5G Core Network Market in Australia

5G Core Network in Australia Trends and Forecast

The future of the 5G core network market in Australia looks promising with opportunities in the telecom operator and enterprise markets. The global 5G core network market is expected to grow with a CAGR of 21.4% from 2025 to 2031. The 5G core network market in Australia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising adoption of IoT & connected devices and the growing demand for high-speed data services.

• Lucintel forecasts that, within the application category, smart energy is expected to witness the highest growth over the forecast period.
• Within the end use category, the telecom operator is expected to witness higher growth.

Emerging Trends in the 5G Core Network Market in Australia

The Australian 5G core network market is rapidly evolving as telecommunication operators, infrastructure companies, and technology vendors strive to introduce next-generation 5G technologies. Australia, as a country, is adopting 5G to enhance connectivity, improve user experience, and enable new use cases across smart cities, autonomous driving, and IoT. As these technologies continue to evolve, emerging trends are defining the 5G core network market. These trends are fueling innovation and creating opportunities for the Australian telecom industry.

• Cloud-Native 5G Core Networks: Cloud-native 5G core networks are among the dominant trends in the Australian market. Telecom operators are using cloud technologies to create scalable, flexible, and cost-effective networks. Through network functions virtualization and edge computing, 5G core networks are becoming more agile, enabling quicker rollouts and improved network management. This trend is enhancing service delivery, lowering operational costs, and enabling the rapid deployment of 5G infrastructure.
• Network Slicing: Network slicing is gaining popularity in Australia’s 5G core network market. It allows operators to build virtualized, isolated networks specific to use cases such as autonomous driving, healthcare, and industrial IoT. Telecommunications operators can offer customized connectivity and Quality of Service (QoS) depending on customer requirements. Network slicing’s flexibility and resource efficiency enable effective utilization of network resources, allowing operators to create new revenue streams.
• Private 5G Networks: The demand for private 5G networks is growing rapidly, particularly in sectors that require high-security, low-latency communications, such as manufacturing, mining, and healthcare. Australian companies are increasingly adopting private 5G networks to meet specific operational needs and enhance productivity. Telecom operators are collaborating with businesses to provide customized solutions that support secure, reliable, and high-performance private networks. The growth of private 5G networks is generating new revenue opportunities for telecom operators and strengthening their engagement with businesses.
• Edge Computing Integration: Edge computing is playing a growing role in the creation of Australia’s 5G core networks. By computing closer to the source, edge computing minimizes latency and enhances the performance of real-time applications, including augmented reality (AR), virtual reality (VR), and autonomous vehicles. Telecom operators are integrating edge computing into their 5G networks to facilitate low-latency services and develop new use cases dependent on real-time data processing. This integration is shaping the future of network architecture.
• Automation and AI-based Networks: The Australian 5G core network industry is witnessing growing adoption of automation and Artificial Intelligence (AI) in network management. Machine learning and AI are being used to automate network operations, monitor traffic, and predict maintenance requirements. Telecom operators are enhancing network efficiency, reducing downtime, and lowering operational expenses through these technologies. AI-powered networks are also enabling the rollout of more customized services and intelligent resource management, improving overall service quality and customer satisfaction.

The new trends of cloud-native networks, network slicing, private 5G networks, edge computing, and AI-based automation are profoundly transforming Australia’s 5G core network market. These trends are making networks more flexible, scalable, and high-performing, empowering telecom operators to serve both consumer and enterprise requirements better and opening up new revenue streams.

Recent Developments in the 5G Core Network Market in Australia

The Australian 5G core network market is undergoing a massive transformation driven by technological advancements and market forces. Telecommunication operators are also looking to improve network performance, expand coverage, and enhance security for their 5G networks. Some recent trends in this segment include the adoption of next-gen technology, strategic investments by telecom companies, and partnerships with technology firms to expedite the 5G rollout.

• 5G Core Network Trials and Deployments: Australian carriers have started trialing their 5G core networks, with carriers like Telstra and Optus leading the way with commercial deployments. These trials involve testing 5G core elements such as cloud-native network structures, network slicing, and low-latency use cases. As a result, operators are progressing towards large-scale deployments, driving rapid network growth and enhancing service delivery.
• Strategic Alliances with International Vendors: Australian telecom operators are forming strategic alliances with international vendors such as Ericsson, Huawei, and Nokia to build and roll out 5G core networks. These alliances are aimed at incorporating the latest 5G technologies, including virtualized network functions and edge computing solutions. By leveraging the expertise of these vendors, Australian operators are future-proofing their 5G core networks to support a wide range of applications.
• Government Programs and Regulatory Support: The Australian government has been highly supportive of the 5G rollout, providing regulatory clarity and offering incentives to telecom operators. Government policies have facilitated the rapid deployment of 5G core networks, especially in rural areas. Spectrum auctions have also enabled telecom companies to acquire the necessary frequencies for wider 5G coverage. These efforts are driving the faster adoption of 5G in Australia.
• Private 5G Network Solutions: Private 5G networks are emerging as a key growth area in the Australian market. Telecommunication service providers are collaborating with businesses in industries such as mining, agriculture, and healthcare to provide customized 5G solutions that address specific business needs. Private networks offer secure, low-latency communication, helping businesses improve operational efficiency. The expansion of private 5G networks is enabling telecom businesses to tap into new markets and develop innovative solutions for enterprise clients.
• Deployment of Multi-access Edge Computing (MEC): Operators in Australia are rolling out Multi-access Edge Computing (MEC) technology as part of their 5G core network strategy. MEC is helping operators reduce latency by bringing computation closer to the user, enabling faster response times for applications like video streaming and IoT services. The adoption of MEC in 5G core networks is improving latency-sensitive service performance and driving the uptake of real-time applications.

Recent trends in the Australian 5G core network market, including core network trials, strategic alliances, government support, private 5G networks, and MEC deployment, are paving the way for the rapid growth of 5G infrastructure. These trends are enhancing connectivity and driving the development of new use cases in both consumer and enterprise markets.

Strategic Growth Opportunities for 5G Core Network Market in Australia

The Australian 5G core network market is presenting diverse growth opportunities across various applications, as demand for high-speed, low-latency connectivity continues to rise. Telecom operators and technology companies are making strategic investments to fully leverage 5G core networks and help enable disruptive use cases in industries such as healthcare, smart cities, manufacturing, and entertainment. These growth opportunities are fueling the next wave of 5G development in Australia.

• Smart Cities and Urban Infrastructure: With Australia focusing on developing smart cities, there is growing demand for 5G core networks that can cater to IoT devices, traffic management, and public safety solutions. Telecommunications operators are partnering with urban planners and local governments to provide the infrastructure needed for smart city services. 5G core networks will facilitate real-time data processing and city-wide connectivity, providing a significant growth opportunity for operators in this sector.
• Private 5G Networks for Industries: The rise of private 5G networks offers a significant growth opportunity in industries such as manufacturing, mining, and agriculture. These sectors require high levels of security, control, and performance, which private 5G networks provide. Telecom operators are capitalizing on this demand by offering tailored solutions to enterprises looking to streamline operations, generating new revenue streams in the process.
• Telemedicine and Healthcare: The healthcare industry presents a major growth opportunity for 5G core networks. With increasing demand for telemedicine, remote surgeries, and real-time patient monitoring, 5G networks are essential to support these applications. Telecom operators can collaborate with healthcare organizations to provide high-speed, reliable, and low-latency connectivity to facilitate next-generation healthcare services, improving patient care and operational efficiency.
• Industrial IoT and Automation: The growing adoption of Industrial IoT (IIoT) and automation across manufacturing, logistics, and energy industries is driving demand for 5G core networks. These industries require low-latency communication, real-time data processing, and high reliability for mission-critical operations. Telecom operators can benefit from the increasing demand for strong 5G infrastructure to support IIoT and automation, opening up new business models and revenue streams.
• Entertainment and Media: The entertainment and media sectors stand to benefit significantly from 5G technology, especially in areas like augmented reality (AR), virtual reality (VR), and 4K video streaming. Telecommunications companies can partner with content providers and service operators to deliver high-quality, low-latency services optimized for the customer experience. The growing demand for immersive content and live streaming is fueling the need for enhanced 5G core networks to support these services.

Strategic growth opportunities in the Australian 5G core network market—such as smart cities, private 5G networks, healthcare, industrial IoT, and entertainment—are broadening the possible uses of 5G technology. These opportunities are creating new revenue streams for telecom operators and accelerating the development of innovative services across industries.

5G Core Network Market in Australia Driver and Challenges

The Australian 5G core network market is influenced by a combination of drivers and challenges that shape the pace of deployment and innovation. Australia‘s telecommunications industry is encountering both opportunities and challenges as it rolls out 5G infrastructure. Understanding these drivers is essential for industry players to navigate the changing dynamics.

The factors responsible for driving the 5G core network market in Australia include:
• Government Support and Regulation: The Australian government has played a key role in promoting 5G technology rollouts by providing regulatory clarity, funding spectrum auctions, and offering incentives to telecom operators. These efforts are driving the deployment of 5G core networks and helping Australia remain competitive in the global 5G race.
• Strong Demand for Connectivity: The increasing demand for low-latency, high-speed connectivity—driven by IoT, mobile gaming, and cloud computing—is fueling the demand for robust 5G core networks. Telecom operators are investing heavily in developing infrastructure to meet this demand, creating a burgeoning market for 5G core network technologies.
• Technological Innovations: Advances in 5G technologies like network slicing, edge computing, and AI-based network management are enabling telecom operators to build more efficient, scalable, and agile 5G core networks. These technologies are simplifying network deployment and management, helping operators meet the growing needs of customers.
• Private Network Demand from Enterprises: As industries seek secure, dedicated connectivity, the demand for private 5G networks is rising. Telecom operators are capitalizing on this demand by providing customized solutions to help enterprises streamline operations and boost productivity, generating new revenue sources.
• Competitive Pressure Globally: Australia faces intense global competition in the race to implement 5G technology. Telecom service providers must remain competitive with other leading markets, which is driving investments in next-generation core network technologies to provide faster, more secure, and cost-effective 5G networks.

Challenges in the 5G core network market in Australia are:
• Excessive Capital Outlay: Establishing a 5G core network requires substantial investments in spectrum licenses, infrastructure, and emerging technologies. The high capital expenditure presents a challenge to rapid rollout, especially in areas with lower demand for 5G services.
• Regulatory Delays: Despite government support, regulatory challenges such as spectrum allocation and infrastructure permits could delay the 5G rollout. These delays may hinder the overall timeline for 5G adoption.
• Network Privacy and Security Issues: As 5G networks become integral to essential services and businesses, network security and privacy concerns become more prominent. Telecom operators need to address data protection issues, network vulnerabilities, and the potential for cyberattacks to maintain public confidence and safeguard the integrity of 5G infrastructure.

Drivers such as government incentives, technological advancements, and high demand for connectivity are fueling growth in the Australian 5G core network market. However, challenges like capital expenses, regulatory complexities, and security risks must be addressed for the successful expansion of 5G networks.

List of 5G Core Network Market in Australia 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. Through these strategies, 5G core network companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the 5G core network companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5

5G Core Network Market in Australia by Segment

The study includes a forecast for the 5G core network market in Australia by component, deployment model, application, and end use.

5G Core Network Market in Australia by Component [Analysis by Value from 2019 to 2031]:

• Solutions
• Services

5G Core Network Market in Australia by Deployment Model [Analysis by Value from 2019 to 2031]:

• Cloud
• On-Premises

5G Core Network Market in Australia by Application [Analysis by Value from 2019 to 2031]:

• Smart Energy
• Industrial Manufacturing
• Smart Medical
• Media Entertainment
• Smart Transportation
• Others

5G Core Network Market in Australia by End Use [Analysis by Value from 2019 to 2031]:

• Telecom Operators
• Enterprises

Features of the 5G Core Network Market in Australia

Market Size Estimates: 5G core network in Australia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in Australia market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in Australia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in Australia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the 5G core network market in Australia?
Answer: The major drivers for this market are the rising adoption of IoT & connected devices and the growing demand for high-speed data services.
Q2. What are the major segments for 5G core network market in Australia?
Answer: The future of the 5G core network market in Australia looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in Australia segment will be the largest in future?
Answer: Lucintel forecasts that smart energy is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the 5G core network market in Australia by component (solutions and services), deployment model (cloud and on-premises), application (smart energy, industrial manufacturing, smart medical, media entertainment, smart transportation, and others), and end use (telecom operators and enterprises)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. 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.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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