Global 5G Core Network Market Size, Share, Statistics Analysis Report By Component (Solutions, Services), By Deployment (On-premise, Cloud), By Network Architecture (Standalone, Non-Standalone), By Network Type (Public, Private), By End-user (Telecom Operators, Enterprises, Government & Public Sector), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034
- Published date: January 2025
- Report ID: 138369
- Number of Pages: 294
- Format:
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Quick Navigation
- Report Overview
- Key Takeaways
- China Market Size and Growth
- Component Analysis
- Deployment Analysis
- Network Architecture Analysis
- Network Type Analysis
- End-user Analysis
- Key Market Segments
- Driver
- Restraint
- Opportunity
- Challenge
- Emerging Trends
- Business Benefits
- Key Player Analysis
- Top Opportunities Awaiting for Players
- Recent Developments
- Report Scope
Report Overview
The Global 5G Core Network Market size is expected to be worth around USD 212.6 Billion By 2034, from USD 4.83 Billion in 2024, growing at a CAGR of 46.00% during the forecast period from 2025 to 2034. In 2024, Asia-Pacific led the 5G Core Network market with a 40.3% share and USD 1.9 billion in revenue.
The 5G Core Network is the backbone of the 5G mobile communications system, providing high-speed, large-capacity connectivity to a multitude of devices. It is designed to support the high data rates and low latency requirements of modern applications, enabling advancements in fields such as IoT, autonomous vehicles, and augmented reality.
The market for 5G Core Networks is witnessing rapid growth, driven by the global push for faster internet speeds and more reliable mobile services. As countries and companies invest in upgrading their infrastructure to 5G, the demand for efficient and scalable core networks increases. This market is characterized by innovations in network solutions and services by major telecommunications and technology companies.
The primary drivers of the 5G Core Network market include the increasing demand for high-speed data services and the expansion of the Internet of Things (IoT). As more devices become interconnected, the need for robust and efficient networks becomes crucial. Additionally, the shift towards cloud-based solutions in various sectors, including healthcare, automotive, and manufacturing, propels the need for 5G networks that can handle large volumes of data efficiently.
A significant trend in the 5G Core Network market is the adoption of virtualized and software-defined networking components. These technologies enhance the flexibility and manageability of networks, allowing service providers to deploy and scale services more quickly. There is also a noticeable shift towards open-source solutions and partnerships among service providers to reduce costs and improve service delivery.
According to Nokia, the rollout of 5G networks is driving a significant surge in mobile data consumption. 5G users are consuming about 3.6 times more mobile data compared to those using 4G. This shift is particularly evident in India, where, in 2023, mobile data consumption reached an impressive 17.4 exabytes per month, reflecting a 26% compound annual growth rate (CAGR) over the past five years.
Looking ahead, global mobile data traffic is set to skyrocket. Data from Thales shows that global mobile data traffic is expected to grow from 145 exabytes in Q1 2024 to a massive 466 exabytes per month by 2029. A significant portion of this traffic comes from video content, which made up 73% of all mobile data traffic by the end of 2023.
For stakeholders, the evolution of 5G Core Networks offers numerous benefits. Telecommunication operators can deliver faster, more reliable services, while businesses across various industries can leverage the enhanced connectivity for innovative services and operations. Consumers enjoy better mobile broadband experiences and new services like real-time gaming and ultra-high-definition video streaming, enhancing overall user satisfaction.
Technological innovations in the 5G Core Network, such as cloud-native infrastructure, network slicing, and Network Function Virtualization (NFV), are transforming communication systems. These advancements enable more agile, scalable, and cost-efficient network management, while also supporting bespoke services for industries ranging from entertainment to industrial applications.
Key Takeaways
- The Global 5G Core Network Market size is projected to reach USD 212.6 Billion by 2034, up from USD 4.83 Billion in 2024, growing at a CAGR of 46.00% during the forecast period from 2025 to 2034.
- In 2024, the Solutions segment dominated the market, holding more than 81.2% of the market share. This growth is attributed to core network solutions like NFV, SDN, and other essential technologies that support 5G deployment and management.
- The Cloud-Based segment held a leading position in 2024, commanding over 61% of the market share in the 5G Core Network market.
- In 2024, the Non-Standalone (NSA) segment dominated the market, capturing more than 60% of the market share.
- The Public segment held a dominant position in the market in 2024, capturing more than 85% of the market share in the 5G Core Network sector.
- The Telecom Operators segment led the market in 2024, holding over 65% of the market share in the 5G Core Network industry.
- In 2024, the Asia-Pacific region accounted for more than 40.3% of the market share, generating a revenue of USD 1.9 billion in the 5G Core Network sector.
- The 5G Core Network market in China, valued at USD 0.43 billion in 2024, is expected to grow rapidly, with a CAGR of 38.5% projected for the coming years.
China Market Size and Growth
The market for 5G Core Networks in China, which was valued at US$ 0.43 billion in 2024, is projected to expand at a rapid pace. The expected compound annual growth rate (CAGR) is 38.5%. This robust growth reflects the increasing adoption of 5G technologies across various sectors within the country.
The growth of China’s 5G Core Network market is fueled by rising demand for high-speed internet, the expansion of smart cities, and the increasing use of IoT devices, all requiring advanced network infrastructure to handle large data volumes and fast connectivity.
Government investments and initiatives in 5G technology have played a key role in expanding China’s 5G networks, enhancing the nation’s tech infrastructure and global competitiveness. Additionally, partnerships between tech companies and telecom operators drive innovation and the widespread deployment of 5G across the country.
In 2024, Asia-Pacific held a dominant market position in the 5G Core Network sector, capturing more than a 40.3% share with a revenue of USD 1.9 billion. This leading position can be attributed to several strategic advancements and initiatives across the region.
Nations like China, South Korea, and Japan have made significant investments in 5G technology, which have catalyzed the development and rapid deployment of 5G networks. The governmental support in these countries, aimed at advancing national communications infrastructure, has been a critical factor driving this growth.
The Asia-Pacific region benefits from a strong manufacturing sector, a large consumer base, and rising demand for high-speed connectivity, fueled by increased smartphone use and IoT device popularity. Local tech companies drive 5G innovation, while its integration in industries and smart city projects further boosts the need for advanced network infrastructure.
Strategic partnerships between telecom giants and tech companies in the Asia-Pacific region have sped up 5G rollouts and led to tailored network solutions. South Korea’s early adoption and fast expansion have set a benchmark, encouraging neighboring countries to accelerate their 5G development.
Component Analysis
In 2024, the Solutions segment led the 5G Core Network market with over 81.2% share, driven by core network solutions like NFV, SDN, and other essential technologies for 5G deployment and management.
The Solutions segment’s dominance is strengthened by the global 5G rollout, driving investments in upgrading or building new network infrastructures. As telecom providers expand coverage, demand for integrated solutions supporting URLLC continues to rise.
Moreover, the complexity and technical requirements of 5G networks drive the need for comprehensive solutions that simplify operations and enhance network management efficiency. These solutions often include software upgrades and new deployments essential for supporting the high-speed, high-capacity demands of modern applications and services.
The Solutions segment’s dominance also reflects the shift towards digital transformation, with companies using 5G to drive innovations like IoT, autonomous vehicles, and smart cities. These advancements require reliable 5G solutions, ensuring continued growth and leadership in the 5G Core Network market.
Deployment Analysis
In 2024, the Cloud-Based segment held a dominant position in the 5G Core Network market, capturing more than a 61% share. This significant market share is primarily due to the flexibility and scalability offered by cloud deployments, which are essential for managing the vast data throughput demanded by 5G networks.
Cloud-based solutions enable telecom operators to enhance network capabilities without heavy physical infrastructure, cutting capital and operational costs. The ability to allocate resources dynamically based on demand makes the cloud model ideal for handling the variable loads of 5G networks.
The leadership of the Cloud-Based segment is further reinforced by its alignment with the ongoing digital transformation initiatives across various industries. As enterprises continue to embrace digital solutions, the integration of cloud-based 5G core networks enables seamless connectivity and communication enhancements.
