The 5G Core Service-Based Architecture (SBA) market will grow from USD 5.441 billion in 2025 to USD 25.203 billion in 2030 at a CAGR of 35.88%.
The modular 5G Core Service-Based Architecture (SBA) is utilized in deploying and scaling different network functions as needed. It also provides network slicing to build independent virtual networks tailored to individual requirements. SBA helps enhance network efficiency and reduce cost by allowing resource optimization, automation, and orchestration tools. It also benefits from virtualization and cloud technologies developments, including the flexibility of virtualized network functions (VNFs), which can be worked on standard servers or cloud platforms for immediate deployment and service scalability.
Furthermore, a number of the SBA pieces are purposely designed as cloud-native and can take advantage of more advanced native services in the cloud. They are utilized with cloud technologies for elastic, high-performance scalability with built-in redundancy, maintainability, and cost-effectiveness, contributing to market expansion.
The implementation of the core network, based on an open and modular service platform outlined in 3GPP as part of the fifth-generation (5G) mobile network standards, is termed Service-Based Architecture. SBA is a cloud-native service framework that supports executing essential mobile core network functions related to session and mobility management by standalone, including identity-proxy or idle-mode specific software applications called Network Functions.
Meanwhile, they have to work with NFs deployed on off-the-shelf hardware residing within cloud infrastructure that are not managed as part of the Management and Orchestration (MANO) stack and need additional gateways/RGs to communicate with other authorized NFs. These are very similar to using APIs (Application Programming Interfaces) based service interfaces in applications. Service providers can use a cloud-native framework to develop SBA with microservices. This cloud-native model introduces granular capacity provisioning, key for 5G, as it allows resources to be allocated following mean rather than peak demand, making it more efficient.
A new 5G system architecture that includes the New Radio (NR) access and a new core network (5GC) has been defined to support the increasingly varied services required by an expanding number of industry sectors. The modern 5G system and core network cater to the goal of cost-effectiveness in dealing with diverse services efficiently. SBA is important because it provides service-oriented functions, interfaces, and operations in the core network control plane. It enables the 5G network to efficiently meet multiple vertical-industry service requirements for wide-ranging applications.
The SBA incorporates network slicing within the 5G Core (5GC), providing insights into application scenarios. Network slicing, a key capability in 5G, offers deployment flexibility and efficient resource utilization for various network services and applications. SBA's design enables network slicing, allowing multiple logical networks on a single physical network. It also supports plug-and-play network functions by software vendors, simplifies operations with APIs, and facilitates seamless integration of third-party vendor applications with the core network.
The ultimate 5GC, which lies at the center of 5G standalone architecture, can unleash the full potential of SBA, which, in turn, can ensure the best subscriber experience and help the telecommunication sector monetize effectively. The 5G Core Network is necessary for unleashing the full potential of 5G for many business applications such as factory automation, integrated intelligent transportation systems, “smart cities,” or connected healthcare. This opens opportunities for operators to create incremental revenue streams.
According to the GSA October 5G Standalone 2023 report, 121 operators in 55 countries and territories worldwide invested in public 5G Standalone (SA) networks. Of these, 47 operators have already launched or deployed public 5G SA networks, including two soft launches. This data indicates the growing momentum in adopting 5G SA networks worldwide.
The 5G SBA Market in the European region has a major presence due to high demand for advanced technology, strong government support through regulations, and network modernization efforts. European countries, in particular, are leading in 5G network deployment and thus provide a solid base for SBA expansion. European regulators have issued regulations to encourage innovation, and SBA was widely viewed as an empowerment of this modernization.
For instance, in February 2024, Elisa, a major European service provider, launched Finland's first 5G standalone phone subscriptions for a next-generation and smoother experience. Over the next few months, those subscriptions were supplemented with user benefits and power savings. The 5G standalone network enhances energy efficiency, using less energy per unit of data that is being transferred than older network technologies.
The 5G Core Service-Based Architecture (SBA) market is segmented and analyzed as below: