5G Core Network in Canada Trends and Forecast
The future of the 5G core network market in Canada 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 Canada 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 Canada
Canada‘s 5G core network market is advancing rapidly, driven by advancements in telecommunication technology and the growing demand for higher-speed and lower-latency connectivity. The nation is actively building out infrastructure to support the use of 5G applications across various industries, from healthcare and manufacturing to smart cities. Telecommunications operators are investing in highly resilient core networks that can meet the expanding requirements of connected devices and digital transformation. These trends are transforming the telecom industry in Canada and creating new possibilities for businesses and customers.
• Cloud-Native 5G Core Networks: Canadian telecommunications companies are increasingly adopting cloud-native architectures for their 5G core networks. This shift allows operators to scale their networks more effectively and reduce costs. Cloud-native solutions provide greater flexibility and quicker service delivery since they support dynamic, agile, and virtualized network functions that adapt to changing needs. Such architectures also better support the integration of edge computing, which is essential for meeting the low-latency performance requirements of real-time applications.
• Network Slicing for Bespoke Solutions: Network slicing is a major trend in Canada’s 5G core network market, enabling operators to offer customized services to various industries. By dividing the network into virtual slices, operators can meet unique requirements, such as high-bandwidth connectivity for video streaming or low-latency connectivity for healthcare services. This method enhances efficiency, reduces network congestion, and ensures that different applications can perform optimally without interference, creating new business opportunities for telecom operators.
• Industrial Private 5G Networks: The demand for private 5G networks in Canada is increasing, especially in industries like manufacturing, agriculture, and transportation. Private 5G networks provide secure, reliable, and high-speed connectivity tailored to specific business needs. They allow industries to implement mission-critical applications such as autonomous devices, real-time monitoring, and predictive analytics. Private 5G networks are valuable solutions for businesses seeking to enhance operational efficiency and security in Canada.
• Integration of Edge Computing: Edge computing is being increasingly integrated into Canada’s 5G core networks. By processing data closer to the source instead of in central data centers, edge computing minimizes latency and enables real-time applications such as autonomous vehicles, remote surgeries, and industrial automation. Canadian telecom operators are implementing edge computing solutions to boost the performance of their 5G networks, offering a more responsive and efficient infrastructure to accommodate these new technologies.
• AI-Powered Network Management: Artificial Intelligence (AI) is playing an increasingly important role in Canada‘s 5G core network industry. Telecommunication operators are using AI to optimize the network, carry out predictive maintenance, and identify faults. By automating repetitive processes, operators can improve network reliability, minimize human error, and enhance overall performance. AI also enables the development of self-healing networks that can automatically detect and repair faults, ensuring the network remains effective even with low availability.
These new trends—cloud-native networks, network slicing, private 5G networks, edge computing, and AI-powered network management—are revolutionizing Canada’s 5G core network market. The introduction of these technologies is enabling telecom operators to meet the growing demand for faster, more reliable, and customized services while opening up new business opportunities across industries.
Recent Developments in the 5G Core Network Market in Canada
Canada is experiencing tremendous advancements in the 5G core network market as telecommunication operators continue expanding next-generation infrastructure and services. The rollout of 5G networks is an essential part of Canada’s digital agenda, and the nation is making significant progress towards deploying 5G technologies to drive connectivity for businesses and consumers. These advancements are transforming the telecom service landscape and presenting ample opportunities for technological development.
• Spectrum Auctions and Licenses: The Canadian government has successfully conducted several 5G spectrum auctions, providing telecom operators with access to the key frequencies required for 5G network deployment. The auctions have enabled operators such as Bell, Rogers, and Telus to acquire the spectrum necessary to deliver 5G services nationwide. The availability of this spectrum is accelerating 5G deployments, particularly in cities and rural areas that previously lacked high-quality services.
• Urban Deployment of 5G Networks: Telecommunications companies in Canada are prioritizing the launch of 5G core networks in large cities like Toronto, Vancouver, and Montreal. These cities are among the first to receive 5G coverage, providing high-speed data and facilitating next-generation applications such as smart city infrastructure, autonomous vehicles, and connected healthcare services. This deployment is laying the foundation for nationwide 5G penetration in the coming years.
• Partnership with Global Vendors: Canadian telecom operators are collaborating with global technology suppliers like Ericsson, Nokia, and Huawei to develop their 5G core networks. These collaborations allow operators to access the latest 5G technologies and ensure that their networks meet international standards for reliability and performance. This partnership is facilitating the rapid implementation of 5G services, enabling operators to provide cutting-edge connectivity and ensuring Canadian consumers have access to the latest technological advancements.
• Industry Private 5G Network Deployments: Following global trends, Canada is also seeing the rise of private 5G networks for specific industries like manufacturing, mining, and healthcare. These networks offer dedicated, secure, and high-performance connectivity for mission-critical use cases. Telecommunications operators are partnering with industrial leaders to create and deploy such networks, helping businesses optimize their operations and improve security.
• Government Support for 5G Development: The Canadian government has shown strong support for 5G deployment through various policy initiatives and regulatory actions. Programs such as the Connecting Canadians initiative and efforts to simplify spectrum allocation have contributed to creating a favorable environment for 5G investments. Additionally, the government’s focus on enhancing rural coverage is ensuring that 5G benefits reach all corners of the country.
The advances in spectrum auctions, network rollouts, international collaborations, private network installations, and government incentives are driving the growth of Canada’s 5G core network market. These developments are positioning Canada as a leader in 5G adoption, paving the way for the next digital revolution across industries.
Strategic Growth Opportunities for 5G Core Network Market in Canada
The Canadian 5G core network market presents a wealth of growth opportunities based on the evolving needs of industries that require high-speed, reliable connectivity. Telecommunication operators and service providers are well-positioned to capitalize on these opportunities, which span across sectors like smart cities, healthcare, and industrial automation. These opportunities not only foster technological innovation but also open up new revenue channels for businesses across Canada.
• Smart Cities and IoT: Smart city solutions, including intelligent transportation systems, smart grids, and connected infrastructure, present a significant growth opportunity for Canada’s 5G core network market. 5G will enable these solutions by providing high-speed, low-latency connectivity for IoT devices and sensors. Telecom operators can capitalize on this opportunity by providing 5G services to municipal governments and urban developers to help build next-generation smart cities.
• Private Industrial Automation Networks: As industries like manufacturing, mining, and agriculture increasingly adopt automation technologies, the demand for private 5G networks is growing. These networks offer secure, high-performance, and low-latency connectivity for industrial applications such as real-time monitoring, autonomous vehicles, and robots. Telecom companies can partner with these industries to develop and deploy private 5G networks that maximize operational efficiency and increase productivity.
• Telemedicine and Healthcare: The healthcare industry represents a significant and emerging market for Canada’s 5G core network, with 5G’s high speed and low latency being crucial for enabling telemedicine, remote surgeries, and real-time health monitoring. Telecom operators can work with healthcare institutions to provide specialized 5G services that support these critical applications and improve patient care, especially in rural areas where access to healthcare services can be limited.
• Autonomous Transportation and Vehicles: The transportation and automotive industries are increasingly relying on 5G networks to support the development of autonomous vehicles, intelligent traffic control systems, and connected infrastructure. Telecom operators have the opportunity to play a central role in providing the connectivity needed to enable real-time communication among vehicles, pedestrians, and infrastructure. This presents a significant growth opportunity, especially in urban areas with dense traffic.
• Entertainment, Gaming, and VR/AR: As demand for high-quality streaming, gaming, and immersive content continues to rise, 5G networks are becoming essential for delivering lag-free, high-definition experiences. The entertainment and media industries represent a substantial opportunity for 5G core networks, particularly with the growth of virtual reality (VR), augmented reality (AR), and cloud gaming. Telecom operators can collaborate with content producers to offer the infrastructure needed to support these bandwidth-intensive applications.
Strategic opportunities in smart cities, industrial automation, healthcare, autonomous driving, and entertainment are shaping Canada’s 5G core network market. These opportunities are driving demand for advanced 5G services, creating new business models, and accelerating Canada’s digital transformation.
5G Core Network Market in Canada Driver and Challenges
Canada’s 5G core network market is influenced by a combination of technological, economic, and regulatory drivers. While various drivers are propelling the market forward, certain challenges must be addressed to ensure the successful deployment of 5G networks across the country. Telecom operators, service providers, and regulators must understand these factors to navigate the complexities of 5G adoption.
The factors responsible for driving the 5G core network market in Canada include:
• Government Support and Regulatory Frameworks: The Canadian government has been a key driver in the growth of 5G networks through regulatory support and frameworks that encourage investment in telecom infrastructure. Spectrum auctions and rural connectivity initiatives have helped accelerate the rollout of 5G in Canada.
• Increasing Need for High-Speed Connectivity: The growing demand for high-speed, reliable internet and mobile services is fueling the development of Canada’s 5G core network market. Companies and individuals are relying on high-speed connectivity for applications such as remote work, telemedicine, IoT, and entertainment. This increasing demand is driving the growth of 5G infrastructure.
• 5G and Edge Computing Technology Advancements: Technological advancements in 5G, such as network slicing, cloud-native architecture, and edge computing, are enabling telecom operators to provide more agile, efficient, and scalable networks. These technologies enable the deployment of low-latency, high-performance applications across various industries, from healthcare to manufacturing.
• Private Network Demand from Industries: The rising demand for secure, high-performance networks in industries like manufacturing, mining, and healthcare is creating significant demand for private 5G networks. These networks provide tailored solutions that meet the unique needs of businesses, enabling them to optimize operations and enhance productivity.
• Increased Interest in Smart Cities and IoT Applications: As cities become more interconnected, the need for low-latency, high-speed networks to connect IoT devices and applications is increasing. Telecom operators are gearing up to meet this demand by deploying 5G networks capable of handling the massive amounts of data generated by smart city infrastructure.
Challenges in the 5G core network market in Canada are:
• Large Capital Outlay: Establishing and maintaining 5G core networks requires a significant capital investment in infrastructure, spectrum, and advanced technologies. This high upfront cost can create challenges for telecom operators, especially in rural and underserved markets where the return on investment may be lower.
• Policy and Regulatory Delays: Policy and regulatory issues, such as spectrum allocation delays, infrastructure permitting, and compliance with local policies, can slow down the pace of 5G deployment. These delays can prevent operators from meeting the growing demand for 5G services in a timely manner.
• Cybersecurity and Privacy Threats: As 5G networks become integral to essential infrastructure and business processes, the risk of cyberattacks and data breaches increases. Telecommunication operators must invest in robust security measures to protect against these threats and ensure the privacy of users.
Factors like government funding, technological innovations, and increasing connectivity demand are driving the growth of Canada’s 5G core network market. However, challenges such as high initial costs, regulatory delays, and cybersecurity threats need to be addressed to ensure the secure and cost-effective deployment of 5G networks.
List of 5G Core Network Market in Canada 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 Canada by Segment
The study includes a forecast for the 5G core network market in Canada by component, deployment model, application, and end use.
5G Core Network Market in Canada by Component [Analysis by Value from 2019 to 2031]:
• Solutions
• Services
5G Core Network Market in Canada by Deployment Model [Analysis by Value from 2019 to 2031]:
• Cloud
• On-Premises
5G Core Network Market in Canada 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 Canada by End Use [Analysis by Value from 2019 to 2031]:
• Telecom Operators
• Enterprises
Features of the 5G Core Network Market in Canada
Market Size Estimates: 5G core network in Canada market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in Canada market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in Canada.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in Canada.
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 Canada?
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 Canada?
Answer: The future of the 5G core network market in Canada looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in Canada 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 Canada 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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