5G Core Market

5G Core Market Outlook (2025 to 2035)

The global 5G core market is expected to reach USD 35,011 million by 2035, up from USD 2,815 million in 2024. During the forecast period (2025 to 2035), the industry is projected to expand at a CAGR of 24.8%. 5G core (5GC) is crucial to realizing the full potential of 5G networks. It enables the provision of advanced network capabilities, including network slicing, ultra-low latency, and service orchestration.

The 5G core market is a pillar of the next generation of telecommunications networks, facilitating ultra-low latencies, increased bandwidth, and consistent connectivity. It is a difference with the current network architecture since it adapts cloud-native, virtualized surroundings supporting new technologies like IoT, edge computing, and network slicing.

With the digitalization of industries and service providers, the 5G core is crucial for offering dynamic, scalable, and programmable network services. The network covers both standalone and non-standalone 5G environments, enabling telcos and enterprises to create new applications in smart cities, autonomous vehicles, immersive media, and the automation of industrial entities.

The 5G core market is expected to experience a continued upward trend in the future, driven by high rates of digitalization, increasing data usage, and the growing need for high-performance connectivity among enterprises. The move to standalone 5G networks, which necessitate a 5G core in full, will also happen more rapidly now that network operators are retiring aging systems.

In addition, continuous innovation in network function virtualization and artificial intelligence will support the automation and orchestration of services. All these developments are predicted to transform the core networks into highly agile and intelligent networks that can support complex, multi-tenant environments.

What drives the rapid adoption of cloud-native architectures in the evolving 5G Core Market landscape?

The primary drivers in the 5G core market are the global demand for high-speed, reliable connections and the need to work more efficiently on network systems. Businesses are embracing both the use of private and hybrid 5G networks to enable mission-critical services that respond in real-time and with minimal latency. Virtualized network functions and cloud-native architecture enable smooth deployments and affordable, operationally efficient networks.

The increasing number of devices connected enables them to communicate and control, especially in smart manufacturing and automotive industries, a factor leading to the demand for a dynamic and programmable network core. The government's promotion of investment in 5G infrastructure and the spectrum available is providing favorable conditions to drive market acceleration in the regions.

What emerging trends are shaping the evolution and deployment of the global 5G Core Market?

The most notable developments in the world of 5G core are service-based architectures that enable modular, versatile, and software-defined networks. Network slicing is gaining momentum, with operators able to slice their networks for specific usages, such as telemedicine or remote manufacturing.

A public-private partnership between telecom operators and cloud service providers is also booming, supporting the deployment of distributed and edge-based core network installations. The core incorporates artificial intelligence and machine learning for predictive maintenance, automatic fault detection and repair, and traffic management. These dynamics are making the 5G core a medium of innovation and digital services.

What regulatory and integration challenges are restraining the global growth of the 5G Core Market?

Deployment and operational costs are a hindrance to small and medium operators. The technicalities of integrating new core solutions into a legacy structure are resource-demanding. Also within the topic of cybersecurity, there are increased concerns due to the exposure of network architectures to open and software-based directions, which risks data breaches and service disruptions.

Another complexity in worldwide deployment is the uncertainty regarding regulation, particularly on data sovereignty and cross-border data flow. Lack of skilled labor who can operate new level 5G core facilities could also be a stumbling block towards its uptake in immature markets.

Which regions are driving the rapid growth in the global 5G Core Market and why?

North America dominates the 5G core market due to investments, including initiatives by top telecom players, a robust cloud system, and early implementation of standalone 5G. The availability of hyperscale data centers and strategic collaboration with cloud providers enable the use of more advanced applications, such as autonomous transportation, smart cities, and immersive media applications.

In East Asia, the 5G core market is growing rapidly, in part due to assertive national infrastructure investments and industrial policy. The manufacturing and logistics sectors are adopting 5G technologies, as are the consumer electronics sectors in China, Japan, and South Korea, driven by a combination of high device penetration, technological innovation, and the acceptance of new digital services.

The deployment of the 5G Core in Western Europe is progressing steadily, albeit with a dampening force from disparities in regulations and an unequal ability to afford investment among member states. Small operators struggle with modernizing legacy systems.

Country-Wise Outlook

AI-Driven Innovation and 5G Expansion Fuel U.S. 5G Core Market

The 5G Core market in the United States is also experiencing a sharp rise, driven by the convergence of growth with artificial intelligence and the introduction of 5G infrastructure. Such technologically advanced solutions are rendering SoC designs even more advanced, and thus, there is a necessity to access finer and more advanced testing solutions. Such a significant demand can be largely attributed to the automotive industry, specifically the electric vehicle market and autonomous car systems.

In addition, AI and machine learning in product testing are enhancing the accuracy, efficiency, and reliability of product testing, thereby strengthening the U.S. as an innovator in 5G core and infrastructure development.

Semiconductor Self-Reliance and IoT Proliferation Drive China’s 5G Core Market

The Chinese market's failure to lose its growth at an unimaginable scale is rooted in the elevated priority assigned to self-sufficiency in semiconductors and the soaring momentum of the embrace of IoT technologies. The government is investing heavily in the manufacture of local semiconductors, and it is contributing to the rise of high-order SoC test cases.

Demand for high-performance microcontrollers is increasing because most 5G and industrial/consumer application devices have adopted the power of being smart. Additionally, the local manufacturers of test equipment in China, which are also contributing to the strengthening of the market with respect to the ecosystem and meat, are also helping out.

Next-Gen Networking and Industrial AI Ecosystem Energize South Korea’s 5G Core Market

The emergence of dominant 5G deployments, robust public-private partnerships, and industrial applications of AI has led to a flourishing South Korean 5G Core market. In line with the widespread deployment of standalone 5G networks by telecom giants in smart cities and industrial centers, the call for flexible, scalable, and real-time-tested SoC architectures is growing louder.

The dynamic testing and orchestration platforms have been adopted due to the country's strong semiconductor export base and rapid pace of digitalization across various industries, including production and immersive media. Besides, South Korea is following the trend in cloud-native network functions, MEC (Multi-Access Edge Computing), and AI-powered analytics, with the country being a foundation stone of innovativeness in the global 5G core market landscape.

Category-Wise Market Outlook

Standalone 5G Core and Managed Services Propel Segment Growth Amid Cloud-Native Transformation and Operational Outsourcing Trends

Under Solutions, the Standalone 5G core is a firmly growing subsegment, driven by the industry's transition toward fully virtualized, cloud-native network architectures focused on ultra-low latency and high reliability. The architecture is the key to unlocking advanced 5G use cases, such as network slicing and mission-critical applications, particularly in smart cities and autonomous systems.

Managed services are leading growth within the services segment. As telecom operators and enterprises seek to streamline their operations and reduce internal complexity, there is an increasing reliance on outsourced, end-to-end service providers for infrastructure management, network optimization, and lifecycle support. The flexibility and predictability of the managed services' costs make them particularly appealing in rapidly changing 5G environments.

Private Cloud Surges Ahead in 5G Core Deployments Amid Rising Demand for Security, Compliance, and Customization

The rapidly growing deployment method among all cloud services is the private cloud, which is significantly adopted by enterprises across various verticals, including manufacturing, automotive, and healthcare. This has been done with the aim of data control, security, and customization. This is in line with increased compliance demands and mission-specific cases of 5G where public clouds may be impractical because of latency or confidentiality issues.

User Plane Function (UPF) holds Network Function Growth with Edge-Enabled Low Latency and Real-Time Capabilities

Among all the network functions, UPF is the fastest-growing. It is essential for operations involving data traffic, policy enforcement, and setting up low-latency transmission, which makes it crucial in supporting real-time and bandwidth-intensive applications. Increased relevance is bestowed on UPF due to its flexibility and edge computing capabilities as 5G deployments focus on a decentralized architecture.

Healthcare Emerges as Key 5G Core End-User with Surge in Connected Diagnostics and IoT-Driven Care

Healthcare is among the rapidly rising end-user segments. Connected diagnostics, real-time remote monitoring, and telemedicine require the most ultra-reliable and low-latency communications, which will be enabled through integration with 5G Core and are expected to improve quality assurance in this critical sector. Digital transformation in the healthcare sector often employs personalized care schemes, further raising the need for IoT medical devices that suit high-demand, secure, and high-performance network solutions.

Competitive Analysis

Competitive Outlook: 5G Core Market

The 5G core market is dynamic and rapidly growing, driven by unprecedented demand for ultra-low-latency, high-speed connectivity in applications such as industrial automation, private enterprise networks, and connected devices. Major companies, such as Huawei, Ericsson, and Nokia, form the backbone of the global market. Huawei holds the leading market share, thanks to its full-stack and lucrative cloud-native core offerings, as well as its dominance in base station deployments.

Following closely are Ericsson and Nokia, which benefit from strong R&D and support for Open RAN, AI-driven automation, and private 5G deployments. Other important players in core and RAN components include Samsung, ZTE, Cisco, and NEC.

At the same time, players including Juniper Networks, VMware (acquired by Broadcom), and Oracle are focusing on aspects such as virtualization and NFV infrastructure while integrating with enterprise OSS/BSS. Strategic trends include cloud-native architecture, edge computing, and AI-based network orchestration. Competition is increasing with the emergence of disruptors such as Mavenir and HPE, which aggressively offer microservices solutions. Furthermore, geopolitical factors globally are reinforcing the positions of these vendors.

Key players in the 5G core industry include Ericsson, Nokia, Huawei Technologies, Samsung Electronics, ZTE Corporation, NEC Corporation, Cisco Systems, Inc., Juniper Networks, VMware (formerly Broadcom), Oracle Corporation, and Other Prominent Market Players.

Recent Development

• In March 2025, Huawei launched its AI-centric 5.5G Core at MWC Barcelona, delivering intent-driven automation, enhanced user-experience AI O&M, and multi-factor monetization capabilities, ushering in the mobile AI transformation age.
• In February 2025, ZTE and Red Hat unveiled a cloud‑native standalone 5G Core on OpenShift at MWC 2024, enabling telecom operators to modernize networks with containerized deployment and improved agility.

Fact.MR has provided detailed information about the price points of key manufacturers in the 5G core market, positioned across regions, including sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

The 2025 global 5G core industry report by Fact.MR sets a new benchmark in strategic market intelligence, providing a precise and data-rich perspective on the dynamic transformation of core network infrastructure in the 5G era. The report draws on insights from over 7,500 industry stakeholders across 35 countries, each contributing a minimum of 270 qualified responses, ensuring depth, diversity, and regional relevance.

The respondent base was methodically structured, with approximately two-thirds comprising end users and strategic decision-makers, including CTOs, network architects, telco cloud strategists, and enterprise connectivity leaders. The remaining one-third consisted of domain experts, including EPC/5GC engineers, system integrators, spectrum policy advisors, NFV/SDN developers, and procurement heads, across various sectors such as telecom, public sector, manufacturing, automotive, and media.

Spanning a 10-month research window from June 2024 to May 2025, the study continuously monitored shifts in 5G core adoption, including standalone vs. non-standalone deployments, network slicing maturity, AI-based orchestration trends, vendor performance, and emerging monetization frameworks. Advanced stratified modeling techniques were applied to ensure that the data accurately reflects the structural composition of global markets and respondent roles.

The report synthesizes evidence from over 275 verified sources, including regulatory filings, R&D whitepapers, operator financial disclosures, intellectual property records, and technical consortium insights. It leverages advanced analytics, including multivariate regression, cluster segmentation, and time-series forecasting, to deliver foresight-driven intelligence with exceptional predictive reliability.

With continuous monitoring of the 5G Core ecosystem since 2018, Fact.MR brings unparalleled domain expertise. The 2025 edition serves as a vital resource for network equipment manufacturers, telecom operators, hyperscalers, investors, policy planners, and system integrators committed to shaping the future of global connectivity through agile, cloud-native, and intelligent 5G core infrastructures.

Segmentation of 5G Core Market Research

• By Component :

  • Solutions
    • Standalone 5G Core
    • Non-Standalone 5G Core
  • Services
    • Professional Services
      • Consulting
      • Implementation & Integration
      • Support & Maintenance
    • Managed Services

• By Deployment Mode :

  • Cloud-Based
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud
  • On-Premise

• By Network Function :

  • Access and Mobility Management Function (AMF)
  • Session Management Function (SMF)
  • User Plane Function (UPF)
  • Policy Control Function (PCF)
  • Network Exposure Function (NEF)
  • Network Repository Function (NRF)
  • Authentication Server Function (AUSF)
  • Unified Data Management (UDM)
  • NF Repository Function (NRF)

• By Application :

  • Enhanced Mobile Broadband (eMBB)
  • Massive Machine-Type Communications (mMTC)
  • Ultra-Reliable Low-Latency Communications (URLLC)
  • Fixed Wireless Access (FWA)
  • Network Slicing

• By End User :

  • Telecom Operators
  • Enterprises
    • Manufacturing
    • Healthcare
    • Automotive
    • Energy & Utilities
    • Public Safety
    • Media & Entertainment
    • Smart Cities
    • Transportation & Logistics

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa