세계의 5G 코어 시장 규모 : 구성요소별, 전개 방식별, 네트워크 기능별, 최종사용자별, 지역별 범위 및 예측

5G Core Market Size And Forecast

5G Core Market size was valued at USD 3.4 Billion in 2024 and is projected to reach USD 37.97 Billion by 2031, growing at a CAGR of 41.10% from 2024 to 2031.

The 5G Core (5GC) is the critical component of a 5G network, managing and delivering advanced network services. It is a cloud-native, service-based architecture that handles a variety of tasks such as authentication, mobility management, session management, and policy control. The 5G Core offers improved mobile broadband (eMBB), ultra-reliable low-latency communication (URLLC), and massive machine-type communication (mMTC), which are essential applications for 5G technology. It enables seamless connectivity and service continuity across various network types while improving performance, scalability, and flexibility over prior generations of core networks.

The 5G Core is expansive due to it is critical to the deployment and evolution of 5G networks. As 5G usage grows, the 5G Core will be critical to enabling new applications such as self-driving cars, smart cities, industrial automation, and sophisticated healthcare solutions. The integration of artificial intelligence (AI) and machine learning (ML) into the 5G Core is intended to improve network efficiency and service delivery. Furthermore, as 6G technology evolves, the 5G Core will serve as the foundation for a smooth transition and compatibility with future networks, assuring long-term relevance and adaptability.

Global 5G Core Market Dynamics

The key market dynamics that are shaping the global 5G core market include:

Key Market Drivers:

Expansion of Smart Cities: The growth of smart cities is increasing the demand for 5G core networks. According to the United Nations, by 2050, 68% of the world's population will reside in cities, increasing demand for smart city solutions based on 5G Core's low-latency and high-capacity characteristics.

Rising Demand for Enhanced Mobile Broadband (eMBB): The increasing demand for high-speed mobile internet is driving the 5G Core industry. According to the GSMA Intelligence report, there will be 1.8 billion 5G connections by 2025, with eMBB as a prominent use case. The increasing demand for faster and more dependable mobile internet services necessitates the development of powerful 5G Core networks.

Government Initiatives for 5G Deployment: Government measures to hasten 5G adoption are bolstering the 5G Core market. For instance, the European Union has set a goal of achieving 5G coverage in all urban areas and along significant transportation routes by 2025, as detailed in the "5G Action Plan for Europe." Such initiatives are boosting investment in 5G core infrastructure.

Growth in Cloud-Native Network Functions: The transition to cloud-native architectures is pushing the deployment of 5G core networks. According to a Gartner report, by 2025, cloud-native platforms would host more than 95% of new digital workloads, up from 30% in 2021. To successfully manage these workloads during the transition, a flexible and scalable 5G Core is required.

Key Challenges:

Complexity in Network Deployment: The shift to 5G Core networks is complex because of the necessity for integration with current 4G/LTE networks, cloud-native infrastructure, and service-based architecture. This complexity can cause deployment delays and increased implementation costs since service providers must manage the coexistence of several network generations while ensuring continuous service delivery.

High Capital Expenditure (CapEx): Deploying 5G Core infrastructure necessitates a substantial financial investment in new hardware, software, and network upgrades. The large CapEx can be a hindrance, particularly for smaller telecom providers. Furthermore, the return on investment (ROI) might take years to manifest, making it difficult for businesses to justify the initial costs.

Security and Privacy Concerns: The 5G Core's increased capabilities, such as network slicing and IoT integration, present new security challenges. The rising number of connected devices, combined with the complexity of the network architecture, creates additional possible entry points for cyberattacks, raising worries about data privacy and network integrity. Ensuring strong security measures is a significant task.

Market Competition and Pricing Pressure: The 5G Core market is fiercely competitive, with multiple technology providers and telecom carriers competing for market share. This competition causes pricing pressure, which can reduce profit margins. The requirement to differentiate services in a crowded market complicates the task, as businesses must constantly innovate while maintaining expenses.

Key Trends:

Adoption of Cloud-Native Architectures: Cloud-native architectures are becoming increasingly popular in the 5G Core market. Telecom operators are increasingly turning to cloud-native technologies to improve network flexibility, scalability, and efficiency. This trend enables faster service deployment, increased resource usage, and easier integration with other cloud-based apps, resulting in innovation in network administration and service delivery.

