5G Core Network Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Component (Solutions, and Services), By Deployment Mode (Cloud-Based, and On-Premises), By Network Function (Session Management Function, Network Repository Function, Policy Control Function, NF Repository Function, User Plane Function, and Others), By End-user (Telecom Operators, and Enterprises) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global 5G Core Network Market was valued at USD 2,321.4 Million in 2023 and is anticipated to reach a value of USD 13,438.6 Million by 2031 expanding at a CAGR of 24.8% between 2024 and 2031.

5G core network is an entirely software-based and designed as cloud-native, serves as the backbone of 5G communication systems. It is a basic component that enables the delivery of advanced services and applications in the 5G ecosystem. The architecture of the 5G core network is designed to be flexible, scalable, and capable of meeting the diverse requirements of advanced telecommunication. The 5G core market encompasses the infrastructure and software solutions that form the backbone of 5G networks. The 5G core is crucial for delivering the high-speed, low-latency, and reliable connectivity required for various applications across industries, such as IoT, autonomous vehicles, smart cities, and other advanced applications. The market is growing rapidly due to factors such as rise in connected devices, expansion of 5G networks, rising demand for high-speed internet, and growing demand for network slicing. The 5G core network market serves government, public, telecommunication, and enterprises sectors.

5G Core Network Market Major Driving Forces

Rise in Connected Devices: The increasing number of connected devices is having a significant impact on global 5G core network market. The increasing applications of connected devices including wearables, industrial sensors, and autonomous vehicles creates a huge demand for high speed internet access.

Expansion of 5G Networks: The rapid expansion of 5G networks has been a major trend globally, driving the growth of the 5G core network market.  Telecommunications companies and governments are investing heavily in 5G infrastructure and rolling out new 5G-enabled based devices. 

Rising Demand for High-Speed Internet: The market is driven by the need for high-speed connectivity in residential, enterprise, and industrial sectors. Consumers are increasingly seeking faster internet speeds for seamless streaming, gaming, and remote work, fueling the demand for 5G core network.

Growing Demand for Network Slicing: The increasing demand for network slicing to create virtual networks within the physical network, is driving demand for 5G core network. Network slicing enables operators to create multiple virtual networks, each suited to a different use case with a different set of capacity, latency, and reliability requirements. 

5G Core Network Market Key Opportunities

Growing Demand for Cloud-Native Networks: With the growing Demand for cloud-native networks, there is an increasing demand for automation and orchestration capabilities. The 5G core network has brought a significant technological shift, as it introduces new age technologies in mobile core networks. 5G core network services are entirely software-based and cloud-native, providing greater deployment agility, and flexibility.

The Rise of IoT Applications: The rise of technologies such as Internet of Things (IoT) is expected to provide opportunities for market growth. 5G core network supports a wide range of IoT devices, such as smart home appliances, security systems, and more owing to its low latency and internet speed. The proliferation of Internet of Things (IoT) devices and smart home technologies has led to increase in demand for high-capacity home networks, which 5G core network can provide.

Surge in Digital Transformation: Increase in the rate of digitalization particularly in developing economies is driving adoption of demand for 5G core networks in small and medium sized enterprises. Rising deployment of advanced technologies such as internet of things, and rising interest in private 5G networks tailored to specific enterprise requirements can further boost the market growth.

5G Core Network Market Key Trends

·         The rapid increase in demand for high-bandwidth applications, such as virtual reality(VR), augmented reality(AR), and IoT devices is influencing the demand for 5G core network

·         Advancement in edge computing for the improved network efficiency, reducing latency, and enhanced security is a significant factor shaping the market growth

·         The rise of Internet of Things (IoT), autonomous vehicles, smart cities, and other advanced applications that require high-speed, low-latency connectivity fuels the demand for 5G core network

·         The increasing need for advanced edge computing capabilities that can process data quickly and efficiently is driving demand for 5G core network

·         The growing demand for network slicing to create virtual networks within the physical network is driving market growth of 5G core network

·         Increasing use of enabling technologies drive adoption of 5G core network for maximize network performance, automate tasks, and improve security

·         The growing need for high-speed data services for online gaming, video streaming, and Internet of Things devices fuels the demand for 5G core network

Region-wise Market Insights

North America accounted for the largest market share at 41.3% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 27.2% between 2024 and 2031.

In North America, the demand is driven by the presence of major players, adoption of cutting-edge technologies, increasing demand for high-speed connectivity, and rising government initiatives to support the development of 5G network. Additionally, The North American region is a leading region in 5G deployment with strong focus on innovation. In Europe, the market growth is attributed to the rising 5G deployment, focus on Industry 4.0 applications, and regulatory initiatives. In Asia-Pacific, the market is characterized by increasing investment in digital transformation, rising internet penetration, large population base, and government support for 5G development which has created an increasing demand for 5G core network. The Middle East and Africa has been witnessing a growing demand for 5G core network due to increasing government investments whereas, in South America, the market is influenced by economic development, with increasing mobile phone penetration and ongoing 5G infrastructure development.

Market Competition Landscape

The global 5G core network market is characterized by high degree of competition among a large number of network providers. Key players in the 5G core network market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, collaborations, expansion, innovative products & technologies, reduce production costs, and mergers and acquisitions to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Major companies operating in the 5G core network market focus on expanding their business, manufacturing facilities, infrastructural development, and leverage integration opportunities. In addition, these companies are increasingly investing in research and development activities, to stay at the cutting edge of telecommunications technology and dominate the market.

Key players in the global 5G core network market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Telefonaktiebolaget LM Ericsson

·         ZTE Corporation

·         Qualcomm Technologies, Inc.

·         Cisco Systems, Inc.

·         Nokia Corporation

·         Huawei Technologies Co., Ltd.

·         NEC Corporation

·         Intel Corporation

·         Verizon Communications Inc.

·         Microsoft Corporation

·         Oracle Corporation

·         Samsung Electronics Co., Ltd.

·         Athonet

·         Mavenir

·         Casa Systems