PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1509738
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1509738
Since the advent of smartphones, digitization has profoundly transformed lives worldwide. The rapid advancement of mobile and wireless technologies has spurred high demand for secure mobile communication services and solutions. In 2024, the market for these services is projected to be valued at $17.052 billion, soaring to $79.81 billion by 2031, reflecting a remarkable CAGR of 24.7%.
Key Drivers of Market Growth
Military and defense organizations use encrypted cell phones with secure satellite communication to ensure operational safety and secrecy. Growing cyberattacks, rising consumer data security concerns, increased adoption of the BYOD (bring your own device) trend, the growing popularity of IoT devices, advancements in mobile communication technologies, and high internet penetration are other prospects driving future secure mobile communication demand.
The rise in digital payments and digital banking is expected to fuel market growth and significantly influence the demand for encrypted mobile communications in the finance sector.
Challenges
Despite the promising growth, the high costs of encrypted mobile communication systems and the complexity of secure mobile communication solutions may impede overall market development to some extent.
Opportunities in East Asia and South Asia & Pacific
East Asia and South Asia & Pacific are highly opportune regions for market players due to rapid digitization, increasing urbanization, growing smartphone sales, and rising Internet penetration. Sales of secure mobile communication systems in China are expected to rise at a notable CAGR, with China accounting for a significant share of the global market in 2021.
Deployment of 5G Services and IoT Devices
The launch of 5G networks is set to revolutionize mobile communications by providing unparalleled speeds and connectivity. However, it also poses significant cybersecurity threats, creating new opportunities for secure mobile communication solution providers. The growing adoption of IoT devices, which operate on wireless networks and are prone to cybersecurity issues, further opens new avenues for market players.
Strategies for New Start-ups
Upcoming secure mobile communication providers are expected to focus on advanced technologies such as machine learning (ML), artificial intelligence (AI), and biometrics to create novel security offerings. Aspiring companies are also raising new capital to advance their business potential and gain a competitive edge. For instance, in October 2022, Qunnect raised $8 million in a Series A funding round led by Airbus Ventures to bring its quantum-secure networking devices to market.
Market Potential in the United States
The U.S. is home to some of the world's most renowned technology companies, promoting early adoption of advanced technologies and offering new opportunities for secure mobile communication companies. High investments in the military & defense sector, rising security concerns among smartphone users, and the availability of novel secure mobile communication services drive market potential in the U.S. In 2021, the demand for secure mobile communications in the U.S. accounted for a major share of the global market.
Investing in the Japanese Market
Japan's early adoption of 5G networks and leadership in deploying novel wireless technologies make it a highly opportune market for secure mobile communications. Major mobile operators offer 5G services, and the nation plans to phase out 4G networks by 2026, opening new possibilities for secure communication providers. The Japanese secure mobile communications industry is anticipated to expand at a significant CAGR, holding a notable share of the global market in 2021.
Market Trends in Germany
The automotive industry's adoption of IoT technology is driving demand for secure mobile communications in Germany. These IoT devices, operating on wireless and mobile networks, are prone to attacks and data breaches, necessitating secure communication services. Rising demand for better mobile network security, increasing data breaches, and strict mandates to ensure secure mobile communications also drive market potential in Germany. The market in Germany is predicted to evolve at a notable CAGR from 2022 to 2032.
Industry-wise Insights
The finance sector has rapidly changed over the past couple of decades, with digital payments gaining prominence, mandating new security levels for financial institutions. Growing cyberattacks and cyber frauds in the fintech industry are expected to drive demand for secure mobile communications. In 2021, the finance industry accounted for a commanding market share and is predicted to maintain it throughout the forecast period.
Competitive Analysis
Key secure mobile communication providers are focusing on developing new solutions through collaborations and partnerships. For instance, in August 2022, INVISV launched PGPP (Pretty Good Phone Privacy), a new mobile privacy service demonstrating a new end-to-end security level for Android devices.
In July 2021, Bittium partnered with the Canadian Digitally Encrypted Communications Group (DEC) to develop a new digital security platform called DEC secure. This platform uses always-on VPN and end-to-end encryption to provide worry-free and secure mobile communications.
Companies are also leveraging mergers and acquisitions to diversify their offerings and enhance their global market presence. In September 2022, Route Mobile was rumored to complete the acquisition of two companies, one in Europe and the other in India. These acquisitions are expected to help Route Mobile launch mobile identity services and offer voice solutions using ML and AI technologies.
Competitive Analysis
Key Segments of Secure Mobile Communications Industry Research