Increasing Focus on Network Slicing: Network slicing is becoming an important component of 5G Core networks, allowing operators to establish several virtual networks on a single physical infrastructure. This trend enables personalized network services that fit the specific needs of many businesses, such as reduced latency for self-driving vehicles or high bandwidth for video streaming. Network slicing is intended to generate additional revenue for telecom providers.

Integration of Artificial Intelligence (AI) and Machine Learning (ML): Artificial intelligence (AI) and machine learning (ML) integration is an emerging trend in 5G core networks, allowing for more intelligent network management and automation. AI and machine learning (ML) are being used to optimize network performance, detect and mitigate network faults, and improve service quality. This trend is expected to increase operational efficiency and lower costs for telecom companies.

Rise of Private 5G Networks: Demand for private 5G networks is growing, particularly in areas such as manufacturing, healthcare, and logistics. Private 5G networks based on 5G Core architecture provide increased security, dependability, and customization, allowing enterprises to optimize operations and achieve a competitive advantage. This trend is opening up new prospects for telecom carriers and technology suppliers.

Global 5G Core Market Regional Analysis

Here is a more detailed regional analysis of the global 5G core market:

Asia Pacific:

The Asia Pacific region leads the 5G Core market, owing to its vast population and quick technological improvements. Countries such as China, Japan, and South Korea are driving global 5G deployment efforts, investing heavily in infrastructure and encouraging innovation. China, for instance, has deployed 3.6 million 5G base stations by the end of 2023, accounting for 60% of the global total, according to the Global Mobile Suppliers Association. In South Korea, the Ministry of Science and ICT reported that 5G subscribers surpassed 30 million in 2022, with further growth anticipated. Demand for high-speed connectivity is a crucial driver in industries such as manufacturing, healthcare, and entertainment, which are increasingly reliant on 5G technology for efficiency and innovation.

Government initiatives and supportive regulations are driving the implementation of 5G throughout Asia Pacific. China's 14th Five-Year Plan plans for 560 million 5G users by 2025, demonstrating the government's commitment to expanding 5G infrastructure. likewise, Japan's Ministry of Internal Affairs and Communications (MIC) plans to expand 5G coverage to 90% of the country by 2025. These strategic efforts, combined with the region's growing need for ultra-fast and dependable connectivity, are driving current market growth while also establishing Asia Pacific as a key player in the future development of global 5G infrastructure.

North America:

North America is emerging as the fastest-growing region for the 5G core market, owing to significant expenditures and technological breakthroughs in the United States and Canada. The Federal Communications Commission (FCC) predicts that by 2025, 97% of the United States population will have 5G connectivity, thanks to multibillion-dollar expenditures from major telecom corporations. This rapid growth is being driven by the region's solid economic base and rising demand for advanced connectivity solutions, particularly in industries such as healthcare, manufacturing, and smart cities that require dependable and high-speed networks.

The presence of prominent technological companies and research organizations pioneering the development of 5G technologies contributes to the growth of the 5G Core market in North America as well. The US Department of Defense has invested USD 600 million in 5G research and testing across military bases, demonstrating the technology's strategic importance. These significant expenditures, together with the region's focus on improving network capabilities, position North America as a key driver in the global 5G Core market, paving the way for future development and innovation.

Global 5G Core Market: Segmentation Analysis

The Global 5G Core Market is Segmented on the basis of Component, Deployment Mode, Network Functions, End-User, And Geography.

5G Core Market, By Component

Solutions

Services

Based on Component, the market is bifurcated into Solutions and Services. The growing demand for integrated and complete offers from suppliers, and solutions is currently the most dominant category in the 5G core market. This category consists of hardware, software, and services, offering a comprehensive solution for 5G core network implementation. The complexity of 5G technology, as well as the need for seamless integration across multiple components, has made solutions the preferred option for many enterprises. Services are emerging as the fastest-growing segment, owing to the increased demand for expert support, maintenance, and optimization of 5G core networks. As 5G networks become more complicated and important to organizations, there is an increased demand for specialist services to assure maximum performance, security, and scalability.

5G Core Market, By Deployment Mode

Cloud

On-Premises

Based on Deployment Mode, the market is segmented into Cloud and On-Premises. The cloud is currently the dominant segment in the 5G core market due to its scalability, flexibility, and cost-effectiveness. Cloud deployments enable rapid scalability of network capacity, lower operational costs, and better integration with other cloud-based services. On-premises is emerging as the fastest-growing market, owing to concerns about data security, privacy, and latency. Organizations in banking, healthcare, and government are increasingly choosing on-premises installations to retain data control and regulatory compliance.

