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Acceleration in the 5G MCN Market Growth

According to a recent report from the Dell'Oro Group, a renowned provider of market data in telecommunications, the global 5G Mobile Core Network (MCN) sector is poised to experience a notable growth rate of 6% CAGR from 2024 to 2029. This surge in growth can primarily be attributed to the increased adoption of 5G Standalone (SA) architecture.

The report highlights that alongside the MCN growth, the Multi-Access Edge Computing (MEC) market could grow even faster, boasting a projected CAGR of 17%. This is largely driven by the implementation of dynamic network slicing, the introduction of Reduced Capability (RedCap) devices, and the rapid development of network APIs in alignment with the GSMA's Open Gateway initiative.

Dave Bolan, Research Director at Dell'Oro Group, elaborated on these findings, stating, "Our forecasts largely rely on subscriber growth rates and typical behaviors. For the 5G MCN sector, we anticipate a solid 6% CAGR. However, with the rise of Generative AI and Agentic AI influencing massive data traffic and the expectation for seamless low-latency connectivity, we may see even more pronounced growth rates due to the demand for expanded network capacity. In particular, Agentic AI could revolutionize L4 autonomous networking, significantly reducing operational expenses for Mobile Network Operators (MNOs)."

Bolan also commented on the MEC market, emphasizing its expected growth of 17% due to multiple pivotal developments: "The advent of dynamic network slicing is enabling tailored performance improvements, while RedCap technology is simplifying the cost and complexity associated with IoT device connectivity. Furthermore, the GSMA's Open Gateway initiative has gained remarkable traction, with 17 APIs already defined, backed by a coalition of 72 MNOs across the globe. Vendors are actively crafting Open Gateway-compliant solutions, driving forward MEC adoption and ecosystem expansion."

Additional Market Insights

The report outlines several key points regarding the current trajectory in the mobile core network and the MEC sector:

• - As 3G networks are phased out, there is a necessity to upgrade Circuit Switched Core networks to IMS Core to sustain voice calls on 4G networks. The projected cumulative revenue for IMS Core/Voice Core from 2025 to 2029 has been revised to anticipate a 9% increase from previous estimates.
• - Currently, 70 MNOs have successfully implemented 5G SA networks across 39 different countries and territories. Notably, five new 5G SA networks were launched in 2025 by major players such as Orange in multiple European locations and Vodafone in Spain. The distribution of these networks includes five in North America, 26 in Europe, seven in the Middle East and Africa, and 19 across Asia.
• - Although many MNOs have begun offering 5G SA services to businesses and Fixed Wireless Access (FWA), consumer access to 5G SA networks is still on the horizon, with leading operators like Bouygues Telecom and Bharti Airtel expected to launch consumer services soon.

Conclusion

The future of the 5G MCN market looks promising, with significant growth anticipated across various regions and sectors. Innovations in AI and MEC are set to enhance the capabilities of network operators while providing the infrastructure necessary to handle increasing traffic demands. The Dell'Oro Group's insights reflect the dynamic and evolving landscape of telecommunications, underscoring the importance of adapting to technological advancements in order to stay competitive in the market.

For those interested in a comprehensive analysis, the Dell'Oro Group Mobile Core Network and Multi-Access Edge Computing Quarterly Report covers an extensive range of market data, including manufacturers' revenues and technological advancements across various network types. To acquire this report or learn more about their findings, please contact Dell'Oro Group directly.