Middle East 5G Core Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Middle East 5G Core Market, valued at USD 225 million, grows with IoT expansion, digital transformation, and government investments in UAE and Saudi Arabia.

Region:Middle East

Author(s):Rebecca

Product Code:KRAA5702

Pages:92

Published On:January 2026

About the Report

Base Year 2025

Middle East 5G Core Market Overview

  • The Middle East 5G Core Market is valued at USD 225 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet, the proliferation of IoT devices, and the need for enhanced mobile broadband services. The expansion of smart cities and digital transformation initiatives across various sectors, coupled with accelerating Industry 4.0 deployments across oil & gas and government-led smart-infrastructure megaprojects, further fuels the market's growth.
  • Countries such as the United Arab Emirates and Saudi Arabia dominate the Middle East 5G Core Market due to their advanced telecommunications infrastructure and significant investments in technology. The UAE's strategic initiatives to become a global technology hub and Saudi Arabia's Vision 2030 plan, which emphasizes digital transformation, contribute to their leadership in this sector. Regional operators such as Etisalat by e&, Saudi Telecom Company (STC), Ooredoo, and Omantel are actively deploying standalone 5G core networks to support ultra-reliable, low-latency communication for energy fields, industrial zones, and smart-city districts.
  • The UAE Telecommunications Regulatory Authority (TRA) and Saudi Arabia's Communications and Information Technology Commission (CITC) have established frameworks to accelerate 5G deployment, mandating telecom operators to enhance their infrastructure and ensure nationwide coverage. These regulatory initiatives aim to support the growing demand for high-speed connectivity and facilitate the development of smart cities and IoT applications.
Middle East 5G Core Market Size

Middle East 5G Core Market Segmentation

By Component:

Middle East 5G Core Market segmentation by Component.

The components of the market include Hardware, Software & Platforms, and Services. Among these, Hardware, which encompasses RAN, Core, CPE, and Edge Devices, is currently the leading subsegment, capturing an estimated 52.3% share of regional revenue. The increasing demand for robust infrastructure to support high-speed connectivity and the growing number of connected devices are driving the hardware segment's growth, particularly with rapid deployments of Radio Access Network systems and high-capacity backhaul infrastructure across the Gulf countries. Software & Platforms, focusing on network management and orchestration, also play a crucial role in optimizing network performance. Services, including consulting, integration, and managed services, are essential for ensuring seamless deployment and operation of 5G networks and are projected to witness the fastest growth, driven by enterprise-grade private 5G deployments across oil & gas facilities, logistics hubs, and manufacturing clusters.

By Network Function:

Middle East 5G Core Market segmentation by Network Function.

The market is segmented by network functions, including Access and Mobility Management Function (AMF), Session Management Function (SMF), User Plane Function (UPF), Authentication Server Function (AUSF), and Network Repository Function (NRF). The Access and Mobility Management Function (AMF) is the dominant subsegment, as it is critical for managing user connections and mobility in 5G networks. The increasing number of mobile users and devices necessitates efficient access and mobility management, driving the demand for AMF solutions. Other functions, such as SMF and UPF, are also essential for ensuring seamless data flow and session management.

Middle East 5G Core Market Competitive Landscape

The Middle East 5G Core Market is characterized by a dynamic mix of regional and international players. Leading participants such as Nokia Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., ZTE Corporation, Samsung Electronics Co., Ltd., Etisalat by e&, Saudi Telecom Company (STC), Ooredoo, Omantel, Vodafone Group PLC, Orange SA, Deutsche Telekom AG, Verizon Communications Inc., Qualcomm Incorporated, Mavenir contribute to innovation, geographic expansion, and service delivery in this space.

Nokia Corporation

1865

Espoo, Finland

Telefonaktiebolaget LM Ericsson

1876

Stockholm, Sweden

Huawei Technologies Co., Ltd.

1987

Shenzhen, China

ZTE Corporation

1985

Shenzhen, China

Samsung Electronics Co., Ltd.

1938

Seoul, South Korea

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (YoY %)

Market Share (%)

Geographic Presence (Number of Countries)

Product Portfolio Breadth (Number of 5G Core Solutions)

R&D Investment as % of Revenue

Middle East 5G Core Market Industry Analysis

Growth Drivers

  • Increasing Demand for High-Speed Connectivity:The Middle East is witnessing a surge in demand for high-speed connectivity, driven by a projected increase in internet users to 500 million in future. This growth is supported by the region's GDP, which is expected to reach $3.6 trillion in future, enhancing consumer spending on digital services. Additionally, the rise in remote work and online education has further accelerated the need for robust 5G infrastructure, making high-speed connectivity a critical driver for market expansion.
  • Expansion of IoT Applications:The Internet of Things (IoT) market in the Middle East is anticipated to grow to $36 billion in future, fueled by the increasing adoption of smart devices across various sectors. This expansion is supported by government initiatives aimed at fostering innovation, with investments in IoT technologies projected to exceed $11 billion in future. As industries such as healthcare, transportation, and manufacturing integrate IoT solutions, the demand for 5G core networks will significantly increase, driving market growth.
  • Government Initiatives and Investments:Governments in the Middle East are heavily investing in 5G infrastructure, with over $21 billion allocated for telecommunications development in future. Initiatives like Saudi Arabia's Vision 2030 and the UAE's National Innovation Strategy aim to enhance digital transformation. These investments are expected to create a conducive environment for 5G deployment, facilitating economic diversification and technological advancement, thus acting as a key growth driver in the region.

Market Challenges

  • High Infrastructure Costs:The deployment of 5G networks in the Middle East faces significant challenges due to high infrastructure costs, estimated at around $16 billion for comprehensive rollout in future. This financial burden is exacerbated by the need for advanced technology and extensive fiber optic networks. As telecom operators grapple with these costs, the pace of 5G adoption may be hindered, impacting overall market growth and competitiveness.
  • Regulatory Hurdles:Regulatory challenges pose a significant barrier to the growth of the 5G core market in the Middle East. Complex licensing processes and varying regulations across countries can delay network deployment. For instance, the average time to obtain necessary permits can exceed 13 months, which hampers timely investments. These regulatory hurdles can deter foreign investment and slow down the overall progress of 5G infrastructure development in the region.

Middle East 5G Core Market Future Outlook

The future of the Middle East 5G core market appears promising, driven by technological advancements and increasing digitalization across sectors. As governments continue to prioritize digital infrastructure, the integration of AI and machine learning into 5G networks will enhance operational efficiency. Furthermore, the rise of smart cities will create new avenues for innovation, leading to increased collaboration among telecom operators and technology providers, ultimately fostering a more competitive market landscape.

Market Opportunities

  • Development of Smart Cities:The push for smart city initiatives in the Middle East presents a significant opportunity for 5G core market growth. With investments projected to reach $31 billion in future, cities like Dubai and Riyadh are leading the way in integrating smart technologies, which will require robust 5G networks to support applications such as smart traffic management and public safety systems.
  • Enhanced Mobile Broadband Services:The demand for enhanced mobile broadband services is set to rise, with mobile data traffic expected to increase to 11 exabytes per month in future. This surge will drive the need for advanced 5G core networks capable of delivering high-speed connectivity. Telecom operators can capitalize on this opportunity by offering innovative services that cater to the evolving needs of consumers and businesses alike.

Scope of the Report

SegmentSub-Segments
By Component

Hardware (RAN, Core, CPE, Edge Devices)

Software & Platforms (Network Management, Orchestration)

Services (Consulting, Integration, Managed Services)

By Network Function

Access and Mobility Management Function (AMF)

Session Management Function (SMF)

User Plane Function (UPF)

Authentication Server Function (AUSF)

Network Repository Function (NRF)

By Deployment Model

On-Premises

Cloud-Based / Dedicated Cloud

Network-as-a-Service (NaaS)

By Architecture

Standalone (SA) 5G Core

Non-Standalone (NSA) 5G Core

Open RAN Architecture

By End-User

Telecommunications Operators

Enterprises

Government Agencies

Others

By Industry Vertical

Oil & Gas and Petrochemicals

Manufacturing & Industrial

Utilities & Energy

Transportation, Logistics & Ports

Healthcare & Campus Networks

Smart Cities & Infrastructure

Others

By Region

GCC Countries (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman)

Levant Region

North Africa

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Telecommunications Regulatory Authority, Ministry of Communications and Information Technology)

Telecommunications Service Providers

Network Equipment Manufacturers

Infrastructure Providers

Technology Solution Developers

Industry Associations (e.g., GSMA, Middle East Telecommunications Association)

Financial Institutions and Investment Banks

Players Mentioned in the Report:

Nokia Corporation

Telefonaktiebolaget LM Ericsson

Huawei Technologies Co., Ltd.

ZTE Corporation

Samsung Electronics Co., Ltd.

Etisalat by e&

Saudi Telecom Company (STC)

Ooredoo

Omantel

Vodafone Group PLC

Orange SA

Deutsche Telekom AG

Verizon Communications Inc.

Qualcomm Incorporated

Mavenir

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Middle East 5G Core Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Middle East 5G Core Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Middle East 5G Core Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for high-speed connectivity
3.1.2 Expansion of IoT applications
3.1.3 Government initiatives and investments
3.1.4 Rise in mobile data consumption

3.2 Market Challenges

3.2.1 High infrastructure costs
3.2.2 Regulatory hurdles
3.2.3 Limited skilled workforce
3.2.4 Security concerns

3.3 Market Opportunities

3.3.1 Development of smart cities
3.3.2 Enhanced mobile broadband services
3.3.3 Partnerships with technology providers
3.3.4 Expansion into rural areas

3.4 Market Trends

3.4.1 Adoption of network slicing
3.4.2 Integration of AI and machine learning
3.4.3 Focus on sustainability and green technology
3.4.4 Increased collaboration among telecom operators

3.5 Government Regulation

3.5.1 Spectrum allocation policies
3.5.2 Data privacy regulations
3.5.3 Infrastructure sharing mandates
3.5.4 Investment incentives for telecom companies

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Middle East 5G Core Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Middle East 5G Core Market Segmentation

