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5G Core Network in Malaysia Trends and Forecast

The future of the 5G core network market in Malaysia 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 Malaysia 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.

5G Core Network Market in Malaysia Trends and Forecast

Emerging Trends in the 5G Core Network Market in Malaysia

The 5G core network market in Malaysia is developing at a fast pace, propelled by technological advancements in the network, increased demand for connectivity, and the necessity for secure and dependable services across industries. Malaysia has remained firm in its push for digital transformation, with a focus on 5G as a driver of economic growth, smart city development, and industrial innovation. As the nation continues with its 5G deployment, several significant trends are emerging in the market, each of which is crucial for enabling new possibilities for consumers and businesses alike.

• Cloud-Native 5G Networks: Malaysia is deploying cloud-native 5G core networks, which allow telecom operators to more efficiently and flexibly manage network functions. Cloud-native architectures facilitate network virtualization, enabling faster deployment, scalability, and cost savings. This trend allows providers to more easily offer tailored solutions and address the increasing demand for high-speed, low-latency services.
• Network Slicing for Customized Services: Network slicing is becoming one of the most significant trends in Malaysia‘s 5G core network industry since it helps telecom operators design customized network slices for specific industries or use cases. They can provide specialized services with different levels of quality, such as low latency for industrial automation or high bandwidth for entertainment, thereby improving customer experience across various sectors.
• Private 5G Networks for Enterprises: Private 5G networks are increasingly in demand across industries such as manufacturing, healthcare, and logistics. These offer companies several advantages, including more control, improved security, and priority bandwidth, enabling sensitive operations and applications to run effectively without relying on public network infrastructure. Malaysia‘s industrial sector is at the forefront of this demand.
• Edge Computing Integration: Edge computing is rapidly emerging as an integral part of Malaysia‘s 5G strategy, particularly for applications requiring real-time processing and low-latency data, such as autonomous cars and smart cities. Edge computing minimizes latency by shifting computation closer to the end-user and delivering quicker response times, supporting innovative services across industries.
• Artificial Intelligence (AI) in Network Automation: AI is significantly contributing to automating Malaysia‘s 5G core network processes. From intelligent traffic management to predictive maintenance, AI helps telecom operators streamline network performance, reduce downtime, and enhance customer satisfaction. This trend complements the effective management of 5G networks with increasing demand for data-based applications.

Malaysia‘s 5G core network market is being revolutionized by cloud-native technologies, network slicing, private 5G networks, edge computing, and artificial intelligence. These trends are improving connectivity, security, and customization, driving the digital transformation of industries and setting the stage for the next wave of technological innovations.

Recent Developments in the 5G Core Network Market in Malaysia

The Malaysian 5G core network market has seen significant developments with both government support and private sector investments. As the nation aims to become a regional digital hub, these developments focus on increasing the capabilities of the network, enhancing coverage, and exploring new applications of 5G technology across various industries.

• Government‘s 5G Rollout Strategy: The government of Malaysia has clearly outlined its strategy for the national rollout of 5G, which includes both urban and rural coverage. Through the provision of the necessary spectrum and policy initiatives that encourage private investment, the government aims to provide universal access to 5G services throughout the country.
• Telecom Operators‘ 5G Infrastructure Rollout: Leading telecom operators in Malaysia, including Telekom Malaysia and Maxis, are engaged in rolling out 5G infrastructure in major areas. These initiatives aim to enhance network capacity, improve latency, and increase 5G coverage in urban and industrial areas, paving the way for widespread 5G adoption.
• Business Private 5G Network Solutions: Many Malaysian companies are increasingly adopting private 5G networks for low-latency, secure connectivity tailored to their business needs. These industries include manufacturing, logistics, and healthcare, where private networks drive operational efficiency and innovation by providing dedicated, high-performance connectivity.
• Global Tech Provider Partnerships: Malaysian telecom providers have formed strategic alliances with international technology providers such as Ericsson, Huawei, and Nokia to strengthen their 5G network capabilities. These partnerships introduce the latest technological advancements into Malaysia, ensuring that the country‘s networks are ready to support future digital demands.
• Target 5G-based Smart Cities: Malaysia has made significant investments in building 5G-based smart cities, which will offer increased connectivity and automation. Smart traffic management, energy-saving systems, and improved public services will be enabled by these smart cities, supported by 5G‘s high-speed, low-latency technology.

Malaysia‘s 5G core network market is transforming with key developments in government policy, telecom infrastructure deployment, private networks, global partnerships, and smart city initiatives. These developments are laying a solid foundation for the mass adoption of 5G across various sectors in Malaysia.

Strategic Growth Opportunities for 5G Core Network Market in Malaysia

Malaysia‘s 5G core network market presents significant growth opportunities, especially in sectors where 5G adoption will drive innovation and improve efficiency. The country‘s strategic focus on digital transformation creates opportunities for new services, applications, and business models.

• Smart Cities and IoT Integration: Smart city development represents a major growth opportunity for Malaysia. 5G provides high-speed, secure, and reliable connectivity for IoT devices, opening up potential applications in smart traffic management, energy efficiency, and public safety. Telecom operators can collaborate with local authorities to offer the infrastructure needed for smart city applications.
• Manufacturing and Industrial Automation: Industry 4.0 offers a tremendous opportunity for 5G networks in Malaysia. 5G‘s ability to deliver low latency, high reliability, and high-volume connectivity is crucial for automating manufacturing processes, optimizing supply chains, and improving factory efficiency. Private 5G networks will play an important role in this sector.
• Healthcare and Telemedicine: Malaysia‘s healthcare industry is adopting 5G to enhance telemedicine, remote patient monitoring, and healthcare data management. As demand for telehealth services increases, 5G‘s low latency and high bandwidth are essential for delivering real-time consultations, diagnosis, and patient care.
• Autonomous Transport and Traffic Systems: 5G‘s low latency and fast data speeds make it ideal for enabling autonomous transport and intelligent traffic systems. In Malaysia, there is growing potential for telecom operators to offer the infrastructure necessary to support such technologies, particularly in urban areas and transport corridors.
• Entertainment and Media: 5G will also transform Malaysia‘s entertainment and media sector. As the demand for high-quality streaming, augmented reality (AR), virtual reality (VR), and immersive gaming experiences grows, 5G offers the bandwidth required to deliver lag-free, high-definition content to consumers. Telecom operators can partner with content providers to develop new entertainment experiences.

Malaysia‘s 5G core network market offers opportunities for growth in smart cities, industrial automation, healthcare, autonomous vehicles, and entertainment. These sectors will leverage 5G networks‘ higher performance, connectivity, and efficiency, spurring innovation and economic development throughout the country.

5G Core Network Market in Malaysia Driver and Challenges

The Malaysian 5G core network market is impacted by key drivers and challenges that are shaping the future of 5G adoption. These include technological innovation, government support, and industry demand, as well as challenges related to infrastructure, regulation, and cybersecurity.

The factors responsible for driving the 5G core network market in Malaysia include:
• Government Support and Policy Framework: The Malaysian government‘s commitment to digital transformation and its clear 5G rollout plan form a strong foundation for the market‘s growth. Government support in the form of spectrum release, policy establishment, and infrastructure funding is crucial to driving 5G adoption across the nation.
• 5G Technological Developments: Ongoing developments in 5G technology, such as advancements in cloud-native architectures, network slicing, and edge computing, are fueling the growth of Malaysia‘s 5G core network market. These developments enable telecom operators to provide more scalable, flexible, and cost-optimized network solutions.
• High-Speed Connectivity Demand: With Malaysia‘s push toward digitalization, the demand for low-latency, high-speed connectivity is growing rapidly. Sectors like healthcare, entertainment, and manufacturing are increasingly using 5G to meet their connectivity needs, driving the growth of the 5G core network market.
• Private 5G Networks for Enterprises: The rising demand for secure, dedicated networks among enterprises is driving the adoption of private 5G networks in Malaysia. Private 5G networks offer enterprises superior security, control, and performance, leading to enhanced efficiency and innovation in industries like manufacturing, logistics, and healthcare.
• Economic Development and Industry Modernization: Malaysia‘s focus on becoming a regional digital economy hub is driving the need for next-generation connectivity solutions. The adoption of 5G across key industries such as finance, healthcare, and logistics is enabling businesses to innovate, increase efficiency, and remain competitive globally.

Challenges in the 5G core network market in Malaysia are:
• High Infrastructure Costs: The significant capital required to deploy 5G infrastructure, particularly in rural areas, is a major challenge. Telecom operators must balance profitability with infrastructure investments, which could delay the full rollout of 5G across Malaysia.
• Spectrum Availability and Management: Effective spectrum management and allocation are critical to the success of 5G in Malaysia. Delays in spectrum auctions or issues with securing adequate spectrum can hinder the timely rollout of 5G, limiting the network‘s potential.
• Cybersecurity Threats: As 5G becomes more integral to essential infrastructure and industries, the risk of cyberattacks and data breaches increases. Securing 5G networks and protecting sensitive data will remain a significant challenge for telecom operators and regulatory bodies alike.

