Valued at USD 33.9 Bn in 2023, the market is projected to reach USD 48.3 Bn by 2032, growing at a 8.2% CAGR. Europe holds the largest share, while Asia-Pacific grows fastest. The report profiles 10 companies.
The global mobile core network market was valued at USD 33.9 Bn in 2023 and is projected to reach USD 48.3 Bn by 2032, growing at a CAGR of 8.2%. Europe is the largest regional market and Asia-Pacific is growing fastest.
Reports Description
As per the current market research conducted by the CMI Team, the global Mobile Core Network Market is expected to record a CAGR of 8.2% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 32.4 billion. By 2032, the valuation is anticipated to reach USD 48.3 billion.
The mobile core network market refers to the dynamic segment of the telecommunications industry responsible for managing and routing data and voice traffic within mobile networks. It comprises a complex ecosystem of hardware and software components that form the backbone of mobile communications.
The market's nature is highly technology-driven, characterized by rapid innovation, evolving standards, and intense competition among global players. Key trends include the rollout of 5G networks, network virtualization, edge computing integration, and a strong emphasis on security and sustainability as mobile networks continue to adapt to changing consumer demands and emerging technologies.
Mobile Core Network Market - Significant Growth Factors
5G Expansion: The global rollout of 5G networks is a primary driver, demanding substantial investments in mobile core network infrastructure to support higher speeds, low latency, and massive IoT connectivity, revolutionizing industries.
Rising Data Consumption: Escalating data consumption due to increased video streaming, IoT devices, and remote work is driving the need for more robust and efficient mobile core networks, adapting to evolving user demands.
Network Virtualization: The adoption of network virtualization and cloud-native architectures is growing, enhancing scalability, flexibility, and cost-effectiveness while reducing operational costs and streamlining network management.
Security Concerns: Heightened cybersecurity threats are pushing the demand for advanced security solutions within mobile core networks to safeguard against potential attacks, ensuring network integrity and user privacy.
Edge Computing Integration: Integrating edge computing into mobile core networks presents an opportunity to reduce latency and support real-time applications, unlocking new use cases like autonomous vehicles, augmented reality, and smart cities.
5G-Enabled IoT: The proliferation of 5G-enabled IoT devices and applications offers a significant growth opportunity, as mobile core networks will be crucial in facilitating seamless connectivity and management of these devices, fueling the IoT revolution.
Network Slicing Innovation: The development and deployment of network slicing technologies create opportunities for tailored network services. Operators can offer specialized slices for industries like healthcare, gaming, or logistics, optimizing network resources and revenue generation while meeting diverse customer needs.
Mobile Core Network Market - Mergers and Acquisitions
The Mobile Core Network Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Mobile Core Network Market include:
Ericsson and Verizon: In 2021, Ericsson partnered with Verizon to develop and deploy 5G network solutions, focusing on expanding 5G coverage and enhancing network performance for Verizon customers. Ericsson will deliver industry-leading 5G solutions, including Massive MIMO, Ericsson Cloud RAN and software to strengthen and expand Verizon's world-class 5G network.
Nokia and Orange: In 2022, Nokia extends Orange's partnership with the 5G Core deal. Nokia entered into a partnership with Orange to develop 5G mobile core network solutions. This collaboration aims to drive 5G adoption and innovation across multiple markets.
Samsung and SK Telecom: Samsung and SK Telecom Develop Next Gen. 5G Core, based on 3GPP Rel. 16. Samsung and SK Telecom have collaborated to develop and deploy a 5G standalone (SA) core network, enabling SK Telecom to offer enhanced 5G services and experiences to its customers.
Hewlett Packard Enterprise (HPE) and Silver Peak: In 2020, HPE acquired Silver Peak to expand its software-defined wide area network (SD-WAN) portfolio, supporting mobile operators in optimizing network performance and connectivity. The combination creates a comprehensive networking portfolio to accelerate customers’ edge-to-cloud transformation.
These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Mobile Core Network Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.
The Mobile Core Network Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:
Cybersecurity Vulnerabilities: With the increasing complexity of mobile core networks and the rise in cyber threats, there's a significant risk of security breaches, data theft, and network disruptions. Protecting against these vulnerabilities is a continuous challenge.
Regulatory and Compliance Hurdles: Evolving regulations, such as data privacy laws and spectrum allocation, can pose challenges for mobile operators in terms of compliance, potentially impacting their operations and investments.
Competitive Pressures: Intense competition among telecom equipment vendors and network providers can lead to price wars, affecting profitability and innovation within the market.
Technological Obsolescence: Rapid technological advancements can render existing infrastructure and investments obsolete, requiring frequent upgrades and capital investments to stay competitive.
Vendor Dependency: Reliance on a limited number of key equipment vendors can expose operators to supply chain risks, technological dependencies, and potential vendor-specific issues, impacting network stability and flexibility.
Report Scope
Feature of the Report
Details
Market Size in 2023
USD 33.9 Billion
Projected Market Size in 2032
USD 48.3 Billion
Market Size in 2022
USD 32.4 Billion
CAGR Growth Rate
8.2% CAGR
Base Year
2023
Forecast Period
2024-2033
Key Segment
By IMS Core, 4G/5G Packet Core Controller, 4G/5G Subscriber Data Management and Region
Report Coverage
Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options
Request tailored purchasing options to fulfil your requirements for research.
Category-Wise Insights
By IMS Core:
Session Border Controllers (SBCs): Session Border Controllers are network devices that regulate and secure voice-over IP (VoIP) communications. They ensure smooth multimedia sessions across different networks while protecting against cyber threats. In the Mobile Core Network Market, SBCs are essential for secure and reliable voice and video communication services.
Voice Application Servers: Voice Application Servers are central components that manage voice services, including call routing, voicemail, and interactive voice response (IVR). In the Mobile Core Network Market, they support innovative voice services and enhanced customer experiences.
Call Session Control Function (CSCF): CSCF is a key element in IP Multimedia Subsystem (IMS) networks, managing call sessions in mobile communication. It plays a crucial role in establishing, controlling, and terminating multimedia sessions. In the Mobile Core Network Market, CSCF optimization supports efficient voice and data services.
Global Mobile Core Network Market 2023–2032 (By Billion)
MME (Mobility Management Entity): MME in the 4G/5G Packet Core Controller is a crucial element responsible for tracking and managing the mobility of devices within the network. It ensures seamless handovers and authentication, optimizing connectivity in mobile networks.
SGW-C (Serving Gateway Control): SGW-C is part of the Packet Core Controller and serves as a key interface for data traffic routing within 4G/5G networks, facilitating efficient communication between devices and external networks.
PGW-C (PDN Gateway Control): PGW-C is another component in the Packet Core Controller that controls the flow of data traffic between mobile devices and external networks, ensuring data routing, addressing, and quality of service.
AMF (Access and Mobility Management Function): In 5G networks, AMF is responsible for access control, device registration, and mobility management. It plays a pivotal role in network slicing and dynamic resource allocation.
SMF (Session Management Function): SMF is a vital part of the 5G Packet Core Controller, responsible for session establishment, management, and termination, enabling low-latency and high-performance connections.
4G/5G Subscriber Data Management
Home Subscriber Server (HSS): HSS is a critical component in 4G/5G subscriber data management. It stores and manages subscriber information, including authentication data and user profiles, ensuring secure and efficient access to network services. Trends in the Mobile Core Network Market involve HSS optimization for 5G to handle massive device connections and dynamic network slicing requirements, enhancing scalability and flexibility.
Unified Data Management: Unified Data Management consolidates subscriber data across various network elements, simplifying data handling and enhancing user experiences. In the Mobile Core Network Market, the trend is towards implementing cloud-native, AI-driven solutions for real-time data analytics, enabling personalized services, and efficient resource allocation in 5G networks.
Mobile Core Network Market - Regional Analysis
The Mobile Core Network Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:
North America: In North America, mobile core network trends focus on rapid 5G expansion, with telecom operators aggressively deploying infrastructure and exploring edge computing integration. Security is paramount, driven by cybersecurity concerns and regulatory scrutiny. Additionally, partnerships between telecom giants and tech companies for content delivery and IoT services are shaping the region's mobile core network landscape.
Europe: Europe emphasizes network sustainability, with a strong emphasis on energy-efficient technologies and eco-friendly infrastructure. The region is also a pioneer in Open RAN adoption, promoting vendor diversification and competition. Privacy regulations like GDPR continue to influence mobile core network strategies, while 5G-enabled IoT and smart city initiatives gain momentum.
Asia-Pacific: Asia-Pacific leads in 5G adoption, with a focus on developing 5G-enabled applications and services, including smart manufacturing and autonomous vehicles. The region emphasizes network slicing to cater to diverse industries, while partnerships between telecom operators and OTT content providers drive innovation. Robust cybersecurity measures are essential to counter evolving threats.
LAMEA (Latin America, Middle East, and Africa): LAMEA showcases a burgeoning interest in 5G, primarily driven by urbanization and economic growth. The region explores unique use cases for 5G in sectors like agriculture and healthcare. Mobile operators in the Middle East prioritize cybersecurity solutions, given the geopolitical landscape, while Latin America seeks to bridge the digital divide through affordable 4G and 5G access. Regulatory challenges and infrastructure development remain key factors in LAMEA's mobile core network trends.
Competitive Landscape – Mobile Core Network Market
The Mobile Core Network Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:
Nokia Corporation
Ericsson AB
Huawei Technologies Co. Ltd.
Cisco Systems Inc.
Samsung Electronics Co. Ltd.
ZTE Corporation
NEC Corporation
Hewlett Packard Enterprise (HPE)
Mavenir Systems Inc.
Affirmed Networks Inc
Others
These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.
New entrants like Rakuten Mobile in Japan and DISH Network in the United States have adopted innovative approaches to enter the mobile core network market. Rakuten Mobile built a cloud-native 4G and 5G network, disrupting traditional telecom models. DISH Network is leveraging Open RAN technology to build a nationwide 5G network.
Key players dominating the market include Nokia, Ericsson, and Huawei, renowned for their comprehensive mobile core network solutions and global reach. They maintain market dominance through continuous R&D investments, partnerships with major telecom operators, and a wide product portfolio, ensuring they stay at the forefront of the evolving 4G and 5G landscape.
Which are the driving factors of the Mobile Core Network Market?
The key factors driving the Market are 5G Expansion, Rising Data Consumption, Network Virtualization, Security Concerns, Edge Computing Integration, 5G-Enabled IoT And Network Slicing Innovation.
Which type led the Mobile Core Network market?
The "IMS Core " category dominated the market in 2022.
Who are the key players in the Mobile Core Network market?
The key players in the market are Nokia Corporation, Ericsson AB, Huawei Technologies Co. Ltd., Cisco Systems Inc., Samsung Electronics Co. Ltd., ZTE Corporation, NEC Corporation, Hewlett Packard Enterprise (HPE), Mavenir Systems Inc., Affirmed Networks Inc, Others.
Which region held the largest market share in the Mobile Core Network market?
"Asia-Pacific" had the largest share in the Mobile Core Network Market.
What is the growth rate of the Mobile Core Network market?
The global market is projected to grow at a CAGR of 8.2% during the forecast period, 2023-2032.
How much is the Mobile Core Network market?
The Mobile Core Network Market size was valued at USD 32.4 Billion in 2022.
Ayush Kadam is a Senior Market Research Analyst at Custom Market Insights, with over seven years of experience in syndicated and custom market research. He specializes in market sizing, competitive intelligence, industry trends, forecasting, and strategic insights, helping clients turn complex data into actionable business decisions.