8.1 By Component

8.1.1 Hardware (RAN, Core, CPE, Edge Devices)
8.1.2 Software & Platforms (Network Management, Orchestration)
8.1.3 Services (Consulting, Integration, Managed Services)

8.2 By Network Function

8.2.1 Access and Mobility Management Function (AMF)
8.2.2 Session Management Function (SMF)
8.2.3 User Plane Function (UPF)
8.2.4 Authentication Server Function (AUSF)
8.2.5 Network Repository Function (NRF)

8.3 By Deployment Model

8.3.1 On-Premises
8.3.2 Cloud-Based / Dedicated Cloud
8.3.3 Network-as-a-Service (NaaS)

8.4 By Architecture

8.4.1 Standalone (SA) 5G Core
8.4.2 Non-Standalone (NSA) 5G Core
8.4.3 Open RAN Architecture

8.5 By End-User

8.5.1 Telecommunications Operators
8.5.2 Enterprises
8.5.3 Government Agencies
8.5.4 Others

8.6 By Industry Vertical

8.6.1 Oil & Gas and Petrochemicals
8.6.2 Manufacturing & Industrial
8.6.3 Utilities & Energy
8.6.4 Transportation, Logistics & Ports
8.6.5 Healthcare & Campus Networks
8.6.6 Smart Cities & Infrastructure
8.6.7 Others

8.7 By Region

8.7.1 GCC Countries (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman)
8.7.2 Levant Region
8.7.3 North Africa
8.7.4 Others

9. Middle East 5G Core Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (YoY %)
9.2.4 Market Share (%)
9.2.5 Geographic Presence (Number of Countries)
9.2.6 Product Portfolio Breadth (Number of 5G Core Solutions)
9.2.7 R&D Investment as % of Revenue
9.2.8 Customer Base (Number of Telecom Operators)
9.2.9 Network Performance Metrics (Latency, Throughput)
9.2.10 Service Level Agreement (SLA) Compliance (%)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Nokia Corporation
9.5.2 Telefonaktiebolaget LM Ericsson
9.5.3 Huawei Technologies Co., Ltd.
9.5.4 ZTE Corporation
9.5.5 Samsung Electronics Co., Ltd.
9.5.6 Etisalat by e&
9.5.7 Saudi Telecom Company (STC)
9.5.8 Ooredoo
9.5.9 Omantel
9.5.10 Vodafone Group PLC
9.5.11 Orange SA
9.5.12 Deutsche Telekom AG
9.5.13 Verizon Communications Inc.
9.5.14 Qualcomm Incorporated
9.5.15 Mavenir

10. Middle East 5G Core Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Key Procurement Processes
10.1.2 Budget Allocation Trends
10.1.3 Decision-Making Criteria
10.1.4 Vendor Selection Preferences

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Trends
10.2.2 Budget Prioritization
10.2.3 Infrastructure Development Plans
10.2.4 Energy Efficiency Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Telecommunications Providers
10.3.2 Government Agencies
10.3.3 Enterprises
10.3.4 Consumers

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Training and Support Needs
10.4.3 Infrastructure Readiness
10.4.4 Adoption Barriers

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 ROI Measurement Techniques
10.5.2 Use Case Development
10.5.3 Performance Metrics
10.5.4 Future Expansion Plans

11. Middle East 5G Core Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership Considerations

12.2 Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from telecommunications regulatory authorities in the Middle East
  • Review of market studies published by regional telecom associations and research firms
  • Examination of white papers and technical documents from leading 5G technology providers

Primary Research

  • Interviews with network architects and engineers from telecom operators in the region
  • Surveys with industry analysts specializing in telecommunications and 5G technology
  • Field interviews with government officials overseeing telecommunications policy and infrastructure

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including market reports and expert opinions
  • Triangulation of quantitative data with qualitative insights from industry experts
  • Sanity checks through peer reviews and expert panel discussions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total addressable market based on national telecommunications spending
  • Segmentation by service type, including network slicing, edge computing, and IoT integration
  • Incorporation of government initiatives promoting 5G adoption and infrastructure development

Bottom-up Modeling

  • Data collection from major telecom operators regarding their 5G core network investments
  • Operational cost analysis based on service pricing models and deployment strategies
  • Volume x cost calculations for various 5G services and applications

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as mobile data traffic growth and urbanization rates
  • Scenario modeling based on varying levels of regulatory support and market competition
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Telecom Operators' 5G Core Network100Network Engineers, CTOs
Government Regulatory Bodies50Policy Makers, Regulatory Analysts
5G Technology Providers60Product Managers, Technical Sales Representatives
Enterprise Users of 5G Services70IT Managers, Operations Directors
Research Institutions and Think Tanks40Telecommunications Researchers, Analysts

Frequently Asked Questions

What is the current value of the Middle East 5G Core Market?

The Middle East 5G Core Market is valued at approximately USD 225 million, driven by the increasing demand for high-speed internet, IoT device proliferation, and enhanced mobile broadband services across various sectors, including smart cities and digital transformation initiatives.

Which countries lead the Middle East 5G Core Market?

What are the main components of the Middle East 5G Core Market?

What are the key growth drivers for the Middle East 5G Core Market?

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