This is particularly advantageous for sectors like healthcare, automotive, and manufacturing, where 5G enables new applications such as telemedicine, autonomous driving, and smart manufacturing processes. The cloud’s inherent flexibility facilitates rapid deployment of these applications, encouraging more industries to adopt 5G solutions.
Network Architecture Analysis
In 2024, the Non-Standalone (NSA) segment held a dominant position in the 5G Core Network market, capturing more than a 60% share. This segment benefits significantly from its reliance on existing 4G LTE infrastructure, which allows for a smoother and more cost-effective transition for telecom operators.
By leveraging the established network, operators can deploy 5G services more rapidly, without the upfront capital expenditures associated with building a completely new network. This transitional approach not only speeds up 5G rollout but also provides immediate improvements in network performance and data throughput, enhancing customer satisfaction.
The popularity of the Non-Standalone architecture can also be attributed to its flexibility in network management and operation. NSA operates by using 5G NR (New Radio) in conjunction with the existing LTE core network, enabling enhanced mobile broadband (eMBB) applications that require high data rates.
Moreover, the Non-Standalone segment’s leadership is reinforced by the widespread industry support from key telecommunications equipment manufacturers and service providers. Companies like Ericsson, Huawei, and Nokia have developed robust NSA solutions that facilitate easy integration with existing LTE networks.
Network Type Analysis
In 2024, the Public segment of the 5G Core Network market held a dominant market position, capturing more than an 85% share. This leadership is primarily driven by the widespread adoption of 5G technologies by major telecommunications operators who are expanding their infrastructure to cater to a broad consumer base.
Public networks, operated by these telecom giants, are designed to provide extensive coverage and high-speed connectivity to a large number of users simultaneously. This broad accessibility makes public 5G networks indispensable for everyday mobile users, enterprises, and smart city applications, ensuring their dominant market position.
The superiority of the Public segment is further bolstered by significant investments from both government and private sectors aimed at enhancing national communications infrastructure. These investments are often part of larger economic development initiatives, which view advanced telecommunications capabilities as critical to competitive advantage on a global scale.
The Public segment benefits from economies of scale, reducing network deployment and operation costs per user. This efficiency allows service providers to offer competitive pricing, attracting more users and strengthening the dominance of public networks in the 5G space.
End-user Analysis
In 2024, the Telecom Operators segment held a dominant position in the 5G Core Network market, capturing over 65% of the market share. This segment’s leadership can be attributed primarily to the increasing adoption of 5G technologies by telecom operators eager to enhance their network efficiency and handle the growing data traffic.
As the backbone of 5G infrastructure, telecom operators have been pivotal in deploying 5G core networks to support high-speed data services and a massive number of IoT connections. This substantial market share reflects their critical role in the widespread implementation and expansion of 5G technologies.
Telecom operators have dominated the 5G Core Network market through significant investments in upgrading infrastructure. These investments are crucial for supporting advanced 5G features like eMBB, URLLC, and mMTC.
Telecom operators’ dominant position in the 5G Core Network market is strengthened by strategic partnerships with technology providers and system integrators. These collaborations help develop tailored solutions and address challenges like network security and interoperability in 5G deployments.
Key Market Segments
By Component
- Solutions
- Services
By Deployment
- On-premise
- Cloud
By Network Architecture
- Standalone
- Non-Standalone
By Network Type
- Public
- Private
By End-user
- Telecom Operators
- Enterprises
- Government & Public Sector
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Singapore
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Driver
Rising Demand for Enhanced Mobile Broadband
The surge in data-intensive applications like streaming high-definition videos, online gaming, and virtual reality is pushing the need for faster and more reliable mobile networks. The 5G core network is designed to meet these demands by offering higher data rates and reduced latency. This enhancement ensures users experience seamless connectivity, even in densely populated areas.
As more consumers and businesses rely on mobile broadband for daily operations, the adoption of 5G technology becomes essential to support this growing data consumption. The architecture of the 5G core network allows for efficient data handling, ensuring that users can access high-speed internet services without interruptions.
Restraint
High Infrastructure Deployment Costs
Implementing a 5G core network requires substantial investment in new infrastructure. Unlike previous generations, 5G operates on higher frequency bands, which have shorter ranges. This limitation necessitates the installation of numerous small cell stations to ensure comprehensive coverage.
