The latest report from market research company Dell'Oro Group shows that the compound annual growth rate of the Mobile Core Network (MCN) market has dropped to less than 1% during 2023-2028. The growth of the mobile core network market will be led by the Multi-Access Edge Computing (MEC) sub-market and the 5G mobile core network sub-market.

Dave Bolan, Research Director of Dell'Oro Group, said: "This is the fourth consecutive time we have lowered the growth rate of the mobile core network market because the construction of 5G SA networks continues to slow down compared to 5G NSA networks. The construction speed of 5G SA networks is slower than expected, which limits market growth. So far, we have counted that mobile network operators have commercially deployed 50 5G SA eMBB networks worldwide. We counted 18 new 5G SA networks in 2022, but the number of new 5G SA networks in 2023 was only 12. From a positive perspective, we believe that mobile network operators have done a lot of work behind the scenes to prepare for the launch of 5G SA networks, and we expect the number of 5G SA networks launched in 2024 will be more than in 2022."

He analyzed, "The MEC sub-market will lead the growth rate of the mobile core network market, with an expected compound annual growth rate (2023-2028) of 26%, followed by the 5G mobile core network sub-market, with a compound annual growth rate of 7%. We expect that by 2028, about 75% of 5G users will use 5G SA networks. In addition, it is expected that about 60% of 4G users will use the fused 5G core network in 5G SA networks. The market expects that the launch of IoT devices equipped with RedCap NR technology will drive more 5G IoT devices to the market at lower prices, thereby providing momentum for the growth of the MEC market. The 5G-Advanced standard has been completed and approved, and we expect that during the forecast period, its impact on the 5G mobile core network sub-market will be small except for the Chinese market."

Other key contents of this January 2024 Mobile Core Network and Multi-Access Edge Computing Five-Year Forecast Report include: · The compound annual growth rate of the 4G mobile core network sub-market is expected to be -16%. · The compound annual growth rate of the IMS core network sub-market is expected to be 1%. · The compound annual growth rate in the Asia-Pacific region (excluding the Chinese market) is expected to be 4%, followed by the Europe, Middle East and Africa (EMEA) region, with an expected compound annual growth rate of 3%.