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Core Network Software Market Size Outlook: How Quickly Will Revenue Expand Through 2030?
The core network software market has experienced significant growth in recent years. It is projected to expand from $20.77 billion in 2025 to $22.58 billion in 2026, achieving a compound annual growth rate (CAGR) of 8.7%. This historic growth can be attributed to several factors including the prevalence of legacy circuit-switched infrastructure, manual network provisioning and siloed operations, limited virtualization adoption, monolithic telecom core architectures, and basic rule-based routing and policy systems.
The core network software market size is projected to experience substantial growth in the upcoming years. It is anticipated to expand to $31.82 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 9.0%. This forecasted growth is driven by increased network function virtualization adoption, the growing demand for 5G and beyond scalability, the expansion of autonomous network orchestration, the development of edge distributed architectures, and the integration of zero-trust security frameworks within the telecom core. Significant trends during this period include the uptake of network function virtualization and software-defined core, the modernization of legacy core networks alongside IP transition, the standardization of telecom APIs and open network interoperability, real-time traffic engineering and qos optimization, and advancements in subscriber identity and fraud prevention systems.
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Core Network Software Market Growth Drivers: What’s Behind The Acceleration?
The anticipated expansion of the core network software market is fueled by the rapid surge in both data traffic and the number of mobile subscribers. This refers to the increasing volume of data consumed across mobile networks and the growing count of active mobile users utilizing these networks over time. This significant growth is primarily driven by the swift deployment of high-speed mobile broadband networks, which facilitates the widespread use of data-heavy applications such as video streaming, cloud services, and real-time digital platforms. Core network software plays a crucial role by efficiently routing data traffic to ensure seamless performance, concurrently authenticating and managing mobile subscribers for secure access, billing, and continuous communication services. Illustratively, data from January 2024, provided by the Office of Communications, a UK-based communications regulator, indicates that average monthly mobile data consumption per user reached 9.6 GB in Q2 2023. This marks a 19% year-on-year increase, with total mobile data traffic accelerating even more rapidly at 27% over the same period, largely due to an expansion in the overall base of mobile data users. Consequently, the exponential rise in data traffic and mobile subscribers is a key driver for the growth of the core network software market.
Core Network Software Market Segment Performance And Emerging Opportunities
The core network software market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment Mode: On-Premises, Cloud-Based
3) By Network Type: Mobile Core Networks, Fixed Core Networks
4) By Application: Voice Over Internet Protocol Services, Data Communication Services, Video And Multimedia Services, Internet Of Things Connectivity, Mission Critical Communications
5) By End User: Telecom Operators, Internet Service Providers, Enterprises
Subsegments:
1) By Software: Network Function Virtualization Software, Policy And Charging Rules Function Software, Subscriber Data Management Software, Network Orchestration Software, Network Management Software, Routing And Switching Software
2) By Services: Professional Services, Managed Services, Integration Services, Consulting Services, Support And Maintenance Services
Core Network Software Market Trends: What’s Defining The Industry’s Next Phase?
Leading companies in the core network software market are actively pursuing technological improvements in cloud-native core architectures, including cloud-native packet core modernization platforms, to boost network scalability, speed up service deployment, decrease operational complexity, and meet the demands of evolving 5G and future connectivity. This progression in cloud-native core architecture represents a shift from traditional hardware-based telecom core systems to software-defined, containerized, and cloud-optimized network functions that support automated deployment, flexible scaling, continuous updates, and effective management of both 4G and 5G core networks. As an illustration, in December 2024, Ericsson, a telecommunications infrastructure company based in Sweden, unveiled the Ericsson Compact Packet Core. This newly introduced solution simplifies the modernization of older packet core networks into a cloud-native 4G/5G core architecture, featuring pre-integrated configurations and deployment driven by automation. It brings considerable operational efficiency by lowering configuration complexity by up to 80% and enabling automated lifecycle management with smooth software upgrades. Furthermore, it offers a future-proof, scalable, and energy-efficient core network platform that supports 5G standalone, non-standalone, and 4G evolution, delivering optimized performance and a reduced infrastructure footprint.
Core Network Software Market Competitive Landscape: Who Leads The Industry?
Major companies operating in the core network software market are Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Cisco Systems Incorporated, Oracle Corporation, Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, ZTE Corporation, Amdocs Limited, Ciena Corporation, NEC Corporation, Parallel Wireless Inc., Alianza Inc., Celona Inc., Druid Software Limited, IPLOOK Technologies Co. Ltd., Lemko Corporation, BroadForward B.V., Cumucore Oy, Monogoto Ltd.
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Core Network Software Market Geographic Landscape: Which Region Leads Industry Growth?
Asia-Pacific was the largest region in the core network software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the core network software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
