5G Core Network Trends and Forecast
The future of the global 5G core network market looks promising with opportunities in the telecom operator and enterprise markets. The global 5G core network market is expected to grow with a CAGR of 21.4% from 2024 to 2030. The major drivers for this market are the rising adoption of IoT & connected devices and the growing demand for high-speed data services.
• Lucintel forecasts that, within the application category, smart energy is expected to witness the highest growth over the forecast period.
• Within this end-use category, the telecom operator is expected to witness a higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the 5G Core Network Market
The 5G Core Network market is undergoing significant transformation, driven by a cluster of emerging trends that can change the architecture of the network, application development, and service delivery in a phased manner. These trends are closely linked to shifts in technology, consumer behavior, business requirements, and new opportunities for innovation.
• Network Slicing: This feature allows multiple slices to be created on the same physical 5G network based on specific needs, such as IoT or high-speed mobile broadband. This flexibility makes the operation of resources much more efficient, enabling customized services, and hence improving user experiences and optimizing performance across various applications.
• Edge Computing: Edge computing is gaining prominence as it brings computation and data storage closer to the end-user, resulting in lower latency and quicker response times. This trend is crucial for real-time processing applications, such as those in autonomous vehicles and smart cities, as it enhances the performance and reliability of such services.
• AI and Automation: AI and automation are being integrated into 5G Core Networks to streamline network management and operations. Predictive maintenance and automated network optimization are made possible through AI analytics. This not only reduces operational costs but also improves service quality, leading to more efficient handling of complex networks.
• Private Networks: The demand for private 5G networks has been increasing, especially in manufacturing and logistics industries. Compared to public networks, private 5G networks offer better security, reliability, and control, tailored to specific organizational needs. These private networks present business opportunities to install advanced applications and take advantage of 5G capabilities in controlled environments.
• Open RAN: Open RAN is reshaping the 5G ecosystem by promoting interoperability and reducing dependency on single vendors. This fosters innovation and competition within the network infrastructure market and encourages operators to deploy more flexible, cost-efficient solutions.
These emerging trends are driving significant changes in the 5G Core Network market, enhancing network capabilities, and creating new opportunities for service differentiation. They reflect a broader shift toward more flexible, efficient, and customized network solutions that align with evolving user and business demands.
Recent Developments in the 5G Core Network Market
Recent trends in the 5G Core Network market indicate significant technological development, regulatory support, and a surge in market dynamics. This is leading to the introduction of new network designs, deployment strategies, and management practices, with varying impacts on sector growth and innovation.
• Deployment of Standalone (SA) 5G Networks: One of the most critical developments is the transition to standalone 5G networks, which no longer rely on 4G infrastructure. SA 5G networks offer lower latency, higher speeds, and better network efficiency compared to NSA (Non-Standalone) networks. This transition is crucial for unlocking the full potential of 5G services and applications.
• Advancements in Network Function Virtualization (NFV): NFV enhances the flexibility and scalability of 5G networks by virtualizing network functions and enabling their execution over standard hardware. This development allows for more dynamic management, economies of scale, and faster rollout of new services, meeting the growing demand for flexible network solutions.
• Increased Emphasis on Security: As 5G networks become more widespread, there is a stronger focus on implementing stringent security measures. Advanced security protocols and frameworks are being developed to address new vulnerabilities and potential threats. This emphasis on security is critical to gaining public trust in using 5G networks and ensuring the integrity of data handling.
• Expansion of Edge Computing Solutions: The integration of edge computing with 5G Core Networks is expanding, bringing computation closer to data sources. This enables faster speeds, lower latency, and supports a broad range of applications, from smart cities to industrial automation.
• Collaborations and Partnerships: Telecom operators and technology providers are forming strategic partnerships to advance 5G Core Network capabilities. These collaborations drive innovation, foster expertise sharing, and accelerate the deployment of new technologies, playing a crucial role in expanding the global reach and effectiveness of 5G networks.
