5G Core Trends and Forecast
The future of the global 5G core market looks promising with opportunities in the telecom operators and enterprise markets. The global 5G core market is expected to reach an estimated $46.9 billion by 2030 with a CAGR of 55.1% from 2024 to 2030. The major drivers for this market are growing global demand for the implementation of 5G technologies, increasing number of linked devices and data traffic explosion, and machine-to-machine communication networks are developing quickly.
• Lucintel forecasts that, within the component category, services is expected to witness the higher growth over the forecast period because of managed services, encompassing installation, support, deployment, integration, and upkeep, as well as, global need for managed services is expected to rise as 5G non-standalone and standalone cores are adopted more frequently.
• In terms of regions, APAC is expected to witness highest growth over the forecast period due to growing need for high-speed internet access across a range of sectors, including manufacturing, healthcare, entertainment, and the automobile industry, as well as, enhancing collaborations and investments between the public and private sectors.
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Emerging Trends in the 5G Core Market
Rising trends in the 5G core market have shown evolutionary trajectories that network technologies have taken, along with the growing demand for sophisticated services. This is shifting the paradigm of how networks are built, deployed, managed, and used, thereby raising the tempo for innovation and efficiency within the industry.
• Cloud-Native Network Architecture: Cloud-native architectures are at the heart of 5G core deployments, enabling far greater flexibility, scalability, and efficiency. Drawing on microservices, containers, and automation, operators can better manage their networks, which speeds up the deployment of new services and gives them operational agility.
• Network Slicing: Network slicing further enables multiple virtual networks to be created on one physical infrastructure and tailored for particular applications or the specific needs of customers. Such a trend reinforces the efficiency and flexibility of the network to carry various use cases, ranging from high-speed broadband to low-latency IoT applications.
• Edge Computing Integration: Edge computing, combined with 5G core networks, finds wider acceptance as it reduces latency and enhances real-time processing of data. It is a perfect enabler for applications needing instant response times, such as autonomous vehicles and augmented reality, by bringing compute closer to the end-user.
• Increased Automation and Orchestration: Automation and orchestration are becoming fundamental in managing complex 5G core networks. This automation of network operations and service management enables operators to enhance efficiency, reduce human errors, and hasten the deployment of new services, improving overall network performance.
• Enhanced Security Features: With greater focus on the core 5G network, the need for enhanced security is part of the trend toward advanced encryption, secure network slicing, and real-time threat detection against cyber-attacks, ensuring network integrity.
Cloud-native architecture, network slicing integration, edge computing integration, higher automation, and enhanced security are some of the emerging trends marking a transformation in the 5G core market. These aspects will thrive in producing the best possible efficiency, flexibility, and performance within 5G networks, covering a broad range of advanced applications and services.
Recent Developments in the 5G Core Market
Recent developments in the 5G core market are raising the stakes for what telecommunications will look like in the future, with unprecedented network capabilities and advanced support for applications. These key developments reflect the ongoing transformation and innovation within the industry.
• Cloud-Native Core Deployments: Core networks are accelerating to cloud-native, enabling flexible, scalable network management. Cloud-native architectures orchestrate containerization and microservices in such a way that simplifies operations and dynamically manages services with enhanced network agility, speeding up the deployment of new services.
• Implementation of Network Slicing: Network slicing technology will be widely adopted to enable operators to build optimized virtual networks for each use case. This will improve resource allocation and network efficiency, supporting diverse applications such as IoT, enhanced mobile broadband, and ultra-reliable low-latency communication.
• Integration of Edge Computing: The integration of edge computing with 5G core networks improves real-time processing of data and reduces latency. It shifts computing resources closer to the end-user, improving performance for latency-sensitive applications such as autonomous vehicles and smart cities.
• Advanced Automation Adoption: Automation and orchestration are being widely adopted to manage the complexity of 5G core networks. Additionally, AI and machine learning will be crucial in developing automation for most network management tasks, reducing operational costs and enhancing efficiency by minimizing manual intervention.
• Enhanced Security Protocols: There is an increasing emphasis on enhanced security protocols within the 5G core networks, designed around advanced encryption methods, secure network slicing, and real-time threat monitoring to safeguard against cyber threats and ensure network integrity and reliability.
Recent developments in the 5G core market have seen cloud-native deployments, network slicing, edge computing integration, next-generation automation, and advanced security, driving significant improvements in network capability and efficiency. These advancements are crucial for supporting the broad range of applications and services enabled by 5G technology.
Strategic Growth Opportunities for 5G Core Market
Multiple strategic growth opportunities are emerging within the core market of 5G across various applications. As 5G technology continues to develop, these opportunities are being maximized to enable the beneficiary features of the next-generation network.
