5G Mobile Core Network (MCN) Market Size, Share, Opportunities, And Trends By Deployment (Standalone, Non- Standalone), By Network Function (NRF, NEF, NSSF, AMF, Others), And By Geography - Forecasts From 2024 To 2029

The global 5G mobile core network (MCN) market is expected to grow at a CAGR of 32.66% from US$17.348 billion in 2024 to US$71.298 billion in 2029.

GROWTH DRIVERS

• Investment in 5G SA by Public and Private Network Operators

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.

For instance:

• In July 2023, Spark initiated the construction of its standalone 5G network, unlocking the full capabilities of 5G for the people of New Zealand. They partnered with technology providers Ericsson and Red Hat for this endeavor. Spark is set to invest up to NZ$60 million ($37.5 million) in the next three years to transition its 5G network to standalone mode, creating fresh opportunities for commercialization in their primary sectors of mobile and broadband.
• In March 2021, Cisco Systems acquired Acacia Communications to bolster its optical networking capabilities, particularly important for mobile core network infrastructure and data transport. This acquisition aligns with Cisco's 'Internet for the Future' strategy, which emphasizes software, silicon, and optics as essential components for driving groundbreaking innovations across various sectors.

5G Rollout Driving Expansion

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.

Unabated Rise in Mobile Traffic Growth

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.

EMERGING OPPORTUNITIES IN THE 5G MOBILE CORE NETWORK (MCN) MARKET

Cloud and Network Slicing:

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), and 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.

GEOGRAPHICAL PRESENCE

• In May 2022, iconec GmbH unveiled a strategic partnership with Athonet, a renowned global expert in private network technology. This collaboration aims to introduce Athonet's acclaimed 5G mobile core technology to the German market. By teaming up with Athonet, iconec is positioned to overcome cost challenges, complexity, and proprietary limitations in order to deliver specialized, high-value solutions that align with the distinct needs and cost preferences of end users.
• In January 2023, Nokia revealed that NOW Telecom had chosen Bell Labs Consulting, a division of Nokia, to craft a comprehensive network blueprint for 5G Standalone (SA) and strategize the design and layout of a nationwide broadband network. Under the terms of the agreement, Nokia will additionally be responsible for developing and deploying a trial 5G network across various locations in Metro Manila. This endeavour has been made possible through a grant obtained by NOW Telecom from the US Trade and Development Agency (USTDA) to bolster the growth of 5G mobile and fixed wireless networks within the Philippines.

MAJOR PLAYERS IN THE MARKET

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:

COMPANY NAME	PRODUCT NAME	DESCRIPTION
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.
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.
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.

 

MARKET SEGMENTATION

• By Deployment
  • Standalone
  • Non- Standalone
• By Network Function
  • NRF
  • NEF
  • NSSF
  • AMF
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.1.1. 3GPP 5GC Architecture

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Bandwidth Availability

4.4. Number of Users

5. GOVERNMENT REGULATIONS/POLICIES

6. 5G MOBILE CORE NETWORK (MCN) MARKET, BY DEPLOYMENT

6.1. Introduction

6.2. Standalone

6.3. Non-Standalone

7. 5G MOBILE CORE NETWORK (MCN) MARKET, BY NETWORK FUNCTION

7.1. Introduction

7.2. NRF

7.3. NEF

7.4. NSSF

7.5. AMF

7.6. Others

8. 5G MOBILE CORE NETWORK (MCN) MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. Americas

8.2.1. United States

8.2.2. Others

8.3. Europe, Middle East and Africa

8.3.1. Germany

8.3.2. UK

8.3.3. Others

8.4. Asia Pacific

8.4.1. China

8.4.2. Japan

8.4.3. South Korea

8.4.4. Others

9. RECENT DEVELOPMENT AND INVESTMENTS

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.1. Huawei Technologies Co., Ltd.

11.2. Cisco Systems, Inc.

11.3. Telefonaktiebolaget LM Ericsson

11.4. ZTE Corporation 

11.5. Nokia Corporation

11.6. Casa Systems

11.7. Mavenir

11.8. Samsung

11.9. Microsoft Corporation

Huawei Technologies Co., Ltd.

Cisco Systems, Inc.

Telefonaktiebolaget LM Ericsson

ZTE Corporation

Nokia Corporation

Casa Systems

Mavenir

Samsung

Microsoft Corporation