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    5G Core Market

    ID: MRFR/ICT/8971-CR
    141 Pages
    Aarti Dhapte
    December 2021

    5G Core Market Research Report Information by Component (Hardware (Solutions, Services: Professional Services, Managed Services), Deployment Mode (Cloud, On-Premises), Network Functions (Access And Mobility Management Function, Session Management Function, User Plane Function, Policy Control Function, NEF (Network Exposure Function), NF Repository Function, Unified Data Management, Authentication Server Function, Application Function, Network Slice Selection Function), End-User (Consumer, Enterprises), and Regions - Forecast till 2035.

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    5G Core Market Infographic
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    5G Core Market Summary

    As per MRFR analysis, the 5G Core Market Size was estimated at 2.705 USD Billion in 2024. The 5G Core industry is projected to grow from 2.962 in 2025 to 7.339 by 2035, exhibiting a compound annual growth rate (CAGR) of 9.5 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The 5G Core Market is poised for substantial growth driven by technological advancements and increasing demand for connectivity.

    • The adoption of cloud-native architecture is transforming the 5G Core landscape, particularly in North America.
    • AI and machine learning integration is enhancing operational efficiency and service delivery in the Asia-Pacific region.
    • There is a pronounced focus on low-latency applications, which is critical for sectors such as autonomous vehicles and smart cities.
    • The expansion of the IoT ecosystem and government initiatives are key drivers propelling the growth of solutions and services in the market.

    Market Size & Forecast

    2024 Market Size 2.705 (USD Billion)
    2035 Market Size 7.339 (USD Billion)
    CAGR (2025 - 2035) 9.5%

    Major Players

    Ericsson (SE), Nokia (FI), Huawei (CN), Samsung (KR), ZTE (CN), Cisco (US), Intel (US), Qualcomm (US), Mavenir (US), Fujitsu (JP)

    5G Core Market Trends

    The 5G Core Market is currently experiencing a transformative phase, characterized by rapid advancements in technology and increasing demand for high-speed connectivity. As industries evolve, the need for robust and flexible network architectures becomes paramount. This market is witnessing a shift towards cloud-native solutions, which offer enhanced scalability and efficiency. Additionally, the integration of artificial intelligence and machine learning into network management is becoming more prevalent, enabling operators to optimize performance and reduce operational costs. The growing emphasis on low-latency applications, such as autonomous vehicles and smart cities, further propels the demand for advanced core network solutions. Moreover, the competitive landscape of the 5G Core Market is intensifying, with numerous players striving to establish their presence. Partnerships and collaborations among telecom operators, technology providers, and enterprises are increasingly common, as stakeholders seek to leverage each other's strengths. This collaborative approach not only fosters innovation but also accelerates the deployment of 5G services across various sectors. As the market continues to mature, it appears poised for sustained growth, driven by the ongoing digital transformation and the quest for seamless connectivity across the globe.

    Cloud-Native Architecture Adoption

    The shift towards cloud-native architectures is reshaping the 5G Core Market. This approach enhances flexibility and scalability, allowing operators to deploy services more efficiently. As businesses seek to optimize their operations, the demand for cloud-based solutions is likely to increase.

    AI and Machine Learning Integration

    The incorporation of artificial intelligence and machine learning into network management is becoming more pronounced. These technologies enable operators to analyze vast amounts of data, optimize network performance, and enhance user experiences, potentially leading to more efficient operations.

    Focus on Low-Latency Applications

    There is a growing emphasis on low-latency applications within the 5G Core Market. Sectors such as autonomous vehicles and smart cities require rapid data transmission and processing. This trend suggests that the demand for advanced core network solutions will continue to rise.

    5G Core Market Drivers

    Expansion of IoT Ecosystem

    The expansion of the Internet of Things (IoT) ecosystem is significantly influencing the 5G Core Market. With billions of devices expected to be connected in the coming years, the need for a robust core network that can handle massive data traffic is paramount. The 5G Core architecture is designed to support a diverse range of applications, from smart cities to industrial automation. It is estimated that by 2025, the number of connected IoT devices could exceed 30 billion, creating a substantial opportunity for the 5G Core Market. This growth necessitates advanced network capabilities to ensure efficient data processing and management.

    Emergence of Edge Computing

    The emergence of edge computing is reshaping the landscape of the 5G Core Market. By processing data closer to the source, edge computing reduces latency and enhances the performance of applications that require real-time data analysis. This trend is particularly relevant for sectors such as autonomous vehicles and smart manufacturing, where immediate data processing is critical. The integration of edge computing with 5G networks is expected to drive substantial investments in infrastructure, as companies seek to leverage the benefits of low-latency connectivity. As a result, the 5G Core Market is likely to see increased demand for solutions that facilitate edge computing capabilities.

    Rising Adoption of Cloud Services

    The rising adoption of cloud services is a significant driver for the 5G Core Market. As businesses increasingly migrate their operations to the cloud, the demand for high-speed, reliable connectivity becomes essential. The integration of 5G technology with cloud services enables organizations to leverage advanced capabilities such as real-time data analytics and enhanced collaboration tools. It is projected that the cloud services market will continue to grow, with estimates suggesting a compound annual growth rate of over 20% in the coming years. This trend is likely to propel the 5G Core Market forward, as telecom operators enhance their offerings to support cloud-based applications.

    Government Initiatives and Investments

    Government initiatives and investments play a crucial role in the development of the 5G Core Market. Many countries are actively promoting the rollout of 5G networks through funding and policy support, recognizing the technology's potential to drive economic growth and innovation. For instance, various governments have allocated billions of dollars to enhance telecommunications infrastructure, which is expected to accelerate the deployment of 5G services. This supportive environment fosters collaboration between public and private sectors, ultimately benefiting the 5G Core Market by creating a more conducive atmosphere for technological advancements and market expansion.

    Increased Demand for High-Speed Connectivity

    The demand for high-speed connectivity is a primary driver in the 5G Core Market. As businesses and consumers increasingly rely on data-intensive applications, the need for faster and more reliable internet connections has surged. According to recent estimates, the number of 5G subscriptions is projected to reach over 1.5 billion by 2025, indicating a robust growth trajectory. This demand is not only driven by mobile users but also by the proliferation of IoT devices, which require seamless connectivity. The 5G Core Market is thus positioned to benefit from this trend, as telecom operators invest in infrastructure to meet the growing expectations for speed and performance.

    Market Segment Insights

    By Component: Solutions (Largest) vs. Services (Fastest-Growing)

    Within the component segment of the 5G Core Market, solutions hold the largest share, reflecting their critical role in infrastructure deployment. They encompass various technologies such as network slicing, which allows for multiple virtual networks on a single physical infrastructure, thus enabling diverse applications and services. In contrast, services are emerging as the fastest-growing segment, driven by increasing demand for tailored solutions and customer support. As telecom operators face complex network orchestration challenges, the services landscape is evolving to meet these needs, enhancing customer experience while fostering innovation in network management and optimization.

    Solutions: Network Slicing (Dominant) vs. Network Function Virtualization (Emerging)

    In the 5G Core Market, network slicing, a solution that allows multiple virtual networks to run on a single physical infrastructure, stands out as the dominant characteristic. It enables service providers to offer customized services catering to specific use cases, such as IoT, enhanced mobile broadband, and ultra-reliable low-latency communications. Conversely, network function virtualization (NFV) is emerging rapidly, providing flexibility and cost efficiency by decoupling hardware from network functions. NFV allows operators to deploy virtualized services and applications more seamlessly, adapting to changing market demands and enhancing their service portfolios, thus driving significant growth within the service category.

    By Deployment Mode: Cloud (Largest) vs. On-Premises (Fastest-Growing)

    In the 5G Core Market, the distribution of deployment modes is heavily skewed towards cloud solutions, which dominate the landscape due to their scalability and flexibility. Cloud deployment models enable service providers to leverage virtualized network functions, thus lowering operational costs and enhancing service delivery. In contrast, On-Premises solutions have carved out a significant and growing niche, primarily among enterprises looking for greater control and minimal latency, increasing their overall market share in the sector.

