The global 5G mobile core network (MCN) market will grow from USD 20.717 billion in 2025 to USD 86.363 billion in 2030 at a CAGR of 33.05%.
5G SA networks can be deployed in various scenarios, including as an overlay on public 5G non-SA networks, as a fresh 5G deployment for public network operators without a separate LTE network, or as a private network setup for enterprises, utilities, educational institutions, government bodies, or other organizations needing their own dedicated campus networks. Additionally, apart from the investment in 5G SA for public mobile networks mentioned earlier, numerous organizations are experimenting, testing, or implementing 5G SA technologies for private networks. According to GSA, as of May 2023, 1,148 organizations are either deploying LTE or 5G private mobile networks or have obtained licenses suitable for private LTE or 5G network deployments. Slowly but surely, operators are starting to invest in standalone 5G networks worldwide.
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The mobile core network market is witnessing substantial growth, primarily driven by the worldwide deployment of 5G networks. With the advent of 5G technology, which delivers higher data speeds, reduced latency, and the ability to support a vast number of connected devices, telecommunications operators are actively enhancing and expanding their mobile core networks to accommodate these advanced capabilities.
In June 2023, Hewlett-Packard Enterprise (HPE) successfully finalized its acquisition of Athonet, a prominent expert in private cellular networking. This acquisition represents a significant advancement for HPE, strengthening its presence in the field of wireless connectivity. It empowers telecommunications companies to tap into fresh revenue opportunities while also assisting enterprises in expediting their private cellular deployments.
In June 2023, a collaboration between Huawei, 3GPP, and international partners led to the initiation of a 5G-Advanced Core promotion initiative. This initiative is designed to foster agreement within the industry and facilitate the commercial implementation of a novel core architecture tailored for the 5G advanced era. Its overarching goal is to construct an intelligent, unified core network capable of connecting all entities and empowering a wide range of services.
The market growth is primarily driven by the increasing demand for enhanced network capacity, low latency, and improved network performance to support emerging technologies. The rapid expansion of 5G technology has become a pivotal catalyst for the surge in mobile data traffic. Notably, average download speeds have witnessed a substantial boost across most regions. This upsurge in data usage, primarily fueled by activities such as video streaming, the proliferation of IoT devices, and the widespread adoption of cloud-based applications, stands as a prominent driver of growth. To effectively manage this escalating data traffic, substantial investments are being channeled into the enhancement of core network infrastructure.
The data from Ericsson's 2023 Mobility Report reveals a remarkable growth trajectory in 5G mobile subscriptions over the forecasted years, starting from 14.3 million in 2022 and surging to an impressive 216.3 million by 2028. This upward trend signifies the rapid and extensive adoption of 5G technology, underlining its pivotal role in shaping the future of mobile communications. The substantial increase in subscriptions mirrors the increasing demand for high-speed, low-latency connectivity and the transformative impact 5G is set to have across various industries.
Network slicing has become increasingly crucial in the context of 5G, as it enables the creation of multiple distinct logical networks layered over a partially shared network infrastructure. The significance of dynamic network slicing has grown as operators seek to accommodate emerging 5G applications that demand specific performance attributes like throughput, latency, connection capacity, and timing, as well as considerations for service assurance and security. Slicing encompasses the 5G core (5GC), 5G transport, and extends into the 5G radio access network (RAN). In certain regions, operators collaborate with major cloud providers to offer public cloud-based solutions.
In October 2023, Deutsche Telekom and Mavenir announced advancements in 5G standalone network slicing services through two projects. These initiatives are dedicated to advancing opportunities for monetization made possible by 5G standalone network slicing technologies, and they leverage Mavenir's cloud-native Converged Packet Core.
Some of the leading players in the market include Athonet, Ericsson, and Nokia, among others. The product offerings of the major corporations include the following:
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COMPANY NAME |
PRODUCT NAME |
DESCRIPTION |
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Athonet |
Athonet 5G Core |
Athonet's 5G Core provides comprehensive deployment flexibility, enabling organizations to select the deployment location for their private network based on their specific requirements. This solution builds upon the proven track record and field-deployment experience of their LTE mobile core. |
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Ericsson |
5GC |
Ericsson's dual-mode 5G Core solution introduces a novel 5G Core network architecture that efficiently coexists with existing 4G Core networks. This dual-mode 5G Core is constructed using cloud-native, microservices-based technology, merging Evolved Packet Core (EPC) and the new 5G Core (5GC) network functions into a unified, cloud-native platform that caters to 5G and earlier generations. This approach optimizes network footprint and total cost of ownership (TCO) efficiency. |
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Nokia |
5G Core |
The 5G Core (5GC) brings forth a diverse range of innovative services for both individuals and connected devices. This architecture plays a central role in delivering various communication services, including extended reality in the metaverse, multiplayer gaming, mission-critical applications in Industry 4.0, smart city services, and any other services requiring the low latency, high reliability, and extensive scalability offered by a 5G Core for the Internet of Things. |
5G Mobile Core Network (MCN) Market Segmentation: