Core network software market seen reaching $31.82B by 2030

The core network software market is projected to grow from $22.58 billion in 2026 to $31.82 billion by 2030, driven by 5G, network virtualization and rising mobile data traffic. Asia-Pacific was the largest regional market in 2025 and is expected to grow the fastest through the forecast period.

Why it matters: - Core network software sits at the center of telecom operations, helping carriers manage routing, switching, policy control, traffic optimization and subscriber management. - The market’s projected growth signals continued investment in the software layer that supports 5G, edge computing and network virtualization. - Rising mobile data use and subscriber growth are increasing the need for scalable network control systems.

What happened: - The Business Research Company projected the core network software market will rise from $20.77 billion in 2025 to $22.58 billion in 2026. - The report forecasts the market will reach $31.82 billion by 2030, implying a 9.0% CAGR over the forecast period. - Asia-Pacific was the largest regional market in 2025 and is expected to be the fastest-growing region through the forecast period. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

The details: - Recent growth was tied to legacy circuit-switched networks, manual provisioning, siloed operations, limited virtualization, monolithic telecom core setups and basic rule-based routing and policy tools. - Future growth is expected to come from broader adoption of network function virtualization, stronger demand for scalable 5G and future network generations, autonomous orchestration, edge distributed architectures and zero trust security frameworks. - The report highlights software-defined core networks, modernization of legacy cores, IP transition strategies, telecom API standardization, open interoperability, real-time traffic engineering, QoS optimization and fraud prevention as key trends. - Core network software helps ensure network reliability, scalability and security while enabling advanced service delivery across telecom infrastructure. - The market is also benefiting from a surge in data traffic and mobile subscribers. - In January 2024, the UK communications regulator, Office of Communications, reported that average monthly mobile data usage per user reached 9.6 GB in the second quarter of 2023, up 19% year over year. - Ofcom also said total mobile data traffic rose 27% in the same period. - The report says this increase in data demand and subscriber numbers is a major catalyst for market expansion. - The report includes new analytical features such as market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel-based forecasting dashboards, market hotspots infographics, key technology analysis and updated graphics and tables. - The report offers a free sample sample request. - The full market report is also available.

Between the lines: - The forecast points to a telecom market shifting from legacy network management toward software-defined, automated core infrastructure. - The emphasis on orchestration, interoperability and security suggests vendors are competing on flexibility as operators prepare for denser traffic and more complex network architectures. - Asia-Pacific’s lead likely reflects the region’s scale in mobile adoption and network buildout.

What's next: - Telecom operators are likely to keep prioritizing upgrades that support virtualization, automation and 5G expansion. - Market growth will hinge on how quickly carriers replace older core systems with more programmable platforms. - Vendors that can combine security, interoperability and real-time traffic management may gain an edge as network demands rise.

The bottom line: - Core network software is moving from a back-office utility to a strategic layer for telecom modernization, and the market is on track for steady expansion through 2030.