ID: MRFR/ICT/5496-CR | August 2019 | Region: Global | 101 pages
Global Security Software in Telecom Market stood at USD 3,599.4 Million in 2018 and can touch an approximate valuation of USD 15.45 Billion by 2030, registering around 11.42% CAGR during the assessment period (2020 to 2030).
The expansion of LTE networks has enabled the telecom industry to provide seamless connectivity, expanding their networks across the rural, remote, and urban areas. However, this network expansion has also increased the number of cyberattacks in the telecom industry.
Additionally, increasing internet penetration, growing broadband adoption, and rising need for data services create substantial security software in telecom market demand. DDoS attacks have increased by 19% over the last two years, precisely from the second half of 2018, and continued to grow during the second half of 2019 and in 2020 as well.
The COVID-19 outbreak has positively impacted the already-competitive security software in telecom market. Factors such as the economical setback, including many lost jobs, downward discretionary income, and the massive leap people took to make a living online contribute to the market upend. With increasing transformations in the IT & telecom industry and digital transformation of the economy itself, the cybersecurity risk is rising across industry verticals.
Simultaneously, main concerns associated with decentralized security, more bandwidth strain on current security monitoring, building security by design into the IoT device manufacturing, and the need for suitable encryption at each stage of digital transactions are working favorably for the security software in telecom market. The demand for telecom security software is expected to pick up further following the uplift of the lockdown.
Increasing Cloud Services Create Favorable Market Environment
There is a significant rise in the uptake of cloud data storage and cloud services in organizations. Growing cyber-attacks on telecom networks and cloud data create substantial market demand. Additionally, rising usages of mobile and IoT devices accelerates the market growth. Furthermore, the availability of sustainable enterprise solutions and the increase in data breach incidents promotes the need for established secure networks.
Rising Digitization and Cloud-Based Platforms
Businesses & enterprises worldwide are growing and increasing in numbers, which increases their need for telecom and internet services. Resultantly, telecom companies implement security software in their systems, which, as a result, are projected to offer significant opportunities for the market.
Moreover, the proliferation of SaaS and cloud-based platforms would escalate market growth. Furthermore, rising innovations and digital transformation in organizations are estimated to offer vast growth opportunities for security software in the telecom market.
Restraints & Challenges
High Initial Investments to Restrain Market Growth
High deployment costs of the software are major factors anticipated to restrain the ongoing market growth, affecting market sales. Besides, the increasing development of inexpensive security solutions and insufficient infrastructure to implement IPV6 technology are major factors projected to act as a headwind for the growth of security software in telecom market.
Global Security Software in Telecom Market is segmented into Components, Security Types, Deployment Modes, Organization Size, and Region.
Solution is the Larger Component Segment
The component segment is sub-segmented into solutions and services. The solution segment is sub-segmented into identity & access management (IAM), risk & compliance management, data loss prevention (DLP), encryption, unified threat management, security information & event management (SIEM), firewall, distributed denial of service mitigation (DDoS), and others.
The services segment is divided into professional and managed services. The professional services segment is further bifurcated into risk assessment, design & implementation, support & maintenance, and others. The solution segment accounts for the larger market size, whereas the services segment accounts for a higher growth rate.
Security Type Segmentation
The security type segment is sub-segmented into network security, endpoint security, application security, cloud security, and others.
On-Premise is the Larger Deployment Segment
The deployment segment is sub-segmented into on-premise and cloud. The on-premise segment holds a larger market share, whereas the cloud segment accounts for a higher growth rate. In 2018, the deployment segment derived around 54% share of the market. Simultaneously, the cloud segment is expected to grow at an 11.3% CAGR during the forecast period.
SMEs is the Larger End User Segment
The end user segment is sub-segmented into large enterprises, small & medium enterprises (SMEs), and government. Among these, the large enterprise segment accounts for the largest market share, whereas the SMEs segment accounts for a higher growth rate. The SME segment is likely to grow at a 15.2% CAGR during 2019–2025.
