Home Page ContentPress Releases Slower Subscriber Growth to Cut Mobile Core Network Market Growth

Slower Subscriber Growth to Cut Mobile Core Network Market Growth

by Anthony Weaver

REDWOOD CITY, Calif. – July 12, 2023 – 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, expected slower subscriber growth cuts Mobile
Core Network (MCN) market growth. Worldwide MCN 5-year growth is now
forecasted at a 1 percent compounded annual growth rate (CAGR), compared
to our January 2023 forecast of 2 percent CAGR.

“We have reduced our forecast for the third consecutive time,
primarily caused, this time, by an expected slowdown in subscriber
growth,” said Dave Bolan, Research Director at Dell’Oro Group.
“Also, we reduced our projections for the Multi-Access Edge Computing
(MEC) market to a 31 percent CAGR as commercially viable enterprise
applications are taking much longer to realize than earlier hoped.

“Mobile Network Operators (MNOs) are concerned about inflation, a
possible recession, and political conflicts. They are therefore being
restrained in their capital expenditures, another factor weighing in on
a more conservative forecast. As we continue refining our count of MNOs
that have launched 5G Standalone (5G SA) eMMB networks, we note that
only 4 MNOs have commercially deployed new 5G SA networks compared to
six in the first half of 2022,” Bolan added.

Additional highlights from the Mobile Core Network & Multi-Access Edge
Computing 5-Year July 2023 Forecast Report:

  * Year-over-year MCN revenue growth rates are projected to be flat in
2026 and turn negative in 2027.
  * The North America and China regions are expected to have negative
CAGRs, while Europe, Middle East, and Africa (EMEA), and Asia Pacific
excluding China regions are expected to have the highest positive CAGRs.

About the Report [2]

Dell’Oro Group’s Mobile Core Network & Multi-Access Edge Computing
5-Year July Forecast Report [3] offers a complete overview of the market
for Wireless Packet Core including MEC for the User Plane Function,
Policy, Subscriber Data Management, and IMS Core with historical data,
where applicable, to the present. The report provides a comprehensive
overview of market trends by network function implementation (Non-NFV
and NFV), 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 [4]

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. 

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