South America 5G Core Network Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America 5G Core Network Market Trends and Insights

Rising 5G Standalone Rollouts Driving South America 5G Core Network Market Demand

Brazil’s standalone rollout has put it ahead of the regional deployment cycle and made it the primary source of core network demand. The government stated in March 2026 that 80% of Brazil’s population is expected to have 5G access by the end of 2026, with coverage in more than 2,220 municipalities. These coverage commitments require operators to keep adding standalone capacity and related software. The South America 5G core network market, therefore, benefits from procurement that is tied to regulatory milestones, not only to short-term changes in consumer demand. The pace of rollout can also create work for service providers when device availability, certification, and enterprise use cases take longer to develop. This combination supports continued spending on deployment, testing, operations, and maintenance.

Operator Shift from Legacy EPC to Cloud-Native Core Architectures

Operators are moving from older evolved packet core platforms toward cloud-native core systems that can support 5G standalone services. AMD reported that 33% of surveyed operators had already placed most 5G core functions on cloud-native infrastructure in 2025, while another 30% targeted completion by the end of 2026.^{[1]AMD, “5G Core Operator Survey 2025 Edition Scaling 5G SA,” AMD, amd.com} The change requires new software, virtualized infrastructure, and operating practices capable of handling distributed network functions. Telefónica and AWS demonstrated a 5G standalone core configuration for Vivo that used network functions from Mavenir, Nokia, and Oracle across cloud and operator facilities.^{[2]Mavenir, “Telefónica and AWS Demonstrate 5G SA Core Deployment Over AWS Outposts in Vivo,” Mavenir, mavenir.com} This type of multi-vendor model raises the importance of integration skills in the South America 5G core network market. It also allows operators to centralize control functions while keeping performance-sensitive functions closer to users.

Network Slicing Demand from Enterprise and Public Sector Use Cases

Network slicing is creating a practical reason for enterprises and public agencies to use standalone 5G capabilities. A slice can reserve service characteristics for an application without exposing direct access to the full core network. The Brazilian federal private network connects security institutions through a dedicated 5G-based communications infrastructure.^{[3]Ministry of Justice and Public Security, “Rede Privativa Móvel Conecta a PMDF, o Exército Brasileiro, a Polícia da Câmara dos Deputados e a Polícia do Senado Federal,” Government of Brazil, gov.br} This use case supports spending on secure access, policy control, authentication, and traffic management. It also helps explain why the network exposure function is the fastest-moving network function in the South America 5G core network market. Corporate demand is likely to develop first where applications have clear security, reliability, or latency requirements.

Public Sector Digitalization Programs Accelerating 5G Core Investment

Government digitalization programs are creating a policy-based layer of demand for core network infrastructure. The OECD described Brazil’s digital government approach as one that considers transformation costs and interoperability benefits in public-sector decisions.^{[4]Organisation for Economic Co-operation and Development, “Digital Government Outlook 2026 Brazil,” OECD, oecd.org} The federal private network also showed how government agencies can rely on dedicated mobile infrastructure for secure coordination. These programs can support core spending even when consumer revenue conditions are uneven. They can favor vendors that have established public-sector delivery, security, and compliance capabilities. Their procurement cycles may be longer, but the resulting contracts can be broader than a single network software purchase.

Delayed Spectrum Readiness and Uneven 5G Standalone Timelines

Spectrum readiness outside Brazil remains uneven, which slows the start of standalone core investment in several countries. Argentina had around 2,300 5G sites by the end of March 2026, but enterprise monetization of standalone services was still in its early stages. The South America 5G core network market is affected because a core upgrade becomes more difficult to justify when radio deployment, spectrum access, and business demand do not advance together. Bolivia began its 5G spectrum award process in 2026, indicating that its investment cycle is still in its early stages. Some Andean and River Plate markets are also focused on 4G densification before larger standalone programs begin. These differences make regional demand less uniform and concentrate near-term opportunities in countries with clearer spectrum conditions.

