5G Core Network Market Forecast Highlights Growth Outlook and CAGR Trends Over 2025–2029


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What Is the Current Size and Annual Growth Rate of the 5G Core Network Market?
The 5G core network market size has grown exponentially in recent years. It will grow from $2.78 billion in 2024 to $3.47 billion in 2025 at a compound annual growth rate (CAGR) of 24.8%. The growth in the historic period can be attributed to low latency requirements, massive IoT connectivity, service-based architecture, enhanced security, global connectivity.

The 5G core network market size is expected to see exponential growth in the next few years. It will grow to $7.62 billion in 2029 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to edge computing integration, 5G -enabled vertical industries, government initiatives and policies, competitive differentiation, network modernization. Major trends in the forecast period include 5G -enabled IoT solutions, network automation and orchestration, network synchronization, network security enhancements, 5G core network evolution.

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Which Market Forces Are Stimulating Growth in the 5G Core Network Market?
Increasing adoption of 5G services is expected to propel the growth of the 5G core network market going forward. 5G services refer to the various applications and use cases enabled by fifth-generation wireless cellular technology. The increasing adoption of 5G services is due to the demand for high-speed data transmission, the rise in connected devices, and IoT applications. The 5G core network is used for a wide range of 5G services, providing the necessary infrastructure and capabilities to unlock the full potential of 5G technology. It is intended to serve a wide range of services, including enhanced mobile broadband (eMBB), massive machine-type communications (mMTC), and ultra-reliable low-latency communications (UR-LLC). For instance, in April 2023, according to 5G Americas, a US-based industry trade organization, global 5G wireless connections are projected to reach 5.9 billion by the end of 2027. Therefore, increasing adoption of 5G services is driving the growth of the 5G core network market.

What Are the Emerging Segments Driving Growth in the 5G Core Network Market?
The 5G core networkmarket covered in this report is segmented –

1) By Components: Solutions, Services
2) By Deployment Model: Cloud, On-Premises
3) By Application: Smart Energy, Industrial Manufacturing, Smart Medical, Media Entertainment, Smart Transportation
4) By End User: Telecom Operators, Enterprises

Subsegments:
1) By Solutions: Network Functions Virtualization (NFV), Software-Defined Networking (SDN), Cloud-Native Core, Data Analytics And Management, Security Solutions
2) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Managed Services


Which Emerging Trends Are Shaping the Future of the 5G Core Network Market?
Major companies operating in the 5G core network market are developing technological advancements, such as Software-as-a-Service (SaaS), to improve network efficiency, scalability, and cost-effectiveness. Software-as-a-Service (SaaS) is a cloud-based service model where software applications are hosted by a provider and made available to users over the internet . For instance, in November 2022, Nokia Corporation, a Finland-based multinational telecommunications, information technology, and consumer electronics corporation, launched Core Software-as-a-Service (SaaS) for 5G . Core Software-as-a-Service (SaaS) is the first complete 5G core solution providing all core cloud-native network functions through a SaaS delivery model. Core SaaS aims to enable communication service providers (CSPs) and enterprises to operate their networks with greater flexibility and scalability, thus enhancing business agility and accelerating the monetization of network services. By transitioning from traditional customized software deployments on private infrastructure to a subscription-based model, operators can avoid substantial upfront capital expenditures and eliminate the need for on-site software maintenance and updates.

Which Companies Are Expanding Their Presence in the 5G Core Network Market?
Major companies operating in the 5G core network market are Samsung Electronics Co. Ltd., Reliance Industries Limited, Dell Technologies Inc., Huawei Technologies Co. Ltd., Intel Corporation, Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, Fujitsu Limited, Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, NEC Corporation, ZTE Corporation, VMware Inc., Juniper Networks Inc., Ciena Corporation, Mavenir Systems Inc., Ribbon Communications Inc., Casa Systems Inc., Parallel Wireless Inc., Altiostar Networks Inc., Affirmed Networks, Druid Software Ltd., Athonet S.r.l.

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Which Regional Markets Offer the Most Promising Growth Opportunities for the 5G Core Network Market?
Asia-Pacific was the largest region in the 5G core network market in 2024. It is expected to be the fastest-growing region in the forecast period. The regions covered in the 5G core network market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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