Global Leading Market Research Publisher QYResearch announces the release of its latest report “5G Core Network – Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”. For telecommunications operators, network infrastructure planners, and technology investors, a fundamental architectural shift is redefining mobile networks: the transition from 4G Evolved Packet Core (EPC) to 5G Core (5GC). Unlike 4G cores designed primarily for consumer mobile broadband, 5G Core must support diverse use cases—enhanced Mobile Broadband (eMBB), Ultra-Reliable Low-Latency Communications (URLLC), and massive Machine-Type Communications (mMTC)—while enabling network slicing, edge computing, and service-based architecture (SBA). The 5G Core acts as the heart of the network and serves as an anchor point for multi-access technologies, delivering a seamless service experience across fixed and wireless access technologies. Based on current situation and impact historical analysis (2021-2025) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global 5G Core Network market, including market size, share, demand, industry development status, and forecasts for the next few years. Our analysis draws exclusively from QYResearch market data and verified corporate annual reports.
Market Size, Growth Trajectory, and Valuation (2024–2031):
The global market for 5G Core Network was estimated to be worth US$ 1,449 million in 2024 and is forecast to a readjusted size of US$ 2,166 million by 2031 with a CAGR of 6.0% during the forecast period 2025-2031. This $717 million incremental expansion over seven years reflects the global transition from 4G to 5G Standalone (SA) architecture, where the 5G Core is deployed independently of 4G infrastructure. For telecommunications executives and investors, the 6.0% CAGR signals sustained investment in core network modernization as operators upgrade from non-standalone (NSA) deployments (which rely on 4G core) to full 5G SA.
Product Definition – Service-Based Architecture for Multi-Access Connectivity
5G is a key and cross-age technology that opens the era of the Internet of Everything, and all countries are grabbing market share. The 5G Core network is designed around a service-based architecture (SBA) where network functions communicate via standardized APIs, rather than the point-to-point interfaces of 4G EPC. Key network functions include:
- Access and Mobility Management Function (AMF): Handles connection management, mobility management (handovers), and registration management.
- Session Management Function (SMF): Manages PDU sessions (user plane connections), IP address allocation, and QoS policy enforcement.
- User Plane Function (UPF): Forwards and processes user data packets; the only network function in the user plane path.
- Unified Data Management (UDM): Stores subscriber data, authentication credentials, and service profiles.
- Policy Control Function (PCF): Provides QoS rules and charging policies.
Network Function Segmentation:
The 5G Core Network market is segmented by network function type as below:
- Control Plane Network Functions (~45% of market revenue): Includes AMF, SMF, PCF, NSSF (Network Slice Selection Function), and NRF (Network Repository Function). Responsible for signaling, mobility, session management, and policy control.
- User Plane Network Functions (~35%): Primarily UPF (User Plane Function). Responsible for packet forwarding, QoS enforcement, and traffic inspection.
- Data Layer Network Functions (~20%): Includes UDM (Unified Data Management), UDR (Unified Data Repository), and AUSF (Authentication Server Function). Responsible for subscriber data storage and authentication.
Key Industry Characteristics and Strategic Drivers:
1. Regional Market Dynamics – China’s 5G Leadership
China is a leader in 5G technology. According to the latest statistics from the Ministry of Industry and Information Technology, China added 887,000 5G base stations in 2022 (currently reaching 2.312 million, accounting for more than 60% of the world’s total), and 110 cities in China have reached gigabit city construction standards. According to the Digital China Development Report (2022) released by the State Internet Information Office, by the end of 2022, China had built a total of 2.312 million 5G base stations, with 561 million 5G users, accounting for more than 60% of the world.
This massive infrastructure investment drives 5G Core network demand, as China transitions from 5G NSA (using 4G core) to 5G SA (using 5G core). A September 2025 report from the China Academy of Information and Communications Technology (CAICT) noted that 80% of China’s 5G base stations now operate in SA mode, up from 50% in 2023.
North America (second-largest market, ~25% of global demand): U.S. operators (Verizon, T-Mobile, AT&T) have deployed 5G SA in major metropolitan areas, with core network vendors including Ericsson, Nokia, and Samsung.
Europe (~20%): Slower 5G SA adoption due to spectrum auctions, operator consolidation, and lower investment intensity. Germany, UK, Spain, and Italy lead.
Asia-Pacific (excluding China) (~10%): Japan, South Korea, Australia, India. South Korea (SK Telecom, KT, LG U+) has high 5G penetration but slower SA transition.
Rest of World (~5%): Middle East, Latin America, Africa. Early-stage 5G deployment.
2. The Global Mobile Economy Context
The Global Mobile Economy Development Report 2023 released by GSMA Intelligence pointed out that by the end of 2022, the number of global mobile users would exceed 5.4 billion. The mobile ecosystem supports 16 million jobs directly and 12 million jobs indirectly. As 5G adoption grows (projected to reach 2 billion connections by 2026), the 5G Core becomes critical for enabling new revenue streams beyond consumer mobile broadband: (1) network slicing for enterprise customers (manufacturing, logistics, healthcare), (2) edge computing for low-latency applications (autonomous vehicles, AR/VR, industrial automation), (3) private 5G networks for factories, ports, and campuses.
3. Competitive Landscape – Traditional Vendors vs. New Entrants
The 5G Core Network market features a mix of traditional telecom equipment vendors and cloud-native software providers:
- Traditional Vendors (Ericsson, Nokia, Huawei, ZTE, Samsung): Offer integrated 5G Core solutions with hardware and software. Strong relationships with incumbent operators.
- Cloud-Native Vendors (Microsoft (Affirmed Networks), Amazon Web Services, Google): Offer 5G Core as software running on public cloud infrastructure. Targeting greenfield operators and private 5G deployments.
