NEW DELHI: The revenue of Mobile Core Network (MCN) market will grow at a compound annual growth rate (CAGR) of 3% from 2020 to 2025 and it will witness investments of over $50 billion during the same period, according to a report by market analysis firm Dell’Oro Group.
The Asia Pacific (APAC) region will represent the highest share of investments in the range of 40-45%, followed by Europe, Middle East, and Africa (30-35%); North America (18-23%); and Caribbean and Latin America (5-10 %).
“5G Core builds by the three incumbent service providers for 5G Standalone (5G SA) networks in China are continuing to exceed our expectations,” said Dave Bolan, Research Director for the Mobile Core Network market, Dell’Oro Group.
On Monday, Finnish telecoms gear maker Nokia won its first 5G radio deal in China, securing its share in one of China Mobile’s 5G contracts. Its Swedish rival, Ericsson, however has been awarded 2% market share by China Mobile.
Chinese gear maker Huawei received the largest share in all three network contracts, followed by ZTE, according to a document published by China Mobile.
China is among the frontrunners in the 5G race and will additionally see, this year, the construction of a 5G standalone (SA) network by the new communications service provider (CSP) China Broadcasting Network.
The market analysis firm further expects new 5G SA network deployments in the latter half of 2021 in Australia, Germany, Japan, South Korea, Switzerland, and the United Kingdom.
It expects AT&T and Verizon to commence their 5G SA networks in 20222 and 2023, respectively, with geographic coverage growing throughout the forecast period.