Decline Caused by Slow Economic Growth, High
Interest Rates, and Slow Adoption of 5G SA Networks
REDWOOD
CITY, Calif., July 11,
2024 /PRNewswire/ -- According to a newly
published forecast report by Dell'Oro Group, the trusted source for
market information about the telecommunications, security,
networks, and data center industries, the Mobile Core Network (MCN)
market 5-year cumulative revenue forecast is expected to decline 10
percent (2024-2028). The reduction in the forecast is caused by
severe economic headwinds, primarily the high inflation rates, and
the slow adoption of 5G Standalone (5G SA) networks by Mobile
Network Operators (MNOs).
"It bears repeating, this is the fifth consecutive time we have
reduced the growth rate of the MCN market as the build-out of 5G SA
networks continue to wane compared to 5G Non-standalone networks,"
said Dave Bolan, Research Director
at Dell'Oro Group. "This is the first 5-year forecast out of the
last five where the 5-year CAGR (2023-2028) has fallen into
negative territory. The count of 5G SA networks commercially
deployed by MNOs remains the same as it was at the end of 2023,
about 50 5G SA networks.
"For the same reasons outlined for the MCN market, we reduced
the 5-year cumulative revenue forecast for the Multi-Access Edge
Computing (MEC) market, a sub-segment of the MCN market, by 18
percent. In the case of MEC, the adoption rate is slowed much more
dramatically than the overall MCN market. The industry is
addressing these concerns with several initiatives such as open
gateway application programmable interfaces (APIs) to attract the
application development community to develop applications for the
mobile industry that can easily be leveraged across all MNOs.
Release 18 is introducing capabilities for new use cases, and
Reduced Capability (RedCap) RAN software to bring more 5G IoT
devices to market. However, these will take time to bring solutions
to market and more importantly at scale to have an impact on the
overall market growth," Bolan added.
Additional highlights from the Mobile Core Network &
Multi-Access Edge Computing 5-Year July
2024 Forecast Report:
- The CAGR is negative for all product segments—Packet Core,
Policy, Signaling, Subscriber Data Management, and IMS Core.
- The CAGR for the market segments is positive for 5G MCN and
MEC, and negative for 4G MCN and IMS Core.
- The CAGR by regions is positive for Asia Pacific excl. China, Europe, Middle
East and Africa (EMEA), and
Worldwide excluding China. The
regions with negative CAGRs are North
America, CALA, China, and
Worldwide excluding North
America.
About the Report
Dell'Oro Group's Mobile Core
Network & Multi-Access Edge Computing 5-Year July Forecast
Report offers a complete overview of the market for Wireless
Packet Core including MEC for the User Plane Function, Policy,
Signaling, Subscriber Data Management, and IMS Core with historical
data, where applicable, to the present. The report provides a
comprehensive overview of market trends by products and markets,
covering revenue, licenses, average selling price, and regional
forecasts for various network functions. To learn more about this
report, please contact us at dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in
strategic competitive analysis in the telecommunications, security,
networks, and data center IT infrastructure markets. Our firm
provides in-depth quantitative data and qualitative analysis to
facilitate critical, fact-based business decisions. For more
information, contact Dell'Oro Group at +1.650.622.9400 or visit
https://www.delloro.com.
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SOURCE Dell'Oro Group