Mobile Core Network Market Size, Share, Trends, Growth and Forecast 2032

Mobile Core Network Industry Prospective:

The global mobile core network market size was worth around USD 31.86 billion in 2023 and is predicted to grow to around USD 59.33 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.30% between 2024 and 2032.

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Mobile Core Network Market: Overview

A mobile core network is the backbone of mobile networking operations. The core network is responsible for connecting mobile phones with external networks, thus allowing common mobile phone applications such as making calls and sending or receiving texts. According to market research, mobile core networks are essential for allowing subscribers to access services that they are entitled to.

Some of the common and critical functions performed by mobile core networks include server authentication, location detection, and managing profile information. Mobile core networks are highly complex and are created using several components. The overall architecture of a mobile core network, also known as a mobile core, can be different depending on the network technology. The core solution is critical for managing packet-switching in 5G, 4G, 3G, and 2G networks.

Furthermore, it is also essential for circuit and packet-switching in 2G and 3G networks. The demand for more powerful mobile core networks is expected to grow during the forecast period due to the increasing number of mobile phone users worldwide.

In addition, growing advancements in mobile core network technology, such as cloud-based solutions, will further propel the industry’s expansion trends in the coming years. The high cost of initial investment, along with limited access to skilled professionals, may impact the final revenue in the mobile core network industry.

Key Insights:

• As per the analysis shared by our research analyst, the global mobile core network market is estimated to grow annually at a CAGR of around 7.30% over the forecast period (2024-2032)
• In terms of revenue, the global mobile core network market size was valued at around USD 31.86 billion in 2023 and is projected to reach USD 59.33 billion by 2032.
• The mobile core network market is projected to grow at a significant rate due to the growing adoption of smart devices and Internet of Things (IoT) solutions.
• Based on IMS core, the call session control function segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on 4G/5G subscriber data management, the home subscriber server segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Mobile Core Network Market: Growth Drivers

Growing adoption of smart devices and Internet of Things (IoT) solutions to drive market demand rate

The global mobile core network market is expected to grow due to the growing adoption of smart devices across the globe. In the modern world, smart phones, tablets, wearables, and other intelligent devices have become widely common. According to official estimates, more than 5 billion people in the world population own a smartphone.

Furthermore, the popularity of connected devices such as wearables and smart home appliances has triggered an urgent need to develop a more robust networking infrastructure. The Internet of Things (IoT) trend has penetrated commercial, industrial, and personal applications. IoT-enabled devices are powered using strong networks that are facilitated by mobile core networks. The growing advancements in IoT devices, such as connected household objects, industrial devices, and transportation devices, are expected to contribute to soaring investments in mobile core networks.

For instance, in October 2024, Qualcomm, a leading US-based technology company, announced the launch of a new product portfolio offering highly advanced Industrial Internet of Things (IIoT) applications. The new range of products features industrial-grade chipsets along with on-device Artificial Intelligence (AI) up to 100 tera operations per second. Rising investments in AI-based investments will further escalate demand for powerful mobile core network solutions in the coming years.

Ongoing advancements in mobile core technology to generate extensive revenue in the future

Companies providing mobile core solutions are increasingly investing in providing more advanced solutions that offer extensive end-user applications. The integration of cloud computing technology to allow faster communication, lower latency, and higher flexibility in connectivity is expected to work in tandem to deliver exceptional revenue in the global mobile core network market during the forecast period.

In February 2024, Huawei announced the launch of a 5.5G intelligent core network solution based on data channel-based interaction capabilities and enhanced intelligence.

Mobile Core Network Market: Restraints

High cost of investments and operations to limit the industry’s growth rate

The global mobile core network industry is projected to be restricted due to the high cost of investments associated with the technology. For instance, as per official analysis, the average cost of a 5G non-standalone Evolved Packet Core supporting over 50000 customers can reach up to USD 1 million depending on the final offerings and the technology provider.

In addition, the high operational expenses associated with the technology are equally high, further limiting the industry’s growth rate. The market players are expected to remain cautious due to changing global economic conditions and rapidly evolving technologies.

Mobile Core Network Market: Opportunities

Increased investments in 5G to generate growth opportunities in the future

The global mobile core network market is projected to generate growth opportunities due to the increasing investments in 5G worldwide. The growing demand in the technology world for high-speed internet connectivity has resulted in increased research & development (R&D) in deploying 5G solutions across major countries.

In May 2024, Ericsson, one of the world's leading network providers, announced its new plans for 5G expansion as the demand for 5G networks across the US is growing rapidly. The company held an exclusive event y at the Ericsson USA 5G Smart Factory.

During the event, the company pledged an additional investment of USD 50 million in addition to USD 100 million announced in 2020 toward advancements in 5G networks. In December 2024, the European Commission announced grants worth EUR 128 million for the development of 31 new 5G infrastructure projects in the region.

In November 2024, O2 Telefónica, a dominant player in the telecommunications sector, announced that it had reached a major milestone by reaching one million users of the company’s 5G Cloud Core within 6 months of its launch. The company leveraged the offerings of Amazon Web Services (AWS) cloud infrastructure to implement the highly successful core network.

Mobile Core Network Market: Challenges

Growing number of network-based frauds and invasion of privacy to challenge market expansion

The global mobile core network industry is expected to be challenged by the rising number of network-based frauds worldwide. This has resulted in the launch of new and more stringent policies from regional regulatory bodies aiming to prevent network security threats. Furthermore, the growing invasion of user privacy is an added area of concern for mobile core networks, limiting the market’s growth rate.

Mobile Core Network Market: Report Scope

Mobile Core Network Market: Segmentation

The global mobile core network market is segmented based on IMS core, 4G/5G packet core controller, 4G/5G subscriber data management, and region.

Based on the IMS core, the global market segments are call session control functions, voice application servers, and session border controllers. In 2023, the highest growth was listed in the call session control function since it forms the most critical and central part of mobile core networks. It handles essential protocols such as rich communication services (RCS), VoWiFi (Voice over Wi-Fi), and VoLTE (Voice over LTE). The increasing demand for more proficient call session control functions will drive segmental demand in the future and it is expected to deliver a CAGR of more than 12% in the future.

Based on the 4G/5G packet core controller, the global mobile core network industry is divided into SMF, AMF, PGW-C, SGW-C, and MME.

Based on the 4G/5G subscriber data management, the global market divisions are unified data management and home subscriber server. In 2023, the highest revenue was listed in the home subscriber server segment due to the criticality of the component in building the 4G network. The wide-scale deployment of 4G networks used by over 90% of the world population is driving the segmental revenue. Investments in the 5G network will propel demand for unified data management in the coming years.

Mobile Core Network Market: Regional Analysis

Asia-Pacific is expected to deliver the highest revenue during the forecast period

The global mobile core network market is expected to register the highest demand in Asia-Pacific during the forecast period. Countries such as China, India, and others will lead the regional revenue. Asia-Pacific is home to a large number of end-users with the presence of high population density in China and India. In addition to this, internet consumption across the regional market is growing rapidly with the surging applications of smart devices.

Furthermore, the rapid deployment of new network facilities, including 5G and 4G sites, will further escalate the demand for mobile core networks. According to market research, China will invest nearly USD 16 billion in 5G infrastructure in 2020.

By December 2023, the world’s largest telecom operator in terms of subscribers, China Mobile, ended the year with more than 460 million subscribers, as per official reports. The growing support from regional governments to promote the development of more agile 5G infrastructure will be critical to shaping regional revenue in the coming years.

In December 2024, the Indian telecom ministry announced the waiving of the requirement of bank guarantee for spectrum auctions, which is expected to boost 5G and 4G investments in the country.

Mobile Core Network Market: Competitive Analysis

The global mobile core network market is led by players like:

• NEC Corporation
• Nokia
• Comba Telecom Systems Holdings Ltd.
• Samsung Electronics
• Hewlett Packard Enterprise (HPE)
• Ericsson
• Intel Corporation
• Huawei
• Fujitsu
• Qualcomm
• Cisco Systems Inc.
• Rakuten
• ZTE Corporation
• AT&T Inc.
• Mavenir

The global mobile core network market is segmented as follows:

By IMS Core

• Call Session Control Function
• Voice Application Servers
• Session Border Controllers

By 4G/5G Packet Core Controller

• SMF
• AMF
• PGW-C
• SGW-C
• MME

By 4G/5G Subscriber Data Management

• Unified Data Management
• Home Subscriber Server

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa