Global 5G Core Network Market 2025 – 2034

Reports Description

As per the 5G Core Network Market analysis conducted by the CMI Team, the global 5G Core Network Market is expected to record a CAGR of 41.8% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 3.42 Billion. By 2034, the valuation is anticipated to reach USD 22.65 Billion.

Overview

The market of the 5G Core Network is changing fast in order to promote sustainability, efficiency, and resilience in the digital economy. The major telecom operators and vendors are moving towards cloud-native, software-defined, and virtualized design in order to decrease hardware-reliance and minimize power usage. As more companies become ESG committed, they are investing in green data centers, 5G infrastructure that relies on renewable energy and recyclable hardware designs. With correct AI automation and predictive analysis, network efficiency, scalability, and traceability are being enhanced at a lower cost of operation. With the rush of demand in the pillars of the IoT, smart cities, autonomous vehicles, and Industry 4.0, the 5G Core Network is establishing itself as the foundation of the sustainable and future-proof global connectivity.

Key Trends & Drivers

The 5G Core Network Market Trends have tremendous growth opportunities due to several reasons:

• Increased Data Traffic and IoT Growth: As billions of linked devices generate huge amounts of real-time data, 5G Core networks are essential in providing ultra-reliable, low-latency connections. The IoT applications, such as smart home, autonomous mobility, and industrial automation, are booming and need a scalable and efficient 5G Core infrastructure that has been adopted and invested in globally by businesses and telecommunication providers.

• Migration to Cloud-Native and Virtualized Networks Telecom: Providers are migrating off hardware-based systems to cloud-native, software-defined and virtualized 5G Core designs. Such a transition minimizes the use of proprietary hardware, cuts infrastructure expenses and enhances agility. NFV and containerized structures allow operators to dynamically scale services and enhance efficiency, sustainability and service delivery in a plethora of enterprise and consumer applications.

• Enterprise Digital Transformation: The push to Industry 4.0 is subjecting the personal 5G Core network in industries like manufacturing, healthcare, logistics, and energy to heavy demands. Smart factories, connected hospitals, autonomous vehicles and real-time analytics demand a secure and reliable connection that can be tailored to enterprises. This tendency will make 5G Core the basis of digitalization of enterprises worldwide.

Key Threats

The 5G Core Network Market has several primary threats that will influence its profitability and future development. Some of the threats are:

• Prolonged Deployment and Integration Permanency: 5G Core infrastructure will demand the substantial capital investment in the spectrum licensing, equipment purchase and integration with other systems. Maintaining and cyber needs are also costs that raise operation costs. Smaller telecom providers and regional players may find themselves disadvantaged by these financial requirements and the new entrants will not be able to start adopting 5G quickly.

• Geopolitical/Regulatory Barriers: International trade restrictions, spectrum sorting battles and growing cybersecurity threats are a threat to global 5G Core deployments. There exist geopolitical challenges such as U.S. China technology wars, which have broken supply chains of semiconductors and network equipment. Moreover, regulatory structures are strict and international compliance issues such as cross regulation complicate standardization globally, slows down deployments and limits easy integration of international 5G networks.

Opportunities

• Edge Computing & Network Slicing: The 5G core networks enable a better service implementation by providing edge computing and network slicing. Edge nodes can bring computing power to the edge, allowing them to deliver ultra-low latency to devices with mission-critical utilization, including autonomous driving and telemedicine. Network slicing has made new monetization and new service innovation in many industries, allowing operators to offer specialized and isolated virtual networks to some industries, including some particular industries.

• Automation with AI: The use of artificial intelligence and machine learning in 5G Core networks is an important source of growth. AI allows predictive analytics, smart traffic, and automated coordination, minimizing downtime and enhancing efficiency. Through automation, telecom operators will be able to provide better service, reduce the cost of doing business, and develop innovative and future-ready services to both businesses and consumers.

Category Wise Insights

By Component

• Solutions: Solutions 5G Core Network Solutions Solutions are hardware, software and integrated solutions that enable efficient network operation. These include cloud-native core, network slicing and orchestration systems, which support ultra-low latency abant and high reliability and scales of connectivity. The solutions offer the telecom operators and enterprises with tools necessary to deploy, manage, and optimise 5G services efficiently.

• Services: Services include implementation, consulting, maintenance and managed operations of 5G Core Networks. They assist organizations in deploying, monitoring and optimization of network performance as well as compliance, security and cost effectiveness. Professional and managed services enable simplification of operations, faster adoption, and enable managed and professional operations to focus on service innovation and experience.

By Deployment Model

• On-Premise / Dedicated: On-premise or dedicated deployment includes deploying the 5G Core Network in the personal data center of an enterprise or operator. It has a 100 percent control, security and tailor-made network policies. The model can be used in sensitive applications, mission-critical operations, and organizations that require low-latency and high-reliability connectivity to be used in cases of specific applications.

• Public Cloud: Public cloud deployment uses third party cloud providers to deploy 5G core functionalities. It is also scalable, can be deployed quickly and is cost efficient without the extensive on-site infrastructure. Telecom operators will be able to scale resources dynamically with demand and avoiding capital costs whilst maintaining accessibility across the globe and integration to cloud-based applications and services.

