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US$8 billion market for IoT security services on 4G and 5G networks by 2026

By Ryan Morris-Reade
Fri 10 Sep 2021

ABI Research forecasts that by 2026, IoT cellular connections will number more than 3 billion, with 4G LTE and LPWA networks bearing the brunt of these new connections and driving an US$8 billion market for IoT security services. 

According to the global tech market advisory firm ABI Research, the opportunity to deliver secure IoT communications on these networks will be key to the successful deployment of connected things globally and the eventual transition to 5G New Radio (NR). The security industry is amid significant new technology developments to provide secure cellular connectivity solutions to IoT stakeholders across the board.

"With the emergence of new cellular standards such as NB-IoT, LTE-M and 5G MMTC, there is a dynamic opportunity to create new platform solutions focused on network security to enhance trust in IoT deployments," says ABI Research digital security research director, Michela Menting.

"Specifically, new target markets will emerge that will directly require dedicated point solutions and customised service offerings for communication service providers and enterprises. An expanded threat landscape, new standard-defined security protocols, and the potential for revenue generation through the sale of value-added security services will all combine to drive a dynamic and highly competitive security market for cellular IoT protection."

ABI Research says market demands for secure cellular IoT solutions are coming from automotive, asset management, smart cities, utilities, energy, and payments and healthcare applications. The company says demand diversity means the vendor landscape is expanding considerably. Pure-play cybersecurity vendors and traditional technology providers are throwing their hats in the ring alongside telco network equipment providers and network solution providers to offer secure IoT solutions to mobile network operators and enterprises in their respective markets. 

Companies delivering such solutions include 1NCE, Allot, Ericsson, FirstPoint, Fortinet, G+D, IoTerop, Kudelski, Mobileum, Netscout, Nokia, Thales, Transatel, and ZTE.

"While LPWANs are still nascent, and 5G NR are quite a few years from maturity, early understanding and integration of security are critical to developing trusted networks. They will enable the creation of high-value revenue opportunities for the entire industry," says Menting.

The findings are from the ABI Research Secure IoT Cellular Connectivity (LPWAN & 5G) application analysis report. The report is part of the company's Digital Security research service, including research, data, and ABI Insights. Based on extensive primary interviews, application analysis reports present an in-depth analysis of key market trends and factors for a specific application, focusing on an individual market or geography.

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