5G Core Network in Italy Trends and Forecast
The future of the 5G core network market in Italy 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 Italy 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 Italy
Italy is swiftly moving forward with the development of its 5G core networks, fueled by the demand for faster connectivity and digital transformation in industries. As Italy deploys 5G infrastructure, some prominent trends are unfolding. These trends will remodel industries, including telecommunications, industry, and smart cities. The Italian government and private telecommunications operators are working together to make 5G a primary driver of economic growth and technological progress in the nation.
• Cloud-Native 5G Networks: Italy is transitioning towards cloud-native 5G networks, enabling telecom providers to build more flexible, scalable, and cost-effective infrastructures. Cloud-native networks allow operators to virtualize core network functions and dynamically allocate resources, improving the overall efficiency of the network. This transition is key to reducing operational costs while expanding 5G capabilities.
• Enterprise Private 5G Networks: There is increasing demand for private 5G networks in Italy, particularly in industries like manufacturing, logistics, and healthcare. Private 5G networks provide secure, high-speed connectivity customized to business requirements, supporting automation, real-time data analytics, and secure IoT operations. More and more enterprises are adopting 5G to drive their digital transformation strategies.
• Network Slicing for Tailored Services: Network slicing is gaining momentum in Italy‘s 5G ecosystem, allowing telecommunications operators to build tailored virtual networks for specific industries and purposes. Operators can provide differentiated services that address the unique demands of verticals like healthcare, automotive, and entertainment with this technology, ensuring the best possible performance and resource allocation per use case.
• Edge Computing Integration: The integration of edge computing with 5G is a key trend in Italy. Edge computing minimizes latency and enables real-time applications like autonomous vehicles and smart cities by processing data near end-users. Italy is investing in edge data centers to support the growing demand for low-latency applications and real-time analytics.
• AI-Network Automation: Artificial intelligence (AI) and machine learning (ML) are finding greater application in network automation and optimization within Italy‘s 5G core networks. AI helps operators forecast traffic patterns, optimize resources, and identify faults before they affect service quality. This minimizes the need for manual intervention and increases the overall efficiency of 5G networks.
These new trends—cloud-native networks, private networks, network slicing, edge computing, and automation with AI—are reshaping the 5G core network landscape in Italy. These developments are driving innovation, enhancing operational efficiency, and facilitating new business models across industries in Italy.
Recent Developments in the 5G Core Network Market in Italy
Italy‘s 5G core network market has witnessed considerable progress in recent years, with developments in infrastructure, alliances, and deployment strategies. These advancements are essential for Italy to establish itself as a leader in 5G technology and for economic and technological growth. Several key developments have occurred to enhance Italy‘s 5G.
• State Support for 5G Deployment: Strong support from the Italian state for 5G deployment has come in the form of awarding spectrum to telecom operators and framing national 5G infrastructure deployment strategies. These policy measures are designed to drive the country‘s digital revolution and improve connectivity in both urban and rural regions, ensuring widespread access to 5G services.
• First 5G Launches in Major Urban Areas: Italian telecom operators have successfully launched 5G services in major urban areas such as Milan, Rome, and Turin. The first deployments provide faster internet and better mobile experiences, empowering businesses and consumers with improved connectivity and increased capabilities for smart applications.
• Joint Ventures with Technology Providers: Italian telecommunications operators have entered into joint ventures with international technology providers such as Ericsson, Nokia, and Huawei to develop and upgrade their 5G core networks. These collaborations enable operators to access the latest 5G technologies and ensure the strength of the infrastructure to support the increasing demand for high-performance connectivity.
• Private 5G Networks for Industry: There is growing interest in private 5G networks in Italy, particularly from large industrial players. These networks provide companies with dedicated, secure, and high-performance connectivity for mission-critical applications like IoT, automation, and remote monitoring. The adoption of private 5G networks is helping companies improve productivity and efficiency.
• Rural Connectivity Focus: To close the digital divide, Italy is also focusing on 5G connectivity in rural and underserved locations. Efforts such as rural 5G rollout funding are aimed at ensuring that every part of the country, even remote towns, enjoys the benefits of high-quality, high-speed 5G connectivity, thereby boosting national economic growth.
These advances—government financing, early 5G deployments, strategic alliances, private networks, and rural broadband—are building a solid foundation for Italy‘s 5G core network market. These initiatives are helping Italy move closer to becoming a global leader in 5G technology and digital innovation.
Strategic Growth Opportunities for 5G Core Network Market in Italy
The Italian 5G core network market offers a range of growth prospects across diverse applications. The growth is fueled by the demand for low-latency, high-speed connectivity and digital transformation across various industries. Telecom operators and service providers are well-positioned to capitalize on these growth areas as they continue to roll out 5G infrastructure.
• Smart Cities and Urban Infrastructure: 5G technology plays a critical role in the creation of smart cities in Italy. It facilitates improved connectivity for IoT devices, intelligent traffic management, energy-efficient buildings, and enhanced public services. Telecom operators can leverage this opportunity by providing the infrastructure that supports urban innovation and improves the quality of life in Italian cities.
• IoT and Industrial Automation: Italy‘s industrial and manufacturing industries are increasingly adopting IoT technologies for supply chain optimization, predictive maintenance, and automation. 5G offers the low-latency, ultra-reliable connectivity required to power these applications. Telecom companies can create customized 5G solutions that enable industrial changes and open up new efficiencies in manufacturing processes.
• Healthcare and Telemedicine: 5G provides immense potential in Italy‘s healthcare industry, especially for telemedicine, remote monitoring, and real-time diagnosis. 5G‘s low latency and high data rates are essential for delivering high-quality health services over distance. Telecom companies can support the expansion of telemedicine services by offering secure and reliable 5G networks to healthcare professionals.
• Autonomous Vehicles and Intelligent Transport: The high speed and low latency of 5G make it a key enabler for autonomous vehicles and intelligent transportation systems. In Italy, transport authorities and the automotive industry are investing in 5G infrastructure to enable vehicle-to-vehicle and vehicle-to-infrastructure communication. This presents substantial growth opportunities for telecom operators to provide connectivity for autonomous transport systems to operate safely and efficiently.
• Immersive Entertainment and Gaming: With growing demand for immersive entertainment experiences like augmented reality (AR) and virtual reality (VR), Italy is no exception. The high-speed data and low latency offered by 5G are ideal for delivering smooth, high-quality gaming and streaming experiences. Telecom companies can capitalize on this emerging market by providing 5G-enabled entertainment and gaming services to their customers.
The strategic opportunities for growth in smart cities, industrial IoT, healthcare, autonomous vehicles, and immersive entertainment are shaping Italy‘s 5G core network market. These opportunities are driving demand for high-performance networks and revolutionizing various industries in the country.
5G Core Network Market in Italy Driver and Challenges
The market for 5G core networks in Italy is driven by a combination of technological, economic, and regulatory factors. Several drivers are propelling the market forward, but there are also challenges that must be addressed to ensure effective deployment and mass adoption of 5G networks. The drivers have far-reaching implications for the evolution of 5G in Italy.
The factors responsible for driving the 5G core network market in Italy include:
• Policy Measures and Government Support: The government of Italy has been very supportive of 5G deployment, providing access to spectrum and establishing national 5G deployment strategies. These policy measures have created a positive regulatory environment that encourages investment and innovation in the 5G core network market.
• Increasing Demand for Faster Connectivity: With rising mobile data usage and the emergence of data-hungry applications, there is increasing demand for more reliable and faster connectivity. 5G addresses these requirements by delivering higher speeds, reduced latency, and better bandwidth efficiency, which are crucial for both consumers and organizations.
• Industrial Revolution and IoT Adoption: Italy is experiencing a digital revolution in key industries like manufacturing, logistics, and healthcare. High-performance networks such as 5G are essential to adopting IoT and automation technologies that enable mission-critical applications. This trend is a major driver of 5G network expansion across the nation.
• Private 5G Networks for Enterprise Use: The popularity of private 5G networks is growing as companies seek secure, high-speed connectivity for their operations. Industries like manufacturing, logistics, and healthcare are adopting 5G to enable real-time data processing and automation, fueling the growth of the private 5G network solutions market.
• Technological Developments in 5G: Ongoing technological advancements in 5G, such as network slicing, AI-driven automation, and cloud-native architecture, are improving the scalability and efficiency of 5G networks. These innovations enable telecom operators to offer more customizable and flexible services to businesses and consumers, further driving growth in the 5G core network market.
Challenges in the 5G core network market in Italy are:
• Excessive Infrastructure Expenses: 5G infrastructure deployment requires significant capital investment, especially in rural and underserved areas. Such high expenses could delay the mass deployment of 5G networks, limiting access to high-speed services for all customers.
• Spectrum Availability and Allocation Issues: Slow spectrum auctions and complex allocation mechanisms may hinder the rollout of 5G networks in Italy. Timely spectrum availability is crucial to enabling telecommunications operators to meet the growing demand for 5G services.
• Cybersecurity Threats and Data Privacy: As 5G networks become an integral part of critical infrastructure and businesses, the threat of cyberattacks and data breaches increases. Ensuring robust security measures to protect the network‘s integrity and user data is a major concern for telecommunications operators.
The factors driving the 5G core network market in Italy include government incentives, increasing demand for high-speed connectivity, industrial digitalization, private networks, and technological advancements. However, challenges such as high infrastructure costs, spectrum issues, and cybersecurity threats must be addressed to ensure the successful rollout of 5G networks.
List of 5G Core Network Market in Italy 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 Italy by Segment
The study includes a forecast for the 5G core network market in Italy by component, deployment model, application, and end use.
5G Core Network Market in Italy by Component [Analysis by Value from 2019 to 2031]:
• Solutions
• Services
5G Core Network Market in Italy by Deployment Model [Analysis by Value from 2019 to 2031]:
• Cloud
• On-Premises
5G Core Network Market in Italy 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 Italy by End Use [Analysis by Value from 2019 to 2031]:
• Telecom Operators
• Enterprises
Features of the 5G Core Network Market in Italy
Market Size Estimates: 5G core network in Italy market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in Italy market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in Italy.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in Italy.
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 Italy?
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 Italy?
Answer: The future of the 5G core network market in Italy looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in Italy 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 Italy 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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