Mobile Core Network Market Achieves Remarkable Growth of 32% in Q1 2025

Unprecedented Growth in Mobile Core Network Market

The Mobile Core Network (MCN) market experienced significant acceleration in the first quarter of 2025, demonstrating a remarkable year-over-year growth of 32%, as reported by the esteemed market research firm, Dell'Oro Group. This growth is attributed to considerable developments within the market, particularly influenced by the robust advancements observed in China.

Key Growth Drivers

China has emerged as a dominant player in the Mobile Core Network arena, boasting an impressive 122% year-over-year growth. This has been significantly bolstered by the completion of several major projects in the region, primarily benefiting large telecommunications vendors like ZTE. The increasing migration of subscribers from 4G to 5G handsets has simultaneously fueled demand for enhanced network capacities, especially on newly established 5G Standalone (5G SA) networks.

Dave Bolan, Research Director at Dell'Oro Group, remarked, "With this high growth rate in Q1 2025, we are raising our projection for the entire year from 2% to 5% year-over-year. Our findings highlight an electrifying transition within the industry, ensuring that the Mobile Core Network remains robust and scalable to meet escalating customer demands."

Aside from China’s dominance, the report also indicates that the global market, excluding China, experienced a commendable 12% growth year-over-year. This data underscores a healthy, albeit slower, expansion in other regions as significant telecom advancements continue to pave the way for future developments.

5G Market Insights

In terms of 5G advancement, there is an encouraging prediction that the 5G MCN market will continue on its upward trajectory with anticipated growth of 15% year-over-year for 2025. Notably, several carriers, including Orange in France, Airtel in India, and Vodafone in Spain, have announced plans to prepare their networks for 5G SA enhancement in the same year. The strategic shift from Virtual Network Functions (VNFs) to Cloud-Native Network Functions (CNFs) is proving vital for accommodating this growth.

Moreover, the report shed light on the gradual rise of the IMS Core as several 3G networks phase out. Dell'Oro Group projects that the IMS Core will experience a 5% growth year-over-year in 2025 as service providers modernize and adapt to CNF architecture.

Vendor Rankings Overview

In the competitive landscape, for Q1 2025, key vendor rankings revealed the following results:

- Worldwide: Huawei, ZTE, Ericsson, and Nokia
- Worldwide excluding China: Huawei, Ericsson, Nokia, and ZTE

This hierarchy indicates a closely contested space among the leading telecommunications equipment suppliers, each vying for market supremacy amidst dynamic shifts in consumer behavior and technological advances.

Conclusion

The outlook for the Mobile Core Network market is incredibly optimistic, with sustained growth anticipated throughout 2025. With advancements in 5G technology and infrastructural support across regions, the telecommunications industry is poised for continual evolution. Companies must remain agile and forward-thinking to leverage opportunities emerging from these expansive growth trajectories catalyzed largely by innovation and investment in next-generation technologies. As Dell'Oro Group fortifies its role as a pioneer in telecommunications market research, it remains a vital resource for companies wishing to stay abreast of trends shaping the industry’s future.

For further insights, the Dell'Oro Group Mobile Core Network & Multi-Access Edge Computing Quarterly Report provides comprehensive data and analysis covering manufacturers' revenue, shipments, and pricing strategies, serving as an invaluable tool for organizations navigating this rapidly evolving market landscape.