5G Core Network Market in Japan

5G Core Network in Japan Trends and Forecast

The future of the 5G core network market in Japan 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 Japan 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 Japan

Japan is a leader in 5G network technology, emphasizing the use of advanced technologies and strategic programs to facilitate digital transformation in industries. With 5G adoption speeding up in Japan, various emerging trends are redefining the future of the core network market. These trends denote a shift toward increased connectivity, automation, and enhanced network efficiency, making it possible for Japan to take the lead in developing next-generation services.

• Cloud-Native 5G Networks: Japan is also adopting cloud-native 5G architectures, which provide increased flexibility and scalability in the core network. Cloud-native networks permit virtualized, software-defined network functions, enabling telecom operators to minimize operational expenses and enhance service delivery. This transformation promotes accelerated innovation and greater capacity to efficiently handle network demand.
• Network Slicing: Network slicing is one of the trends in Japan‘s 5G core network, enabling telecom operators to provide customized network slices for various industries and applications. By slicing the network, operators can offer customized services with particular performance attributes, such as low latency or high bandwidth, to satisfy the distinctive needs of industries such as healthcare, automotive, and manufacturing.
• Integration with Edge Computing: Edge computing is emerging as an imperative part of Japan‘s 5G strategy. With edge computing, computation is brought nearer to the end user, minimizing latency and enhancing real-time processing of data. This integration facilitates applications like autonomous driving, augmented reality, and intelligent manufacturing, providing a seamless user and business experience.
• Private 5G Networks: Japan is also experiencing increased demand for private 5G networks, particularly among enterprises in industries like manufacturing, logistics, and healthcare. Private 5G networks provide higher security, more control, and high-performance connectivity specifically designed to meet the unique requirements of businesses, allowing for more automation, operational effectiveness, and data processing in real time.
• Artificial Intelligence (AI)-Based Network Automation: Machine learning and AI are being used more and more to automate and improve Japan‘s 5G core networks. AI-based automation assists telecom operators in optimizing network traffic, forecasting failures, and improving overall network efficiency. This allows for more effective utilization of network resources and the reduction of operational costs by minimizing manual intervention.

Japan‘s 5G core network market is transforming rapidly, with cloud-native networks, network slicing, edge computing, private 5G networks, and AI-based automation redefining the ecosystem. These advancements are propelling upgraded network abilities, presenting new possibilities for enterprises, and paving the way for Japan‘s next generation of digital services.

Recent Developments in the 5G Core Network Market in Japan

Japan is advancing dramatically in building its 5G core network, with major advancements making it a global 5G technology leader. These advancements center on the speedy rollout of 5G infrastructure, enhancing innovation, and enabling the growth of digital services across different industries.

• 5G Deployment in Urban and Rural Regions: Japanese telecom operators have already rolled out 5G services in major cities, and currently, the focus is on rolling out services to rural and remote regions. This will provide wider coverage of 5G technology, promoting digital inclusion and allowing rural populations to enjoy high-speed connectivity for educational, healthcare, and business purposes.
• Partnership with Global Tech Suppliers: Japan‘s telecom operators are collaborating with international technology suppliers like Ericsson, Nokia, and Huawei to construct and develop their 5G core networks. Partnerships enable operators to incorporate state-of-the-art technology into their infrastructure, providing high-performance, secure, and scalable networks that can handle the increasing demand for 5G services.
• Industry Adoption of Private 5G Networks: The adoption of private 5G networks is on the rise, especially in manufacturing, logistics, and healthcare industries. Private 5G networks provide better security, less latency, and greater control, making them perfect for mission-critical use. Companies are using private 5G to facilitate smart manufacturing, autonomous operation, and real-time processing of data.
• Edge Computing and 5G Integration: Japan is also integrating edge computing into its 5G core networks to cater to applications that need low-latency processing, including smart cities and autonomous vehicles. The use of edge data centers improves the capability to provide high-performance services by processing information closer to the end user, thus ensuring faster response times and minimal latency.
• 5G Network Virtualization: Network virtualization technologies are being widely implemented in Japan‘s 5G core networks. Through this method, telecom operators can establish virtualized network functions that are more agile and scalable, lowering infrastructure expenditure and enhancing network agility. Virtualization further facilitates more effective resource management and quicker service delivery.

Japan‘s 5G core network market is developing rapidly, with major breakthroughs in rollout plans, international collaborations, private networks, edge computing, and network virtualization. These efforts are building the foundation for a strong and future-proof 5G infrastructure, facilitating the nation‘s digital transformation ambitions.

Strategic Growth Opportunities for 5G Core Network Market in Japan

The Japanese 5G core network market offers several strategic growth prospects through key applications. These prospects are driven by the need for high-speed connectivity, low-latency services, and the expanded need for digital transformation across industries.

