5G Core Network (5GC) Market Size, Share, Growth, and Industry Analysis, By Type (5G Commercial Contract, 5G Industry Application Contract), By Application (Smart Energy, Industrial Manufacturing), Regional Insights and Forecast From 2025 To 2035

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5G CORE NETWORK (5GC) MARKET OVERVIEW

The global 5g core network (5gc) market size at USD 4.28 billion in 2025 and is projected to reach USD 5.47 billion in 2026, growing further to USD 38.72 billion by 2035 at an estimated CAGR of 27.7% from 2026 to 2035.

The extraordinary 5G Core Network (5GC) market growth can be attributed to a multitude of factors, with two standout drivers being the surging demand for enhanced mobile broadband (eMBB) and the rapid expansion of ultra-reliable low-latency communication (URLLC) applications. These factors have ignited a transformative shift in the telecommunications landscape, propelling the 5GC market to new heights.

KEY FINDINGS

COVID-19 IMPACT

Demand Surged Due to Increased Demand for Remote Work and Online Services

The COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic significantly impacted the 5G Core Network (5GC) market. Increased demand for remote work and online services during the pandemic placed substantial stress on existing networks. Fortunately, 5G networks, with their enhanced speed and reliability, proved to be better equipped to handle this surge in demand, underscoring the essential role of 5GC in supporting the evolving digital landscape.

Furthermore, governments worldwide recognized the critical importance of 5G infrastructure in facilitating economic recovery and growth. Consequently, substantial investments were made in 5G rollouts, catalyzing heightened demand for 5GC equipment. Additionally, the pandemic accelerated the adoption of 5G smartphones as their prices rapidly decreased, rendering them more accessible to consumers. This increased adoption of 5G smartphones further contributed to the growing demand for 5GC networks as the world shifted towards a more connected and technologically advanced future.

LATEST TRENDS

Rapid Adoption of Cloud-Native Networks to Improve Network Performance and Cost-Effectiveness

The latest trend in the 5G Core Network (5GC) market is the rapid adoption of cloud-native 5G core networks. These cloud-native networks are gaining popularity due to their inherent benefits over their traditional counterparts. One key advantage is their heightened flexibility and scalability, allowing for quick provisioning and scaling to meet evolving demands. This dynamic adaptability is crucial in an era where network requirements can change rapidly, ensuring that the 5GC infrastructure remains responsive and agile.

Additionally, cloud-native 5G core networks are more cost-effective in terms of deployment and operation when compared to traditional networks. This financial efficiency is particularly valuable in a competitive industry, as it enables businesses to allocate resources effectively and invest in other critical areas of network development and expansion.

Furthermore, the adoption of cloud-native 5G core networks has resulted in improved network performance. These networks offer lower latency and higher throughput, addressing the ever-growing need for faster and more reliable connectivity. This enhancement in performance is especially pertinent as emerging technologies and applications, such as IoT and augmented reality, require networks that can handle data with minimal delay. The migration to cloud-native 5G core networks is a significant stride in aligning network capabilities with the demands of the modern digital landscape.

• According to U.S. government sources, around 65% of network operators are transitioning to standalone (SA) 5G networks, which use 5G core infrastructure independent of 4G LTE. This shift enhances network efficiency and supports advanced applications like ultra-reliable low-latency communications (URLLC).
• AI and machine learning are now integrated into over 50% of 5G core networks for predictive maintenance, traffic optimization, and automated network management, improving overall performance and reducing operational costs.

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5G CORE NETWORK (5GC) SEGMENTATION

 By Type

Based on type, the global market can be categorized into 5G commercial contracts and 5G industry application contracts.

• 5G Commercial Contract: A 5G commercial contract formalizes the deployment and use of high-speed connectivity solutions for businesses, ensuring service quality, coverage, and compliance. It lays the groundwork for seamless communication, enabling companies to leverage 5G for enhanced operations and customer engagement.
• 5G Industry Application Contract: A 5G industry application contract focuses on tailored solutions for specific sectors like healthcare, manufacturing, or logistics, outlining specialized use cases and performance metrics. It ensures that the transformative potential of 5G is harnessed efficiently to optimize workflows and drive innovation within the industry.

By Application

Based on application, the global market can be categorized into smart energy, industrial manufacturing, smart medical, media entertainment, and smart transportation.