North America is the Largest Regional Segment
By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World. Among these, North America accounts for the largest market share, followed by Europe and the APAC region, respectively.
North America Leads the Global Security software in telecom Market Growth
North America has always been the largest player in the global security software in telecom market. The region reached a market valuation of USD 1162.9 million in 2018. The North American security software in telecom market is predicted to register a market valuation of USD 2886.7 million by 2025, with a 12.2 % CAGR during the forecast period.
Factors such as the increase in IoT deployments and the availability of internet-enabled solutions and cloud services in the region boost the security software in telecom market size. The US and Canada experience high-profiled cyberattacks in the telecom sector, which is a major reason stimulating the demand for security software.
Europe Seizes Second Highest Security software in telecom Market Share
Europe holds the second-leading share in the global security software in telecom market, giving tough competition to the North American market. With its infrastructural advantage, the region is expected to register a market value of USD 2706 million by 2025, with a 14.6% CAGR during the forecast period.
Factors such as the growing number of telecom service providers and advances in security technologies foster security software in telecom market in Europe. Countries like the UK, Germany, France, and Italy account for notable shares in the regional market.
APAC Holds a Sizable Share in Global Market
Asia Pacific accounts for a sizable share in the global security software in telecom market. Emerging economies hold all the prospects of the security software in telecom market. The Asia Pacific security software in telecom market is projected to reach a valuation of USD 1651, 7 million by 2025, registering a 15.5% CAGR during the forecast period.
Factors such as the rapid digitization along with the advancements in IoT and cloud computing technologies in this region drive the market growth, posing the possibility of vulnerability to cyber-attacks. Furthermore, the increasing severity of cyberattacks and stringent government regulations are anticipated to foster APAC’s security software in telecom market share.
Players Focus on Product Development & Expansion
The market appears extremely competitive due to the strong presence of well-established market players. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets.
CyberArk is a US-based information security company offering Privileged Account Security. CyberArk’s technology is utilized primarily in the financial services, retail, energy, healthcare, and government markets. CyberArk is a leader in privileged access management (PCM), a critical IT security layer to protect data, infrastructure, and assets across the enterprises, in the cloud, and throughout the DevOps pipeline.
IBM Corporation (US), Dell Inc (US), Symantec Corporation (US), Trend Micro (Japan) Inc. McAfee (US), Check Point (US), CyberArk (Israel), Oracle Corporation (US), Imperva (US), F-Secure (Finland), Qualys (US), HP Enterprise Development LP (US), Forcepoint (US), FireEye (US), Fortinet (US), Microsoft Corporation (US), Amazon Web Services (US), Proofpoint (US), Palo Alto Networks (US), F5 Networks (US), Rapid7 (US), Juniper Networks (US), Sophos (UK), and Splunk (US) are some of the affluent contenders holding sizeable security software in telecom market share.
Jan. 28, 2021 – SK Telecom, Dell Technologies, and VMware announced their partnership to develop OneBox MEC, an integrated multi-access edge computing solution. The new software is designed to provide more secure and reliable access to data at edge locations.
The OneBox MEC would use the Dell EMC PowerEdge XE2420 server for data-intensive, low-latency edge services to deliver the performance, availability, and security required for CSPs to build their portfolio of private 5G and edge solutions.
Jan. 27, 2021 – Akamai, a leading global provider of the content delivery network (CDN), and Plume, a leading Wi-Fi software provider, announced their partnership to offer smart-home and smart-business services, including security. The joint offering would give Akamai and Plume access to each other’s customers as well as sales and marketing teams.
Nov. 05, 2020 – IBM launched its cloud for telecoms and an impressive posse of partners. The IBM Cloud for Telecommunications is an open, hybrid cloud architecture designed to help telecommunication providers address specific challenges of the highly-regulated industry. The cloud for telecoms platform would accelerate business transformation, enhance digital client engagement, improved agility as they modernize their enterprise applications and infrastructure to unlock the power of 5G and edge.
