As per the current market research conducted by the CMI Team, the global 5G Core Network Market size is expected to record a CAGR of 42% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 2.41 Billion. By 2032, the valuation is anticipated to reach USD 20.60 Billion.
5G Core Network Market: Growth Factors and Dynamics
- Rapid Technological Advancements: The 5G Core Network market is highly dynamic due to continuous technological advancements. As new features and capabilities are developed, network operators and vendors must adapt and upgrade their infrastructure to stay competitive and meet the evolving demands of consumers and enterprises.
- Increasing Demand for High-Speed Connectivity: The growing demand for high-speed, low-latency connectivity is a significant driver of the 5G Core Network market. With applications like autonomous vehicles, IoT, augmented reality, and 4K video streaming becoming more mainstream, there is a need for 5G networks to provide the necessary bandwidth and reliability.
- IoT Proliferation: The Internet of Things (IoT) is a major driver of the 5G Core Network market. As the number of IoT devices continues to rise, 5G networks are essential for supporting the massive data traffic generated by these devices. This includes smart cities, industrial automation, and various IoT applications across industries.
- Network Slicing: Network slicing is a key feature of 5G networks, allowing operators to create multiple virtual networks on a single physical infrastructure. This dynamic allocation of network resources enables customization for different use cases, such as enhanced mobile broadband, massive IoT, and ultra-reliable low-latency communication (URLLC). The market is witnessing increased interest in network slicing solutions.
- Security Concerns: With the expansion of 5G networks, there are growing concerns about security. The market dynamics include a focus on developing robust security solutions to protect against cyber threats, as the increased connectivity surface brings new risks.
- Regulatory Environment: Government regulations and policies play a significant role in shaping the 5G Core Network market. Regulatory decisions on spectrum allocation, data privacy, and national security can impact the deployment and operation of 5G networks. Vendors and operators must stay informed and compliant with these regulations.
- Competition: The 5G Core Network market is highly competitive, with multiple vendors and service providers vying for market share. Competition drives innovation and can lead to faster deployment of new 5G technologies and services.
|Feature of the Report
|Market Size in 2023
|USD 4.22 Billion
|Projected Market Size in 2032
|USD 20.60 Billion
|Market Size in 2022
|USD 2.41 Billion
|CAGR Growth Rate
|By Components, Network Function, End User, Deployment Model and Region
|Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
|North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
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5G Core Network Market: COVID-19 Analysis
- Acceleration of Digital Transformation: The pandemic accelerated the ongoing digital transformation efforts across industries. With lockdowns and remote work becoming the new norm, there was a surge in demand for high-speed and reliable connectivity to support remote collaboration, e-commerce, telehealth, and online education. This drove increased interest in and adoption of 5G technologies, including the core network, to meet the heightened connectivity requirements.
- Increased Data Traffic: The pandemic-induced shift towards remote work, entertainment, and online activities led to a substantial increase in data traffic. Network operators had to manage the surges in demand and ensure network reliability. Many turned to 5G Core Networks to enhance network capacity, reduce latency, and improve overall performance.
- Supply Chain Disruptions: The 5G Core Network market experienced supply chain disruptions due to lockdowns and restrictions on the movement of goods and people. These disruptions affected the production and deployment of 5G infrastructure equipment and components, potentially causing delays in network rollouts.
- Shift in Investment Priorities: As businesses faced economic uncertainties during the pandemic, there was a temporary shift in investment priorities. Some network operators postponed large-scale 5G infrastructure investments, focusing instead on maintaining existing networks and ensuring network resilience to meet immediate demands.
- Remote Network Management: The pandemic forced many network operators to adopt remote network management and monitoring solutions. This pushed the development and deployment of more advanced, automated, and AI-driven capabilities within the 5G Core Network to enable efficient remote operations and troubleshooting.
- 5G for Healthcare: The healthcare sector saw an increased interest in 5G Core Networks, particularly for telemedicine and remote patient monitoring. 5G’s low latency and high bandwidth capabilities became crucial in delivering healthcare services remotely, which was vital during the pandemic.
List of the prominent players in the 5G Core Network Market:
- Nokia Corporation
- Telefonaktiebolaget LM Ericsson
- Huawei Technologies Co. Ltd.
- Cisco Systems Inc.
- Samsung Electronics Co. Ltd.
- Hewlett Packard Enterprise Company
- Casa Systems Inc.
- Oracle Corporation
The 5G Core Network Market is segmented as follows:
By Network Function
By End User
- Telecom Operators
By Deployment Model
- Rest of North America
- Rest of Europe
- New Zealand
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Rest of Latin America