These developments are profoundly influencing the 5G Core Network market by enhancing network features, improving security, and driving innovation. They reflect the continuous evolution of technology and its application across various sectors, shaping the future of connectivity.
Strategic Growth Opportunities for 5G Core Network Market
The 5G core network market offers various strategic growth opportunities across key applications, reflecting the diverse ways in which 5G is being deployed to drive innovation, enhance services, and create new sources of revenue.
• Smart Cities: The promise of smart cities presents significant growth opportunities in 5G Core Networks. High speeds and ultra-low latency create a strong foundation for supporting smart infrastructure, such as connected traffic systems and energy management. This leads to increased efficiency, reduced costs, and improved quality of life for urban residents.
• Industrial IoT (IIoT): IIoT is leveraging 5G to transform the manufacturing and logistics sectors. By implementing 5G, real-time monitoring, predictive maintenance, and automation become possible, enhancing operational efficiency and reducing downtime. Industries that are ready to modernize and improve operations stand to gain the most from this technology.
• Autonomous Vehicles: 5G Core Networks play a critical role in the development and deployment of autonomous vehicles. With its low latency and high reliability, 5G supports real-time communication and data processing, which are essential for safe and efficient autonomous driving. This presents significant prospects for transforming transportation and mobility.
• Healthcare: The healthcare sector is closely monitoring the potential applications of 5G to enhance telemedicine, remote surgery, and patient monitoring. The high bandwidth and low latency of 5G enable real-time data transmission, improving healthcare services and expanding access to medical technology.
• Enhanced Mobile Broadband (EMBB): This is a key 5G growth area, aimed at providing higher speeds, increased connectivity, and new applications for consumers and businesses. The rise of virtual reality, augmented reality, and high-definition video streaming is driving unprecedented demand for high-quality digital experiences.
These growth opportunities showcase the transformative potential of 5G core networks across various applications. Businesses and industries can innovate, improve services, and unlock new revenue streams, positioning 5G as the future of connectivity.
5G Core Network Market Driver and Challenges
The 5G core network market is characterized by both drivers and challenges related to technological development, economic considerations, and regulatory trends. These factors are crucial in determining the speed and direction of market growth and innovation.
Drivers of the 5G Core Network Market:
• Technological Advancements: Network slicing and NFV are primary drivers of 5G Core Network demand. These advancements enable more efficient network management, reduce costs, and support the development of new services, fostering overall growth in the 5G market.
• High-Speed Connectivity: The demand for high-speed and reliable internet services is a major driver. Both consumers and businesses require faster and always-on connectivity, and 5G Core Networks provide the infrastructure needed to meet these demands, as well as support emerging applications.
• Government Support and Investments: Government policies and investments in 5G infrastructure play a pivotal role in market growth. Regulatory support, spectrum allocations, and funding initiatives create an environment conducive to the rapid adoption of 5G networks and innovations across various sectors.
• Expansion of IoT Applications: The proliferation of IoT devices is one of the fastest-growing trends, creating a strong need for 5G Core Networks. Low latency and high capacity are essential for meeting the connectivity demands of IoT applications, such as smart cities and industrial automation.
• Competitive Pressure: Competition among telecom operators is driving investment in 5G Core Networks. Operators are investing in advanced technologies and infrastructure to stay ahead of competitors, fueling growth and development in the 5G market.
Challenges in the 5G Core Network Market:
• High Deployment Costs: The cost of deploying 5G Core Networks is high due to infrastructure, spectrum licenses, and technology expenses. These costs may deter some operators from fully deploying 5G, slowing down the market’s growth.
• Regulatory and Security Concerns: Regulatory and security concerns are significant barriers to the 5G market. Ensuring compliance with data protection regulations and addressing cybersecurity threats are critical challenges that need to be overcome.
• Infrastructure and Coverage Gaps: Gaps in infrastructure, particularly in rural or underserved areas, are another challenge. Uneven deployment of 5G infrastructure could slow the overall accessibility and functionality of 5G networks.
List of 5G Core Network Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies 5G core network companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the 5G core network companies profiled in this report include-
• Samsung Electronics
• Reliance Industries
• Dell Technologies
• Huawei Technologies
• Intel Corporation
5G Core Network by Segment
The study includes a forecast for the global 5G core network market by component, deployment model, application, end use, and region.
5G Core Network Market by Component [Analysis by Value from 2018 to 2030]:
• Solutions
• Services
5G Core Network Market by Deployment Model [Analysis by Value from 2018 to 2030]:
• Cloud
• On-Premises
5G Core Network Market by Application [Analysis by Value from 2018 to 2030]:
• Smart Energy
• Industrial Manufacturing
• Smart Medical
• Media Entertainment
• Smart Transportation
• Others
5G Core Network Market by End Use [Analysis by Value from 2018 to 2030]:
• Telecom Operators
• Enterprises
5G Core Network Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the 5G Core Network Market
The 5G core network market is evolving rapidly, driven by technological innovations, increased rollouts, and strategic investments. The shift to 5G promises enhanced connectivity, faster speeds, and greater network efficiency, impacting various global markets differently. Countries like the United States, China, Germany, India, and Japan are advancing significantly with innovations and expansions, each reflecting regional priorities and market conditions.
• United States: In the U.S., 5G Core Network deployment is advancing rapidly, led by major carriers like Verizon, AT&T, and T-Mobile. The FCC is enabling this shift through spectrum allocations and policies supporting network slicing and edge computing, essential for optimizing the 5G experience.
• China: China is a frontrunner in 5G rollout, with leading telecom companies like Huawei and ZTE making significant investments. The country has already fully deployed 5G Core Networks and is focusing on integrating 5G with industrial IoT and smart cities. The Chinese government supports this effort with favorable regulations and financial backing.
• Germany: Germany is adopting 5G Core Networks quickly, with Deutsche Telekom and Vodafone leading the charge. The country is focusing on industrial applications, particularly in manufacturing and logistics. While regulations emphasize cybersecurity and data protection, GermanyÄX%$%Xs "5G Strategy" aims to position the country as a leader in 5G innovation.
• India: In India, Reliance Jio, Bharti Airtel, and Vodafone Idea are expanding their 5G Core Networks. The Indian government is aggressively auctioning spectrum and promoting policies to speed up deployment. Challenges include addressing infrastructure gaps and regulatory hurdles, but the growing economy and digital services create significant opportunities for 5G growth.
• Japan: In Japan, major players like NTT Docomo, SoftBank, and KDDI are driving the development of the countryÄX%$%Xs 5G Core Network. The focus is on mobile broadband experiences, robotics, and autonomous vehicles. Japan is also collaborating with multinational companies to further advance 5G innovation, integrating AI and edge computing into its technical foundation.
Features of the Global 5G Core Network Market
Market Size Estimates: 5G core network market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: 5G core network market size by various segments, such as by component, deployment model, application, end use, and region in terms of value ($B).
Regional Analysis: 5G core network market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different components, deployment models, applications, end uses, and regions for the 5G core network market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5G core network market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for 5G core network market?
Answer: The global 5G core network market is expected to grow with a CAGR of 21.4% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the 5G core network market?
Answer: The major drivers for this market are the rising adoption of IoT & connected devices and the growing demand for high-speed data services.
Q3. What are the major segments for 5G core network market?
Answer: The future of the 5G core network market looks promising with opportunities in the telecom operator and enterprise markets.
Q4. Who are the key 5G core network market companies?
Answer: Some of the key 5G core network companies are as follows:
• Samsung Electronics
• Reliance Industries
• Dell Technologies
• Huawei Technologies
• Intel Corporation
Q5. Which 5G core network market segment will be the largest in future?
Answer: Lucintel forecasts that smart energy is expected to witness the highest growth over the forecast period.
Q6. In 5G core network market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the 5G core network market by component (solutions and services), deployment model (cloud and on-premises), application (smart energy, industrial manufacturing, smart medical, media entertainment, smart transportation, and others), end use (telecom operators and enterprises), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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