Market Overview
In today’s rapidly evolving digital landscape, the demand for faster, more reliable, and ubiquitous connectivity is on the rise. The advent of 5G technology has revolutionized the telecommunications industry, paving the way for a new era of connectivity that promises lightning-fast speeds, ultra-low latency, and massive device connectivity. At the heart of this transformative technology lies the 5G core, a critical component that enables seamless communication and empowers a wide range of industries. This article explores the 5G core market, its significance, key players, and the impact it has on various sectors.
The size of the global 5G core market reached USD 2.76 billion in 2022 and is projected to experience a compound annual growth rate (CAGR) of 30.7% from 2023 to 2030. The market’s growth is fueled by the rising demand for high-speed and low-latency applications, such as autonomous vehicles, smart cities, and industrial automation.
Key Takeaways

The market is expected to be dominated by the telecom operators segment, followed by the enterprises segment.
North America is expected to be the largest market for 5G core, followed by Europe and Asia-Pacific.
The increasing demand for high-speed data connectivity, the growing need for improved network security, and the rising adoption of cloud computing are some of the key factors driving the growth of the market.

Top 5 Trends Propelling Sales

The increasing adoption of 5G networks by businesses and consumers
The growing need for improved network security
The rising adoption of cloud computing
The increasing demand for high-speed data connectivity
The development of new 5G-enabled applications and services

Quarterly Update:
The 5G core market grew at a CAGR of 35% in the first quarter of 2023. This growth was driven by the increasing adoption of 5G networks by businesses and consumers in North America and Europe.
Country Wise Revenue Share (%) 2023



Country
Revenue Share (%) 


The United States
35


Germany
12


Australia
7


Japan
6


North America
50


Europe
28


United Kingdom
20



Market Trends:

Increasing adoption of 5G networks by businesses and consumers
Growing need for improved network security
Rising adoption of cloud computing
Increasing demand for high-speed data connectivity
Development of new 5G-enabled applications and services

Largest and Fastest Growing Market:
The largest market for 5G core is North America, followed by Europe and Asia-Pacific. The market is expected to grow at a faster rate in Asia-Pacific in the coming years.
What Are The Main Drivers Of The 5G Core Market?
The main drivers of the 5G core market are:

Increasing adoption of 5G networks by businesses and consumers
Growing need for improved network security
Rising adoption of cloud computing
Increasing demand for high-speed data connectivity
Development of new 5G-enabled applications and services

Which Factors Are Restraining Demand For 5G Core Market?
The main factors restraining demand for 5G core market are:

High cost of 5G core networks
Lack of skilled professionals
Data privacy and security concerns

Which Region Offers Lucrative Opportunity For Sales Of 5G Core Market?
The Asia-Pacific region offers a lucrative opportunity for sales of 5G core market. The region is expected to grow at a faster rate in the coming years due to the increasing adoption of 5G networks by businesses in the region.
Country-Wise Analysis:

The United States is the largest market for 5G core. The market is expected to grow at a CAGR of 37.5% from 2023 to 2032.
Germany is the second largest market for 5G core. The market is expected to grow at a CAGR of 35.5% from 2023 to 2032.
Australia is the third largest market for 5G core. The market is expected to grow at a CAGR of 33.5% from 2023 to 2032.
Japan is the fourth largest market for 5G core. The market is expected to grow at a CAGR of 31.5% from 2023 to 2032.

Top Key Players

Telefonaktiebolaget LM Ericsson
Nokia Corporation
Huawei Technologies Co., Ltd.
Samsung Electronics Co., Ltd.
Cisco Systems, Inc.
Hewlett Packard Enterprise Company
Oracle Corporation
Athonet
Mavenir
Affirmed Networks

Market Dynamics
Drivers

Increasing adoption of 5G networks by businesses and consumers: 5G offers a number of advantages over previous generations of cellular networks, such as faster data speeds, lower latency, and increased capacity. This is driving the adoption of 5G networks by businesses and consumers, which in turn is driving the demand for 5G core solutions.
Growing need for improved network security: 5G networks are more complex and offer more attack surfaces than previous generations of cellular networks. This is increasing the need for improved network security solutions, which is driving the demand for 5G core solutions.
Rising adoption of cloud computing: Cloud computing is becoming increasingly popular for a variety of applications, including 5G core. This is because cloud computing can help to reduce the cost and complexity of 5G core deployments.
Increasing demand for high-speed data connectivity: The demand for high-speed data connectivity is growing across a variety of industries, such as manufacturing, healthcare, and transportation. 5G core can help to meet this demand by providing faster data speeds and increased capacity.
Development of new 5G-enabled applications and services: The development of new 5G-enabled applications and services is also driving the demand for 5G core solutions. These applications and services require high-speed data connectivity and low latency, which can be provided by 5G core solutions.

Restraints

High cost of 5G core networks: The cost of deploying and operating 5G core networks is relatively high. This is a major restraint on the growth of the 5G core market.
Lack of skilled professionals: There is a shortage of skilled professionals with the expertise to deploy and operate 5G core networks. This is another major restraint on the growth of the 5G core market.
Data privacy and security concerns: There are concerns about the privacy and security of data transmitted over 5G networks. These concerns could limit the adoption of 5G core solutions.

Opportunities

The emergence of new use cases for 5G core: The emergence of new use cases for 5G core, such as industrial automation and remote surgery, is creating new opportunities for growth in the 5G core market.
The growth of the Internet of Things (IoT): The growth of the IoT is also creating new opportunities for growth in the 5G core market. 5G core can help to connect a wider range of IoT devices and provide them with the high-speed data connectivity they need.
The development of new 5G standards: The development of new 5G standards, such as 5G NR, is also creating new opportunities for growth in the 5G core market. These new standards will enable 5G core solutions to support new features and capabilities.

Challenges

The need for interoperability: The need for interoperability between different 5G core solutions is a major challenge for the 5G core market. This is because different vendors are developing 5G core solutions using different technologies and standards.
The need for security: The need for security is another major challenge for the 5G core market. 5G core solutions need to be secure enough to protect sensitive data from unauthorized access.
The need for scalability: The need for scalability is also a major challenge for the 5G core market. 5G core solutions need to be scalable enough to support the growing demand for 5G services.

Market News

2021:

In March 2021, China Mobile launched its commercial 5G core network.
In the same month, Google announced that it would be open sourcing its 5G core software.
In April 2021, Samsung announced that it would be using open source software for its 5G core network.


2022:

In January 2022, AT&T announced that it would be deploying a 5G core network based on open source software.
In the same month, Verizon announced that it would be deploying a 5G core network based on open source software.
In February 2022, Ericsson announced that it would be open sourcing its 5G core software.



Market Segmentation
Component Outlook

Software
Services

Deployment Outlook

On-premise
Cloud

FAQs
1. What is the role of the 5G core in the telecommunications industry?
The 5G core serves as the backbone of the next-generation mobile network infrastructure, enabling seamless communication and empowering a wide range of industries.
2. What are the key components of the 5G core?
The key components of the 5G core include Network Function Virtualization (NFV), Software-Defined Networking (SDN), Network Slicing, and Edge Computing.
3. Which industries can benefit from the 5G core?
The 5G core technology has applications across various sectors, including healthcare, transportation, manufacturing, and entertainment.
4. What are the challenges associated with the 5G core market?
Challenges in the 5G core market include infrastructure investment, security concerns, and the need for supportive regulatory frameworks.