The security software in telecom market analysis features unique and relevant factors expected to significantly impact the market growth during the forecast period. The detailed security software in telecom market forecast would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the open-source security software in telecom industry.
Additionally, the analysis of COVID-19 impact on the security software in telecom market is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international markets. Detailed company profiling enables users to evaluate company shares, scope of the existing & emerging product lines in new markets, pricing strategies, innovation possibilities, and much more.
Frequently Asked Questions (FAQ) :
The security software in telecom market can thrive at 11.42% CAGR by 2030.
The security software in telecom market can value at USD 15.45 Billion by 2030.
In 2018, the security software in telecom market valued at 3,599.4 Mn.
IBM Corporation (US), Symantec Corporation (US), Dell Inc (US), and McAfee (US) are some reputed names in the security software in telecom market.
The North America security software in telecom market poised to achieve high valuation by 2025.
The global security software in telecom market is characterized by the presence of many global, regional, and local players. The market is competitive with all the players competing to gain market share. Intense competition and rapid advances in technology are detrimental factors for the market growth. The vendors compete based on cost, features, and reliability of software in the long-run. It is important for the service providers to offer cost-efficient and high-quality security software to survive and succeed in an intensely competitive environment.
The growth of the market players is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on improving services and geographical expansion. Symantec., IBM, Dell EMC., McAfee, and Trend Micro are the major companies in the market, which compete in terms of customization, quality, price, and technology. Other companies in the security software market in telecom sector include Cisco, Fortinet, F-secure, Check Point, AVG Technologies and Imperva among others. They primarily focus on the development of high-quality software solutions for more secured applications. Although international players are dominating the market, regional and foreign players with small market shares also have a prominent presence here. The major players are looking to strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecasted that improvement of the global economic scenario combined with advances in technology in the emerging economies is fueling the market growth, thereby making it an ideal time to launch advance offerings and increase the global market share.
Symantec is one of the prominent players in the security software market, holding 17.15% share. Symantec shows strong performance in endpoint protection platform, secure email gateway, data loss prevention software, and consumer security software. The company provides diverse product portfolio on security software which has enabled the company to gain competitive advantage in the security software market. Moreover, Symantec focuses on strategic flexibility, partnerships, and developing individual M&A strategies.
McAfee held a market share of 12.16% in 2017. McAfee, a leading-edge cyber security company, provides advanced security solutions to a huge network of consumers, businesses, strategic partners, and government entities. To provide its customers with a wide array of privacy tools, the company has acquired TunnelBear, a public virtual private network service. The latter’s intuitive interface will keep customers’ data secure on public Wi-Fi and the Web, with the ability to block intrusive ads.
IBM held a market share of 4.04% in 2017. IBM’s security business is experiencing rapid growth. The company is focusing on security by innovating technologies. For instance, in October 2018, IBM launched IBM Security Connect cloud platform with AI-capabilities and the ability to analyze security data across tools and environments.
In 2017, Trend Micro held a share of 2.22% in security software market. Trend Micro provides an effective and easy to use software suite to its customers in countries throughout North America, Latin America, Europe and Asia-Pacific. In July 2018, Trend Micro collaborated with SoftwareONE, a leading software and cloud portfolio management provider, to launch security for Microsoft Azure, a managed security service that enables organizations to protect their Microsoft Azure environment.
Dell EMC has occupied the fifth position in the global security software in telecom market. The company is partnering with technology companies to add new products to the portfolio. For instance, the company partnered with Innodep, a South Korean security and surveillance company, to add IoT capabilities to its IP-based security software in order to tap new IoT business opportunities.
The market players with better technical and financial resources focus on innovation to develop highly secure software to stay competitive in the market. Therefore, the players must innovate and make use of new technologies to stay abreast of the emerging technologies that could affect the continuing competitiveness in the market. The competitive environment in the market is likely to intensify in the forecast period due to rapid industrialization, technological innovations, and partnerships & acquisition.