    Deployment Mode: Cloud (Dominant) vs. On-Premises (Emerging)

    Cloud deployments have established themselves as the dominant force in the 5G Core Market, primarily because of their capability to offer elastic resources and efficient resource management. This modality is particularly favored by telecom operators and service providers due to its reduced time-to-market for new services. On the other hand, On-Premises deployments are emerging rapidly, catering to organizations that prioritize security, customized infrastructure, and long-term investment. These solutions allow businesses to manage their network resources internally and enhance performance by reducing latency, which is becoming increasingly critical in the high-speed requirements of 5G technology.

    By Network Functions: AMF (Largest) vs. SMF (Fastest-Growing)

    In the 5G Core Market, the distribution of market share among network functions reveals that Access and Mobility Management Function (AMF) takes a significant lead due to its critical role in handling user connections and mobility management. Following closely, the Session Management Function (SMF) is gaining traction as the demand for efficient session handling rises with increasing mobile data consumption. Other functions like User Plane Function (UPF) and Policy Control Function (PCF) also hold notable shares, but their growth rates are comparatively slower than AMF and SMF in this rapidly evolving market. The growth trends in the Network Functions segment indicate a robust increase in the adoption of SMF, driven primarily by the expansion of 5G networks and the need for more complex session management capabilities. With more services being introduced over 5G, the demand for functions like AMF is expected to remain strong as they provide vital management services. Additionally, increasing investments in network infrastructure further fuel the growth of these functions, particularly for the SMF, which is viewed as essential for the successful deployment of advanced 5G use cases.

    AMF (Dominant) vs. UPF (Emerging)

    The Access and Mobility Management Function (AMF) is recognized as the dominant player in the 5G Core Market, primarily due to its essential capabilities in managing user access and maintaining seamless mobility across networks. Its comprehensive features support dynamic mobility scenarios, which are crucial as more users transition to 5G technology. In stark contrast, the User Plane Function (UPF) is emerging as a vital component that supports data-forwarding mechanisms and enhances user experience by facilitating efficient data throughput and reduced latency. As 5G adoption grows, the UPF's role becomes increasingly significant in managing user plane traffic. Both functions are interdependent, with AMF providing the control mechanisms necessary for UPF to operate effectively, making their collaboration integral to the overall performance of the 5G Core.

    By End-User: Consumer (Largest) vs. Enterprises (Fastest-Growing)

    In the 5G Core Market, the end-user segment is primarily dominated by consumers, who account for the largest share of market demand. This consumer base includes individual users seeking enhanced connectivity and seamless experiences for mobile applications and IoT devices. Enterprises, while currently smaller in terms of market share, are witnessing rapid growth as more organizations adopt 5G technologies to enhance operations and productivity. The shift toward digital transformation in businesses is accelerating this change. Growth trends indicate that the consumer segment will continue to be a substantial contributor to the 5G Core Market; however, enterprises are emerging as the fastest-growing segment. Factors driving enterprise growth include the increasing adoption of IoT applications, need for enhanced data analytics, and improved network efficiencies. As businesses recognize the potential of 5G capabilities to optimize their processes, investment in related technologies continues to surge, signaling robust future growth in the enterprise sector.

    End-User: Consumer (Dominant) vs. Enterprises (Emerging)

    The consumer segment in the 5G Core Market remains dominant due to the vast population of individual users engaged in various activities that leverage 5G networks, such as streaming, gaming, and connected devices. Consumers are often drawn to the improved speeds and lower latency that 5G provides. On the other hand, the enterprise segment is classified as emerging, driven by the growing need for businesses to implement advanced technologies. Enterprises are increasingly utilizing 5G for applications such as remote work capabilities, autonomous operations, and smart manufacturing solutions. This transition illustrates how enterprises are beginning to not only catch up but are forecast to drive significant innovation and growth within the market in the coming years.

    Get more detailed insights about 5G Core Market

    Key Companies in the 5G Core Market market include

    Industry Developments

    • Q1 2025: 5G core network sales to jump 15% in 2025, says Dell'Oro ZTE, Huawei, Ericsson, and Nokia led global vendor rankings for 5G core network sales in Q1 2025, with ZTE gaining from large Chinese deployments and the market surging 32% year-over-year, driven by 5G Standalone rollouts and cloud-native upgrades.

