The 5G Mobile Core Network Market Sees Robust Growth Projections as 5G SA Hits Key Milestone

The Growth of the 5G Mobile Core Network Market

The telecommunications sector is undergoing a dramatic evolution as the 5G Mobile Core Network (MCN) market anticipates a remarkable compound annual growth rate (CAGR) of 12% from 2025 to 2030, according to a recent report by Dell'Oro Group. The report highlights the pivotal role that 5G Standalone (SA) networks—those that do not rely on existing 4G infrastructure—are playing in this upward trend.

Key Drivers Behind the Growth

The rapid maturation of 5G SA networks has become a vital factor for the expanding market. As these networks enhance their coverage across urban, rural, and indoor spaces, they stimulate existing 4G subscribers to consider upgrading. The proliferation of new Mobile Network Operators (MNOs) entering the market with plans to launch 5G SA services further supports this growth.

"The crucial inflection point is the surge in 5G SA subscriber growth as these networks improve and spread," says Dave Bolan, Research Director at Dell'Oro Group. Additionally, innovations like Reduced Capability (RedCap) 5G SA chips—tailored for devices such as smartwatches and affordable IoT solutions—are making 5G SA networks increasingly alluring to users and enterprises alike.

The report also notes that advancements in 5G technology are expected to introduce an array of new capabilities, including dynamic network slicing. This will enable a host of low-latency applications for both consumers and enterprises, significantly increasing the demand for Multi-Access Edge Computing (MEC) solutions.

Multi-Access Edge Computing: A Companion Growth

The MEC market has not been left behind, with its forecast revised to a robust 22% CAGR. The enhanced demand for low-latency applications powered by AI highlights the necessity for MEC installations within the networks of both operators and businesses. Such developments reflect a broader trend towards adopting Agnetic AI technologies, which are anticipated to bolster demand for both MCN capacity and additional MEC nodes.

Furthermore, ongoing modernization efforts, such as migrating the IMS Core to cloud-native structures and phasing out legacy 3G networks, are providing a solid foundation for the growth of 5G MCN and MEC markets.

Regional Insights

According to the report, Europe, the Middle East, and Africa (EMEA) region is expected to lead in terms of cumulative revenue over the next five years. Following EMEA, the Asia Pacific region (excluding China) follows, with China, North America, and the Caribbean and Latin America completing the rankings. Additionally, while the 4G MCN market continues to see declines, it still holds significance, particularly in regions like the Middle East and Africa.

In conclusion, as the 5G MCN market achieves these new heights, it is evident that technology is leveling up, paving the way for dynamic changes in how consumers and businesses connect and interact in this digital era. The actionable insights from Dell'Oro Group empower companies to make informed decisions and capitalize on this bullish market trend. Companies interested in a detailed analysis can access the full report through Dell'Oro Group's official channels.