5G Core Network in India Trends and Forecast
The future of the 5G core network market in India 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 India 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 India
The 5G core network market in India is expanding rapidly, with telecommunication operators and technology vendors preparing for the nationwide rollout of 5G services. India’s digital drive, growing demand for high-speed connectivity, and evolving government policies are driving this transformation. A range of emerging trends is defining India’s future 5G core network market, which is critical for addressing the needs of various sectors, from agriculture to smart cities, and fostering new technology innovations.
• Cloud-Native 5G Core Networks: Cloud-native architecture is an emerging trend in India. Cloud-native 5G core networks are built on flexible, software-based infrastructures, enabling faster deployment, improved scalability, and cost-effectiveness. These networks provide operators with dynamic traffic and resource management capabilities, positioning them well to meet India’s rapidly increasing data consumption and connectivity demands. This transformation is leading to a more dynamic network ecosystem, improving service delivery.
• Network Slicing for Industry-Specific Solutions: Network slicing is a key trend in the development of 5G networks in India. It allows telecom operators to divide their networks into several virtual networks tailored to specific use cases, such as autonomous vehicles, IoT applications, and enterprise services. This enables customized connectivity for sectors ranging from agriculture to smart cities, promoting innovation and allowing operators to provide high-performance services while optimizing infrastructure.
• Private 5G Networks for Businesses: Private 5G networks are gaining traction in India, particularly in the industrial sector. Companies are deploying dedicated 5G networks to offer enhanced security, low latency, and high reliability for critical applications. Industries such as manufacturing, logistics, and healthcare are adopting private 5G networks for automation, real-time analytics, and remote operations. These networks provide businesses with control and customization for their digital transformation projects.
• Edge Computing for Low-Latency Applications: Integration of 5G networks with edge computing is becoming a significant trend in India. Edge computing reduces latency and enhances the performance of real-time applications by processing data closer to its source. This is particularly important in sectors such as healthcare, autonomous vehicles, and manufacturing, where real-time data processing is essential. The integration of 5G and edge computing is helping to provide more efficient services, especially in rural and underserved regions, by offering faster and more reliable connectivity.
• Artificial Intelligence for Network Management: AI-based network management is one of the prominent trends in India’s 5G core network market. Operators are using AI to automate network functions, predict traffic patterns, and optimize resource usage. AI helps optimize network performance and reliability, enabling telecom service providers to deliver better services at lower costs. AI also plays a key role in identifying and neutralizing security threats in real-time, ensuring the network environment remains secure and resilient.
Trends like cloud-native networks, network slicing, private networks, edge computing, and AI-driven management are defining India’s 5G core network market. These trends are fueling India’s digital revolution, enabling key industries and enhancing service delivery across both urban and rural areas.
Recent Developments in the 5G Core Network Market in India
India’s 5G core network market has seen significant developments in recent years, as telecom operators, government authorities, and technology partners work together to develop a robust 5G ecosystem. Ongoing spectrum auctions and government policies are laying the foundation for the successful rollout of 5G services. Key developments are centered on infrastructure upgrades, private network adoption, and increased collaboration with international vendors to accelerate the rollout.
• Spectrum Auctions and Allocation: The Indian government has conducted several spectrum auctions, allowing telecom operators to acquire the necessary 5G frequencies. These auctions are crucial for ensuring that operators have the spectrum needed to extend 5G coverage across the country. Spectrum allocation enables India to meet its growing data consumption demands and improve connectivity in both urban and rural regions.
• Launch of 5G Services in Key Cities: Indian telecom operators have launched 5G services in select cities, targeting major cities like Delhi, Mumbai, Bengaluru, and Hyderabad. These initial rollouts are paving the way for future expansion into smaller towns and rural areas. Early 5G deployments are improving speed, latency, and the overall quality of mobile services, allowing consumers and businesses to experience next-generation connectivity.
• Private 5G Networks for Businesses: The adoption of private 5G networks is growing among Indian businesses, especially in industries such as manufacturing, healthcare, and logistics. These networks provide secure, high-performance, dedicated connectivity tailored to specific use cases. Private 5G networks are set to transform industrial processes through automation, real-time data processing, and IoT applications, resulting in greater productivity and operational efficiency.
• Global Technology Vendor Partnerships: Indian telecom operators are collaborating with leading global vendors like Ericsson, Nokia, and Huawei to deploy 5G networks. These partnerships enable operators to adopt the latest technology, ensuring high-performance, scalable, and secure network infrastructure. Such collaborations are essential for accelerating the rollout of 5G services and ensuring India remains competitive in the global 5G race.
• Government Policies and Support: The government of India is complementing the 5G rollout with supportive policies, including the establishment of a 5G testbed and initiatives to enhance digital infrastructure in rural areas. These policies are helping create an ecosystem conducive to 5G innovation, ensuring that all regions in India can benefit from high-speed connectivity. Government support plays a crucial role in addressing challenges such as infrastructure limitations and digital disparities.
Developments in spectrum auctions, 5G launches, private networks, vendor partnerships, and government initiatives are setting the stage for India’s 5G core network market to thrive. These efforts are essential for solving the country’s connectivity challenges and enabling the digital transformation of critical sectors.
Strategic Growth Opportunities for 5G Core Network Market in India
India’s 5G core network market presents numerous growth opportunities across various applications. With the country’s digital infrastructure still evolving, telecom operators and service providers are focusing on key applications that will drive 5G adoption. These opportunities offer immense potential for innovation, service expansion, and economic development.