5G Core Market, 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)

Based on Network Functions, the 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), and NSSF (Network Slice Selection Function). AMF (Access and Mobility Management Function) is now the dominant segment in the 5G core market due to its vital role in user registration, authentication, and mobility. It is essential for maintaining smooth connectivity and mobility across diverse network settings. AF (Application Function) is emerging as the fastest-growing segment, owing to rising demand for specialized apps and services via 5G networks. As 5G networks open up new use cases and commercial opportunities, the demand for different application functions grows rapidly.

5G Core Market, By End-User

Consumer

Enterprises

Based on Application, the market is segmented into Consumer and Enterprises. Enterprises are now the most dominant category in the 5G core market, owing to rising demand for private 5G networks to support vital business activities and increase productivity. Enterprises across industries, including manufacturing, healthcare, and logistics, are embracing 5G to allow enhanced applications, increase productivity, and gain a competitive advantage. Consumer is emerging as the fastest-growing market, owing to the increased availability of 5G-enabled devices and the rising need for high-speed connectivity for personal usage. As 5G networks become more widely available and affordable, customers are increasingly using them for streaming, gaming, and virtual reality.

5G Core Market, By Geography

North America

Europe

Asia Pacific

Rest of the World

On the basis of geographical analysis, the Global 5G Core Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific is now the dominant region in the 5G core market, owing to its large population and quick technical advances. Countries such as China, Japan, and South Korea have been at the forefront of 5G implementation, massively investing in infrastructure and encouraging innovation. North America is emerging as the fastest-growing region in the 5G core market. The United States and Canada have made tremendous progress in the 5G rollout, owing to increased investments, technological improvements, and an emphasis on improving network capabilities.

Key Players

The "Global 5G Core Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Ericsson, Huawei, Nokia, Samsung, ZTE, Cisco, Mavenir, Affirmed Networks, HPE, and UTStarcom. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

5G Core Market Recent Developments

• In April 2024, Comcast lost another 65,000 broadband subscribers in the first quarter of 2024 and expects these losses to continue shortly. However, cable operators are attempting to mitigate this tendency by segmenting the market with offers tailored to the premium and lower end of the market. Comcast has recently focused products and marketing on the lower end, a segment that has been attracting fixed wireless access (FWA) competitors in droves.
• In November 2022, Samsung Electronics reported that it had accomplished 10 kilometers (6.2 miles) of long-range transmission over 5G mmWave in Australia. This achievement is significant because it demonstrates how far this powerful spectrum can travel and how successfully it can cover numerous countries with broadband service.
• In November 2022, Samsung Electronics announced that it would provide NTT DOCOMO with a range of 5G radios to help develop its Open Radio Access Network (Open RAN). Samsung will provide a variety of 5G radios that are compatible with Open RAN and cover all of the operator's Time Division Duplex (TDD) spectrum bands.

TABLE OF CONTENTS

1. Introduction

• Market Definition
• Market Segmentation
• Research Methodology

2. Executive Summary

• Key Findings
• Market Overview
• Market Highlights

3. Market Overview

• Market Size and Growth Potential
• Market Trends
• Market Drivers
• Market Restraints
• Market Opportunities
• Porter's Five Forces Analysis

4. 5G Core Market, By Solution Type

• Virtualized Network Function (VNF)
• Containerized Network Function (CNF)
• Physical Network Function (PNF)

5. 5G Core Market, By Deployment Type

• Cloud-based Deployment
• On-premises Deployment

6. 5G Core Market, By End-user Industry

• Telecommunications
• Enterprises
• Government and Public Sector

7. Regional Analysis

• North America
• United States
• Canada
• Mexico
• Europe
• United Kingdom
• Germany
• France
• Italy
• Asia-Pacific
• China
• Japan
• India
• Australia
• Latin America
• Brazil
• Argentina
• Chile
• Middle East and Africa
• South Africa
• Saudi Arabia
• UAE

8. Market Dynamics

• Market Drivers
• Market Restraints
• Market Opportunities
• Impact of COVID-19 on the Market

9. Competitive Landscape

• Key Players
• Market Share Analysis

10. Company Profiles

• Ericsson
• Huawei
• Nokia
• Samsung
• ZTE
• Cisco
• Mavenir
• Affirmed Networks
• HPE
• UTStarcom

11. Market Outlook and Opportunities

• Emerging Technologies
• Future Market Trends
• Investment Opportunities

12. Appendix

• List of Abbreviations
• Sources and References