• Smart Cities: 5G core networks, capable of high-speed connectivity and real-time data processing, support smart city initiatives. Growth opportunities in applications such as traffic management, environmental monitoring, and smart infrastructure are expected to spur demand for robust 5G core solutions.
• Industrial Automation: The 5G core market is positioned to grow in the field of industrial automation, where high-speed and low-latency connectivity is essential. Applications such as remote machine control, predictive maintenance, and automated manufacturing processes will benefit from advanced 5G core capabilities.
• Healthcare: The healthcare sector presents a significant growth opportunity for 5G core networks, supporting applications such as telemedicine, remote surgery, and real-time health monitoring. The 5G core network provides the required bandwidth and low-latency connectivity, improving patient care and expanding access to medical services.
• Enhanced Mobile Broadband: The rising demand for enhanced mobile broadband services is a key factor contributing to the growth of the 5G core market. High-definition video streaming, virtual reality, and gaming applications continue to grow and require high-speed connectivity, which 5G core infrastructure is uniquely positioned to support.
• Autonomous Vehicles: 5G core network development for V2X communications is crucial for autonomous vehicles. This growth opportunity covers real-time data exchange between vehicles, infrastructure, and pedestrians, enhancing transportation safety and efficiency.
Strategic growth opportunities for 5G core networks lie in smart cities, industrial automation, healthcare, enhanced mobile broadband, and autonomous vehicles. These innovative applications require advanced network solutions, and the potential of 5G technology in various applications can be realized by leveraging these opportunities.
5G Core Market Driver and Challenges
The major drivers of the 5G core market stem from an interaction between technological, economic, and regulatory pressures. Each of these elements plays a role in determining the pace and adoption of 5G core networking. Technological innovations improve performance and service delivery, economic factors pertain to investment and cost management, while regulatory frameworks affect deployment strategies and compliance requirements.
The factors responsible for driving the 5G core market include:
• Technological Advancements: Key factors contributing to the growth of the 5G core market include rapid developments in cloud-native technologies, virtualization, and containerization. These technologies enable more flexible, scalable, and efficient network management. Enhanced network slicing empowers operators to build tailored virtual networks for dedicated use cases, improving service delivery and operational efficiency.
• Increased Demand for High-Speed Connectivity: High demand for high-speed Internet and seamless connectivity is one of the major forces driving the 5G core market. The increased adoption of augmented reality, virtual reality, and ultra-high-definition video streaming, among other data-intensive applications, creates the need for strong network infrastructure that can manage large volumes of data with minimal latency. 5G core networks are designed to meet these demands through required bandwidth and performance improvements for emerging technologies.
• Support for Advanced Use Cases: The 5G core network is critical for the realization of smart cities, industrial automation, and autonomous vehicles. These applications require low latency and high-bandwidth connectivity, and 5G core networks have been engineered to support them. The core itself can be enabled with network slicing and edge computing to provide diverse services, from real-time data processing to high-speed communication, facilitating rapid deployment across industries.
Challenges in the 5G core market include:
• High Deployment Costs: The deployment of 5G core networks requires significant capital investment in infrastructure, technology, and integration. Costs related to upgrading networks, spectrum, and technologies are high. In emerging markets, this financial burden may slow down the speed and scale of 5G core network deployment.
• Complex Integration with Legacy Systems: Integrating 5G core networks with existing legacy systems is a complex task. Operators must ensure seamless interoperability between new and old technologies, which can be resource-intensive. Previous systems may require considerable changes or complete replacement to support 5G capabilities, increasing overall complexity and deployment costs.
• Regulatory and Security Concerns: Regulatory challenges and security issues are critical concerns in the 5G core market. Compliance with national regulations and standards makes deployment and operations more difficult. Additionally, ensuring robust security to prevent cyber threats and data breaches requires enhanced security measures, which can affect deployment efficiency and overall cost.
The drivers of the 5G core market include technological advancements, increased demand for high-speed connectivity, and support for advanced use cases. Regulatory and competitive dynamics are also pushing the market forward. However, challenges such as high deployment costs, complex integration with legacy systems, and regulatory and security concerns must be addressed to accelerate the adoption and deployment of 5G core networks.
List of 5G Core Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies 5G core companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the 5G core companies profiled in this report include-
• Telefonaktiebolaget LM Ericsson
• Nokia Corporation
• Huawei Technologies
• Samsung Electronics
• Cisco Systems
• Hewlett Packard Enterprise Company
• Oracle Corporation
• Athonet
• Mavenir
• Affirmed Networks
5G Core by Segment
The study includes a forecast for the global 5G core by component, deployment model, architecture outlook, end use, and region.
5G Core Market by Component [Analysis by Value from 2018 to 2030]:
• Solutions
• Services
5G Core Market by Deployment Model [Analysis by Value from 2018 to 2030]:
• On-Premises
• Cloud
5G Core Market by Architecture Outlook [Analysis by Value from 2018 to 2030]:
• Service-based Architecture
• Cloud Native Architecture
5G Core Market by End Use [Analysis by Value from 2018 to 2030]:
• Telecom Operators
• Enterprises
5G Core Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the 5G Core Market
The 5G core market is evolving rapidly, with telecommunications companies investing billions in deploying a new generation of network infrastructure to meet the growing demands created by 5G technology. The latest developments are focused on ensuring network efficiency to enable advanced services and overcome regulatory and integration challenges. This development is critical for realizing the full potential of 5G, including enhanced performance, reduced latency, and novel applications.
• United States: In the U.S., key players such as Verizon and AT&T continue their efforts in 5G core deployment. Their focus is on network slicing and edge computing. Verizon has launched its 5G Ultra Wideband service, powered by a cloud-native core that drives new levels of network agility and performance. AT&T is expanding its 5G core capabilities with a focus on network virtualization and software-defined networking to modernize service delivery and operational efficiency.
• China: China has made significant progress in 5G core network development, with major players like Huawei and China Mobile leading the way. The country is deploying a cloud-native core network to facilitate massive IoT and high-speed applications. China Mobile has already deployed its 5G core network in several cities, incorporating advanced network slicing for areas like high-definition video transmission in industrial automation.
• Germany: Germany is gaining momentum in 5G core infrastructure with strategic investments by Deutsche Telekom and Vodafone. Deutsche Telekom has introduced a MEC strategy into its 5G core network, reducing latency and enabling real-time applications. Vodafone Germany is deploying a cloud-native core to enhance network agility and scalability while focusing on integrating NFV for better service delivery.
• India: In 5G core deployment, Bharti Airtel and Reliance Jio are key players in India. Bharti Airtel has conducted proof-of-concept trials for its 5G core with a focus on network slicing and cloud-native technologies to respond quickly to evolving service operations. Reliance Jio is expanding its 5G core for high-speed internet access and IoT applications, using a cloud-based architecture for efficient network traffic management.
• Japan: Japan is advancing in 5G core network development with contributions from NTT Docomo and SoftBank. NTT Docomo has introduced its 5G core network, emphasizing network virtualization and automation. SoftBank is deploying a cloud-native core to improve operational efficiency and service delivery, leveraging advanced network slicing capabilities for a wide range of applications.
Features of the Global 5G Core Market
Market Size Estimates: 5G core market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: 5G core market size by various segments, such as by component, deployment model, architecture outlook, end use, and region in terms of value ($B).
Regional Analysis: 5G core market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, architecture outlook, end use, and regions for the 5G core market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the 5G core market size?
Answer: The global 5G core market is expected to reach an estimated $46.9 billion by 2030.
Q2. What is the growth forecast for 5G core market?
Answer: The global 5G core market is expected to grow with a CAGR of 55.1% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the 5G core market?
Answer: The major drivers for this market are growing global demand for the implementation of 5G technologies, increasing number of linked devices and data traffic explosion and machine-to-machine communication networks are developing quickly.
Q4. What are the major segments for 5G core market?
Answer: The future of the 5G core market looks promising with opportunities in the telecom operators and enterprise markets.
Q5. Who are the key 5G core market companies?
Answer: Some of the key 5G core companies are as follows:
• Telefonaktiebolaget LM Ericsson
• Nokia Corporation
• Huawei Technologies
• Samsung Electronics
• Cisco Systems
• Hewlett Packard Enterprise Company
• Oracle Corporation
• Athonet
• Mavenir
• Affirmed Networks
Q6. Which 5G core market segment will be the largest in future?
Answer: Lucintel forecasts that services is expected to witness the higher growth over the forecast period because of managed services, encompassing installation, support, deployment, integration, and upkeep, as well as, global need for managed services is expected to rise as 5G non-standalone and standalone cores are adopted more frequently.
Q7. In 5G core market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness highest growth over the forecast period due to growing need for high-speed internet access across a range of sectors, including manufacturing, healthcare, entertainment, and the automobile industry, as well as, enhancing collaborations and investments between the public and private sectors.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the 5G core market by component (solutions and services), deployment model (on-premises and cloud), architecture outlook (service-based architecture and cloud native architecture), end use (telecom operators and enterprises), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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