#United States #Redwood City #Dell'Oro Group #Telecommunications #Mobile Core Network

Decline of the Mobile Core Network Market in 2024

According to a recent report by the trusted market research firm Dell'Oro Group, the Mobile Core Network (MCN) sector witnessed a significant downturn at the conclusion of 2024, ending the year with a negative year-over-year (Y/Y) growth rate of -4%. This decline marks a troubling trend, as the industry has seen flat or negative growth rates during three out of the four quarters in the past year. The most noticeable factor contributing to this trend was a staggering 15% decline in the Chinese market in the fourth quarter, which heavily influenced global figures.

Dave Bolan, the Research Director at Dell'Oro Group, noted that despite the overall negative trajectory, the situation within the MCN market is nuanced. Although revenues from Signaling and Wireless Packet Core services decreased, areas such as Policy Development, Subscriber Data Management, and IMS Core experienced Y/Y revenue growth. This indicates that while some sectors are struggling, others are beginning to thrive.

When examining growth rates from a regional perspective, it is clear that China has faced particular challenges, resulting in a negative growth rate. Interestingly, the worldwide market—excluding China—also showed signs of decline, though to a lesser extent. Nonetheless, projections for 2025 remain cautiously optimistic, with expectations that the market will rebound.

Looking ahead, Bolan expressed a hopeful outlook for 2025. The anticipated launch of more 5G Standalone (5G SA) networks signifies a shift in industry dynamics. As more subscribers migrate to existing 5G SA networks, the MCN is likely to experience a revival. Furthermore, traditional voice networks, which have struggled in recent years, are expected to return to growth as new voice operating technologies are introduced alongside the retirement of older ones, such as Circuit Switched Core networks.

Key Highlights from the 4Q 2024 Report

• - The 5G MCN market is projected to experience significant growth in 2025, contributing positively to the overall market recovery.
• - The Multi-Access Edge Computing segment is also expected to continue its growth trajectory, albeit at a slower pace.
• - Vendor rankings remain stable, with established names like Huawei, Ericsson, Nokia, and ZTE leading the way in 2024.

Conclusion

The findings highlighted in the Dell'Oro Group report reveal a complex landscape for the Mobile Core Network market. While 2024 ended on a low note, especially influenced by declines in China, various segments within the MCN sphere are performing differently. The potential for a turnaround in 2025 remains strong, largely driven by advancements in 5G technology and a renewed interest in voice services. As companies adapt to these changes, the focus on innovation and strategic investments will be crucial for recovery and growth moving forward.

For more comprehensive insights and detailed statistics, individuals interested in the Mobile Core Network and Multi-Access Edge Computing sectors can purchase the full report from Dell'Oro Group, which provides a thorough analysis of market trends, revenue breakdowns, and technological advancements.