High Integration Complexity with Existing 4G and Legacy OSS/BSS Stacks

The move to standalone 5G requires operators to connect new cloud-native functions with older radio, core, and operational systems. AMD found that 83% of surveyed operators planned to place most 5G core functions on cloud-native infrastructure by the end of 2026.^{[5]AMD, “5G Core Operator Survey 2025 Edition Scaling 5G SA,” AMD, amd.com} Achieving that transition requires combined skills in telecommunications and cloud operations. Existing OSS and BSS systems must support new service models, including network slices and application programming interface services. The integration burden lengthens sales cycles and increases project risk in the South America 5G core network market. It also shifts demand toward suppliers that can provide end-to-end deployment and managed support.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Component: Solutions Lead Current Deployment While Services Expand Through 2031

Solutions are expected to hold 61.45% of the South America 5G core network market share in 2025, reflecting the need to deploy foundational standalone software before operators expand service layers. Packet-core software represents the central value category because it supports the core traffic and control functions required for a standalone architecture. Network function virtualization infrastructure also plays an important role by providing the computing environment for virtualized functions. Orchestration and management tools help operators coordinate these functions across distributed locations. Vivo’s cloud deployment demonstration showed that core functions from Mavenir, Nokia, and Oracle could operate across public cloud infrastructure and operator data centers. Such deployments show why solution purchases often involve multiple infrastructure and software suppliers.

Services are projected to expand at a 21.39% CAGR through 2031 as the installed base of standalone networks requires deployment, integration, support, and maintenance. Operators need integration and deployment services when they move functions from legacy platforms to virtualized environments. Support contracts become more important after a core goes live, as operators must maintain availability, security, and performance. Consulting and advisory services also support OSS and BSS alignment, network slice design, and application programming interface monetization. Therefore, the South America 5G core network market can generate recurring service revenue after the initial software implementation. This pattern reduces reliance on a single upfront platform sale and increases the value of local delivery capabilities.

By Deployment Model: On-Premises Systems Retain Control While Hybrid Edge Models Advance

On-premises and dedicated systems are expected to account for 52.21% of revenue in 2025, as operators require data control, low user-plane latency, and compliance with sector-specific requirements. This model remains relevant for energy, public safety, and other applications that require predictable local performance. Operators also commonly use this model when cloud availability remains limited, or data residency requirements discourage full public cloud deployment. Local deployments can keep user plane processing close to the radio network and enterprise applications. The South America 5G core network market size for this model reflects the current priority placed on reliable traffic management and operational control. It also reflects that many operators are gradually introducing cloud-native systems rather than replacing every existing platform at once.

Hybrid and telco edge cloud deployment is projected to expand at a 20.27% CAGR through 2031 in the South America 5G core network market, as it combines centralized cloud functions with edge-based user-plane capacity. Vivo’s proof of concept showed that 5G standalone core functions could operate across AWS infrastructure and operator-owned data centers. This approach can keep latency-sensitive processing close to industrial sites while allowing other functions to use centralized cloud resources. Public cloud adoption is also advancing, although operators continue to assess costs for high-volume user-plane workloads. Standards covering edge computing and network slicing provide a common technical basis for these design choices. The deployment model is becoming increasingly important as enterprises seek low-latency, location-sensitive connectivity.

By End User: Telecom Operators Fund Current Demand While Enterprises Diversify It

Telecom operators are expected to account for 77.60% of end-user demand in 2025, as they bear primary responsibility for spectrum obligations, standalone coverage, and national network capacity. Vivo, TIM, and Claro each operate commercial standalone cores in Brazil. Their spending supports the immediate need for software, network functions, and services across the South America 5G core network market. TIM expanded its relationship with Nokia to modernize 5G services in 14 additional Brazilian states, covering around 42% of Brazil’s population. In Argentina, Nokia agreed to evolve Personal’s 5G mobile core through a multi-vendor configuration, beginning in the Buenos Aires metropolitan area.

Enterprises are projected to expand at a 23.19% CAGR through 2031 in the South America 5G core network market, as more sectors assess standalone connectivity for dedicated applications. Manufacturing, energy and utilities, transportation and logistics, public safety, and smart cities are all part of this demand base. Brazil’s private federal network provides a policy-led use case for public safety and emergency communications. Manufacturing projects can use private 5G to support connected equipment and operational data flows. Transportation and logistics users can evaluate the same capabilities where coverage and application requirements are clear. Enterprise demand broadens the South America 5G core network market beyond operator-funded network upgrades.

By Network Function: User Plane Function Supports Current Traffic While Network Exposure Function Enables New Services

User plane function is expected to hold 20.99% of revenue in 2025 in the South America 5G core network market, because it serves as the traffic-forwarding and quality-of-service layer that operators must scale as standalone coverage expands. It manages user traffic and helps enforce service characteristics. Distributed placement of user plane functions can support lower-latency connectivity for industrial Internet of Things and fixed wireless access services. Telefónica reported that an automated self-healing mechanism in its Brazilian 5G core reduced incident resolution time by 30 minutes. This result shows the operational value of virtualized and automated user plane architecture. The South America 5G core network market will continue to require this function as operators expand traffic capacity and edge locations.

The network exposure function is projected to expand at a 27.45% CAGR through 2031 because it enables operators to provide selected network capabilities to enterprise applications via controlled interfaces. It can support authentication, quality-of-service guarantees, and slice selection without exposing the full core network. These features provide a route to monetize secure enterprise services. The remaining functions include access and mobility management, session management, policy control, authentication, network slice selection, network repository, unified data management, and application functions. Together, they form the control-plane environment that supports the user plane and enterprise service layers. Their purchasing patterns remain closely tied to the timing of standalone rollouts and integrated core platform contracts.

Geography Analysis

Brazil accounted for 69.20% of the South America 5G core network market share in 2025, supported by its large operator base and regulatory coverage requirements. The federal government expects 5G access to reach 80% of the country’s population by the end of 2026 across more than 2,220 municipalities. The stated plan also covers 30% of municipalities with fewer than 30,000 residents. These commitments support a deployment pipeline that extends beyond the largest cities and the three main mobile operators. Foreign direct investment in Brazil’s telecommunications sector reached USD 7.44 billion in 2025, up 20.4% from the previous year, with funding directed toward 5G, fixed networks, remote connectivity, and digital infrastructure.

Argentina remains the second-largest national operator base, although currency pressure affects multi-year contracts priced in hard currency. Telecom Argentina reported USD 1.02 billion in capital expenditure in 2025, reflecting accelerated 5G expansion, fiber deployment, and the integration of Telefónica Argentina. The company also reported that the Argentine peso depreciated by 41.0% against the US dollar in 2025. Personal began its core modernization in the Buenos Aires metropolitan area and planned to extend it to Mar del Plata, Tucumán, Rosario, and Córdoba. The country, therefore, has a meaningful pipeline, but real purchasing capacity remains sensitive to currency conditions and the timing of enterprise returns.

The Rest of South America is projected to expand at a 20.39% CAGR through 2031 as early standalone deployments emerge across Ecuador, Colombia, Chile, Peru, Bolivia, and Paraguay. Nokia and CNT launched Ecuador’s first 5G network, with initial service in Guayaquil and surrounding areas. Peru’s 3.5 GHz license holders committed at least USD 502.9 million in network investment, including rural localities and road coverage requirements. Bolivia started its spectrum award process in 2026, while Paraguay’s first 5G rollout began in December 2025. Demand in these countries will develop from a smaller base, but spectrum awards, initial deployments, and coverage obligations create a broader set of future opportunities for the South America 5G core network market.