The global 5G Core market is rapidly evolving as 5G technology ushers in a new era of mobile connectivity characterized by high speed, ultra-low latency, and massive device connectivity.

The global 5G core market size was valued at USD 1,664 million in 2022. It is estimated to reach USD 76,001 million by 2031,growing at a CAGR of 52.9% during the forecast period (2023–2031).

The 5G Core—the heart of 5G networks—is fully software-based and cloud-native, delivering greater flexibility, scalability, and performance relative to previous generations. It enables advanced functionalities such as network slicing, real-time analytics, and cloud orchestration, all critical for diverse modern applications from consumer streaming to industrial automation.

Regional Trends

  • Asia Pacific: Holds the largest share of the global 5G Core market due to early 5G adoption, large population bases, and strong investments in digital infrastructure by China, South Korea, Japan, and India. The rapid rollout of 5G networks and government initiatives promoting smart cities and IoT adoption contribute to sustained growth.

  • Europe: Expected to be the fastest-growing region with a CAGR exceeding 63%. Europe’s growth is driven by regulatory support, growing demand for cloud-native 5G architectures, and investments in automation and smart infrastructure across industries. Operators like Vodafone are deploying advanced 5G Core technology to support their mobile networks.

  • North America: A mature market with significant contributions from major telecom players adopting advanced 5G Core solutions. The U.S. and Canada invest heavily in 5G Standalone Core deployments to support enhanced mobile broadband and emerging use cases such as connected vehicles and smart manufacturing.

  • Latin America, Middle East & Africa: These markets are emerging with gradual 5G Core adoption backed by increasing urbanization, government initiatives, and telecom modernization efforts, though infrastructure and regulatory challenges remain a hurdle to faster expansion.

Market Segments (2019–2031)

By Component

  • Solutions: This segment comprises hardware and software solutions essential for core network functions, including virtualized network functions (VNFs), cloud infrastructure, and orchestration platforms. Solutions account for the bulk of investments as operators build or upgrade their 5G core networks.

  • Services: Includes consulting, integration, managed services, and maintenance support for 5G Core deployments. The increasing complexity of 5G networks and demand for ongoing optimization drive growth in service revenues.

By Deployment Mode

  • Cloud: The dominant and fastest-growing deployment mode, cloud-based 5G Core offers agility, scalability, and cost efficiencies. Cloud-native architecture enables operators to rapidly launch new services and support network slicing in a flexible environment.

  • On-Premises: Still preferred by operators requiring strict control over infrastructure and data locality, especially in private 5G networks for enterprises or regulated sectors, though growth is relatively slower compared to cloud deployment.

By Network Functions

The 5G Core architecture is modular with network functions (NFs) designed for specific roles. Key NFs include:

  • AMF (Access and Mobility Management Function): Manages device access and mobility in the 5G network.

  • SMF (Session Management Function): Controls sessions and IP address allocation.

  • UPF (User Plane Function): Handles data forwarding between devices and external networks, optimized for low latency.

  • PCF (Policy Control Function): Manages policy and charging rules.

  • NEF (Network Exposure Function): Interfaces with external applications exposing network capabilities.

  • NRF (NF Repository Function): Maintains the service registry for discovery of network functions.

  • UDM (Unified Data Management): Manages subscriber data and profiles.

  • AUSF (Authentication Server Function): Provides security authentication for devices.

  • AF (Application Function): Supports application-level interactions with the network.

  • NSSF (Network Slice Selection Function): Facilitates network slicing by selecting appropriate network slices per service.

  • Others: Additional functions supporting ancillary tasks in the core network.

This modular design promotes flexible, service-based networks aligned with cloud-native principles.

By End-User

  • Consumer: Includes individual mobile users benefiting from enhanced broadband, low latency, and new multimedia experiences enabled by 5G Core technology.

  • Enterprises: Rapidly growing segment leveraging 5G Core for private 5G networks, industrial automation, IoT connectivity, smart manufacturing, smart cities, and other business-critical uses demanding reliable, ultra-low latency networks with customized slicing.

Market Drivers

  • Massive 5G Rollout: Nations and operators aggressively expanding 5G coverage requiring core network upgrades and cloud-native solutions.

  • Growing IoT & Connected Devices: Exploding connected devices demand scalable, flexible core networks supporting diverse application requirements.

  • Cloud-Native Adoption: The shift to cloud architecture enables faster deployment, better resource utilization, and network slicing to tailor services.

  • Enterprise Digital Transformation: Increasing deployment of private 5G and Industry 4.0 initiatives reliant on robust 5G Core networks.

  • Regulatory Support & Standards Maturity: Enhanced support for 5G standards and government incentives encourage faster network modernization.

Market Challenges

  • Complexity of Integration: Transitioning from 4G to 5G Core involves significant network transformation and interoperability challenges.

  • High Capital Expenditure: Upfront investment for infrastructure and software licenses can be substantial.

  • Security Concerns: As 5G Core is software-centric and exposed to cloud environments, securing the network against threats is critical.

  • Skills Shortage: Need for specialized talent to develop, deploy, and manage next-generation networks.

FAQs

Q: What is the projected market size for the 5G Core market by 2031?
A: The market is expected to reach approximately USD 76 billion by 2031, growing at a CAGR of about 53% from 2023 to 2031.

Q: Which region holds the largest market share in 5G Core?
A: Asia Pacific currently leads in market size, while Europe is expected to witness the fastest growth.

Q: What are the main components driving the 5G Core market?
A: Solutions (software and hardware) dominate, with services growing alongside to support deployments and maintenance.

Q: Which deployment mode is most prevalent?
A: Cloud-based deployment leads due to its scalability and flexibility, though on-premises remains important for private or regulated networks.

Q: Who are the primary end-users?
A: Both consumers and enterprises are critical, with enterprises rapidly adopting private 5G use cases leveraging 5G Core capabilities.

For further detailed analysis and purchase options, you may explore dedicated industry reports.

This overview synthesizes the latest market insights and forecasts on the rapidly advancing 5G Core market, outlining key regional trends, segmentation, drivers, and challenges shaping its growth trajectory.