Rising Cyber Threats and the Shift to 5G Drive Growth in the Cellular Network Security Market

Increased cyber threats are one of the major driving forces of the cellular network security market. The hackers exploit vulnerabilities of such core network components as signaling systems (SS7 and Diameter) to execute a wide range of disrupting attacks, such as Denial-of-Service (DoS), Man-in-the-Middle (MITM) attacks, etc. As per the data of the World Economic Forum in 2023, approximately 2,220 cyberattacks are recorded each day which sums up to more than 800,000 attacks every year. The newest addition to the security threat landscape has been Advanced Persistent Threats (APTs). An APT attack is perpetrated by unauthorized access by a threat actor with the intent to stay at a network for a long time without being noticed. Thus, the rising cyber threats are expected to boost the market for cellular network security market. 

The shift in 5G towards a cloud-based core network brings significant security challenges along, more so in the securing of Virtualized Network Functions as these replace traditional hardware. These VNFs provide greater risks of cross-tenancy and unauthorized access in multi-tenant environments. The dynamic nature of a virtualized network makes it challenging to enforce consistent security policies across fluctuating environments; hence, advanced identity management systems along with policy enforcement mechanisms and real-time monitoring are a necessity. This brings in the complexity of security through network slicing in 5G as individual slices need to be both isolated and protected against inter-slice attacks. Further, effective security requires end-to-end and logical controls in the form of encrypting or segment-based traffic analysis. Also, containerized environments with Kubernetes bring in misconfiguration and insecure communication as the other two risks.
Cellular Network Security Market Report

Evolving Security Solutions for Virtualized Networks and Mobile Payment Systems boost Cellular Network Security Market

Network Functions Virtualization and Software-Defined Networking are reshaping network security by decoupling the network functions from hardware. By doing so, this presents organizations with the high flexibilities, scalabilities, and cost-efficiency but also drives an increased exposure of security risks in networks. Virtualized infrastructures and networks are vulnerable to data breaches, unauthorized access, and potential third-party cloud service weaknesses. With dynamic network architectures, the challenge for service operators is dealing with the robust security of virtualized environments that include more than one layer of data, control, and application planes. At such times, traditional models of security may fall short, and there is a need for agile security solutions to proactively address evolving risks while ensuring seamless service delivery and compliance with regulatory standards.

In a highly volatile environment, mobile payment solutions by Apple Pay, Google Pay, and mobile banking applications have increased financial transactions over cellular networks exponentially and therefore make them prime attacks for cyber vandals. Hackers often look to intercept sensitive information such as credit or debit card details and private banking details through strategies like man-in-the-middle (MITM) attacks or by swapping SIM cards. To combat these threats, security solutions like end-to-end encryption are critical for ensuring that data remains secure even in transmission. Tokenization replaces sensitive data with unique identifiers, so if intercepted, it is rendered useless. Biometric authentication- fingerprint and facial recognition are also becoming incorporated to ensure safer access to financial services. These measures are increasingly demanded not only by consumers but also by financial institutions to maintain trust and compliance with security regulations such as PCI DSS (Payment Card Industry Data Security Standard).

Recent Trends in the Cellular Network Security Industry

  • Increasing adoption of Zero Trust models for mobile network security.
  • Strengthening security protocols for 5G networks against advanced cyber threats.
  • Using AI and machine learning to identify and mitigate network threats.
  • Enhancing security for virtualized network slices in 5G environments.
  • Cloud-based security solutions becoming integral to network infrastructure
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Software-Defined Networking and Blockchain Challenge Telecom Network Security Models

Alternatives to traditional cellular network security pose a threat to the market in that they compete with the business models employed by telecom companies. The technologies gaining popularity include software-defined networking, blockchain, and edge computing. Such innovations depict the need for the best, secure, and cost-effective alternatives employed for businesses and consumers. Some of the alternatives contain higher flexibility, better data privacy, and advanced protection against cyber threats, and are available at a relatively lower price. 

Sealing cellular networks through firewalls, encryption protocols, threat intelligence systems, and 24/7 monitoring tools with advanced technologies calls for substantial investments. The solutions are important to counter evolving cyber threats but at a very high cost. Small telecom operators specifically struggle to source the necessary funds for embedding comprehensive security frameworks due to the huge expense of purchasing, deploying, and maintaining the requisite tools. Second, qualified cybersecurity staff and education costs significantly elevate operating expenses. For such providers, operating costs can reach unsustainable levels as they struggle to remain competitive and still provide adequately safeguarded networks. Therefore, many may lack the capacity to meet minimum security standards leaving their networks open to cyberattacks and possibly data breaches. 

Novel Innovations in the Cellular Network Security Market Promises Market Growth

To address the growing need for robust security in private 5G networks in February 2024, Pente Networks, a private wireless network orchestration and management software company, announced that the latest version of the HyperCore Cloud platform included built-in, zero trust LTE and 5G cloud-to-edge network security. The new HyperCore Cloud Security Suite empowered customers to safeguard all their devices and data within the mobile network through a single, comprehensive system without needing additional software or complex integrations. Serving as a mobile protection hub, the HyperCore Cloud bridged the barrier between the mobile device and the network, from the SIM card to the mobile core, protecting customers against cellular-based attack vectors and much more.

To address the growing demand for robust, scalable security in the face of increasing IoT connectivity and evolving cyber threats, OneLayer, a leader in securing private LTE/5G networks for enterprises, in September 2023 announced the expansion of its private cellular network security solutions to encompass the areas of operations and asset management, leveraging the same cyber-related capabilities to provide more value for additional stakeholders in the organization. Following several deployments of their flagship product, OneLayer Bridge, in different verticals, and by leveraging a customer-centric approach, OneLayer learned that the solution simultaneously solved additional critical challenges companies faced with their private cellular networks, such as tracking and managing cellular assets and evaluating and optimizing their asset and network performance. This led OneLayer to innovate in the areas of cellular, from enriching its product set of capabilities to expanding the company, support, and services. 
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5G Expansion in the U.S. and UPI Adoption in India Fuel Cellular Network Security Market Growth

Acceptance of 5G technology across North America is expected to lead to increasing demand for the Cellular Network Security market. America is seeing an uptick in 5G adoption as it enables the delivery of much faster speeds, lower latency, and greater connectivity. This will improve mobile experiences with emerging technologies such as IoT and smart cities. Telecom operators' increased investments and deeper network coverage are boosting consumer demand. CTIA-The Wireless Association reports that in 2022 America had 162 million active 5G devices, a number that doubled from 2021. It is estimated that 5G devices constitute about 33% of the overall wireless connections, and they will reach 91% of all connections by 2028 in the United States. As the connection of 5G will continue to multiply, the market for Cellular Network Security is expected to grow.

Asia Pacific market can also be considered a lucrative market due to the rising online payment and online financial services as well as online transactions. Digital payments are rising in the Asia-Pacific region due to increased smartphone penetration, expanding internet access, and supportive government initiatives promoting cashless transactions. The region's rapidly growing e-commerce sector and younger populations are also driving demand for faster, more convenient payment methods. India can be considered as a lucrative market due to the rising user and expansion of UPI. As per the data of the Ministry of Finance, the total digital payments recorded in the year 2022-2023 in India were 13,462 crore using UPI. Also, as per the recent news, a total of 7 countries have started using UPI which include countries such as Mauritius, Singapore, UAE, etc making UPI a bigger and more lucrative market for the cellular network security market.
The report provides a detailed overview of the cellular network security market insights in regions including North America, Latin America, Europe, Asia-Pacific and the Middle East and Africa. The country-specific assessment for the cellular network security market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the cellular network security market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the cellular network security market. Some key countries and region included in the cellular network security market report as follows:
North America United States, Canada
Latin America Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America
Europe Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe
Asia Pacific China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Rest of Asia Pacific
Middle East and Africa GCC Countries, South Africa, Nigeria, Turkey, Egypt, Morocco, Israel, Kenya, Rest of MEA

Cellular Network Security Market Research Report Covers In-depth Analysis on:

  • Cellular network security market detailed segments and segment-wise market breakdown
  • Cellular network security market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in cellular network security industry)
  • Current, historical, and forthcoming 10 years market valuation in terms of cellular network security market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
  • Cellular network security market demand analysis
  • Cellular network security market regional insights with region-wise market breakdown
  • Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
  • Latest developments and innovations in the cellular network security market
  • Regulatory landscape by key regions and key countries
  • Cellular network security market sales and distribution strategies
  • A comprehensive overview of the parent market
  • A detailed viewpoint on the cellular network security market forecast by countries
  • Mergers and acquisitions in the cellular network security market
  • Essential information to enhance market position
  • Robust research methodology

- Frequently Asked Questions -

Which industries benefit most from cellular network security?

Industries such as telecommunications, banking, healthcare, and government sectors are most impacted by cellular network security, as they rely heavily on secure communication for sensitive data and operations.

What are the key security challenges in cellular networks?

Cellular networks face challenges such as data breaches, identity theft, denial-of-service attacks, and vulnerabilities in the 5G infrastructure. The market report analyzes these threats in detail.

Which players are leading the cellular network security market?

The report examines key players and market leaders in the cellular network security field, analyzing their market share, technological innovations, and strategic movements in response to emerging security threats.