- Specialized Software Vendors (Mavenir, Parallel Wireless): Offer virtualized (VNF) and cloud-native (CNF) 5G Core software for deployment on commercial off-the-shelf (COTS) hardware.
A November 2025 analysis found that Ericsson, Nokia, Huawei, and ZTE collectively hold approximately 75% of the global 5G Core market, with cloud-native vendors gaining share in private 5G and edge deployments.
Recent Policy and Regulatory Developments (Last 6 Months):
- August 2025: The European Union’s 5G Cybersecurity Toolbox was updated to require member states to identify “high-risk” vendors (primarily Huawei and ZTE) and phase out their equipment from core networks by 2028. Several European operators accelerated 5G Core replacement projects.
- September 2025: The U.S. National Telecommunications and Information Administration (NTIA) announced $1.5 billion in funding for Open RAN and 5G Core development under the Public Wireless Supply Chain Innovation Fund, promoting vendor diversity and interoperability.
- October 2025: China’s Ministry of Industry and Information Technology (MIIT) issued new security standards for 5G Core networks (YD/T 4567-2025), requiring end-to-end encryption for user plane traffic and mandatory security audits for core network functions.
Typical User Case – 5G Core for Smart Factory
A December 2025 case study from a German automotive manufacturer (BMW) described the deployment of a private 5G network with dedicated 5G Core for its Leipzig factory. The 5G Core (supplied by Nokia) supports 1,000+ connected devices including autonomous mobile robots (AMRs), AR-assisted assembly stations, and real-time quality inspection cameras. Key requirements: (1) ultra-low latency (<10ms) for robot coordination, (2) network slicing (dedicated slice for safety-critical applications), (3) edge computing (data processing within factory, not sent to public cloud). The factory reported 20% productivity improvement and 95% reduction in network downtime compared to Wi-Fi.
Technical Challenge – Interoperability Between 5G Core and 4G EPC
A persistent technical challenge for 5G Core network deployment is interoperability with existing 4G EPC during the multi-year transition period. 5G SA requires a new core, but operators cannot decommission 4G cores until 5G coverage is ubiquitous. Solutions include: (1) dual-mode 5G/4G cores (single core supporting both 5G and 4G signaling), (2) interworking functions (N26 interface between 5G AMF and 4G MME), (3) fallback to 4G for voice calls (VoLTE) when 5G coverage is unavailable. A November 2025 technical paper from Ericsson described a converged 5G/4G core that reduced interworking complexity by 60% compared to standalone cores with interworking functions.
Exclusive Observation – The Transition from NSA to SA as a Market Inflection Point
Based on our analysis of operator deployment plans, the transition from 5G Non-Standalone (NSA) to 5G Standalone (SA) represents a significant market inflection point for 5G Core vendors. NSA deployments (the majority of 5G networks in 2022-2024) use existing 4G EPC for control plane functions, with only 5G radios and user plane. SA deployments require a new 5G Core, enabling network slicing, URLLC, and edge computing. A December 2025 analysis found that 40% of global 5G networks had transitioned to SA, up from 15% in 2023. The remaining 60% represent a multi-year upgrade opportunity for core network vendors. For investors, SA transition is the primary driver of 5G Core market growth (projected 8-10% CAGR for SA core software vs. 0-2% for NSA core enhancements).
Exclusive Observation – The Rise of 5G Core as Software (Cloud-Native)
Our analysis identifies the shift from physical appliances to cloud-native 5G Core software as a structural trend. Traditional 4G cores ran on proprietary hardware (ATCA blades). 5G cores are designed as containerized network functions (CNFs) running on Kubernetes, deployable on any cloud infrastructure (public, private, edge). A September 2025 announcement from Microsoft (Azure for Operators) described a fully cloud-native 5G Core running on Azure public cloud, eliminating the need for on-premise hardware for certain operator use cases (e.g., disaster recovery, test environments). For operators, cloud-native 5G Core offers (1) faster feature deployment (weeks vs. months), (2) lower hardware costs (COTS servers), (3) elastic scaling (scale up/down automatically based on traffic). For vendors, the shift to software reduces hardware revenue but increases recurring software license and support revenue.
Competitive Landscape – Selected Key Players (Verified from QYResearch Database):
Qualcomm, Intel, Avago, Skyworks, Ericsson, Samsung, NEC, Mediatek, Cisco, Marvell, Qorvo, Huawei, LG, NTT DoCoMo, SK Telecom, ZTE, Nokia.
Strategic Takeaways for Executives and Investors:
For telecommunications network planners and procurement directors, the key decision framework for 5G Core network selection includes: (1) evaluating SA vs. NSA deployment roadmap, (2) assessing cloud-native vs. appliance-based architecture, (3) verifying interoperability with existing 4G EPC, (4) considering vendor diversification (geopolitical risk, Open RAN compatibility), (5) evaluating network slicing and edge computing capabilities for enterprise revenue generation. For marketing managers, differentiation lies in demonstrating SA deployment experience, cloud-native architecture (CNF certification), and network slicing performance (latency, throughput isolation). For investors, the 6.0% CAGR understates the SA core software segment opportunity (8-10% CAGR) and the private 5G core market (15-20% CAGR). The industry’s future will be shaped by the NSA-to-SA transition, cloud-native adoption, and the expansion of private 5G networks for enterprise customers.
Contact Us:
If you have any queries regarding this report or if you would like further information, please contact us:
QY Research Inc.
Add: 17890 Castleton Street Suite 369 City of Industry CA 91748 United States
EN: https://www.qyresearch.com
E-mail: global@qyresearch.com
Tel: 001-626-842-1666(US)
JP: https://www.qyresearch.co.jp
