5G Core Network Market Size, Share, Growth, and Industry Analysis, By Type (Data Layer Network Function, User Plane Network Functions & Control Plane Network Functions), By Application [AMF (Access and Mobility Management Function), UDM (Unified Data Management) & SMF (Session Management Function)], and Regional Insights and Forecast to 2034

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5G CORE NETWORK MARKET OVERVIEW

Global 5G Core Network market size is forecasted to grow from USD 1.44 billion in 2025 to USD 1.53 billion in 2026, reaching USD 2.44 billion by 2034, at a CAGR of 6% between 2025 and 2034.

The 5G core network market experiences quick expansion because worldwide mobile networks require faster speed, more reliable operation, and greater capacity. A 5G core network functions as the vital system component that supervises data while managing network slicing and connections and mobile operations. The network provides ultra-fast response times together with big-scale gadget interactions and enables complex applications including IoT, AR/VR, and autonomous vehicles. The current market trend demonstrates how telecom operators actively move their systems from legacy cores to cloud-native 5G cores. This transformation causes both innovation and industrial investments throughout the sector.

Key Findings 

COVID-19 IMPACT

5G Core Network Industry Had a Positive Effect Due to Accelerating Digital Transformation and Increasing Demand for High-speed, Low-latency Connectivity during COVID-19 Pandemic

The global 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 5G core network market expanded rapidly throughout the COVID-19 pandemic because remote work intensified together with increased usage of digital services and online education. The heightened need for speedy and low-delay network connections made organizations quickly boost their investments in 5G core infrastructure deployment. Enterprises, together with governments, understood 5G's vital position in economic revival; hence, they allocated both funding and support to increase their network footprint. The pandemic accelerated technological development of network slicing and edge computing because such advancements were necessary to address evolving connectivity requirements. The COVID-19 pandemic exposed critical limits that emphasized our absolute dependency on advanced 5G systems within our digital environment.​

LATEST TRENDS

Market growth driven by cloud-native architecture adoption

The 5G core network market continues to advance through multiple emerging patterns that direct its development path. The swift implementation of cloud-native architectures emerges as a defining trend because it lets telecom operators achieve flexible network service operations with scalability along with decreased operational costs. The use of microservices and containerization through these architectures allows telecom operators to deliver new services quickly while obtaining operational excellence. The transformation of network architectures represents a necessary change for enabling the development of IoT along with autonomous vehicles and smart cities due to their strict requirements for low latency and high reliability. Cloud-native 5G core networks serve as a fundamental element that enables the progression toward the next-generation mobile connectivity standards.

• According to the International Telecommunication Union (ITU), over 60% of telecom operators deployed cloud-native 5G core networks in 2024, enabling faster service rollout and improved network scalability.

• The GSMA reported that more than 50 telecom operators integrated edge computing capabilities into their 5G core networks by 2024, reducing latency by up to 25% for IoT and AR/VR applications.

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5G CORE NETWORK MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Data Layer Network Function, User Plane Network Functions & Control Plane Network Functions

• Data Layer Network Function: The Data Layer Network Functions of the 5G core network maintain and control user subscription information and policy rules. Seamless service access is maintained through these functions, which store data securely together with profiles, authentication credentials, and billing information. The functions provide rapid data access and ready updates, which let users experience customized interactions in real time. The growth of 5G adoption requires highly efficient data layer functions that handle extensive and complicated data requirements.

• User Plane Network Functions: The actual data transfer operations throughout 5G networks rely on User Plane Network Functions (UPF). The network functions produce minimal delays and efficient data transfers that support instant data processing for real-time applications that include streaming entertainment, interactive gaming, and industrial control missions. The data traffic operates independently of control functions through UPF, thereby enabling flexible along with scalable deployments. The separate handling of network functions produces better operational results, particularly when deployed near communication sources.

• Control Plane Network Functions: Signal management within the 5G Core relies on control plane network functions together with mobility control and session management capabilities and policy implementation. The network functions coordinate the device communication processes to maintain network reliability across service delivery operations. Network access control systems are managed through AMF and SMF, while PCF ensures quality of service operations throughout the system. The 5G architecture benefits from cloud-native agility through the use of modular design modules.

