Dell’Oro largely attributed market acceleration to the rising adoption of 5G SA structure
In sum – what it is advisable to know:
5G SA pushes MCN development – Dell’Oro forecasts 6% CAGR for cellular core infrastructure as standalone networks increase throughout new markets.
MEC positive factors API momentum – Community slicing, RedCap IoT, and GSMA’s Open Gateway APIs are fueling 17% annual development in edge computing.
AI might reshape demand – Generative and Agentic AI are anticipated to drive future demand for low-latency, autonomous cellular networks.
The worldwide 5G Cellular Core Community (MCN) market is projected to develop at a 6% compound annual development charge (CAGR) from 2024 to 2029, based on a brand new forecast from Dell’Oro Group. The acceleration is essentially attributed to the rising adoption of 5G Standalone (SA) structure, which helps next-generation community capabilities.
In the meantime, the Multi-Entry Edge Computing (MEC) phase is anticipated to increase at a considerably quicker 17% CAGR, pushed by community slicing, Diminished Functionality (RedCap) units, and the rising momentum of community APIs, notably these linked to the GSMA’s Open Gateway initiative.
“Our forecasts are primarily pushed by subscriber development charges and the same old subscriber conduct, and for the 5G MCN phase, our present projection is at a 6% CAGR,” stated Dave Bolan, analysis director at Dell’Oro Group. “Nonetheless, the emergence of Generative AI and Agentic AI, particularly with elevated information visitors and expectations for steady, low-latency connectivity, might ultimately require expanded community capability, which might push the expansion charge even increased. Agentic AI can be the important thing to reaching L4 autonomous networking, which might dramatically cut back operational prices for cellular community operators (MNOs).”
“MEC is anticipated to develop at a 17% CAGR because of the convergence of a number of key developments,” Bolan famous. “Dynamic community slicing is enabling on-demand efficiency enhancements, RedCap helps cut back the associated fee and complexity of IoT system connectivity, and the GSMA’s Open Gateway initiative (a.ok.a. Community APIS) is quickly gaining momentum. Seventeen APIs have already been outlined, with help from 72 MNOs worldwide. Distributors are actively constructing and advertising Open Gateway-compliant options, additional accelerating MEC adoption and ecosystem enlargement,” he added.
Different highlights from the current Dell’Oro report embody:
-With the continuing phase-out of 3G networks, operators are upgrading circuit-switched cores to IMS cores to protect voice companies over 4G. Dell’Oro now tasks that IMS Core/Voice Core cumulative income from 2025–2029 will likely be 9% increased than beforehand forecasted.
-Thus far, 70 operators throughout 39 international locations or territories have launched 5G SA networks. In 2025 alone, 5 new deployments occurred, together with Orange in France, Romania, and Slovakia; Vodafone in Spain; and O2 within the Czech Republic.
-Many operators at the moment restrict 5G SA to enterprise use and stuck wi-fi entry (FWA), however are anticipated to increase entry to customers quickly. These embody Bouygues Telecom, O2 Telefónica, and SFR in France; Bharti Airtel in India; Three in Eire; Dawn in Switzerland; and AT&T and Verizon within the U.S.
In Might, Dell’Oro reported that the worldwide cellular core community (MCN) market skilled a 32% year-over-year development within the first quarter of 2025. China posted a 122% year-over-year enhance, whereas the remainder of the world noticed 12% development. As such, Dell’Oro is now projecting 5% year-over-year development within the whole MCN market in 2025, and 15% development within the 5G MCN phase – pushed by a 12percentincrease in China and three% in the remainder of the world.
In addition to the China image, Dell’Oro Group stated Europe, the Center East, and Africa (EMEA area) will see the best development in 2025.
Individually, current figures from Dell’Oro Group discover that after two years of steep declines, the Radio Entry Community (RAN) market improved within the quarter. Preliminary estimates present that worldwide RAN revenues, excluding companies, stabilized within the interval, ensuing within the first development for the reason that first quarter of 2023. Stefan Pongratz, vice chairman for RAN market analysis on the agency, put the the other way up to a “favorable regional combine and lighter comps.”
