Mobile Core Network Market Reaches Historic Low in 2Q 2024

As the global economy faces unprecedented challenges, the mobile network industry is also experiencing significant shifts. According to Dave Bolan, Research Director at Dell'Oro Group, the market is navigating uncharted territory with strong economic headwinds impacting Mobile Network Operators (MNOs). Bolan highlighted that MNOs are grappling with excess capacity to accommodate subscriber growth, signaling a complex landscape for the industry.

The influence of the China region on the Mobile Core Network (MCN) market cannot be understated, as it contributed to a notable decline in year-over-year (Y/Y) growth rates for the quarter. While Europe, the Middle East, and Africa (EMEA) and North America also experienced subdued performance, they fared better compared to China. Interestingly, the Asia Pacific region, excluding China, stood out with a positive Y/Y growth rate, showcasing regional disparities in market dynamics.

One of the key drivers in the market has been the emergence of 5G MCN technologies, particularly with the rollout of new 5G Standalone (SA) networks. However, the pace of market growth has decelerated significantly, with 2Q 2024 marking the first quarter of the 5G era to record a negative Y/Y growth rate. Bolan revealed that approximately 58 MNOs have launched commercial 5G SA enhanced Mobile Broadband (eMMB) networks, with a declining trend in new network deployments over the past few years.

Looking ahead, projections indicate a challenging outlook for the MCN market in 2024, with an estimated 11 percent Y/Y decline anticipated. This forecast underscores the need for industry players to adapt to evolving market conditions and technological advancements to remain competitive. The evolving landscape of mobile networks, coupled with shifting consumer demands, necessitates strategic planning and innovation to drive sustainable growth in the sector.

In conclusion, the 2Q 2024 Mobile Core Network and Multi-Access Edge Computing Report sheds light on the intricate dynamics shaping the mobile network industry. With regional variations in performance and the evolving 5G landscape, stakeholders must navigate uncertainties and capitalize on emerging opportunities to thrive in a rapidly changing market environment. By leveraging insights from industry reports and fostering collaboration across the ecosystem, MNOs can position themselves for success amidst the evolving challenges and opportunities in the mobile network sector.