloud once requirements around performance and latency
can be met. CSPs, notably Tier Ones, are keen to attract
security-sensitive industries to 5G and this is driving them to
integrate security software and services into their 5G networks,”
says Menting. At present, many traditional IT cybersecurity
solutions do not adapt to cellular core networks, so a period of
transformation will be required. There will be an ongoing effort for
CSPs to create a security portfolio for enterprises, as well as for
solutions vendors to provide carrier-grade offerings.
Currently, network security appliances remain easier to implement,
particularly from CSPs who continue to consume hardware for
performance and scale, and particularly for hybrid networks (4G/5G).
In time, security software and services offerings for enterprises
will increase once the 5G core standalone mode becomes mainstream.
ABI Research believes these will likely emerge post-2023.
What is clear is that there will be an opportunity for new entrants
to penetrate the network security market as 5G rolls out, especially
pure-play cybersecurity providers as demands for network security
appliances soar. “But increasingly, hyperscalers and new innovative
software and cloud vendors will see opportunity, notably in the
private 5G network market,” Menting concludes.