#United States #Redwood City #5G Technology #Dell'Oro Group #Mobile Core Network

Dell'Oro Group's Market Forecast

According to the latest report by Dell'Oro Group, the Mobile Core Network (MCN) market is predicted to face a negative compounded annual growth rate (CAGR) from 2024 to 2029. The telecommunications industry's leading source of market insights cites economic challenges, fierce competitive pricing, and a sluggish transition to 5G Standalone (5G SA) as the primary factors behind this downturn.

The State of the Market

Research Director Dave Bolan stated, "The bright spots amid these challenges include the EMEA region and segments focused on 5G MCN and Multi-Access Edge Computing (MEC). However, these areas alone are insufficient to counterbalance the declines observed in the 4G MCN and Voice over LTE/New Radio (VoLTE/VoNR) sectors." The projection indicates that the MCN market will peak in 2025 but will then enter a downward trend for the remainder of the forecast period.

Challenges in Transitioning to 5G

The report highlights that only eight new 5G SA eMBB networks were activated in 2024, bringing the total to an estimated 61 launched by mobile network operators (MNOs) across 34 countries. The slow growth in the 5G SA market is notable, as it is generally considered a key driver for significant advancements in the telecommunications field.

Moreover, MNOs are exploring various strategies, including the potential of 5G-Advanced networks, common application programming interfaces (APIs), non-terrestrial networks (NTN), and the integration of artificial intelligence (AI) and machine learning (ML). This exploration is essential as the industry is racing to develop competitive technologies that can attract investment away from AI Data Centers and semiconductor sectors supporting AI developments.

A Look Ahead

Interestingly, the report signals that for all technology categories within the MCN—packet Core, Policy, Signaling, Subscriber Data Management, and IMS Core—the CAGR is expected to be negative. However, the EMEA region is projected to have the highest growth rate for both the 5G MCN and MEC segments, while China is anticipated to experience the lowest.

In summary, Dell'Oro Group's forecast paints a grim picture for the Mobile Core Network market, emphasizing that without significant innovation and investment, the market could continue to struggle as it attempts to recover and adapt to an increasingly complex technological landscape. The details outlined in the Mobile Core Network Multi-Access Edge Computing 5-Year January 2025 Forecast Report provide valuable insights into the trends affecting revenues, product markets, and regional forecasts, serving as a critical tool for stakeholders navigating this challenging environment.

About Dell'Oro Group

As a recognized authority in telecommunications market research, Dell'Oro Group specializes in comprehensive analyses for sectors related to security, networks, and data center IT infrastructure. With a reputation for delivering detailed quantitative and qualitative insights, their reports support informed decision-making for businesses across these critical fields. For more information about their forecasts, stakeholders can reach out directly to Dell'Oro Group.