Additionally, upgrading existing network components to be compatible with 5G standards adds to the financial burden. The financial strain is further compounded by the need for ongoing maintenance and the rapid pace of technological advancements, which may render equipment obsolete sooner than anticipated. These factors can delay the widespread adoption of 5G networks, particularly in areas where the return on investment is uncertain.
Opportunity
Expansion into IoT and Industrial Applications
The 5G core network’s advanced capabilities present a significant opportunity for expansion into the Internet of Things (IoT) and industrial sectors. Its design supports massive machine-type communications, allowing for the seamless connection of a vast number of devices. This feature is crucial for applications like smart cities, automated manufacturing, and connected healthcare systems.
For instance, in industrial automation, 5G can facilitate real-time monitoring and control of equipment, leading to increased efficiency and reduced downtime. Similarly, in healthcare, it enables remote patient monitoring and telemedicine services, improving access to medical care. By leveraging the 5G core network, industries can innovate and enhance their operations, leading to new business models and revenue streams.
Challenge
Ensuring Network Security and Privacy
With the increased connectivity that 5G brings, ensuring network security and user privacy becomes a paramount challenge. The architecture of the 5G core network is more complex, involving numerous devices and applications, which expands the potential attack surface for cyber threats. Protecting against these threats requires robust security protocols and continuous monitoring.
Additionally, as personal and sensitive data is transmitted across the network, safeguarding user privacy is critical. Implementing end-to-end encryption and adhering to strict data protection regulations are essential steps in addressing these concerns. Failure to effectively manage security and privacy risks can undermine user trust and hinder the adoption of 5G technologies.
Emerging Trends
One significant development is the adoption of standalone (SA) architecture, which operates independently of existing 4G infrastructure. This shift enhances network performance by reducing latency and increasing data speeds, leading to improved user experiences in applications like online gaming and virtual reality.
Another emerging trend is network slicing. This technology allows operators to create multiple virtual networks within a single physical 5G network. Each “slice” can be customized to meet specific requirements, enabling tailored services for different industries such as healthcare, manufacturing, and entertainment.
Edge computing is also gaining traction in the 5G landscape. By processing data closer to where it’s generated, edge computing reduces latency and bandwidth usage. This approach is particularly beneficial for applications that require real-time processing, such as autonomous vehicles and smart cities.
Business Benefits
- Enhanced Performance: The 5G core network offers improved data speeds and reduced latency, leading to faster and more reliable communication. This enhancement supports real-time applications, such as video conferencing and online gaming, providing a smoother user experience.
- Network Flexibility: With network slicing, businesses can have dedicated virtual networks tailored to their specific needs. This flexibility allows for optimized performance and security for various applications, from industrial automation to healthcare services.
- Cost Efficiency: The software-based nature of the 5G core network enables more efficient use of resources. Businesses can scale services up or down based on demand, leading to potential cost savings in network management and operations.
- Support for Advanced Technologies: The 5G core network’s architecture supports the integration of advanced technologies like AI, IoT, and edge computing. This support opens avenues for innovation in product and service offerings, giving businesses a competitive edge.
- Improved Reliability: Enhanced network management capabilities lead to more reliable services. Businesses can expect consistent performance, which is crucial for critical applications such as remote surgery or autonomous driving.
Key Player Analysis
Key technology giants specializing in 5G Core Network infrastructure are leading this transformation.
Ericsson is a leading player in the global telecom equipment market, well-known for its cutting-edge technology in the 5G domain. The company offers end-to-end solutions, including core network solutions, which enable telecom operators to implement and scale 5G services.
Nokia Networks, a major player in the telecom industry, is another prominent provider of 5G core network solutions. The company’s end-to-end 5G portfolio covers everything from radio access to core network infrastructure. Nokia’s 5G Core is designed to support high throughput and ultra-low latency, making it an attractive choice for telecom operators looking to meet the demands of industries like IoT, AR/VR, and autonomous vehicles.
Huawei Technologies is a Chinese multinational that has positioned itself as a global leader in the 5G space. With a deep expertise in telecom infrastructure and research & development, Huawei’s 5G Core solutions are known for their flexibility, scalability, and efficiency. The company offers a broad portfolio of 5G products, including core network, radio access, and transport solutions.
Top Key Players in the Market
- Ericsson
- Nokia Networks
- Huawei Technologies
- ZTE Corporation
- Cisco Systems
- Samsung Electronics
- Oracle
- NEC Global
- IPLOOK
- HPE
- ENEA
- Intel Corporation
- Juniper Networks
- Mavenir
- Keysight Technologies
- Other Key Players
Top Opportunities Awaiting for Players
The 5G Core Network market is bustling with opportunities as it continues to expand rapidly, driven by the global shift towards 5G technologies.
- Edge Computing Integration: With the surge in IoT devices and data-heavy applications, integrating edge computing with 5G core networks presents a significant growth area. The integration creates a powerful opportunity for network providers and tech developers to offer enhanced services that meet growing consumer and enterprise demands.
- Network Slicing for Custom Solutions: Network slicing allows telecom operators to create customized virtual networks tailored to specific industries, such as manufacturing, retail, and entertainment. It offers businesses the flexibility to allocate resources based on their needs, ensuring optimal performance. This is particularly valuable in verticals that require high bandwidth or low-latency, providing a lucrative revenue stream for service providers.
- Enhanced Mobile Broadband (eMBB): As 5G adoption continues to rise, the demand for high-speed mobile broadband will increase, especially in urban areas and large-scale events. The core network plays a crucial role in enabling seamless connectivity for applications like AR/VR, streaming, and gaming. For network operators, enhancing eMBB services provides an opportunity to tap into a growing market for next-gen mobile experiences.
- Private 5G Networks for Enterprises: Enterprises are increasingly turning to private 5G networks for enhanced security, performance, and control, particularly in industries like manufacturing, logistics, and energy. These networks reduce reliance on public infrastructure, boosting reliability and creating opportunities for new partnerships and revenue models.
- 5G as an Enabler for Smart Cities: Smart cities rely heavily on the high-speed, low-latency capabilities of 5G. The core network’s role in connecting billions of devices from traffic lights to energy grids opens doors for telecom providers to offer solutions in urban planning, public safety, and utilities management.
Recent Developments
- February 2024: At MWC 2024, Huawei unveiled the world’s first 5.5G intelligent core network solution. This solution integrates service intelligence, network intelligence, and operations and maintenance (O&M) intelligence to improve business value and development potential.
- February 2024: NEC announced the launch of a new User Plane Function (UPF) product for telecom operators, scheduled for release in April 2024. This product processes user data traffic in 5G core networks and features enhanced Deep Packet Inspection (DPI) for better communication quality monitoring.
- October 2024: Ericsson introduced seven new 5G Advanced software products aimed at creating high-performing programmable networks. These products are designed to enhance network performance, user experience, and operational efficiency.
Report Scope
Report Features Description Market Value (2024) USD 4.83 Bn Forecast Revenue (2034) USD 212.6 Bn CAGR (2025-2034) 46.00% Base Year for Estimation 2024 Historic Period 2020-2023 Forecast Period 2025-2034 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component (Solutions, Services), By Deployment (On-premise, Cloud), By Network Architecture (Standalone, Non-Standalone), By Network Type (Public, Private), By End-user (Telecom Operators, Enterprises, Government & Public Sector) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Ericsson, Nokia Networks, Huawei Technologies, ZTE Corporation, Cisco Systems, Samsung Electronics, Oracle, NEC Global, IPLOOK, HPE, ENEA, Intel Corporation, Juniper Networks, Mavenir, Keysight Technologies, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- Ericsson
- Nokia Networks
- Huawei Technologies
- ZTE Corporation
- Cisco Systems
- Samsung Electronics Co. Ltd Company Profile
- Oracle Corporation Company Profile
- NEC Global
- IPLOOK
- HPE
- ENEA
- Intel Corporation
- Juniper Networks
- Mavenir
- Keysight Technologies Company Profile
- Other Key Players
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