While Malaysia‘s 5G core network market benefits from strong government support, technological advancements, and industry demand, challenges related to infrastructure investment, spectrum management, and cybersecurity need to be addressed to ensure the successful and sustainable deployment of 5G technology in the country.

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

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

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


• Solutions
• Services

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


• Cloud
• On-Premises

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


• Telecom Operators
• Enterprises

Lucintel Analytics Dashboard

Features of the 5G Core Network Market in Malaysia

Market Size Estimates: 5G core network in Malaysia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: 5G core network in Malaysia market size by component, deployment model, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component, deployment model, application, and end use for the 5G core network in Malaysia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network in Malaysia.
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 Malaysia?
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 Malaysia?
Answer: The future of the 5G core network market in Malaysia looks promising with opportunities in the telecom operator and enterprise markets.
Q3. Which 5G core network market in Malaysia 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 Malaysia 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?
For any questions related to 5G Core Network Market in Malaysia, 5G Core Network Market in Malaysia Size, 5G Core Network Market in Malaysia Growth, 5G Core Network Market in Malaysia Analysis, 5G Core Network Market in Malaysia Report, 5G Core Network Market in Malaysia Share, 5G Core Network Market in Malaysia Trends, 5G Core Network Market in Malaysia Forecast, 5G Core Network Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.

                                                            Table of Contents

            1. Executive Summary

            2. 5G Core Network Market in Malaysia: Market Dynamics
                        2.1: Introduction, Background, and Classifications
                        2.2: Supply Chain
                        2.3: Industry Drivers and Challenges

            3. Market Trends and Forecast Analysis from 2019 to 2031
                        3.1. Macroeconomic Trends (2019-2024) and Forecast (2025-2031)
                        3.2. 5G Core Network Market in Malaysia Trends (2019-2024) and Forecast (2025-2031)
                        3.3: 5G Core Network Market in Malaysia by Component
                                    3.3.1: Solutions
                                    3.3.2: Services
                        3.4: 5G Core Network Market in Malaysia by Deployment Model
                                    3.4.1: Cloud
                                    3.4.2: On-Premises
                        3.5: 5G Core Network Market in Malaysia by Application
                                    3.5.1: Smart Energy
                                    3.5.2: Industrial Manufacturing
                                    3.5.3: Smart Medical
                                    3.5.4: Media Entertainment
                                    3.5.5: Smart Transportation
                                    3.5.6: Others
                        3.6: 5G Core Network Market in Malaysia by End Use
                                    3.6.1: Telecom Operators
                                    3.6.2: Enterprises

            4. Competitor Analysis
                        4.1: Product Portfolio Analysis
                        4.2: Operational Integration
                        4.3: Porter’s Five Forces Analysis

            5. Growth Opportunities and Strategic Analysis
                        5.1: Growth Opportunity Analysis
                                    5.1.1: Growth Opportunities for the 5G Core Network Market in Malaysia by Component
                                    5.1.2: Growth Opportunities for the 5G Core Network Market in Malaysia by Deployment Model
                                    5.1.3: Growth Opportunities for the 5G Core Network Market in Malaysia by Application
                                    5.1.4: Growth Opportunities for the 5G Core Network Market in Malaysia by End Use
                        5.2: Emerging Trends in the 5G Core Network Market in Malaysia
                        5.3: Strategic Analysis
                                    5.3.1: New Product Development
                                    5.3.2: Capacity Expansion of the 5G Core Network Market in Malaysia
                                    5.3.3: Mergers, Acquisitions, and Joint Ventures in the 5G Core Network Market in Malaysia
                                    5.3.4: Certification and Licensing

            6. Company Profiles of Leading Players
                        6.1: Company 1
                        6.2: Company 2
                        6.3: Company 3
                        6.4: Company 4
                        6.5: Company 5
.

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Lucintel has been in the business of market research and management consulting since 2000 and has published over 1000 market intelligence reports in various markets / applications and served over 1,000 clients worldwide. This study is a culmination of four months of full-time effort performed by Lucintel's analyst team. The analysts used the following sources for the creation and completion of this valuable report:
  • In-depth interviews of the major players in this market
  • Detailed secondary research from competitors’ financial statements and published data 
  • Extensive searches of published works, market, and database information pertaining to industry news, company press releases, and customer intentions
  • A compilation of the experiences, judgments, and insights of Lucintel’s professionals, who have analyzed and tracked this market over the years.
Extensive research and interviews are conducted across the supply chain of this market to estimate market share, market size, trends, drivers, challenges, and forecasts. Below is a brief summary of the primary interviews that were conducted by job function for this report.
 
Thus, Lucintel compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis. Lucintel then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process. The figure below is a graphical representation of Lucintel’s research process. 
 

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