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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 2032.

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    5G Core Market Infographic
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    5G Core Market Summary

    As per Market Research Future Analysis, the global 5G core market is projected to grow significantly, driven by the increasing demand for cloud-native architectures and the development of smart infrastructure. The market is expected to reach USD 21.68 Billion by 2032, with a CAGR of over 9.50% during the forecast period. The 5G core network, which is entirely software-based and cloud-native, plays a crucial role in mobile network operations, including connectivity, mobility management, and policy management. The COVID-19 pandemic has impacted global economic growth, but it has also created opportunities for the 5G core market, particularly in private network deployments across various sectors. However, data security concerns remain a significant restraint as 5G networks expand.

    Key Market Trends & Highlights

    The 5G core market is witnessing transformative trends driven by technological advancements and increasing urbanization.

    • Market Size in 2020: USD 506.8 Million; Cloud segment accounted for 71.2% market share.
    • Asia-Pacific held 79.09% market share in 2020; expected CAGR of 44.9% during the forecast period.
    • Private 5G networks gaining traction; Germany issued 88 private 5G licenses in 3.7 GHz-3.8 GHz spectrum.
    • 5G core market expected to reach USD 21.68 Billion by 2032; CAGR of over 9.50%.

    Market Size & Forecast

    2023 Market Size USD 21.68 Billion
    Expected CAGR 9.50%
    Largest Regional Market Share in 2020 Asia-Pacific

    Major Players

    Major players include Nokia Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co.Ltd., ZTE Corporation, Samsung Electronics Co.Ltd., Affirmed Networks, Mavenir, NEC Corporation, Cisco Systems Inc., Hewlett Packard Enterprise Development LP, Oracle Corporation, Athonet, Casa Systems, Cumucore, and Druid Software.

    5G Core Market Drivers

    Expansion of Smart Cities

    The development of smart cities is significantly influencing the Global 5G Core Market Industry. Governments worldwide are investing in infrastructure that supports smart technologies, including intelligent transportation systems, smart grids, and enhanced public safety measures. The integration of 5G technology enables real-time data processing and communication, which is essential for the efficient functioning of these urban environments. As cities evolve, the demand for 5G core solutions is expected to rise, contributing to the market's expansion. This trend suggests a long-term growth potential for the Global 5G Core Market Industry as urbanization accelerates.

    Market Growth Projections

    The Global 5G Core Market Industry is poised for substantial growth, with projections indicating a market value of 194.4 USD Billion by 2035. This growth trajectory is underpinned by a compound annual growth rate (CAGR) of 57.1% from 2025 to 2035. The increasing adoption of 5G technology across various sectors, including healthcare, automotive, and entertainment, is expected to drive this expansion. As organizations recognize the transformative potential of 5G, investments in core network solutions are likely to accelerate, further solidifying the market's upward trajectory.

    Emergence of Edge Computing

    Edge computing is emerging as a pivotal factor in the Global 5G Core Market Industry. By processing data closer to the source, edge computing reduces latency and enhances the performance of applications reliant on real-time data. This technological advancement aligns seamlessly with the capabilities of 5G networks, which are designed to support high-speed and low-latency communications. As industries increasingly adopt edge computing solutions, the demand for 5G core infrastructure is likely to escalate. This synergy between edge computing and 5G technology suggests a promising outlook for the Global 5G Core Market Industry.

    Adoption of Cloud-Native Technologies

    The shift towards cloud-native technologies is reshaping the Global 5G Core Market Industry. Organizations are increasingly adopting cloud-based solutions to enhance flexibility, scalability, and cost-effectiveness. This transition facilitates the deployment of 5G core networks that can efficiently manage vast amounts of data and support diverse applications. The ability to leverage cloud infrastructure allows for rapid innovation and service delivery, which is crucial in a competitive landscape. As businesses recognize the advantages of cloud-native architectures, the demand for 5G core solutions is expected to rise, further propelling the market's growth.

    Rising Demand for High-Speed Connectivity

    The Global 5G Core Market Industry is experiencing a surge in demand for high-speed connectivity, driven by the increasing number of connected devices and the proliferation of IoT applications. As industries seek to enhance operational efficiency, the need for low-latency and high-bandwidth solutions becomes paramount. In 2024, the market is projected to reach 1.35 USD Billion, reflecting the growing reliance on advanced connectivity solutions. This trend is likely to continue as businesses and consumers alike prioritize seamless connectivity, indicating a robust growth trajectory for the Global 5G Core Market Industry.

    Increased Investment in Telecommunications Infrastructure

    Investment in telecommunications infrastructure is a critical driver of the Global 5G Core Market Industry. Governments and private sectors are channeling substantial resources into upgrading existing networks and deploying new 5G infrastructure. This investment is essential to meet the growing demand for high-speed internet and mobile services. As of 2024, the market is anticipated to be valued at 1.35 USD Billion, with projections indicating a remarkable growth to 194.4 USD Billion by 2035. This trajectory, characterized by a CAGR of 57.1% from 2025 to 2035, underscores the urgency of enhancing telecommunications capabilities globally.

    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 Global 5G Core Market is poised for rapid expansion, driven by a 57.1% CAGR from 2024 to 2035, fueled by increasing demand for high-speed connectivity and IoT integration.

    New opportunities lie in:

    • Develop advanced security solutions for 5G networks to mitigate emerging cyber threats.
    • Invest in edge computing capabilities to enhance data processing speeds and reduce latency.
    • Create tailored solutions for vertical industries like healthcare and automotive to leverage 5G technologies.

    By 2035, the 5G Core Market is expected to achieve substantial growth, establishing a robust infrastructure for future connectivity.

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 USD 2.47 Billion
    Market Size 2024 USD 3.24 Billion
    Market Size 2032 USD 21.68 Billion
      CAGR   9.50 % CAGR  
      Base Year   2021
      Forecast Period   2024–2032
      Historical Data   2020
      Forecast Units   Value (USD Million)
      Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Segments Covered Component, Deployment mode, Network Functions, End User
    Geographies Covered North America, Europe, Asia-Pacific, and Rest of the World (RoW)
    Key Vendors ZTE Corporation (China), Samsung Electronics Co.Ltd.(South Korea), Affirmed Networks (US), Mavenir (US), NEC Corporation (Japan)
    Key Market Opportunities Demand for 5G Private Networks Across Enterprises, Governments, and Industrial Sectors
    Key Market Drivers Growing Demand for Cloud-Native & Service-Based ArchitectureDevelopment of Smart InfrastructureRapid Developments in IoT

    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

    How big is the market for 5G?

    The market for 5G is rapidly growing, and is expected to reach USD 21.68 billion by 2032.

    What is the leading segment in the global 5G core market?

    The cloud-based deployment is the largest segment in the global 5G core market.

    What are the top players operating in the 5G Core Market?

    ZTE Corporation (China), Samsung Electronics Co.Ltd.(South Korea), Affirmed Networks (US), Mavenir (US), NEC Corporation (Japan)

    Which region has the highest market share in the 5G core market?

    APAC is expected to hold the largest share of the 5G core market. APAC has become the leading region in the adoption and implementation of 5G key solutions for the development of 5G SA networks. The region has strong demand for the implementation of 5G core technologies in manufacturing, automotive, media and entertainment, healthcare, and business sectors.

    What is a 5G core?

    5G Core (5GC) is the core of the 5G mobile network. It provides a reliable and secure network connection for end users and provides access to its services.

    5G Core Market Research Report - Global Forecast till 2032 Infographic
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