• Smart Cities and IoT: India’s push for smart cities and IoT is creating significant opportunities for 5G to support large-scale, data-driven applications such as traffic management, smart grids, waste management, and public safety systems. Telecom operators can leverage this opportunity by providing high-speed, reliable connectivity that enables real-time data processing and analysis for urban governance.
• Industrial Manufacturing and Automation: India’s industrial sector is rapidly adopting automation and IoT to improve efficiency. The low-latency and high-bandwidth capabilities of 5G are essential to enable next-generation manufacturing systems. Telecom operators can expand their business by offering value-added 5G solutions for industrial automation, robotics, remote monitoring, and predictive maintenance, making the Indian manufacturing sector more productive and competitive.
• Telemedicine and Healthcare: India’s healthcare industry is rapidly adopting digital technologies, including telemedicine and remote patient monitoring. The low latency and high data throughput of 5G make it ideal for facilitating high-definition video consultations, remote surgery, and real-time health data transfers. Operators can tap into this potential by providing 5G-enabled healthcare solutions that improve accessibility and quality of care, particularly in underserved areas.
• Autonomous Transportation and Vehicles: The development of autonomous vehicles and intelligent transportation systems presents another growth opportunity for 5G in India. The ultra-low latency of 5G is crucial for enabling real-time vehicle-to-vehicle and vehicle-to-infrastructure communication, which is necessary for the safety and efficiency of autonomous driving. Telecom operators can collaborate with automakers and transportation authorities to deploy 5G infrastructure that supports autonomous vehicles and smart mobility solutions.
• Mobile Gaming and Entertainment: With the rise of mobile gaming and immersive entertainment experiences like AR/VR, 5G can revolutionize India’s mobile entertainment landscape. The higher speeds, lower latency, and increased capacity of 5G networks enable smooth HD streaming, multiplayer gaming, and interactive AR/VR experiences. Telecom service providers can accelerate growth by offering 5G-enabled entertainment services to meet the demands of India’s expanding digital entertainment sector.
Growth opportunities in smart cities, industrial automation, healthcare, autonomous vehicles, and mobile entertainment are key drivers of the 5G core network market in India. These applications offer telecom operators new opportunities for innovation and expansion, fueling the country’s digital transformation.
5G Core Network Market in India Driver and Challenges
India’s 5G core network market is driven by a combination of technological, economic, and regulatory factors. The drivers and challenges play a crucial role in determining the future of 5G in India, with both opportunities and obstacles facing telecom operators as they roll out the 5G network.
The factors responsible for driving the 5G core network market in India include:
• Government Support and Regulatory Enablers: The government of India has launched several initiatives to support 5G, including the creation of a 5G testbed, conducting spectrum auctions, and formulating policies to increase 5G penetration in rural areas. These efforts help create a favorable ecosystem for 5G adoption by providing regulatory clarity and ensuring adequate infrastructure for operators to deploy 5G networks.
• Increasing Demand for Data and Connectivity: India’s rapidly growing internet user base and rising demand for data-intensive services are fueling the need for 5G networks. With mobile data consumption expected to continue growing, 5G provides the necessary infrastructure to meet these demands, offering faster and more reliable connectivity for consumers and businesses.
• Industrial Digital Transformation: India’s industrial sectors, such as manufacturing, logistics, and agriculture, are undergoing digital transformation. The adoption of IoT, automation, and data analytics is driving the need for 5G connectivity, as industries require low-latency, high-bandwidth networks to support these technologies.
• Technological Advancements in 5G and Cloud Integration: Technological developments in 5G, including network slicing, cloud-native architectures, and AI-based network management, are making 5G networks more efficient and flexible. These innovations allow telecom operators to provide customized services to different industries and consumers, driving the growth of the 5G market.
• Private 5G Networks for Businesses: The growing demand for secure, high-speed connectivity in sectors like manufacturing, logistics, and healthcare is driving the adoption of private 5G networks. These networks offer businesses dedicated, secure, and stable connectivity, enhancing their digital transformation and operational efficiency.
Challenges in the 5G core network market in India are:
• Capital-Intensive Deployment: Deploying and maintaining 5G networks is capital-intensive, which can hinder rapid rollout, especially in rural and underserved areas. Telecom operators require substantial investment to establish the necessary infrastructure, and the return on investment may take time.
• Spectrum Allocation and Availability Delays: Delays in spectrum auctions and allocations can slow down the rollout of 5G services in India. The complex and time-consuming process of acquiring the necessary spectrum may delay the nationwide deployment of 5G networks.
• Cybersecurity and Data Privacy Threats: As 5G networks become more integral to business operations and critical infrastructure, cybersecurity threats increase. Telecom operators must invest in robust security solutions to protect data and ensure network integrity, especially in light of rising concerns around data privacy and cyberattacks.
While drivers such as government support, increasing data demand, industrial digitalization, technological innovation, and private networks are propelling the growth of India’s 5G core network market, challenges related to high costs, spectrum availability, and cybersecurity need to be addressed for successful deployment.
List of 5G Core Network Market in India 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 India by Segment
The study includes a forecast for the 5G core network market in India by component, deployment model, application, and end use.
5G Core Network Market in India by Component [Analysis by Value from 2019 to 2031]:
• Solutions
• Services
5G Core Network Market in India by Deployment Model [Analysis by Value from 2019 to 2031]:
• Cloud
• On-Premises
5G Core Network Market in India 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 India by End Use [Analysis by Value from 2019 to 2031]:
• Telecom Operators
• Enterprises
Features of the 5G Core Network Market in India
Market Size Estimates: 5G core network in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in India market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in India.
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 India?
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 India?
Answer: The future of the 5G core network market in India looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in India 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 India 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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