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5G Core Market Trends

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

5G Core Market Overview

The global 5G core market is estimated to register a CAGR of over 9.50% to reach USD 21.68 Billion by the end of 2032. A 5G mobile network's heart is the 5G core (5GC). It connects end users to the network and gives them access to its services dependably and securely. The core domain is responsible for a wide range of mobile network operations, including connectivity and mobility management, authentication and authorization, subscriber data management, and policy management.

5G core network services are entirely software-based and cloud-native, providing greater deployment agility and flexibility regardless of the underlying cloud infrastructure. Industry experts specified how the core network should evolve to serve the needs of 5G New Radio (NR) and the advanced use cases offered by it with the arrival of 5G. They collaborated to create the 5G core 3GPP standard for core networks (5GC).

Figure 1: 5G core Market Size, 2023-2032 (USD Billion)

5G Core Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

  • COVID-19 Impact vs. Opportunities for the Global 5G Core Market:

In today's globalized world, the severity of the Novel Coronavirus or the Covid-19 pandemic has impacted almost every country. The ruthless Covid-19 is doing damage to almost every business. Because of the intrinsic nature of the corporate activity, some industries may unintentionally benefit because of the pandemic, while others may weather the storm, although with great difficulty. Economists unanimously agreed that it would have serious negative consequences for the world economy.

According to current IMF projections, the virus lowered global economic growth in 2020 to a -3.4 percent to -7.6 percent annualized pace, with a recovery of 4.2 percent to 5.6 percent expected for 2021. Global Economic Effects of Covid-19, research by the Congressional Research Service, claims that the virus slowed global economic growth to a -4.5 percent to -6.0 percent annualized pace in 2020, with a partial recovery of 2.5 percent to 5.2 percent expected in 2021. According to fresh WTO projections, the amount of global merchandise trade is likely to climb by 8.0 percent in 2021, after falling 5.3 percent in 2020, continuing its recovery from the pandemic-induced drop that peaked in the second quarter of last year.

Market Dynamics:

  • Drivers:

    • Growing Demand for Cloud-Native & Service-Based Architecture:

The 5G core represents a significant technological shift, as it introduces never-before-seen technologies in mobile core networks, such as a service-based architecture (SBA) and container-based cloud-native network functions based on microservices and Kubernetes, as well as bare-metal cloud infrastructure. It also necessitates more effective network operations, with a plethora of automation and orchestration tools for software life-cycle management, such as continuous integration and delivery (CI/CD), service development, and network administration.

  • Development Of Smart Infrastructure:

The rate at which 5G is deployed around the world will determine how quickly it becomes the defining technology of smart cities. Approximately 55% of the world's population now resides in cities. According to the United Nations, this will rise to 68 percent by 2050. The ongoing migration of individuals from rural to urban areas, combined with global population growth, will add another 2.5 billion people to the world's major cities by the same year. Telecommunications infrastructure and its use for public safety are critical to the successful implementation of smart city projects.

  • Opportunities:

    • Demand For 5g Private Network Across Enterprises, Governments, And Industrial Sectors:

The concept of a private mobile network isn't exactly new; in some nations, such networks first began employing 4G LTE technology in mining, emergency services, and defence industries. However, as 5G networks become more widely deployed, the concept of a private 5G network is gaining traction in many parts of the world, as regulators increasingly offer businesses the option of purchasing their own 5G spectrum and deploying their own mobile networks, which is particularly popular in Japan and Germany. The German government has already given many of Germany's leading manufacturers 88 private 5G licences in the 3.7 GHz-3.8 GHz spectrum. Private 5G networks, for example, provide significantly more robust security than public 5G networks since they are not connected to the wider telecom network. As a result, private 5G networks are appealing to organizations with very high-security requirements, such as power plants.

  • Restraint:

    • Data Security Concerns In 5G Core Network:

With 5G services expected to span the majority of the world's economies in the next years, 5G security will become increasingly crucial. As major network operators roll out new services worldwide, much of the discussion has focused on the security dangers that 5G poses. Governments are placing a high priority on the security of telecom networks. And, while 5G expands prospects in industries like healthcare, manufacturing, and transportation, the reality is that it is becoming a more appealing target for cyber thieves as it expands the threat surface and the ramifications of any damage done.

Value Chain Analysis

The cold chain monitoring market is growing steadily and is expected to upsurge in the near future. 5G technology is expected to give a plethora of opportunities to telecom value chain players willing to increase investments in infrastructure to meet demands for 5G use cases. As 5G technology will be initially built on existing 4G infrastructure (i.e., non-standalone deployments), service providers and other value chain players can work on an incremental basis as a part of the 5G evolutionary process.

Segment Overview

The global 5G core market has been segmented on the basis of component, deployment mode, network functions, end-user, and region.

By component, the global 5G core market, has been segmented into solutions and services, Further services is bifurcated into professional services, managed services

By deployment mode, the 5G core market has been segmented into cloud and on-premises. The cloud segment accounted for a larger market share of 71.2% in 2020, with a market value of USD 506.8 million; it is expected to register the highest CAGR of 57.1% during the forecast period.

Based on network functions, the 5G core market has been divided into AMF (Access and Mobility Management Function), SMF (Session Management Function), UPF (User Plane Function), PCF (Policy Control Function), NEF (Network Exposure Function), NRF (NF Repository Function), UDM (Unified Data Management), AUSF (Authentication Server Function), AF (Application Function), NSSF (Network Slice Selection Function) and others.

By end-user, the 5G core market has been segmented into consumer and enterprises.

Regional Analysis

The 5G core market has been studied across Asia-Pacific, North America, Europe, and the Rest of the World. Asia-Pacific accounted for the largest market share of 79.09% in 2020; it is expected to register a CAGR of 44.9% during the forecast period. This can be attributed to the continuous development in the networking sector and the increase in the need for cloud-native and service-based architecture are promoting the growth of the Asia-Pacific market

The European 5G core market is expected to grow due to the growing number of mobile device penetration, enterprises developing their own applications, high innovation dynamics, and data protection regulations are the major driving factors of the market in Germany

The Chinese healthcare sector has been growing at a rapid rate due to the growing demand for smart infrastructure across the region is the key factor influencing the growth of the market.

Competitive Landscape

The Nokia Corporation (Ireland), Telefonaktiebolaget LM Ericsson (Sweden), Huawei Technologies Co.Ltd.(China), ZTE Corporation (China), Samsung Electronics Co.Ltd.(South Korea), Affirmed Networks (US), Mavenir (US), NEC Corporation (Japan), Cisco Systems Inc. (US), Hewlett Packard Enterprise Development LP (US), Oracle Corporation (US), Athonet (Italy), Casa Systems (US), Cumucore (Finland), and Druid Software (Ireland) are the major players in the 5G Core market. They primarily focus on the development of sophisticated 5G core.

These companies are working on integrating advanced technologies to provide users with a network of high speed and low latency. The major players would seek to strengthen their global presence through mergers and acquisitions of local and regional players; they are expected to expand their presence and solutions in those countries during the forecast period. Therefore, companies must develop new technologies to stay with emerging technology trends that could affect the competitiveness of their product lines in the global 5G core market.

Recent Developments

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.

Report Overview

5G core has seen tremendous growth in the past couple of years. The market has been classified based on component, deployment mode, network functions, end-user, and region. The key factors contributing to the growth of the 5G core market include the rapid development in IOT and development of smart infrastructure. ZTE Corporation (China), Samsung Electronics Co.Ltd.(South Korea), Affirmed Networks (US), Mavenir (US), NEC Corporation (Japan) are expected to be the major players in the 5G core market during the projected period.

Objective of the Study

  • To provide a comprehensive analysis of the 5G core market and its sub-segments in the global market, thereby providing a detailed structure of the industry

  • To provide detailed insights into factors driving and restraining the growth of the global 5G core market

  • To estimate the market size of the global 5G core market where 2019 would be the historic period, 2020 shall be the base year, and 2021 to 2027 will be the forecast period for the study

  • To analyze the global 5G core market in four main geographies, namely, North America, Europe, Asia-Pacific, and the Rest of the World

  • To provide country-wise market value analysis for various segments of the 5G core market

  • To provide strategic profiling of key companies present across the globe and comprehensively analyze their competitiveness/competitive landscape in this market

  • To provide a value chain for the 5G core market

Scope of the Report

The scope of the global 5G core market study includes the market size analysis and a detailed analysis of the vendor’s products and strategies. The 5G core market has been segmented based on component, deployment mode, network functions, end-user, and region.

Intended Audience

  • Government Authorities

  • Network Operators

  • Technology Consultants

  • Investors and Venture Capitalists

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