Core Network Software Global Market Report 2026

Core network software is an integrated set of applications and platforms that support the administration, orchestration, and operation of service provider IP networks, enabling critical capabilities such as routing, switching, policy control, traffic optimization, and subscriber management. It maintains network stability, scalability, and security while also enabling advanced technologies such as 5G connectivity, edge computing, and network virtualization, thereby improving operational performance and service delivery across complex telecommunications infrastructures.

The essential components of core network software include software and services. Software refers to network functions, orchestration platforms, and control systems that manage, route, and optimize communication traffic across core networks. Deployment modes include on-premises and cloud-based solutions. Network types include mobile core networks and fixed core networks. Key applications include voice over internet protocol services, data communication services, video and multimedia services, internet of things connectivity, and mission-critical communications. It is used by end users such as telecom operators, internet service providers, and enterprises.

Tariffs are disrupting the core network software sector by interfering with global supply chains that support semiconductors, networking hardware, and specialized telecom infrastructure components required for system deployment and upgrades. This has resulted in higher procurement costs and slower rollout schedules, particularly impacting telecom operators and enterprises in Asia-Pacific manufacturing-heavy countries such as China and Taiwan. Software providers and service vendors are also experiencing increased expenses for integration and deployment due to the strong interdependence between hardware and software in core network environments. Nevertheless, tariffs are stimulating efforts toward localized production, broader supplier diversification, and increased regional investment in telecom infrastructure ecosystems, which may ultimately enhance long-term supply chain resilience and strengthen innovation capabilities.

The core network software market research report is one of a series of new reports from The Business Research Company that provides core network software market statistics, including core network software industry global market size, regional shares, competitors with a core network software market share, detailed core network software market segments, market trends and opportunities, and any further data you may need to thrive in the core network software industry. This core network software 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 core network software market size has grown strongly in recent years. It will grow from $20.77 billion in 2025 to $22.58 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to legacy circuit-switched infrastructure dominance, manual network provisioning and siloed operations, limited virtualization adoption, monolithic telecom core architectures, basic rule based routing and policy systems.

The core network software market size is expected to see strong growth in the next few years. It will grow to $31.82 billion by 2030 at a compound annual growth rate (CAGR) of 9.0%. The growth in the forecast period can be attributed to increased network function virtualization adoption, demand for 5g and beyond scalability, autonomous network orchestration expansion, edge distributed architecture growth, zero trust security framework integration in telecom core. Major trends in the forecast period include network function virtualization and software defined core adoption, legacy core network modernization and ip transition, telecom api standardization and open network interoperability, real time traffic engineering and qos optimization, enhanced subscriber identity and fraud prevention systems.

The exponential growth in data traffic and mobile subscribers is expected to propel the growth of the core network software market going forward. Data traffic and mobile subscribers refer to the increase in the volume of data consumed over mobile networks and the rising number of active mobile users connected to those networks over time. The exponential growth in data traffic and mobile subscribers is primarily driven by the rapid expansion of high-speed mobile broadband networks, which enable widespread adoption of data-intensive applications such as video streaming, cloud services, and real-time digital platforms. Core network software efficiently routes data traffic for seamless performance while authenticating and managing mobile subscribers to enable secure access, billing, and uninterrupted communication services. For instance, in January 2024, according to the Office of Communications, a UK-based communications regulator, average monthly mobile data consumption per user reached 9.6 GB in Q2 2023, reflecting a 19% year-on-year increase, while total mobile data traffic grew at a faster rate of 27% over the same period, with the variance primarily attributed to an expansion in the overall base of mobile data users. Therefore, exponential growth in data traffic and mobile subscribers is driving the growth of the core network software market.

Key companies operating in the core network software market are focusing on developing technological advancements in cloud-native core architectures, such as cloud-native packet core modernization platforms, to enhance network scalability, accelerate service deployment, reduce operational complexity, and support evolving 5G and future connectivity demands. Cloud-native core architecture advancement refers to the transition from traditional hardware-based telecom core systems to software-defined, containerized, and cloud-optimized network functions that enable automated deployment, elastic scaling, continuous upgrades, and efficient management of 4G and 5G core networks. For example, in December 2024, Ericsson, a Sweden-based telecommunications infrastructure company, introduced the Ericsson Compact Packet Core. The introduced solution enables simplified modernization of legacy packet core networks into a cloud-native 4G/5G core architecture with pre-integrated configurations and automation-driven deployment. It delivers significant operational efficiency by reducing configuration complexity by up to 80% and enabling automated lifecycle management with seamless software upgrades, and it provides a future-ready, scalable, and energy-efficient core network platform supporting 5G standalone, non-standalone, and 4G evolution with optimized performance and reduced infrastructure footprint.

In August 2023, Cisco Systems, a US-based technology company focused on networking hardware and enterprise software, completed the acquisition of Working Group Two (WG2) for an undisclosed sum. Through this acquisition, Cisco intends to enhance its core network software portfolio by advancing its cloud-native mobile core capabilities, enabling programmable and software-defined 4G/5G core network services, and accelerating its Mobility Services Platform to assist telecom operators in delivering scalable, API-driven, and fully virtualized next-generation network infrastructure. Working Group Two (WG2) is a Norway-based cloud-native mobile core network software company offering software-defined 4G/5G core network and Network-as-a-Service (NaaS) platforms for telecom operators and MVNOs.

Major companies operating in the core network software market are Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Cisco Systems Incorporated, Oracle Corporation, Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, ZTE Corporation, Amdocs Limited, Ciena Corporation, NEC Corporation, Parallel Wireless Inc., Alianza Inc., Celona Inc., Druid Software Limited, IPLOOK Technologies Co. Ltd., Lemko Corporation, BroadForward B.V., Cumucore Oy, Monogoto Ltd.

Asia-Pacific was the largest region in the core network software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the core network software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the core network software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The core network software market consists of revenues earned by entities by providing services such as network design and planning, software deployment, system integration, configuration management, performance monitoring, maintenance and support, and consulting related to IP network operations. 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.

Core Network Software Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses core network software 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.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 16 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
• Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for core network software ? 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 core network software 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• 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.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Component: Software; Services
• 2) By Deployment Mode: On-Premises; Cloud-Based
• 3) By Network Type: Mobile Core Networks; Fixed Core Networks
• 4) By Application: Voice Over Internet Protocol Services; Data Communication Services; Video And Multimedia Services; Internet Of Things Connectivity; Mission Critical Communications
• 5) By End User: Telecom Operators; Internet Service Providers; Enterprises
• Subsegments:
• 1) By Software: Network Function Virtualization Software; Policy And Charging Rules Function Software; Subscriber Data Management Software; Network Orchestration Software; Network Management Software; Routing And Switching Software
• 2) By Services: Professional Services; Managed Services; Integration Services; Consulting Services; Support And Maintenance Services
• Companies Mentioned: Samsung Electronics Co. Ltd.; Huawei Technologies Co. Ltd.; Cisco Systems Incorporated; Oracle Corporation; Hewlett Packard Enterprise Company; Telefonaktiebolaget LM Ericsson; Nokia Corporation; ZTE Corporation; Amdocs Limited; Ciena Corporation; NEC Corporation; Parallel Wireless Inc.; Alianza Inc.; Celona Inc.; Druid Software Limited; IPLOOK Technologies Co. Ltd.; Lemko Corporation; BroadForward B.V.; Cumucore Oy; Monogoto Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: Word, PDF or Interactive Report
• + Excel Dashboard
• Added Benefits
• Bi-Annual Data Update
• Customisation
• Expert Consultant Support

Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.