5G Core market to hit $29.09 billion by 2030
The global 5G core market size is expected to reach USD 29.09 billion by 2030, growing at a CAGR of 30.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The growth can be attributed to the rising demand for the deployment of 5G technologies across the globe. The growing demand for 5G deployment is driven by high speed, large coverage, higher bandwidth, and higher reduction in network energy usage. These benefits are driving 5G deployment, thereby driving the market’s growth.
Key Industry Insights & Findings from the report:
- The software segment dominated the market in 2022 and is expected to witness significant growth over the forecast period. 5G core software is designed to be compatible with the latest generation of mobile networks, which can provide significantly faster speed. Moreover, it provides improved network efficiency, which can help network operators improve their overall network performance and reduce operating costs, thereby driving the segment’s growth.
- The cloud segment deployment dominated the market in 2022 and is expected to witness significant growth over the forecast period. 5G core on the cloud provides a highly scalable infrastructure that can easily accommodate the growing demand for mobile services. Moreover, 5G core cloud deployment provides a highly flexible environment that allows rapid deployment of new services and applications. Scalability, flexibility, cost-effectiveness, automation, and security are some of the factors that are contributing to the cloud deployment segment’s growth.
- The user plane function (UPF) segment dominated the market in 2022. The UPF in the 5G core plays a vital role in providing data services to the end-users. The growing use of the 5G network for AR/VR and high-quality video streaming is anticipated to fuel the segment growth through the projection period.
- Cloud-native architecture is expected to witness significant growth over the forecast period. Some key benefits of cloud-native architecture in 5G core include improved scalability, faster time-to-market, better resource utilization, and improved reliability and resiliency. These benefits offered by cloud-native architecture are expected to drive the segment’s growth.
- The enterprise segment is expected to witness significant growth over the forecast period. The growth can be attributed to growing demand from enterprises for 5G core due to its benefits, such as high-speed connectivity, low latency, edge computing, and enhanced security. Enterprises are adopting 5G core networks to support their digital transformation efforts and gain a competitive edge, propelling the segment’s growth.
- North America is expected to witness significant growth over the forecast period. The region’s key market players have already deployed a 5G core network to support their growing 5G services. Additionally, major network operators are partnering with 5G core technology vendors to develop and deploy 5G use cases such as augmented reality, IoT applications, and virtual reality, which is expected to propel the market’s growth.
5G Core Market Growth & Trends
5G core contributes to various 5G functions within mobile networks that make communication possible. Some of these functions include authentication, authorization, and data and policy management, among others. 5G core is designed to guarantee high speed, power efficiency, and flexibility, thus driving its adoption. Additionally, the 5G core can be easily deployed on the cloud to provide 5G services and is highly scalable, which bodes well for the market’s growth.
Key players are leveraging improved speeds and lower latency by launching new solutions through collaboration and partnerships. For instance, in January 2022, Telenor ASA announced a collaboration with Amazon Web Services, Inc. to expand its 5G core revolution. This collaboration is aimed to deliver new 5G and edge services to enterprise customers worldwide.
The COVID-19 pandemic resulted in significant delays in terms of 5G deployments across the globe. As a result of a reduction in network infrastructure spending, and a limited workforce, the 5G rollouts were delayed in most countries. Moreover, a significant shortage of components due to supply chain disruptions further slowed down the deployment of 5G globally. The delay in the deployment of 5G adversely affected the demand for the 5G core. However, as the world recovers from the pandemic, the deployment of 5G will be accelerated, driving the growth of the 5G core.
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