Dell’Oro Group publishes Mobile Core Network 5-year forecasts offering a complete overview of the market 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. Markets covered include:
4G/5G Packet Core Controller
MME, SGW-C, PGW-C
AMF, SMF
4G/5G Packet Core Gateway
SGW/PGW, SGW-U, PGW-U
UPF (including MEC)
4G/5G Policy
Policy and Charging Rules Function
Policy Control Function
4G/5G Subscriber Data Management
Home Subscriber Server
Unified Data Management
IMS Core
Session Border Controllers
Voice Application Servers
Call Session Control Function
We also track revenue and licenses shipped per market by region:
5G SA Adoption Accelerates 5G MCN Market Growth to 6 Percent CAGR; AI Set to Drive Next Wave
According to Dell’Oro Group
17 Percent MEC CAGR Driven by Network APIs, Network Slicing, and RedCap
REDWOOD CITY, Calif.
According to a recently published report from Dell’Oro Group, the trusted source for market information on the telecommunications, security, networks, and data center industries, the global 5G Mobile Core Network (MCN) market is projected to grow at a 6 percent compound annual growth rate (CAGR) 2024-2029. This acceleration is largely driven by the increasing adoption of 5G Standalone (SA) architecture. In parallel, the Multi-Access Edge Computing (MEC) market is expected to expand at a much faster 17 percent CAGR, fueled by the rollout of dynamic network slicing, Reduced Capability (RedCap) devices, and the rise of network APIs aligned with GSMA’s Open Gateway initiative.
“Our forecasts are primarily driven by subscriber growth rates and the usual subscriber behavior, and for the 5G MCN segment, our current projection is at a 6 percent CAGR,” stated Dave Bolan, Research Director at Dell’Oro Group. “However, the emergence of Generative AI and Agentic AI, especially with increased data traffic and expectations for continuous, low-latency connectivity, may eventually require expanded network capacity, which could push the growth rate even higher. Agentic AI is also the key to reaching L4 autonomous networking, which could dramatically reduce operational costs for Mobile Network Operators (MNOs).
“MEC is expected to grow at a 17 percent CAGR due to the convergence of several key developments,” Bolan added. “Dynamic network slicing is enabling on-demand performance enhancements, RedCap is helping reduce the cost and complexity of IoT device connectivity, and the GSMA’s Open Gateway initiative (a.k.a. Network APIS) is rapidly gaining momentum. Seventeen APIs have already been defined, with support from 72 MNOs worldwide. Vendors are actively building and marketing Open Gateway-compliant solutions, further accelerating MEC adoption and ecosystem expansion.”
Additional highlights from Mobile Core Network and Multi-access Edge Computing 5-Year Forecast July 2025 Report include:
As 3G networks shut down, Circuit Switched Core networks must be upgraded to IMS Core to maintain voice calling on 4G networks. We are now estimating that the IMS Core/Voice Core cumulative revenue (2025-2029) will increase by 9 percent compared to our previous forecast.
We now estimate 70 MNOs have deployed 5G SA networks in 39 countries/territories. In 2025 alone, five new 5G SA networks were launched, including Orange in France, Romania, and Slovakia; Vodafone in Spain, and O2 in the Czech Republic. Regionally, we count five networks in North America, 26 in Europe, seven in the Middle East and Africa, 13 in Northeast Asia, 13 in Southeast Asia, and six in Latin America.
Many MNOs already offer 5G SA for enterprises and Fixed Wireless Access (FWA), but have not yet opened the 5G SA network to consumers; however, they are expected to do so soon. They include MNOs such as Bouygues Telecom, O2 Telefónica, and SFR in France, Bharti Airtel in India, 3 in Ireland, Sunrise in Switzerland, and AT&T and Verizon in the US.
