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

5G Mobile Core Market Growth Surges

The telecommunications sector is witnessing remarkable growth, particularly in the 5G Mobile Core segment. The latest report from the Dell'Oro Group indicates a staggering increase of 31% year-over-year for 5G Mobile Core Networks in the second quarter of 2025. This surge is indicative of the expanding ecosystem surrounding 5G technology and the increasing adoption among mobile network operators (MNOs).

Driving Factors Behind Growth

1. Rise of 5G Standalone Services: The transition to 5G Standalone (5G SA) services is a key contributor to the growth in Mobile Core Networks. As of now, 71 MNOs have launched 5G SA services, with five new launches occurring in 2025 alone. This trend illustrates the commitment of MNOs to enhance their service offerings and capitalize on the benefits of advanced network architecture.

2. Enhancements in Voice Core Networks: Alongside the growth in 5G Mobile Core, the Voice Core segment also experienced an 18% increase year-over-year. MNOs are increasingly upgrading their voice networks to cloud-native Integrated Management Systems (IMS) cores, catalyzing further growth in the 5G Mobile Core market. The integration of Voice over NR (VoNR) adds another layer of enhancement to this segment, propelling the growth of the Mobile Core infrastructure.

3. Technological Innovations: New technologies like Dynamic Network Slicing and Reduced Capability Radio (RedCap) are being integrated into 5G SA networks. These advancements provide MNOs with innovative ways to enhance service delivery. For example, network slicing enables the allocation of resources tailored to specific user needs, facilitating applications like augmented reality (AR) and Internet of Things (IoT) deployments.

4. Multi-Access Edge Computing (MEC): This sub-segment of the 5G Packet Core saw a remarkable growth of 32% year-over-year in 2Q 2025. It is expected to witness a further 44% increase by the end of the year, as MEC allows for greater efficiency and lower latency in various applications.

Market Insights and Future Outlook

According to Dave Bolan, Research Director at Dell'Oro Group, this robust performance in the first two quarters has led to an upward revision of the growth forecast for 2025, now anticipated to be 10% year-over-year. Factors such as rising consumer demand for high-bandwidth services and widespread deployment of advanced technologies are driving this optimism.

In the competitive landscape, Huawei, Ericsson, Nokia, and ZTE are leading players in the worldwide Mobile Core Network market. Their continued innovations and strategic partnerships are poised to further enhance their positions in this rapidly evolving sector.

Conclusion

The surge in the 5G Mobile Core segment reflects the overall trajectory of the telecommunications industry, characterized by accelerated digital transformation and the introduction of innovative technologies. The expansion of 5G SA services and the upgrade of voice networks signify a pivotal moment in telecommunications, promising to reshape how consumers and businesses interact in this digital age. As MNOs continue to innovate and adapt, the potential for growth within this sector remains substantial, heralding an exciting future for the telecommunications landscape.