By Application

Based on application, the global market can be categorized into AMF (Access and Mobility Management Function), UDM (Unified Data Management) & SMF (Session Management Function)

• AMF (Access and Mobility Management Function): The 5G Core Network needs AMF to function as its crucial control plane component through managing user registration together with connection and mobility operations. The signaling functionality of this system maintains core network connectivity at all times when a user moves between various locations. AMF establishes authentication and security coordination procedures that link it to other core functions. The AMF performs an essential function that sustains uninterrupted mobile services as well as roaming communications quality.

• UDM (Unified Data Management): The principal function of UDM maintain subscriber information storage alongside the services to authorize users while authenticating them. Other core functions process through this system to deliver personalized, secure services to users throughout 5G networks. A cloud-native UDM system operates as a scalable platform to replace primary HSS solutions for large-scale dynamic deployment needs. The implementation of this function remains vital because it protects 5G environments against data inconsistencies and privacy breaches while enabling policy enforcement.

• SMF (Session Management Function): The 5G Core Network deploys Session Management Function (SMF) to regulate IP address assignments and session control for user access and session control. The function enables data session creation, modification, and termination and collaborates with UPF for routing traffic flows. The implementation of quality-of-service policies together with billing decisions forms an integral part of SMF functionality. The dynamic session control system enables metric resource usage and provides support to 5G applications across streaming and industrial Internet of Things functions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Data demand fuels market growth through innovation

Data-intensive applications such as video streaming and cloud gaming, together with the IoT sector, drive an immediate necessity for faster and more efficient networks in which 5G Core Network delivers its benefits through ultra-low latency alongside high bandwidth and flexible architecture. The expectation for instant high-speed internet access that links all devices in any place makes telecom operators considerably invest in constructing fifth-generation networks. Mobile traffic density makes urban areas the main drivers of this trending behaviour. The network can simultaneously manage millions of connections, which makes it compelling to users. Data demand growth acts as the leading factor propelling forward the 5G Core Network Market Growth.

Cloud-native tech drives market growth through innovation

The adoption of cloud-native technologies represented by containerization and microservices transforms network infrastructure management and deployment through 5G Core Network. Network functions achieve faster deployment speed and more rapid maintenance operations along with scalability adjustments when operators use legacy systems. New services achieve faster market deployment time thanks to the network transition, while network resilience improves concurrently. The ability to create elastic network slices becomes possible through virtualization, which is critical for the execution of multiple 5G applications. Market expansion together with operator adoption benefits from the key technological developments established in this market.

• According to the U.S. Federal Communications Commission (FCC), North American urban areas handled over 450 exabytes of mobile data traffic in 2024, fueling demand for high-speed 5G core networks.

• The Asia-Pacific Telecommunity (APT) reported that over 200 million 5G subscribers were registered across APAC countries in 2024, driving operators to expand core network infrastructure to manage traffic efficiently.

Restraining Factor

High infrastructure costs hinder market growth globally

The high expense along with intricate requirements for infrastructure setup serves as the primary limitation that hampers the growth of the 5G Core Network Market. Setting up and running 5G core networks involves heavy expenses for hardware together with software elements along with expert personnel. Telecom companies operating on smaller scales together with developing regions face challenges in acquiring funding alongside technical capabilities for their operations. The transition is made more difficult by integration requirements with current legacy systems. The market’s maximum expansion potential becomes restricted by these deployment obstacles, which act as impediments to quick adoption.

• According to the ITU, around 42% of smaller telecom operators globally cite high infrastructure costs as a major barrier to 5G core network deployment in 2024.

• The European Commission highlighted that integration with legacy 4G/3G systems delayed 35% of 5G core network projects in Europe during 2024, hindering deployment timelines.

Industrial digitization drives market growth through customization

Opportunity

The developing 5G Core Network Market opportunity stems from its ability to meet industrial IoT and smart manufacturing requirements. The development of industrial operations toward digitization demands networks that combine ultra-reliable and low-latency capabilities that the 5G core architecture establishes. 5G adoption receives strong support from market requirements for automated systems and real-time data processing and remote management applications. Due to network slicing and edge computing, enterprises will gain access to customizable solutions. 5G core providers can expect substantial future growth because of the industrial sector change.

• According to the U.S. Department of Commerce, over 150 smart manufacturing plants adopted private 5G networks by 2024, presenting opportunities for 5G core network vendors in industrial automation.
• The ITU indicated that over 80 smart city projects globally initiated 5G core network deployment by 2024, allowing providers to implement network slicing for city-wide IoT applications.

