Here’s an in-depth look at the top Mobile Core Network (MCN) vendors in 1Q 2025, their recent growth performance, and the key strategies they’re deploying to capture share in this fast-evolving market, as per Dell’Oro Group.
Market Overview and Vendor Rankings
In 1Q 2025, the global MCN market surged by 32 percent year-over-year, driven largely by major 5G Standalone (5G SA) rollouts and a wave of virtual-to-cloud-native migrations. China led all regions with an astounding 122 percent jump, buoyed by several large domestic projects completed in the quarter. Ex-China markets grew 12 percent, as operators worldwide accelerated CNF deployments and migrated subscribers from 4G to 5G handsets.
Dell’Oro’s vendor rankings for 1Q 2025 MCN shipments were:
Worldwide: 1. Huawei, 2. ZTE, 3. Ericsson, 4. Nokia.
Worldwide (ex-China): 1. Huawei, 2. Ericsson, 3. Nokia, 4. ZTE.
Projections for the full year 2025 have been raised to 5 percent from 2 percent, with the 5G-only MCN segment expected to grow 15 percent and the IMS Core market up 5 percent as operators retire 3G networks and modernize legacy IMS to CNFs.
- Huawei: “Intelligent & Simplified” Cloud-Native Core
Market position: #1 globally and in ex-China markets.
Growth engine: Deployment of its all-cloud, distributed CUPS architecture with built-in N-way redundancy, elastic scaling, and CI/CD pipelines for rapid feature rollout.
Key strategies:
Cloud-Native First: Huawei’s 5G Core leverages microservices in containers to achieve true elastic scaling and automated lifecycle management, reducing time-to-market for new services.
Distributed CUPS: By separating control and user planes, operators can place user-plane functions closer to the edge to lower latency and optimize backhaul usage.
Deterministic Networking (5G DN): With its DN-oriented core launched in 2020, Huawei is targeting ultra-reliable, low-latency applications in industrial IoT and enterprise campuses
- ZTE: Riding China’s 5G SA Wave and AI Integration
Market position: #2 globally (driven by Chinese projects), #4 ex-China.
Growth engine: Completion of multiple large-scale 5G SA core rollouts in China; strong foothold in Fixed Wireless Access and Mobile Broadband, Light Reading reports.
Key strategies:
AI-Native Core: ZTE’s AI Core 1.0 embeds intelligence across service, network, and O&M domains, enabling automated anomaly detection, predictive maintenance, and anti-fraud via large-model analytics RCR Wireless News reports.
Open-Source Partnerships: A March 2025 MoU with Red Hat establishes a joint innovation lab to harden cloud-native core deployments on common enterprise platforms, accelerating time-to-market for operators.
Performance-Optimized UPF: Hardware acceleration and tight integration with Intel Xeon platforms yield UPF forwarding rates exceeding 400 Gbps, addressing the surge in 5G data offload demands.
- Ericsson: Flexible, Dual-Mode Cloud-Native Core
Market position: #3 globally, #2 ex-China.
Growth engine: Strong wins in Europe (e.g., Vodafone Idea in India) and North America; emphasis on energy-efficient radio and cloud-native core synergy.
Key strategies:
Dual-Mode 5G Core: Ericsson’s software-only core supports both 4G EPC and 5G SA on the same cloud-native platform, enabling smooth operator migrations and investment protection.
Hybrid Core Architectures: For operators with mixed legacy and SA deployments, Ericsson offers hybrid solutions that seamlessly handle 4G non-standalone (NSA) alongside 5G SA devices.
Open Networking (O-RAN): Recent deals (e.g., Spain’s MasOrange) leverage cloud-based, multi-vendor RAN components that integrate tightly with Ericsson’s core for end-to-end automation and cost savings, Reuters news report said.
- Nokia: Edge-Slicing and Cloud-Native IMS
Market position: #4 globally and #3 ex-China.
Growth engine: Investments in Multi-Access Edge Computing (MEC) and IMS Core modernization; strong enterprise-focused slicing solutions.
Key strategies:
Cloud-Native Communication Suite (CNCS): Nokia’s IMS voice core offers simplified lifecycle management and cloud orchestration to accelerate introduction of VoNR (Voice over New Radio) and multimedia services.
5G Edge & Network Slicing: Its 5G Edge Slicing and Multi-Access Edge Slicing solutions enable operators to carve dedicated virtual networks for enterprises, supporting URLLC and private network use-cases across campuses and cities.
Any-Cloud Deployment: Nokia’s 5G Core is hypervisor- and cloud-agnostic, allowing operators to deploy on public, private, or hybrid clouds and to leverage existing data-center investments.
Regional Outlook and Future Drivers
EMEA Leadership: Outside China, the EMEA region is forecast to post the strongest MCN growth in 2025 (about 3 percent Y/Y), driven by standalone 5G launches (e.g., Orange France, Vodafone Spain) and private-network rollouts in industry verticals.
IMS Revitalization: As operators decommission 3G, IMS Core deployments are resurging—modern CNF-based IMS cores are expected to grow 5 percent Y/Y, supporting VoLTE and VoNR migration.
Cloud-Native Migration: Across all major vendors, the shift from monolithic VNFs to microservices-based CNFs underpins faster feature introduction, better automation, and lower TCO.
The MCN market in 1Q 2025 showcased robust vendor competition, with Huawei and ZTE leveraging China’s surge, while Ericsson and Nokia excelled internationally through cloud-native innovation and edge-slicing offerings. Looking ahead, operators’ cloud-native transformations, 5G SA expansions, and IMS modernization will continue to drive growth and reshape vendor strategies throughout 2025.
Baburajan Kizhakedath
