Next-generation mobile technology is rolling out worldwide, and cloud-native applications running on fifth-generation (5G) networks are set to reshape the IT security landscape. A recent global market study by ABI Research forecasts that 5G network security will represent a $9 billion enterprise opportunity by 2025.
The expansion of cloud edge computing, network-function virtualization (NFV), API-driven platforms, and the isolation capabilities provided by network slicing all create significant opportunities for new security solutions and services.
Demand for both security software and managed services will grow among large enterprises seeking to harness Massive Machine-Type Communications (mMTC) and Ultra-Reliable Low Latency Communication (URLLC) capabilities.
5G network security market development
Initial security investments are expected to come from communication service providers (CSPs) as they prioritize protecting their own mobile infrastructure and networks. As CSPs mature their security capabilities, they have opportunities to monetize those investments by offering security solutions to enterprise customers, often in partnership with network equipment vendors and specialized cybersecurity firms.
Public cloud hyperscalers also stand to benefit. The 5G core will introduce new applications and data ecosystems into mobile edge computing environments, creating demand for app-level protection and API security for interfaces between components.
Integration with public cloud infrastructure will be essential, enabling CSPs and vendors to deliver value initially through software and, over time, through managed service models.
There is meaningful potential to adopt operational expenditure (OPEX)-based security models delivered via the cloud once performance and latency requirements can be satisfied. Tier One CSPs, in particular, are motivated to attract industries with strict security needs to 5G by embedding security software and services into their network offerings.
Many traditional IT cybersecurity solutions are not yet adapted to cellular core networks, so the industry will undergo a transformation. CSPs will need to assemble comprehensive security portfolios for enterprises, while solution providers must develop carrier-grade offerings compatible with mobile core architectures.
For now, hardware-based network security appliances remain easier for CSPs to deploy—especially where performance and scalability are critical and for operators managing hybrid 4G/5G environments. However, as 5G core standalone deployments become mainstream, software and service-centric security offerings for enterprises are expected to expand. ABI Research anticipates this shift to accelerate after 2023.
Outlook for 5G network security apps growth
The ABI assessment indicates substantial opportunity for new entrants as 5G rolls out. Pure-play cybersecurity firms can find openings in the market, while demand for network security appliances will rise alongside cloud and software-based alternatives.
Hyperscale public cloud providers and innovative software and cloud vendors are likely to seize opportunities, particularly in the private 5G network segment.
Many CIOs and CTOs worldwide are actively evaluating private 5G applications, viewing advances in wireless security as a key enabler for Industry 4.0 initiatives. Private 5G deployments promise industrial-scale Internet of Things (IoT) connectivity with low latency, mission-critical reliability, and enhanced data protection—characteristics that support new digital transformation use cases across manufacturing, logistics, healthcare, and other sectors.
Interested in hearing industry leaders discuss these topics? Attend events that bring together 5G, IoT, blockchain, AI and big data, and cybersecurity communities. Co-located conferences and expos held in major tech hubs provide platforms for networking, insight sharing, and discovering emerging security solutions designed for the 5G era.