Dell’Oro Group Discusses 5G Standalone Growth in 2025

The recent Mobile Core Network and Multi-Access Edge Computing (MEC) report from Dell’Oro Group indicates a 31% year-over-year increase in 5G Core vendor revenues. Additionally, 71 Mobile Network Operators (MNOs) have successfully launched enhanced Mobile Broadband services.

Market Overview

Despite concerns over the slow adoption of 5G Standalone (SA) networks, only 10% of MNOs have launched these services. The continued growth in this segment, however, is observed with 71 MNOs now providing enhanced services to over half of the global population.

Geographical Insights

Among the MNOs, those in China, such as China Mobile, demonstrate higher penetration with 60% subscribing to 5G SA services. This country is undergoing extensive network coverage improvements, illustrating a model for other operators seeking to drive growth.

Future Growth Projections

Looking forward, 5G Mobile Core Network revenues are predicted to increase at a 6% Compound Annual Growth rate (CAGR) from 2024 to 2029 due to various factors. Among these are further 5G SA deployments and the rise of new customer devices.

Factors Influencing Growth

Several elements contribute to the expansion of 5G services:

• 5G New Radio (NR) capabilities are expected to enable more Internet of Things (IoT) devices to enter the market, which could enhance subscriber numbers.
• Public MEC implementations, such as those initiated by Telefónica Spain, show commitments to lower latency services.
• The introduction of Voice over NR could enhance customer experiences, further encouraging network migration.
• Artificial Intelligence (AI) applications are also emerging, with cases from operators like Bell Canada implementing advanced tools to attract customers.
• Reassessments of hosting 5G workloads in Public Cloud environments may lead to new strategies for network operators.

Conclusion

The ability to scale 5G services significantly hinges on the growth of subscriber bases, ongoing network improvements, and advancements in device technology. The insights provided by Dell’Oro’s report signal a sustained expansion period for the 5G Core market.