Slower Subscriber Growth to Cut Mobile Core Network Market Growth, According to Dell'Oro Group

News provided by

Jul 12, 2023, 08:00 ET

Worldwide 5-year Growth Reduced to a 1 percent CAGR

REDWOOD CITY, Calif., July 12, 2023 /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, 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
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, 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 [email protected].

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.

SOURCE Dell'Oro Group