• IoT and Smart City Applications: 5G is facilitating the creation of smart cities in Japan, with use cases ranging from intelligent transportation to smart grids and automated public services. There are opportunities for telecom operators to offer the infrastructure necessary to enable these innovations and help build more efficient, sustainable, and connected urban spaces.
• Autonomous Transportation Systems and Autonomous Vehicles: Japan is heavily investing in autonomous transportation systems and autonomous vehicles. The low latency and high reliability of 5G networks are paramount in facilitating real-time communication between infrastructure and vehicles. Telecom operators can play a vital role in providing the connectivity needed to ensure the safe operation of autonomous vehicles and future transportation solutions.
• Industry 4.0 and Manufacturing Automation: The implementation of 5G in industrial automation represents the most prominent growth potential in Japan. The low-latency, high-speed characteristics of 5G make it perfect for facilitating real-time processing of data, machine-to-machine communication, and automated processes in manufacturing. Telecommunication operators can collaborate with industries to develop customized 5G solutions for intelligent factories and supply chain optimization.
• Telemedicine and Healthcare: 5G networks will transform the healthcare sector in Japan through telemedicine, remote monitoring, and real-time diagnosis. The low latency and high bandwidth of 5G will promote virtual healthcare services, allowing patients to receive timely and precise medical advice. Telecom operators can pursue alliances with healthcare providers to offer high-performance 5G-driven solutions.
• Entertainment and Immersive Media: Japan‘s entertainment and media sector is another large market for 5G expansion. As users increase their demand for immersive media like AR, VR, and 4K/8K streaming, 5G networks provide the speed and consistency necessary to stream high-quality content free from buffering or latency. Telecommunications companies can take advantage of this by providing high-bandwidth services to content providers and consumers.

The 5G core network market in Japan offers tremendous growth potential in smart cities, autonomous vehicles, industrial automation, healthcare, and entertainment. These use cases are revolutionizing industries and enabling new business models, positioning Japan as a forerunner in the global 5G ecosystem.

5G Core Network Market in Japan Driver and Challenges

The Japanese 5G core network market is determined by a number of key drivers and challenges. These drivers and challenges are dictating the rate of 5G adoption and the telecom industry‘s overall growth in Japan. Although technological progress, government initiatives, and demand from the industry are propelling growth, high infrastructure costs, spectrum management, and cybersecurity threats remain significant challenges.

The factors responsible for driving the 5G core network market in Japan include:
• Regulatory and Government Support: The government of Japan has been promoting 5G deployment actively through activities like allocating spectrum, issuing policy guidelines, and providing funding for infrastructure development. This support at the regulatory level is crucial for establishing a favorable environment for 5G adoption across the nation.
• 5G Technology Advancements: Ongoing developments in 5G technology, including enhanced network slicing, edge computing, and cloud-native architecture, are driving market growth. These advancements help telecom operators provide more efficient, flexible, and scalable networks to meet the increasing demand for high-performance connectivity.
• Growing Need for IoT and Smart Devices: The expanding use of IoT devices and the rise of networked smart devices are driving demand for 5G connectivity. Japan‘s emphasis on Industry 4.0, smart cities, and connected cars is generating strong opportunities for telecom companies to provide the infrastructure required for these uses.
• Enterprise Private 5G Networks: Growing interest in enterprise-level private 5G networks is one of the key drivers for the 5G market in Japan. These enterprise private 5G networks provide enterprises with more control over their connections, offering secure, high-performance communications for use cases such as industrial automation and remote operation.
• Competitive and Economic Pressures: Economic development and the necessity for companies to remain competitive are driving Japan to embrace pioneering technologies such as 5G. Industry and telecom operators are looking to leverage 5G‘s potential to enhance efficiency, lower costs, and deliver new services that cater to changing consumer and business needs.

Challenges in the 5G core network market in Japan are:
• High Infrastructure Costs: Excessive capital investment required to establish 5G infrastructure, particularly in rural and remote regions, poses a significant challenge. Telecommunication companies need to balance profitability with infrastructure investment, which may slow down the deployment of 5G networks.
• Spectrum Availability and Management: Effective management of spectrum resources is crucial to the success of 5G in Japan. Delays in spectrum auctions or allocation issues can affect timely 5G service rollouts, potentially slowing network growth.
• Cybersecurity and Data Privacy Threats: The increased rollout of 5G networks amplifies the threat of cyberattacks and data exposure. Telecommunications companies must invest in robust cybersecurity practices to secure sensitive information and ensure the integrity of the network, especially as 5G becomes integral to critical infrastructure.

Japan‘s 5G core network market is fueled by government incentives, technological developments, IoT demand, private networks, and competitive pressures. Infrastructure expenditures, spectrum management, and cybersecurity threats remain challenges that must be addressed for successful 5G adoption.

List of 5G Core Network Market in Japan 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 Japan by Segment

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

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

• Solutions
• Services

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

• Cloud
• On-Premises

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

• Telecom Operators
• Enterprises

Features of the 5G Core Network Market in Japan

Market Size Estimates: 5G core network in Japan market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in Japan market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in Japan.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in Japan.
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 Japan?
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 Japan?
Answer: The future of the 5G core network market in Japan looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in Japan 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 Japan 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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