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Feeble ROI in 5G Network Security Market Feeling Sting of Global Economic Slowdown

ID: 38201
description:
NEW YORK, Oct. 22, 2024 /PRNewswire/ -- The slowing of the 5G network rollout in 2023 has had a knock-on effect on the market demand for enterprise cybersecurity, according to ABI Research, a global technology intelligence firm. The much-anticipated uptake of 5G network security will take longer to emerge, with the current macroeconomic conditions tightening enterprise spending budgets and impacting 5G uptake, resulting in a US$1.2 billion shortfall in 2024 over previous anticipated global revenues. "Mobile Network Operators (MNOs) have been hoping to capitalize on their 5G investments through the offer of security solutions to the enterprise market, especially now that the bulk of investment in infrastructure security is complete. However, the slow adoption of applications in Massive Machine Type Communication (MMTC) and Ultra Reliable Low Latency Communication (URLLC) has dried up potential new revenue streams. This doesn't mean there isn't a lucrative security market for these applications going forward, but for the moment, it is delayed as enterprises look to cut costs in an uncertain economic climate," explains Michela Menting, Senior Research Director at ABI Research. MNOs will have to readjust their outlook for the longer term. MMTC remains a significant market opportunity for 5G network security, not least as cellular IoT deployments are primarily secured through the network due to restricted device capabilities, limiting on-device security solutions. Network segmentation, through slices using virtualized appliances and software orchestration solutions, will need to be packaged and offered by MNOs in a manner that appeals from both a cost and simplicity perspective. Not an easy feat to accomplish, enterprises are a discerning and demanding target market, and MNOs with competitive and modular security solutions will appeal to this exigent segment. Menting concludes, "Ultimately, the future market for 5G network security will be largely dependent on how providers, including MNOs but also third parties such as technology suppliers and cybersecurity vendors, craft appealing solutions for the enterprise space that can transcend economic headwinds. The key is to focus on selling security as a value-add, showcasing how 5G network security can be a strategic business-enabler." These findings are from ABI Research's Market Data on 5G Network Security Revenue market data report. This report is part of the company's Telco Cybersecurity research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie. About ABI Research ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers. ABI Research是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。 For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com. Contact Info: GlobalDeborah PetraraTel: +1.516.624.2558pr@abiresearch.com
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