PUBLISHER: The Business Research Company | PRODUCT CODE: 1843992
PUBLISHER: The Business Research Company | PRODUCT CODE: 1843992
The 5G Core Network constitutes the central infrastructure of a 5th generation (5G) cellular network architecture, responsible for coordinating and managing network functions and services. Serving as the foundation of the 5G network, it enables cutting-edge capabilities such as ultra-low latency, high-speed data transmission, massive connectivity, and network slicing.
The primary components of the 5G core network encompass solutions and services. 5G commercial contracts denote the agreements and arrangements established among service providers, vendors, and government entities for the acquisition and implementation of 5G technology and services. Deployable in various models, including cloud-based and on-premises setups, it caters to diverse applications such as smart energy, industrial manufacturing, smart medical solutions, media entertainment, and smart transportation. Its adoption spans across multiple end-users, including telecom operators and enterprises.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The 5G core network market research report is one of a series of new reports from The Business Research Company that provides 5G core network market statistics, including 5G core network industry global market size, regional shares, competitors with a 5G core network market share, detailed 5G core network market segments, market trends and opportunities, and any further data you may need to thrive in the 5G core network industry. This 5G core network market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The 5G core network market size has grown exponentially in recent years. It will grow from $2.78 billion in 2024 to $3.47 billion in 2025 at a compound annual growth rate (CAGR) of 24.8%. The growth in the historic period can be attributed to low latency requirements, massive IoT connectivity, service-based architecture, enhanced security, global connectivity.
The 5G core network market size is expected to see exponential growth in the next few years. It will grow to $7.62 billion in 2029 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to edge computing integration, 5G -enabled vertical industries, government initiatives and policies, competitive differentiation, network modernization. Major trends in the forecast period include 5G -enabled IoT solutions, network automation and orchestration, network synchronization, network security enhancements, 5G core network evolution.
The forecast of 21.8% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by slowing the adoption of standalone 5G networks, as virtualization tools from Finland and Israel face supply chain delays. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The increasing adoption of 5G services is poised to drive the expansion of the 5G core network market in the foreseeable future. 5G services encompass a variety of applications and use cases enabled by fifth-generation wireless cellular technology. This adoption surge is fueled by the demand for high-speed data transmission, the proliferation of connected devices, and the emergence of IoT applications. The 5G core network serves as the backbone for a diverse array of 5G services, furnishing the requisite infrastructure and capabilities to fully unlock the potential of 5G technology. Designed to support an extensive range of services including enhanced mobile broadband (eMBB), massive machine-type communications (mMTC), and ultra-reliable low-latency communications (UR-LLC), the 5G core network plays a pivotal role in realizing the promises of 5G technology. For example, data from 5G Americas, a US-based industry trade organization, revealed a remarkable surge in global 5G wireless connections, reaching 1.05 billion by the end of 2022, marking a 76% increase from the previous year. Projections indicate a further escalation to 5.9 billion connections by the end of 2027. Hence, the growing adoption of 5G services emerges as a key driver propelling the growth trajectory of the 5G core network market.
Leading companies in the 5G core network market are advancing technology through developments like Software-as-a-Service (SaaS) to enhance network efficiency, scalability, and cost-effectiveness. Software-as-a-Service (SaaS) is a cloud-based service model where software applications are hosted by a provider and accessed by users over the internet. For example, in November 2022, Nokia Corporation, a Finland-based multinational telecommunications, information technology, and consumer electronics corporation, introduced Core Software-as-a-Service (SaaS) for 5G. Core SaaS is the first comprehensive 5G core solution that offers all core cloud-native network functions via a SaaS model. Core SaaS is designed to allow communication service providers (CSPs) and enterprises to manage their networks with increased flexibility and scalability, enhancing business agility and accelerating network service monetization. By shifting from traditional, customized software installations on private infrastructure to a subscription-based model, operators can avoid large upfront capital investments and eliminate the need for on-site software maintenance and updates.
In June 2023, Hewlett-Packard Enterprise (HPE), a leading US-based information technology corporation, finalized the acquisition of Athonet Srl for an undisclosed sum. This strategic move empowers HPE to extend private networking functionalities directly to enterprises, enriching its Aruba networking portfolio. Simultaneously, it facilitates Communication Service Providers (CSPs) in expeditiously deploying private 5G networks for their clientele. Athonet Srl, headquartered in Italy, specializes in mobile core network technologies and is renowned for its Athonet 5G Core solution, which represents a pivotal component in the evolving landscape of 5G infrastructure.
Major companies operating in the 5G core network market are Samsung Electronics Co. Ltd., Reliance Industries Limited, Dell Technologies Inc., Huawei Technologies Co. Ltd., Intel Corporation, Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, Fujitsu Limited, Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, NEC Corporation, ZTE Corporation, VMware Inc., Juniper Networks Inc., Ciena Corporation, Mavenir Systems Inc., Ribbon Communications Inc., Casa Systems Inc., Parallel Wireless Inc., Altiostar Networks Inc., Affirmed Networks, Druid Software Ltd., Athonet S.r.l.
Asia-Pacific was the largest region in the 5G core network market in 2024. It is expected to be the fastest-growing region in the forecast period. The regions covered in the 5g core network market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the 5g core network market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The 5G Core Network market includes revenues earned by entities by services such as machine-type communication, mobility management, authentication and authorization, traffic management, and policy control. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
5G Core Network Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on 5g core network market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for 5g core network ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The 5g core network market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.