• Smart Energy: Smart energy systems optimize power generation and consumption, reducing waste while maximizing efficiency. By integrating IoT and AI, they enable real-time monitoring and predictive maintenance for sustainable energy solutions.
• Industrial Manufacturing: Industrial manufacturing leverages automation and robotics to enhance precision, productivity, and safety. Data-driven insights transform operations, enabling smarter supply chains and adaptive production lines.
• Smart Medical: Smart medical technologies use AI, wearable devices, and telemedicine to provide personalized patient care. They improve diagnostics, treatment efficiency, and proactive health management, saving lives and costs.
• Media Entertainment: Media entertainment now combines AR, VR, and AI to deliver immersive, interactive experiences. Personalized content recommendations and real-time engagement are redefining how audiences connect with media.
• Smart Transportation: Smart transportation integrates AI, sensors, and connectivity to enhance mobility, safety, and efficiency. From autonomous vehicles to intelligent traffic management, it transforms urban commuting and logistics.
• Others: Emerging smart solutions across sectors create seamless, data-driven experiences in everyday life. These innovations drive sustainability, convenience, and smarter decision-making in ways previously unimaginable.

DRIVING FACTORS

Surging Demand for Enhanced Mobile Broadband (eMBB) to Propel Market Growth

The rise of data-intensive applications, such as video streaming, augmented reality, and virtual reality, is driving the demand for faster and more reliable network speeds. 5G networks can provide peak data rates of up to 20 Gbps, significantly outpacing previous generations and making them ideal for supporting eMBB applications.

• Federal and state governments are supporting approximately 70% of pilot 5G programs, facilitating the adoption of virtualized network functions across industries.
• Network slicing and edge computing are deployed in around 60% of advanced 5G networks, enabling virtualized segments tailored to specific applications and improving service delivery.

Growth of Ultra-Reliable Low-Latency Communication (URLLC) to Elevate Market Expansion

URLLC is a critical enabler for emerging technologies, including autonomous vehicles, industrial automation, and remote surgery. These applications require networks with extremely low latency and 5G networks can provide latency as low as 1 millisecond, meeting the stringent requirements of URLLC applications.

RESTRAINING FACTORS

Availability of Spectrum to Hinder the Timely Rollout of 5G Infrastructure

One significant restraining factor for the 5G Core Network (5GC) market is spectrum availability. The implementation of 5G networks demands a larger portion of the radio frequency spectrum compared to earlier network generations, which can pose a considerable challenge. Spectrum, being a finite and limited resource, becomes a bottleneck as operators must contend with high fees for spectrum licenses or potentially face delays in deployment while awaiting the availability of additional spectrum. This constraint not only impacts the cost of network expansion but can also hinder the timely rollout of 5G infrastructure, potentially affecting the pace at which the market can grow and develop.

• Only 40% of required spectrum bands have been approved for commercial 5G development in some regions, causing delays in expansion and efficiency of 5G core networks.
• Cybersecurity and supply chain risks affect over 55% of 5G network deployments, requiring strict security protocols and component management.
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5G CORE NETWORK (5GC) REGIONAL INSIGHTS

Asia Pacific to Lead Market Due to Region’s Growing Appetite for Advanced Technologies

Asia Pacific has emerged as a leading region in the global 5G Core Network (5GC) market share. With its rapid economic development and growing appetite for advanced technologies, the Asia Pacific region has become fertile ground for 5GC expansion. Nations across the Asia Pacific have made substantial investments in 5G infrastructure, fostering an environment conducive to the market's growth. This has led to the establishment of extensive 5G networks, driving adoption across various sectors and industries. The region's prominence is further bolstered by its role as an early adopter of innovative technologies, making it a trailblazer in the 5GC market. As a result, Asia Pacific's influence and market share in the 5GC industry are substantial, positioning it as a dominant force in shaping the future of 5G technology and services.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

• Huawei: Security concerns affect around 30% of markets where Huawei operates, leading to restrictions in some regions.
• Ericsson: Ericsson holds 15.8% of global 5G patent declarations, demonstrating leadership in 5G technology development.

List of Top 5G Core Network (5Gc) Companies

• Huawei (China)
• ZTE (China)
• Ericsson (Sweden)
• Nokia (Finland)

INDUSTRIAL DEVELOPMENT

June 2023: The 3GPP, a global standards organization, marked a significant milestone in the evolution of 5G technology by finalizing Release 17 of the 5G New Radio (NR) standard. This pivotal development introduced several enhancements to the existing 5GC standard, expanding its capabilities and paving the way for broader adoption and diverse applications.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.