What's Happening?
The global mobile core network (MCN) market experienced significant growth in the second quarter of 2025, with a 19% year-over-year increase, according to a report by Dell'Oro Group. This growth was primarily driven by a 31% surge in the 5G mobile core network segment. The report highlights that 71 mobile network operators (MNOs) have launched 5G Standalone (SA) services, with five new launches in 2025 alone. The adoption of 5G SA is supported by features such as network slicing and RedCap IoT, which enhance the capabilities of connected devices. Additionally, the voice core segment saw an 18% increase as MNOs upgraded to cloud-native IMS cores. Multi-access edge computing (MEC), a component of the 5G packet core, also rose by 32% year-over-year and is projected to grow by 44% for the full year.
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Why It's Important?
The expansion of the 5G mobile core network is crucial for the telecommunications industry as it supports the increasing demand for high-speed, reliable connectivity. The growth in 5G SA adoption indicates a shift towards more advanced network architectures that can support a wide range of applications, from consumer devices to industrial IoT. This development is likely to drive further innovation in sectors such as smart cities, autonomous vehicles, and augmented reality. The modernization of voice networks to cloud-native IMS cores also suggests a move towards more flexible and scalable communication solutions. As the 5G ecosystem continues to evolve, stakeholders including telecom operators, device manufacturers, and service providers stand to benefit from new business opportunities and enhanced service offerings.
What's Next?
The continued rollout of 5G SA networks is expected to bring more advanced features to market, such as new radio (NR) capabilities and dynamic network slicing. These advancements will likely lead to an increase in the number of connected devices and the development of new use cases. The Dell'Oro report projects a 6% compound annual growth rate for the global 5G mobile core network market from 2024 to 2029, driven by the rising adoption of 5G SA architecture. Additionally, the MEC segment is anticipated to expand at a 17% CAGR, fueled by network slicing and the momentum of network APIs. As these technologies mature, they will play a pivotal role in shaping the future of telecommunications and digital infrastructure.
