5G Standalone Adoption Accelerates Mobile Core Network Growth – Dell’Oro Report
The mobile core network (MCN) market is experiencing significant momentum, fueled by the expanding rollout of 5G Standalone (5G SA) networks and a growing subscriber base. Recent data from Dell’Oro Group reveals a robust 19% year-over-year (YoY) growth in the overall MCN market, with the 5G MCN segment leading the charge at a remarkable 31% increase.This indicates a clear shift towards next-generation mobile infrastructure.
5G SA: Expanding Reach, Still Untapped Potential
as of Q2 2025, 71 mobile network operators (MNOs) globally have launched 5G SA services, with five new launches occurring within the year. While 5G SA coverage now reaches over 55% of the world’s population across 40 countries/territories, adoption remains surprisingly low.
According to the June 2025 Ericsson Mobility Report, only 14% of global mobile subscribers currently utilize 5G SA. This disparity highlights a significant possibility for growth. “The penetration rate of 5G SA subscribers is lower than expected, given the number of MNOs offering the service,” explains Dave Bolan, Research Director at Dell’oro Group.”Considering we’re in the sixth year of the 5G SA era and there are over 700 MNOs worldwide, a wider rollout is anticipated.”
Growth Drivers & Future Outlook
Despite the slower-than-anticipated subscriber uptake, Dell’Oro Group has revised it’s 2025 growth forecast upwards to 10% YoY, citing several key drivers:
RedCap-Enabled IoT Devices: Reduced Capability (RedCap) 5G technology lowers the cost and complexity of connecting IoT devices, paving the way for wider adoption in areas like smartwatches and AR glasses.
Expanding MEC Deployments: Multi-access edge computing (MEC) is rapidly expanding, particularly in China with over 55,000 nodes deployed.
Dynamic Network Slicing: This technology allows for on-demand performance allocation,catering to specific user needs at events or for wireless broadcasters.
voice Core Upgrades: mnos are modernizing their voice infrastructure by upgrading to cloud-native IMS cores, further boosting MCN growth. Voice over New Radio (vonr) upgrades will accelerate this trend.
These advancements are creating a more versatile and efficient 5G SA ecosystem. You can expect to see more 5G SA elements coming to market, including new radio (NR) and advanced network slicing capabilities.
MEC Market Soars
The multi-access edge computing (MEC) market, a crucial component of the 5G packet core, is experiencing explosive growth. Q2 2025 saw a 32% annual increase, with projections indicating a 44% yearly growth rate by the end of 2025. this demonstrates the increasing demand for low-latency, high-bandwidth applications at the network edge.
Supplier Landscape
The leading suppliers in the worldwide MCN market for Q2 were Huawei, Ericsson, Nokia, and ZTE. Notably, this ranking remained consistent even when excluding China, indicating their global dominance.
What This Means for You
As a business or technology professional,understanding these trends is crucial. The continued expansion of 5G SA and MEC will unlock new opportunities for innovation and efficiency. You should consider how these technologies can benefit your institution, whether through improved connectivity, enhanced application performance, or the development of new services.
Sources:
Dell’Oro Group: https://www.delloro.com/market-research/telecommunications-infrastructure/mobile-core-network/
Ericsson Mobility Report (June 2025): [https://www.computerweekly.com/news/366626513/FWA-flies-with-global-5G-subs-set-to-near-three-billion-by-end-of-2025](https://www.computerweekly.com