• Hybrid: Hybrid deployment uses both on-premise and public cloud architecture, which provides a balance between control, scalability, and cost. The enterprises and operators can execute sensitive workloads on-premise, and utilize the cloud to execute less critical or dynamic workloads. This model enables smooth growth, scalability as well as efficiency of resource distribution within networks.

• Telco Edge Cloud: Telco Edge Cloud implements functions of a 5G Core Network movement towards end-users at the network edge. It minimizes latency, increases throughput and it can be used with applications such as AR/VR, autonomous vehicles and real-time analytics. Edge cloud guarantees accelerated data management, improved user experience, and localized and high-performance services to businesses and consumers.

By End-User

• Telecom Operators: Telecom operators deploy 5G Core networks to support their mobile broadband, low-latency and enterprise. Core functions enable operators to slice networks, manage traffic and provide subscriber services, generate new sources of revenue, enable IoT ecosystems and enhance operational efficiency in the consumer and business market.

• Enterprises: Enterprises use 5G Core Networks to implement private networks (smart factories, health, logistics, and retail) using them. These networks facilitate automation, secure communications, and low-latency services, and enable the businesses to maximize processes, enhance productivity, and use sophisticated technologies, such as AI, IoT, and real-time analytics to their strategic benefit.

By Network Function

• Network Exposure Function (NEF): NEF provides secure network exposures to service capabilities and applications to third parties and enterprise applications. It allows data sharing APIs, service orchestration APIs, and third-party integration but does not compromise network security. NEF helps in innovation, faster development of services and enabling operators to efficiently monetize network resources.

• User Plane Function (UPF): UPF is the data traffic routing, forwarding and packet processing in 5G networks. It supports network slice in terms of quality of service, traffic segregation and ultra-low latency. UPF is essential when it comes to autonomous vehicles, AR/VR and industrial IoT because it guarantees the high-performance data delivery throughout the network.

• Application Function (AF): This is the application of 5G Core that communicates with the 5G Core to offer policy control and application-level services. It controls the network behavior depending on the application requirement and hence provides optimization on the routing of traffic, quality of service, and application-specific features. AF provides effective resource distribution, smooth user experience and connectivity with cloud and edge applications.

• Unified Data Management (UDM): UDM is a centralized way to manage subscriber profiles, authentication and subscription data. It provides a secure access, a consistent identity management and policy enforcement throughout the network. UDM facilitates the ability to slice the network, customized services, effortless mobility, and promote reliability and support advanced consumer and enterprise applications.

• Session Management Function (SMF): SMF is responsible to establish, modify, and close down user connections. It assigns IP addresses, implements QoS and provides continuity of a session across network slices. SMF is necessary to provide a reliable connection, mobility, and traffic management in 5G applications with high demands.

• Others: There are other functions of networks such as Policy Control Function (PCF), Authentication Server Function (AUSF) and Charging Function (CHF), among others. All these functions contribute to security, enforcement of policies, billing and optimization of networks thus ensuring smooth operations, compliance and monetization to telecom operators and enterprise networks.

Historical Context

5G Core Network The market of 5G core networks is rapidly changing because of the growing demand of ultra-low latency services, cloud-native designs, and edge computing applications. Adoption is increasing with the arrival of Industry 4.0, autonomous movement, smart city, and IoT-based ecosystems. Green telecom operators are also shifting into data centers that are power efficient, network functions are virtualized, and 5G infrastructure is powered by renewable energy to reduce its carbon footprint. The 5G Core Network is a technology that is being used globally as a backbone to digital transformation because of ongoing research on network slicing, Open RAN integration, and private 5G deployments that are improving scalability, security, and service innovation.

Impact of Latest Tariff Policies

Continued tariff and trade disputes by the U.S., China, and the European Union have caused interruptions in the supply of semiconductors, radio equipment and other sophisticated network components that are important in constructing 5G Core infrastructure. Increased import tariffs on chipsets, optical modules and specialized network equipment have increased the overall deployment costs in that operators and vendors have either absorbed the incremental costs or charged higher prices of their services.

The most impacted are small and medium-sized 5G solution providers because they are not equipped with sophisticated procurement strategies, diversification of supplier base, and financial cushions compared to the global telecom giants. Some local network operators have postponed commercial launches, spectrum investment, equipment upgrades, whereas others have moved their procurement process to markets that are tariff-friendly as in India, Vietnam, and South Korea to reduce their costs and remain competitive.

This shift is towards the market power of the bigger multinational telecom vendors, which have global production capacity, a strong R and D investment, and even a diversified sourcing policy.

Report Scope

Regional Perspective

North America: The North America 5G Core Network is a market with one of the largest worldwide, which is facilitated by the fast 5G adoption rates, developed telecommunication infrastructure, and the robust enterprise digital transformation programs. Telecom and enterprises are aggressively investing in cloud-native and virtualized core networks to facilitate the implementation of low-latency services, IoT, and Industry 4.0 applications.