    March 2024- In its recent edition of "5G Mobile Core: Competitive Landscape Assessment report," GlobalData rated Huawei 5G Core as a "Leader" in the 5G mobile core network field for the 6th The commanding consulting firm also conferred Huawei 5G Core full scores in all dimensions for the first time. As of the commencement of this report in 2018, Huawei is the single vendor ever to get such perfect scores. In the reports, GlobalData underlines the extraordinary benefits of Huawei 5G Core.

    By using a Cloud Native-based, extremely dependable architecture, Huawei 5G Core integrates full-range services across 2G to 5G, marking an industry first. In addition, Huawei offers professional integration and O&M services with broad experience.

    This has made Huawei 5G Core a market leader in in-depth and broad commercial use. The report also underlines the value of services and the Autonomous Driving Network (ADN) solution concentrated on Huawei 5G Core. In terms of labeling, Huawei's industry-leading Single Voice Core (SVC) solution with full convergence can offer voice services for the 2G to 5G range, as well as VoIP and VoWiFi services. Confronting industries, the Huawei 5GtoB solution offers several applications. In addition to this, the Huawei ADN solution offers operators O&M services with high reliability, agile delivery, and optimized experiences.

    April 2024- Comcast cast another 65,000 broadband subscribers in the first quarter of 2024 and anticipates those losses to continue in the short term. However, cable operators are also trying to reduce that trend by segmenting the market with offers customized to the premium and lower ends of the market. Lately, Comcast has concentrated products and promotions focused on the lower end, a segment that has been going to fix wireless access (FWA) competitors in droves.

    Future Outlook

    5G Core Market Future Outlook

    The 5G Core Market is projected to grow at a 9.5% CAGR from 2024 to 2035, driven by increased demand for IoT, enhanced mobile broadband, and low-latency applications.

    New opportunities lie in:

    • Development of edge computing solutions for real-time data processing.
    • Integration of AI-driven analytics for network optimization.
    • Expansion of private 5G networks for enterprise applications.

    By 2035, the 5G Core Market is expected to be robust, driven by diverse applications and technological advancements.

    Market Segmentation

    5G Core Market End-User Outlook

    • Consumer
    • Enterprises

    5G Core Market Component Outlook

    • Solutions
    • Services

    5G Core Market Deployment Mode Outlook

    • Cloud
    • On-Premises

    5G Core Market Network Functions Outlook

    • AMF
    • SMF
    • UPF
    • PCF
    • NEF
    • NRF
    • UDM
    • AUSF
    • AF
    • NSSF
    • Others

    Report Scope

    MARKET SIZE 20242.705(USD Billion)
    MARKET SIZE 20252.962(USD Billion)
    MARKET SIZE 20357.339(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)9.5% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of edge computing with 5G Core Market enhances real-time data processing capabilities.
    Key Market DynamicsIntensifying competition and regulatory shifts drive innovation and consolidation in the 5G Core Market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the projected market valuation of the 5G Core Market by 2035?

    <p>The projected market valuation of the 5G Core Market is 7.339 USD Billion by 2035.</p>

    What was the market valuation of the 5G Core Market in 2024?

    <p>The market valuation of the 5G Core Market was 2.705 USD Billion in 2024.</p>

    What is the expected CAGR for the 5G Core Market during the forecast period 2025 - 2035?

    <p>The expected CAGR for the 5G Core Market during the forecast period 2025 - 2035 is 9.5%.</p>

    Which companies are considered key players in the 5G Core Market?

    <p>Key players in the 5G Core Market include Ericsson, Nokia, Huawei, Samsung, ZTE, Cisco, Intel, Qualcomm, Mavenir, and Fujitsu.</p>

    What are the projected revenues for the Solutions and Services segments in 2035?

    <p>The projected revenues for the Solutions and Services segments are 4.2 USD Billion and 3.139 USD Billion, respectively, by 2035.</p>

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