5G Core Network (5GC) Report Overview
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The global 5G Core Network (5GC) market size was valued at USD 2058 million in 2022 and is anticipated to reach USD 14560.45 million by 2031 , witnessing a CAGR of 27.7% during the forecast period 2023-2029.
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.
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.
5G Core Network (5GC) Segmentation
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- By Type Analysis
Based on type, the global market can be categorized into 5G commercial contracts and 5G industry application contracts.
The 5G commercial contracts primarily cater to individual consumers and businesses seeking enhanced mobile broadband services. These contracts are geared towards providing high-speed, reliable connectivity to support activities like video streaming, online gaming, and general internet usage. On the other hand, the 5G industry application contracts are tailored to address the specific needs of various sectors, such as industrial manufacturing, healthcare, transportation, and more. These contracts offer customized 5G solutions to industries requiring low-latency communication, high data throughput, and seamless connectivity for applications like industrial automation, smart medical devices, and autonomous vehicles.
- By Application Analysis
Based on application, the global market can be categorized into smart energy, industrial manufacturing, smart medical, media entertainment, and smart transportation.
These segments represent a wide range of sectors, each benefiting from 5GC's unique capabilities. Smart energy focuses on efficient energy grid management, industrial manufacturing leverages low-latency communication for automation, smart medical enhances healthcare services, media entertainment enables immersive experiences, and smart transportation drives innovations in the mobility sector.
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.
"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 Factor
"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.
5G Core Network (5GC) Regional Insights
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"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.
List of Market Players Profiled
- 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.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 2058 Million in 2022 |
Market Size Value By |
US$ 14560.45 Million by 2031 |
Growth Rate |
CAGR of 27.7% from 2022 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type And Application |
Frequently Asked Questions
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1. What value is the global 5G Core Network (5GC) market expected to touch by 2031?
The global 5G Core Network (5GC) market is expected to touch USD 14560.45 Million by 2031.
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2. What CAGR is the 5G Core Network (5GC) market expected to exhibit by 2031?
The 5G Core Network (5GC) market is expected to exhibit a CAGR of 27.7% by 2031.
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3. What are the driving factors of the 5G Core Network (5GC) market?
The driving factors of the 5G Core Network (5GC) market include the surging demand for enhanced mobile broadband (eMBB) and the growth of ultra-reliable low-latency communication (URLLC) applications, which cater to various emerging technologies and industries.
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4. What are the key 5G Core Network (5GC) segments?
The key market segments in the 5G Core Network (5GC) market include 5G commercial contracts and 5G industry application contracts, categorized based on the type of services provided. Additionally, based on application, the market is segmented into smart energy, industrial manufacturing, smart medical, media entertainment, and smart transportation, addressing the diverse needs of these sectors.
