Cloud-Native Network Function Migration Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the cloud-native network function migration services market size is projected to be USD 2.54 billion in 2025, USD 3.24 billion in 2026, and reach USD 6.29 billion by 2031, growing at a CAGR of 14.19% from 2026 to 2031.

This report is Segmented by Component (Solutions, and Services), Deployment Model (Cloud Service Providers, and On-Premises), Network Function Domain (5G Core and Evolved Packet Core, IP Multimedia Subsystem, and More), End User (Telecom Service Providers, Cloud Service Providers, Large Enterprises, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Cloud-Native Network Function Migration Services Market Trends and Insights

5G Standalone Core and Network Slicing Rollouts

5G standalone cores require cloud-native functions and therefore create direct demand for migration work. Telia Norge launched nationwide commercial 5G standalone service in 2026 and reported latency below 10 milliseconds, compared with 15-18 milliseconds on non-standalone 5G. Proximus launched 5G+ in Belgium in April 2026, adding another commercial rollout that requires cloud-native core capabilities. Network slicing depends on standalone architecture because it needs dynamic allocation of network resources across users and services. The cloud-native network function migration services market benefits when operators bring these capabilities into commercial use rather than maintaining non-standalone networks. ETSI standards provide a shared technical framework for validating service-based network architecture during these migrations.

Hybrid and Multi-Cloud Telco Modernization

Operators increasingly use both public cloud resources and infrastructure inside their own data centers. O2 Telefonica deployed a 5G cloud core on Nokia software running on AWS Outposts in its data centers in March 2026, while serving 1 million customers through this hybrid model. This model combines public-cloud operating tools with local control over sensitive network workloads in the cloud-native network function migration services market. It also makes platform portability more important because operators need functions to operate across different locations and cloud environments. The cloud-native network function migration services market gains from this complexity because migration partners must design, test, and operate the links between cloud platforms. China Telecom identified cloud-native network element evolution and edge AI integration as pillars of its 2026-2030 cloud-network fusion phase.

Legacy OSS and BSS Integration Complexity

Legacy operating support systems and billing support systems remain a practical barrier to cloud-native migration. Established operators often run several OSS and BSS platforms because of earlier acquisitions and separate network deployments. These systems can contain proprietary interfaces and undocumented dependencies that are difficult to connect to containerized network functions. The cloud-native network function migration services market needs experienced integration teams when network provisioning, billing, and service assurance must remain active throughout a cutover. Manual steps can remain necessary when the legacy layer lacks usable programmatic interfaces. This weakens the speed and cost benefits that operators expect from cloud-native automation.

Other drivers and restraints analyzed in the detailed report include:

1. OPEX Optimization Through VNF-to-CNF Transformation
2. Edge Cloud Deployment for Low-Latency Services
3. Telco-Grade Interoperability and Performance Gaps

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Services held 69.12% of the cloud-native network function migration services market share in 2025, reflecting operators' continuing need for integration, consulting, validation, and managed migration support. Migration programs commonly require detailed function inventories, transition planning, dependency mapping, parallel operation, and production validation. Those requirements favor service engagements when a network includes multiple vendors and older operating platforms. Professional services providers also help operators coordinate network operations teams, application owners, security teams, and cloud infrastructure partners.

Solutions are projected to expand at a 16.11% CAGR through 2031, faster than the overall cloud-native network function migration services market. The segment includes migration automation tools, lifecycle management software, and platforms that support containerized network functions. Productized tools can make deployments more repeatable across separate clusters, release cycles, and technology vendors. They can also reduce the amount of bespoke configuration needed during later migration waves and routine software updates. Deutsche Telekom's Operator-based Cloud Automation Solution uses Kubernetes operator patterns and GitOps principles for lifecycle management. Its approach shows why operators are seeking tools that can manage stateful functions and cross-cluster dependencies in a more standardized way.

Cloud service providers held 53.62% of revenue in 2025 and are projected to expand at a 15.98% CAGR through 2031. Public-cloud deployment gives operators access to elastic infrastructure without the full cost and timing of building new data center capacity. It can also provide managed platform services that support Kubernetes-based deployment and operations. This makes cloud-hosted environments attractive for new standalone core programs that need rapid capacity changes. The cloud-native network function migration services market therefore requires services that connect network-specific functions to public-cloud operating models, security controls, and operating procedures.

Tune Talk became ASEAN's first fully cloud-native mobile network operator in February 2026 through a Mavenir deployment of cloud-native core, OSS, and BSS solutions on AWS infrastructure. Nokia and Citymesh also brought a commercial mobile service using 5G Core SaaS into operation on AWS in February 2026. These deployments indicate that public cloud can support commercial mobile workloads when the required performance, security, and operational safeguards are in place. On-premise environments still matter for latency-sensitive functions, data sovereignty needs, and operators with substantial existing data center capacity. As a result, hybrid orchestration remains a central requirement rather than a temporary transition stage for many established operators.

Complete Report Scope:

• By Component
  • Solutions
  • Services
• By Deployment Model
  • Cloud Service Providers
  • On-Premises
• By Network Function Domain
  • 5G Core and Evolved Packet Core
  • IP Multimedia Subsystem
  • Radio Access Network and Open RAN
  • Edge and Multi-Access Edge Computing
  • Other Network Function Domains
• By End User
  • Telecom Service Providers
  • Cloud Service Providers
  • Large Enterprises
  • Small and Medium-Sized Enterprises
  • Government and Defense Organizations
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • Rest of Asia-Pacific
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • Rest of Middle East
  • Africa
    • South Africa
    • Nigeria
    • Egypt
    • Rest of Africa

Geography Analysis

North America held 34.90% of the cloud-native network function migration services market share in 2025. The region has large operators that are moving from initial standalone core deployment into voice, edge, enterprise service, and service-assurance work. A dedicated 5G standalone core for FirstNet shows the role of cloud-native architecture in public safety networks. The region also benefits from an active ecosystem of cloud providers, network vendors, and systems integrators. Interoperability testing by the O-RAN Alliance gives operators a basis for validating multi-vendor access-network deployments.

Europe has mature migration programs in Germany, the United Kingdom, France, and other Western European markets, while Central and Eastern European operators remain earlier in deployment cycles. O2 Telefonica's hybrid cloud core deployment illustrates how regional data sovereignty requirements can coexist with public-cloud operating methods. The European Commission published the Telco Cloud Reference Architecture in September 2025, providing a regional reference for interoperable and sovereign telco cloud design. Proximus's April 2026 5G+ launch and Telia Norge's nationwide commercial 5G standalone rollout indicate continued momentum.

Asia-Pacific is projected to expand at a 16.13% CAGR through 2031, the highest regional growth rate in the cloud-native network function migration services market. NTT DOCOMO and NEC launched Japan's first commercial 5G core on AWS in March 2026, using agentic AI and GitOps automation that reduced design and construction time by 80%. China's YD/T 6386-2025 standard established design and management principles for cloud-native telecom network elements. SK Telecom released an autonomous network Level 4 blueprint in June 2026 that includes next-generation OSS transformation and AI agent standardization. India's Open RAN expansion and Southeast Asia's greenfield operators broaden regional demand, while the Middle East, South America, and Africa remain earlier-stage areas with selected cloud-native projects and targeted international partnerships.

1. Accenture plc
2. Cisco Systems, Inc.
3. Dell Technologies Inc.
4. Ericsson
5. Fujitsu Limited
6. Google LLC
7. Hewlett Packard Enterprise Company
8. Huawei Investment & Holding Co., Ltd.
9. International Business Machines Corporation
10. Infosys Limited
11. Juniper Networks, Inc.
12. Mavenir Systems, Inc.
13. Microsoft Corporation
14. Nokia Corporation
15. Oracle Corporation
16. Red Hat, Inc.
17. Samsung Electronics Co., Ltd.
18. Tech Mahindra Limited
19. VMware LLC
20. ZTE Corporation

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support