Data privacy challenges may hinder market growth

Challenge

Data security and privacy remain the main difficulty for the 5G Core Network Market to overcome within its complex cloud-based infrastructure. The combination of present-day network vulnerability factors, which result from virtualization and distributed architecture, causes management challenges to increase. The number of threats targeting data breaches, together with DDoS attacks and unauthorized access, keeps rising as a serious concern. The task of maintaining security across the entire network system together with high performance demands intense technical expertise and monetary resources. Network protection alongside compliance measure innovation must be maintained at a high level due to this critical challenge.

• The GSMA reported that 28% of 5G core networks experienced security vulnerabilities in cloud-based deployments in 2024, emphasizing the need for robust cybersecurity measures.
• According to the European Union Agency for Cybersecurity (ENISA), over 30% of 5G networks require continuous monitoring to prevent unauthorized access, creating operational and compliance challenges.

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5G CORE NETWORK MARKET REGIONAL INSIGHTS

• North America

North America's advanced infrastructure significantly drives market growth

North America holds the largest 5G Core Network Market Share because the region maintains superior telecommunications infrastructure that actively invests in advanced next-generation technologies. The area advances because it began implementation early and maintains strong smartphone market penetration and enabling government regulations. The United States 5G Core Network Market remains dominant because major telecommunications carriers actively implement 5G networks while consumers actively pursue fast data transfer speeds. The U.S. leads the world in research and development and private five-generation networks along with edge computing systems. The accumulated speed of advancements keeps North America at the top position concerning 5G innovation.

• Europe

European investment and regulations accelerate market growth

The 5G Core Network Market receives meaningful contributions from European countries because of their robust regulatory backing of network development alongside digital infrastructure spending. The region dedicates its resources to improving mobile connectivity for urban and industrial zones because this development supports IoT functions and autonomous vehicles and smart city applications. The deployment of 5G core networks as a leader exists primarily in Germany, together with the UK and France. The focus on sustainable development and green technologies within Europe plays an essential role in accelerating the adoption of 5G network technology. Member states of the EU are benefitting from the Digital Compass initiative, which drives forward 5G infrastructure development.

• Asia

Asia drives market growth through rapid deployment

The 5G core network market in Asia is essential because several countries, including China, Japan, and South Korea, perform rapid 5G core network installations. High demand for digital transformation as well as smart city projects drives these nations to become global leaders in 5G infrastructure deployment. Telecom giants actively invest heavily in building their 5G core network infrastructure in this region. Asia’s large industrial base, along with its manufacturing capabilities, takes advantage of the 5G capabilities, which offer low latency and high capacity. The market expands quickly because Southeast Asian emerging economies start implementing 5G technology.

KEY INDUSTRY PLAYERS

Industry innovation and partnerships drive market growth

The 5G Core Network Market experiences considerable influence from main industry stakeholders who are responsible for advancing technological developments and market innovation. Industry leaders Ericsson, together with Nokia and Huawei, lead the development of cloud-native virtualized network solutions, which provide faster deployment options and scalable infrastructure to their customers. These industry leaders work to develop advanced network slicing systems and edge computing solutions and security capabilities, which provide better performance together with improved service customization. The global adoption of 5G core networks advances because of strategic partnerships together with research alliances and continuous exploration works.

• Qualcomm (U.S.): Supported 150 telecom operators worldwide in 2024 with 5G modem and core network solutions to improve mobile broadband performance.

• Intel (U.S.): Provided over 100 cloud-native core network deployments in 2024, optimizing data center efficiency and reducing latency for enterprise applications.

List Of Top 5G Core Network Companies

• Qualcomm (U.S.)
• Intel (U.S.)
• Avago (U.S.)
• Skyworks (U.S.)
• Ericsson (Sweden)
• Samsung (South Korea)
• NEC (Japan)
• Mediatek (China)

KEY INDUSTRY DEVELOPMENT

February, 2025: Nokia announced a multi-year expansion agreement with AT&T. This partnership aims to enhance AT&T's voice carriage and 5G network automation in the United States. Through the agreement, Nokia delivers cloud-based voice core applications together with network automation software to AT&T, where they integrate AI and machine learning technology. The agreement shows how Nokia maintains its established business relationship with AT&T as it expands its U.S. telecom market operations. Nokia did not release the financial details of their agreement. The partnership demonstrates continuous growth and financial investments taking place in the 5G Core Network domain.

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.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.