Global 5G Core Market Size is Projected to Reach USD 177.67 Billion by 2033 | CAGR of 52.9%

Introduction

Straits Research has released its comprehensive report, “5G Core Market Size, Share & Trends Forecast by 2033,” projecting that the global 5G Core market will grow from USD 5.94 billion in 2025 to USD 177.67 billion by 2033, registering a compound annual growth rate (CAGR) of 52.9%.

The heart of a 5G mobile network is the 5G Core (5GC). Core domain operations include handling connectivity and mobility, authentication and authorization, subscriber data, and policies. The 5G Core network services are entirely software-based and designed for the cloud, enabling deployment quicker and more flexibility regardless of the cloud architecture. The new 5GC architecture is based on Service-Based Architecture (SBA), which employs IT network principles and a cloud-native design methodology.

Market Dynamics

Development of Smart Infrastructure Drives the Global Market

The 5G's global rollout rate will determine how quickly it becomes the mainstream technology for smart cities. The communications infrastructure and its use for public safety are essential for the success of smart city efforts. 5G delivers a vastly improved infrastructure for scalable and reliable connectivity to the rest of the world. In addition, the term "Internet of Things" (IoT) is becoming common. 5G is an enabling technology for the Internet of Things, and because smart cities rely on the IoT to function, the two are inextricably linked. As a result, 5G will enable the real-time transmission of sensor data to central monitoring stations, stimulating industry growth.

Rising Demand for 5G Private Network Across Enterprises, Governments, and Industrial Sectors Creates Tremendous Opportunities

Private 5G networks, which are not connected to a more extensive telecom network, provide far greater security than public 5G networks. Consequently, organizations with highly stringent security requirements, such as power plants, find private 5G networks alluring. Private 5G networks are also highly adjustable, allowing businesses to design networks to their specifications without relying on telecom solutions, and data can be managed and analyzed internally. Consequently, the need for 5G private networks among corporations, governments, and industrial sectors generates the lucrative potential for market expansion.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global 5G core market and is anticipated to grow at a CAGR of 45.1% during the forecast period. The expanding need for cloud-native and service-based architecture and the networking industry's continued growth is driving the expansion of the Asia-Pacific market. In addition, it is projected that the continued advances of essential suppliers such as Nokia, Ericsson, Huawei, NEC, ZTE, and Samsung will produce enormous market demand in the region. For instance, Nokia revealed that its 5G Core network is supporting Asia-Pacific Telecom Co. Ltd's (APT) live 5G NSA (Non-Standalone) and VoLTE service using MOCN (Multi-Operator Core Networks) to share 5G Radio Access Network (RAN). This comprehensive cloud-based solution is anticipated to pave the path for zero-touch automation capabilities, enhancing scale and reliability.

Europe is estimated to grow at a CAGR of 63.6% over the forecast period. The increasing smart infrastructure and need for high-speed, low-latency networks in various industries, such as the automation sector, are anticipated to stimulate the expansion of the European market. For instance, Vodafone chose Ericsson's cloud-native dual-mode 5G Core technology to power its core network in Germany and the United Kingdom in June 2021. This region's network evolution and growing demand for cloud-native architecture are anticipated to create substantial market potential.

Key Highlights

• The 5G core market size is estimated to grow from USD 5.94 billion in 2025 to USD 177.67 billion by 2033, driven by a projected CAGR of 52.9%.
• By component, the global 5G core market is divided into solutions and services. The solutions segment is responsible for the largest market share and is anticipated to grow at a CAGR of 50.8% over the forecast period.
• By deployment mode, the global 5G core market is segmented into cloud and on-premises. The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 57.3% over the forecast period.
• By network functions, the global 5G core market is segmented into 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. The UPF (User Plane Function) segment owns the highest market share and is expected to grow at a CAGR of 58.5% over the forecast period.
• By end-user, the global 5G core market is segmented into consumers and enterprises. The consumer segment is the highest contributor to the market and is expected to grow at a CAGR of 34.6% over the forecast period.
• Asia-Pacific is the most significant shareholder in the global 5G core market and is anticipated to grow at a CAGR of 45.1% during the forecast period.

Competitive Players

The key players in the global 5G core market are The Nokia Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co.Ltd., ZTE Corporation, Samsung Electronics, Affirmed Networks, Mavenir, NEC Corporation, Cisco, Hewlett Packard Enterprise Development LP, Oracle Corporation, Athonet, Casa Systems, Cumucore, and Druid Software.

Recent Developments

Segmentation

By Component

• Solutions
• Services

By Deployment Mode

• Cloud
• On-Premises

By Network Functions

• 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)
• Others

By End-User

• Consumer
• Enterprises

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa