What's Happening?
According to Omdia's Core Market Tracker, Communications Service Providers (CSPs) significantly increased their investments in 5G packet core networks by 83% year-over-year in the fourth quarter of 2025. This surge is attributed to the growing momentum
behind 5G Standalone (SA) deployments and a focus on digital transformation and new revenue streams. North America and Europe, the Middle East & Africa (EMEA) were the leading regions in this growth, as CSPs prioritized scalability, cost efficiency, and AI-enabled network differentiation. Globally, 88 operators have launched 5G SA networks, which are creating monetization opportunities through network slicing, ultra-reliable low-latency communications (URLLC), and enterprise-focused services. The top five vendors by core network market share during this period were Huawei, Ericsson, Nokia, ZTE, and Cisco.
Why It's Important?
The significant increase in 5G core spending highlights the rapid evolution and expansion of 5G technology, which is crucial for meeting the growing demand for high-speed, reliable connectivity. This investment is expected to drive innovation and create new business opportunities, particularly in sectors that rely on advanced network capabilities such as autonomous vehicles, smart cities, and industrial automation. The focus on 5G SA networks allows for enhanced network performance and the ability to offer specialized services, which can lead to increased revenue streams for CSPs. Additionally, the involvement of major vendors like Huawei, Ericsson, and Nokia underscores the competitive landscape and the strategic importance of 5G technology in the global telecommunications market.
What's Next?
Omdia anticipates that 5G core investments will continue to experience strong double-digit growth in 2026. This growth will be driven by the need to deliver nationwide services and higher network capacity to meet evolving customer demands. As more operators launch 5G SA networks, the focus will likely shift towards optimizing these networks for efficiency and exploring new applications that leverage the unique capabilities of 5G technology. Stakeholders, including CSPs and technology vendors, are expected to continue investing in research and development to enhance network capabilities and maintain a competitive edge in the market.
