The Mobile Core Network (MCN) market dropped 4 percent in 2024, driven by a 15 percent decline in the China market for 4Q 2024, according to Dell’Oro Group.
This decline reflects the challenges faced by the market over the past three years, with multiple quarters of stagnant or negative growth. The downturn was not uniform across all technology segments, as revenues for Signaling and Wireless Packet Core decreased, while Policy, Subscriber Data Management, and IMS Core revenues increased.
Regionally, the market in China saw a negative growth rate, which significantly impacted global numbers. The worldwide market, excluding China, also experienced a decline, though to a lesser extent. However, there is optimism for 2025, as both China and the global market are projected to return to positive growth.
The primary driver of this expected recovery is the continued expansion of 5G Standalone (5G SA) networks. More network operators are anticipated to launch 5G SA services in 2025, and subscriber migration to existing 5G SA networks is likely to accelerate, contributing to market stabilization and growth.
Another positive development for 2025 is the resurgence of voice network investments. As older Circuit Switched Core networks are phased out, there is an increasing shift toward IMS Core networks. Additionally, the introduction of Voice over New Radio (VoNR) networks is expected to boost the market, reflecting a broader industry movement towards next-generation voice services.
Beyond the core MCN market, the Multi-Access Edge Computing (MEC) segment is projected to continue expanding in 2025. However, its growth rate is expected to slow compared to previous years. This suggests that while the demand for MEC solutions remains strong, the pace of investment and adoption may be moderating.
Despite the overall decline in 2024, vendor rankings remained unchanged, with Huawei, Ericsson, Nokia, and ZTE maintaining their positions as the leading suppliers in the MCN market. Their continued dominance highlights their ability to weather market fluctuations while positioning themselves for future growth as the industry shifts towards more advanced network technologies.
Overall, while 2024 presented challenges for the MCN market, the outlook for 2025 appears more promising. With the expected expansion of 5G SA networks, increased adoption of IMS Core for voice services, and sustained growth in edge computing, the market is poised for a recovery, albeit with cautious optimism.
TelecomLead.com News Desk
