Core Network Software Market Report 2026

The core network software market size has grown strongly in recent years. It will grow from $20.77 billion in 2025 to $22.58 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to legacy circuit-switched infrastructure dominance, manual network provisioning and siloed operations, limited virtualization adoption, monolithic telecom core architectures, basic rule based routing and policy systems.

The core network software market size is expected to see strong growth in the next few years. It will grow to $31.82 billion by 2030 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to increased network function virtualization adoption, demand for 5g and beyond scalability, autonomous network orchestration expansion, edge distributed architecture growth, zero trust security framework integration in telecom core. Major trends in the forecast period include network function virtualization and software defined core adoption, legacy core network modernization and ip transition, telecom api standardization and open network interoperability, real time traffic engineering and qos optimization, enhanced subscriber identity and fraud prevention systems.

The exponential growth in data traffic and mobile subscribers is expected to propel the growth of the core network software market going forward. Data traffic and mobile subscribers refer to the increase in the volume of data consumed over mobile networks and the rising number of active mobile users connected to those networks over time. The exponential growth in data traffic and mobile subscribers is primarily driven by the rapid expansion of high-speed mobile broadband networks, which enable widespread adoption of data-intensive applications such as video streaming, cloud services, and real-time digital platforms. Core network software efficiently routes data traffic for seamless performance while authenticating and managing mobile subscribers to enable secure access, billing, and uninterrupted communication services. For instance, in January 2024, according to the Office of Communications, a UK-based communications regulator, average monthly mobile data consumption per user reached 9.6 GB in Q2 2023, reflecting a 19% year-on-year increase, while total mobile data traffic grew at a faster rate of 27% over the same period, with the variance primarily attributed to an expansion in the overall base of mobile data users. Therefore, exponential growth in data traffic and mobile subscribers is driving the growth of the core network software market.

Key companies operating in the core network software market are focusing on developing technological advancements in cloud-native core architectures, such as cloud-native packet core modernization platforms, to enhance network scalability, accelerate service deployment, reduce operational complexity, and support evolving 5G and future connectivity demands. Cloud-native core architecture advancement refers to the transition from traditional hardware-based telecom core systems to software-defined, containerized, and cloud-optimized network functions that enable automated deployment, elastic scaling, continuous upgrades, and efficient management of 4G and 5G core networks. For example, in December 2024, Ericsson, a Sweden-based telecommunications infrastructure company, introduced the Ericsson Compact Packet Core. The introduced solution enables simplified modernization of legacy packet core networks into a cloud-native 4G/5G core architecture with pre-integrated configurations and automation-driven deployment. It delivers significant operational efficiency by reducing configuration complexity by up to 80% and enabling automated lifecycle management with seamless software upgrades, and it provides a future-ready, scalable, and energy-efficient core network platform supporting 5G standalone, non-standalone, and 4G evolution with optimized performance and reduced infrastructure footprint.

In August 2023, Cisco Systems, a US-based technology company focused on networking hardware and enterprise software, completed the acquisition of Working Group Two (WG2) for an undisclosed sum. Through this acquisition, Cisco intends to enhance its core network software portfolio by advancing its cloud-native mobile core capabilities, enabling programmable and software-defined 4G/5G core network services, and accelerating its Mobility Services Platform to assist telecom operators in delivering scalable, API-driven, and fully virtualized next-generation network infrastructure. Working Group Two (WG2) is a Norway-based cloud-native mobile core network software company offering software-defined 4G/5G core network and Network-as-a-Service (NaaS) platforms for telecom operators and MVNOs.

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.

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. The countries covered in the core network software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The core network software market consists of revenues earned by entities by providing services such as network design and planning, software deployment, system integration, configuration management, performance monitoring, maintenance and support, and consulting related to IP network operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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