5G Core Market Size

5G Core Market Growth Projections and Opportunities

The telecommunications sector is undergoing a monumental shift, poised on the brink of the 5G revolution. 5G, the fifth-generation mobile communication technology, promises faster and more reliable connectivity for mobile devices. The current predominant technology, NR non-standalone (NSA), utilizes existing LTE radio access for signaling between devices and networks, along with modified Evolved Packet Core (EPC) networks to accommodate 5G NSA. While this approach facilitates the rapid introduction of new 5G services, realizing 5G's full potential necessitates NR standalone (SA) and 5G Core (5GC).

The 5GC design is transformative, addressing current and future needs to enable unprecedented levels of mobile communications and the digitalization of entire civilizations. In essence, 5GC is a crucial component enhancing end-user experience, network operations, service creation agility, and overall network capabilities. Factors driving the growth of the 5G Core market include the increasing demand for cloud-native and service-based architecture, the development of smart infrastructures, and rapid advancements in the Internet of Things (IoT). The rise in demand for 5G private networks across enterprises, governments, and industrial sectors presents additional growth opportunities.

However, challenges such as data security concerns in the 5G core network and substantial spending on deploying 5G core are expected to impede market growth. According to MRFR, the global 5G Core market is steadily growing and is projected to reach USD 16,145.1 million by 2027, exhibiting a CAGR of 52.7% during the forecast period from 2021 to 2027. The market is segmented based on components into solutions and services, with the services segment further divided into professional services and managed services. Deployment modes include cloud and on-premises. Network functions encompass AMF (Access and Mobility Management Function), SMF (Session Management Function), UPF (User Plane Function), PCF (Policy Control Function), NEF (Network Exposure Function), NRF (NF Repository Function), UDM (Unified Data Management), AUSF (Authentication Server Function), AF (Application Function), NSSF (Network Slice Selection Function), and others. End users are categorized into consumers and enterprises.

Geographically, the market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The Global 5G Core market, which generated a revenue of USD 711.7 million in 2020, is expected to reach USD 16,145.1 million by 2027, growing at a CAGR of 52.7%. Key players contributing significantly to the market's growth include Affirmed Networks, Athonet, CASA Systems, Cumucore, NEC Corporation, Cisco Systems Inc., Samsung Electronics Co. Ltd., Hewlett Packard Enterprise Development LP, Nokia Corporation, Oracle Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd., ZTE Corporation, Mavenir, and Druid Software. These players prioritize innovation, investing in research and development to present cost-effective product portfolios, and engaging in mergers and acquisitions to strengthen their market reach. The dynamic landscape of the 5G Core market reflects its pivotal role in shaping the future of telecommunications.