5G Edge Cloud Network and Services Market Outlook:
5G Edge Cloud Network and Services Market size was valued at USD 8.8 billion in 2024 and is projected to reach USD 155.2 billion by the end of 2037, rising at a CAGR of 24.5% during the forecast period, 2025 to 2037. In 2025, the industry size of 5G edge cloud network and services is estimated at USD 10.9 billion.
The global market is expanding rapidly, owing to technological innovation and the rising demand for high-bandwidth, reduced latency applications. The 5G infrastructure supply chain is sophisticated, including components such as semiconductors, antennas, and network hardware. The U.S. Department of Homeland Security indicates that fluctuations in this supply chain could degrade the integrity of 5G-enabled systems, especially through insecure hardware or software. Trade dynamics significantly influence the 5G landscape. According to the U.S. International Trade Commission, imports of telecommunications equipment have risen steadily, underscoring increased demand for 5G infrastructure. However, heavy reliance on foreign suppliers for critical components raises concerns about resilience and national security. In response, initiatives to diversify sourcing and boost domestic manufacturing are being highly undertaken.
From a pricing point of view, the Federal Reserve states that the consumer price index for digital services, such as mobile services, dropped by 12.2% annually from 2012 to 2022, showcasing efficiency in operations. Nevertheless, producer prices for telecom equipment stay unpredictable owing to raw material costs and global supply chain hurdles. In conclusion, the market is expected to grow substantially, fueled by innovation, investment, and changing trade strategies. Therefore, market participants must manage supply chain complexities, address security imperatives, and respond to economic fluctuations to fully capitalize on the sector’s potential.
5G Edge Cloud Network and Services Market - Growth Drivers and Challenges
Growth Drivers
- Surge in data-intensive applications across industries: The rising adoption of data-heavy applications such as AR, VR in autonomous vehicles, and real-time industrial automation is significantly increasing the demand for low-latency and high-capacity network solutions. These applications need localized data processing and near-instantaneous response times, which edge cloud services integrated with 5G can deliver effectively. For instance, in the manufacturing industry, edge-enabled 5G networks are reducing decision latency in smart factories by over 30%, according to industry reports. This capability is crucial for mission-critical applications like robotic control, remote diagnostics, and real-time analytics.
- Rising investments in 5G and edge infrastructure: Governments and private enterprises are increasing their investments in both 5G and edge computing infrastructure to strengthen digital capabilities and highly developed national economies. For instance, the U.S. Federal Communications Commission (FCC) and National Telecommunications and Information Administration (NTIA) have granted over $10 billion collectively for broadband expansion and 5G infrastructure through programs like the BEAD initiative. These investments are facilitating the deployment of edge nodes closer to end-users, thereby expanding service availability and reliability across both urban and rural areas.
- Increasing demand for real-time data processing in IoT ecosystems: The global surge of IoT devices, predicted to surpass 29 billion connected devices by 2030, is creating enormous demand for real-time data processing and ultra-reliable low-latency communication (URLLC). Edge computing, in combination with 5G, allows enterprises to process data closer to the source, reducing dependency on centralized cloud networks and improving response time and security. In logistics and transportation, for example, edge-enabled fleet tracking and predictive maintenance systems have reduced operational downtime by up to 25%, improving overall supply chain efficiency.
Major Technological Innovations in the 5G Edge Cloud Network and Services Market
The incorporation of 5G and edge computing is redefining multiple industries by allowing ultra-low latency, real-time data processing, and improved operational agility. Prominent technological advancements include the integration of artificial intelligence for predictive analytics, blockchain for secure and transparent transactions, and the implementation of private 5G networks customized for enterprise-specific needs. These innovations are proving transformative, especially in healthcare, finance, and manufacturing industries, improving accuracy, strengthening fraud detection systems, and optimizing automation procedures. These trends are not only improving sector-specific workflows but also fueling substantial growth within the market. The table below outlines key technology trends and their industry-specific impacts.
|
Trend |
Industry |
Statistical Impact |
|
AI-Powered Analytics |
Healthcare |
Diagnostic accuracy improved by 35% using AI tools. |
|
Blockchain Transactions |
Financial Services |
91% of banks are adopting blockchain for secure, efficient transactions. |
|
Private 5G Networks |
Manufacturing |
42% of German manufacturers use edge computing to reduce downtime and boost output. |
|
AI Automation Tools |
Healthcare |
Omega Healthcare saved 15,000+ hours/month, cut documentation time by 42%. |
|
Edge in Smart Cities |
Urban Infrastructure |
27% of smart city projects in Europe deploy edge computing for efficiency gains. |
Cybersecurity Measures in the 5G Edge Cloud Network and Services Market
The rapid surge of 5G and edge computing technologies has brought a new wave of cybersecurity challenges for organizations in this space. The decentralized architecture of edge computing, combined with the high-speed and reduced latency features of 5G, significantly expands the attack surface, increasing exposure to potential cyber threats. High-profile cyberattacks in 2023 and 2024 have exposed critical cases in the market, enforcing the urgent need for better resilient cybersecurity strategies. The table below consists of a few examples of the same.
|
Company |
Type of Attack |
Impact (2023–2024) |
Mitigation Measures |
|
CDK Global |
Ransomware (BlackSuit) |
Halted operations at ~15,000 dealerships; $1B+ financial loss; $26M ransom paid |
AI-based threat monitoring; real-time incident response systems |
|
Change Healthcare |
Ransomware (ALPHV/BlackCat) |
$802M in damages; healthcare claims backlog; $23M ransom payment |
Mandatory MFA; quarterly cybersecurity audits |
|
Hanwha Qcells |
Ransomware (Abyss) |
5.4 TB of corporate data leaked; factory operations disrupted |
End-to-end encryption; mandatory staff cyber hygiene training |
|
Kadokawa/Niconico |
Ransomware (BlackSuit) |
254,245 user accounts breached; prolonged service outages; 22% share price drop |
Network segmentation; rapid-response breach containment protocols |
|
Kyivstar |
State-sponsored (Sandworm) |
Nationwide service blackout; $92M in network and service recovery costs |
AI-driven defense systems; telecom infrastructure hardening |
Challenges
- Cybersecurity and data privacy risks: One of the most critical challenges facing the market is cybersecurity and data privacy vulnerability. Edge computing, paired with the massive connectivity and high speed of 5G, creates a significantly wider attack surface for malicious actors. Unlike centralized cloud models, edge nodes handle sensitive data locally and often operate without rigid security frameworks, making them more prone to data breaches, threats, and ransomware attacks. Additionally, as more complicated infrastructure integrates edge-based 5G services, the risk of coordinated cyberattacks increases significantly.
Moreover, the global shortage of skilled cybersecurity professionals and inconsistent regulatory guidelines across countries delay the adoption of uniform security measures. Thus, addressing these concerns will require industry-wide cooperation, investment in AI-based security solutions, employee training, and adherence to evolving compliance standards.
5G Edge Cloud Network and Services Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
24.5% |
|
Base Year Market Size (2024) |
USD 8.8 billion |
|
Forecast Year Market Size (2037) |
USD 155.2 billion |
|
Regional Scope |
|
5G Edge Cloud Network and Services Market Segmentation:
Solution Segment Analysis
The software segment is expected to gain a notable share of 48.5% during the forecast timeline due to its critical role in managing, orchestrating, and securing distributed network environments. As demand for ultra-low latency and real-time data processing increases, software-defined solutions are enabling flexible, scalable deployment across diverse edge nodes. The segment's growth also depends on the rising adoption of virtual technologies, container orchestration platforms such as Kubernetes, and AI-powered network management tools. Enterprises are increasingly investing in intelligent software to enhance bandwidth usage, automate operations, and decrease downtime. Additionally, advancements in network function virtualization (NFV) and cloud-native architectures are further accelerating software integration in edge infrastructure.
End use Segment Analysis
The manufacturing segment is poised to hold a 26.5% share throughout 2037, owing to the growing need for real-time automation, robotics, and predictive maintenance. With increasing Industry 4.0 adoption, manufacturers require ultra-reliable low-latency communication (URLLC) to support smart factories and digital twins. 5G edge solutions enable local data processing, reducing decision latency and lowering idle time. This results in better operational efficiency, quality control, and safety across production lines. Additionally, increased funding in private 5G networks is helping manufacturers to deploy customized edge applications tailored to specific industrial needs.
Our in-depth analysis of the global 5G edge cloud network and services market includes the following segments:
|
Segment |
Subsegments |
|
Solution |
|
|
End use |
|
|
Enterprise Size |
|
Vishnu Nair
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5G Edge Cloud Network and Services Market - Regional Analysis
North America Market Insights
North America is expected to dominate the market with a 33.5% share during the forecast period, owing to the region’s early adoption of cutting-edge technologies and huge investments in 5G infrastructure. Notably, the U.S. government’s $65 billion allocation under the Bipartisan Infrastructure Law has significantly advanced broadband rollout and 5G readiness. Furthermore, the National Telecommunications and Information Administration (NTIA) has actively supported state and territorial initiatives to avail federal funding for broadband equity and deployment. These efforts have increased 5G network expansion, especially in underserved regions, driving sustained market growth.
In the U.S., the market is increasing rapidly due to regulations introduced by the Federal Communications Commission (FCC) aimed at strengthening the integrity and security of telecommunications certification bodies and equipment authorization processes. Additionally, the FCC’s primary role in spectrum allocation and management is important to advancing 5G deployment. In addition to these efforts, the National Telecommunications and Information Administration (NTIA) is driving long-term spectrum planning to optimize federal spectrum usage. Together, these regulatory measures and strategic initiatives are accelerating the adoption and expansion of 5G edge services across multiple industries in the U.S.
Asia Pacific Market Insights
The 5G edge cloud network and services market in Asia Pacific is anticipated to grow the fastest at a CAGR of 16.5% during the forecast period. This expansion is driven by heavy investment in 5G infrastructure, proactive government initiatives, and rapid digital transformation across major economies. Nations such as China, Japan, India, Malaysia, and South Korea are leading adoption efforts, using 5G to develop manufacturing, healthcare, and transportation sectors. Strategic programs promoting digitalization, smart city projects, and industrial automation are increasing this demand. For instance, in India, the National Digital Communications Policy targets universal broadband access with speeds of 50 Mbps per citizen. These initiatives accentuate the region's commitment to expanding 5G technology into its economic and technological landscape.
China is projected to hold the largest revenue share in the APAC Market by 2037, driven by rapid infrastructure deployment, strong government backing, and a robust technology ecosystem. The Ministry of Industry and Information Technology (MIIT) has played an integral role in advancing 5G integration across manufacturing, healthcare, and transportation sectors. By 2023, China had established over 1 million 5G base stations, covering more than 70% of the global total, allowing applications starting from smart manufacturing to autonomous mobility. Additionally, data from the China Academy of Information and Communications Technology (CAICT) points out the significant contribution of the 5G sector to national GDP. Thus, China's strategic emphasis on 5G as a foundational pillar for digital transformation firmly establishes its leadership in the regional market.
Country-Specific Analysis
|
Country |
Government Spending & Initiatives |
Adoption Metrics |
|
Japan |
Allocated approximately ¥20.2 trillion (~$180B) under the GX Promotion Act and revised 5G Act for industrial policy enhancement. |
Focus on integrating 5G in the manufacturing and healthcare sectors. |
|
China |
MIIT and CAICT have increased 5G investments, with significant emphasis on industrial applications. |
Over 1 million 5G base stations deployed by 2023, leading in global 5G infrastructure. |
|
Malaysia |
MDEC and KKD have facilitated 5G rollout through public-private partnerships. |
5G coverage reached 62.1% of populated areas by May 2023. |
|
South Korea |
MSIT and NIPA have invested heavily in 5G R&D and infrastructure. |
Achieved nationwide 5G coverage with high adoption rates in consumer and industrial segments. |
Key 5G Edge Cloud Network and Services Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The 5G edge cloud network and services market is extremely competitive, with major global ICT players competing for dominance. Nokia and Ericsson in Europe are closely following the advancements of China and U.S. counterparts whereas U.S.-based companies, including Cisco, Dell, HPE, IBM, AWS, Microsoft, and Juniper, maintain a robust market position through strategic initiatives such as the Nokia–AWS core network migration and Verizon’s MEC rollouts in North America. Japan firms such as Fujitsu, NEC, NTT, and KDDI, although with smaller global shares, are focusing on domestic integration in smart cities and industrial automation. Strategies including private 5G deployments, AI-enhanced edge computing, and cloud-native partnerships are fueling innovation that helps companies to meet evolving enterprise demands. Given below is a table of the top players in the market with their respective shares.
|
Company |
Country |
Approx. Market Share |
|
Nokia Corporation |
Finland |
13.6% |
|
Ericsson |
Sweden |
12.1% |
|
Huawei Technologies Co., Ltd. |
China |
11% |
|
Cisco Systems, Inc. |
USA |
10.2% |
|
Hewlett Packard Enterprise Development LP |
USA |
7.5% |
|
Dell Inc. |
USA |
xx% |
|
IBM Corporation |
USA |
xx% |
|
Amazon Web Services, Inc. |
USA |
xx% |
|
Microsoft Corporation (Azure) |
USA |
xx% |
|
Juniper Networks |
USA |
xx% |
|
Fujitsu Ltd. |
Japan |
xx% |
|
NEC Corporation |
Japan |
xx% |
Given below are the areas covered for each company in the 5G edge cloud network and services market:
Recent Developments
- In February 2025, Nokia finalized a long-term partnership with AT&T to deliver cloud-based voice core and automate 5G network operations. The deal includes the integration of AI/ML tools aimed at optimizing network performance and reflects Nokia’s strategic expansion in the U.S. telecom ecosystem.
- In February 2025, Bell Canada extended its partnership with Nokia to deploy Cloud‑RAN and Open RAN solutions using Nokia’s AirScale portfolio on Red Hat OpenShift and Dell platforms. This initiative aims to increase network agility, scalability, and efficiency.
Author Credits: Preeti Wani
- Report ID: 3758
- Published Date: Jun 26, 2025
- Report Format: PDF, PPT
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