• US.: The United States is a leader in the regional market because many have implemented 5G rollouts, the government encourages the modernization of the network, and enterprises are often in need of their own private 5G networks. Advanced network functions, network slicing, and AI-based orchestration are all typical features of major telecom operators to enhance the quality and scalability of the service.

• Canada: The Canadian market is sustained by the emerging investments in 5G infrastructure, as well as the growing use of cloud-native core networks. The 5G technology is being used by telecom providers and businesses to develop smart city initiatives, automation of industries, and the provision of more connective services in urban areas.

Europe: 5G Core Network market in Europe is characterized by favorable government policies, telecommunication infrastructure, and enterprise-based digitalization. The shift to virtualized and cloud-native cores and edge computing is becoming increasingly popular to enable smart factories, healthcare, and industrial IoT.

• Germany: Germany is one of the pioneers in 5G Core deployment, because of high levels of telecom infrastructure and enterprise applications in smart manufacturing and Industry 4.0. Operators are deploying network slicing and AI-based orchestration to improve network performance and the reliability of the services.

• UK: UK is experiencing increased use of private and hybrid 5G networks over businesses, modernization of telecom, and low-latency uses such as augmented reality and virtual reality, and cloud gaming. The adoption process in cities and industrial centers is sped up with the help of the government.

• France: France aims at enterprise and telecom 5G Core Networks adoption with a concentration on edge computing, low-latency connection applications, and cloud-native structures to smart industries, autonomous mobility, and extensive IoT implementation.

Asia-Pacific: Asia-Pacific is the most rapidly expanding market with a 5G Core Network because of high rates of urbanization, high investment in telecom infrastructure, and growing enterprise demand of private 5G networks. The use of cloud-native and edge computing is also high, and it has been used in manufacturing, healthcare, logistics, and smart cities.

• China: China is a market leader that has a very large national coverage of 5G, has strong industrial implementations, and cloud core implementation. Telecom operators are increasing private 5G networks, edge computing and AI-based network management solutions.

• India: Government efforts such as Digital India, increasing enterprise demand, and rolling out of private 5G networks to industrial automation, logistics and smart city projects have all contributed to the expansion of the Indian market.

• Japan: Japan is concentrating on high-performance 5G Core use in autonomous mobility, smart manufacturing, and the enterprise cloud. Operators are also combining edge computing and network slicing to maximize latency and reliability of critical applications.

LAMEA: LAMEA is a developing market of 5G Core Network, supported by the development of telecom infrastructure, urbanization, and growth of enterprise digital uptake. Despite the challenge of cost and awareness, investment in 5G and private networks is on the increase in key countries.

• Brazil: Brazil market is growing because of the increasing urban connectivity requirements, investments of telecom operators, and use of personal 5G networks by enterprises to build smart cities and automation in industries.

• Saudi Arabia: Saudi Arabia is working on 5G Core Networks within the scope of Vision 2030, and focuses on updating telecom infrastructure, smart city development, and enterprise 5G private networks.

• South Africa: South Africa is slowly embracing 5G Core solutions to enhance enterprise connectivity, digital services and modernization of the telecom networks. Edge computing investments and cloud-native deployments are contributing to the growth in the regions.

Key Developments

• In April 2025, T-Mobile announced that it had immigrated a nationwide implementation of 5G Advanced, founded on a standalone (5G SA) architecture to open ultra-low latency, higher throughput, and artificial intelligence. It provides complete experiences of the body, better connectivity in the enterprise, and developer innovation in XR, cloud gaming, and devoiced networks, and mission-critical apps.

Leading Players

The 5G Core Network Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• Ericsson
• Huawei Technologies
• Nokia Corporation
• Samsung Electronics
• ZTE Corporation
• Cisco Systems
• Qualcomm Technologies
• Intel Corporation
• NEC Corporation
• Mavenir Systems
• Dell Technologies
• Microsoft Corporation
• AT&T Inc.
• Telefonica S.A.
• BT Group
• SK Telecom
• Reliance Jio
• Verizon Communications
• Orange S.A.
• Deutsche Telekom AG
• China Mobile
• China Telecom
• China Unicom
• NTT DOCOMO
• T-Mobile US
• Others

The global 5G Core Network Market is undergoing rapid transformation, driven by rising demand for ultra-low latency, high reliability, and scalable connectivity across industries. Leading vendors are focusing on developing cloud-native, virtualized, and AI-driven 5G Core solutions that optimize network performance, reduce operational costs, and ensure seamless service delivery. The integration of network slicing, edge computing, and automated orchestration enhances scalability, supports critical enterprise applications, and ensures consistent quality of service across telecom, enterprise, IoT, smart city, and industrial automation deployments.

The 5G Core Network Market is segmented as follows:

By Component

• Solutions
• Services

By Deployment Model

• On-Premise / Dedicated
• Public Cloud
• Hybrid
• Telco Edge Cloud

By End-User

• Telecom Operators
• Enterprises

By Network Function

• Network Exposure Function (NEF)
• User Plane Function (UPF)
• Application Function (AF)
• Unified Data Management (UDM)
• Session Management Function (SMF)
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America