5G SA Boosts MCN Market to 6% CAGR

The neon lights of the city glare on the rain-slicked streets, casting long shadows that dance with the grime. Another case, another dollar bill, another sleepless night for the Cashflow Gumshoe. Folks call me a dollar detective, sniffing out the mysteries of the market. This time, the case ain’t about a dame with a bad debt, but about something called 5G SA. Yeah, 5G Standalone. Sounds dull, I know, but trust me, there’s a lot of dough – and trouble – tied up in this one. Let’s light up a smoke and get to the bottom of it.

The case starts with a headline, courtesy of Dell’Oro Group and the PR Newswire: “5G SA Adoption Accelerates 5G MCN Market Growth to 6 Percent CAGR; AI Set to Drive Next Wave.” C’mon, what the heck does that even mean? Well, it seems this 5G thing, the next generation of mobile technology, is going through a radical shift. See, the original rollout of 5G leaned on the old 4G networks, like a crummy used car relying on an ancient engine. Now, we’re talkin’ about a complete overhaul – a brand new network core, all in the name of speed and efficiency. This new setup, this 5G SA, is the key to unlocking the real potential of 5G, like low latency, the kind you need for self-driving cars or remote surgery.

Here’s the lowdown, folks:

The Real Deal on 5G SA

The numbers don’t lie, and the numbers are sayin’ 5G SA is on the rise. We’re talking about 70 Mobile Network Operators (MNOs) rollin’ out 5G SA across 39 countries and territories. And this ain’t just a trickle; the momentum is building faster than a getaway car in a heist. In the good ol’ year of ’25, the industry saw five new 5G SA networks launched. That means a projected Compound Annual Growth Rate (CAGR) of 6 percent for the 5G Mobile Core Network (MCN) market, according to Dell’Oro.

Now, before you start breakin’ out the champagne, remember that the market ain’t exactly a level playing field. China, that big player across the Pacific, is leading the pack, with a staggering 122 percent increase in the first quarter of ’25. That’s a big win for these SA networks. The rest of the world, well, they’re doin’ alright, but not quite keepin’ up. The cloud-native architectures and network slicing technologies are givin’ operators a chance to squeeze more juice out of their networks, which is always a good thing. It’s like getting a better cut of the pie.

What’s driving this surge, you ask? Simple: it’s all about the use cases. They’re talkin’ about ultra-reliable low latency communication (URLLC). That’s the secret sauce that makes stuff like industrial automation, autonomous vehicles, remote surgery, and augmented/virtual reality possible. Think about a surgeon operating on a patient miles away. The latency, or lag, gotta be super low, and that’s where 5G SA comes in. It’s not just a matter of download speeds, it’s about delivering on the promise of a truly connected world.

The AI Ace in the Hole

But that’s not all, folks! The case takes a turn when we bring AI into the picture. AI algorithms are being used to optimize network performance, automate network management, and enhance security. The Mobile Edge Computing (MEC) segment within the MCN market is where the real growth is expected. Now, MEC is like bringing the computing power closer to the user. Less lag, faster response times. Think of it like this: you want a package delivered overnight? You need a delivery service close by. Same thing here.

So, where’s this all headed? Dell’Oro says the MCN market is projected to exceed $50 billion by ’27. The initial focus will be on 5G SA core networks, then on 5G data management. But hey, it ain’t all sunshine and roses, c’mon. Economic headwinds, high interest rates, and a slower initial uptake of 5G SA have put a damper on the initial excitement. They had a stronger CAGR forecast earlier, but the reality of the market can be a harsh mistress. It’s like a crooked deal, always with hidden costs.

The Regional Roundup and the Race to Maturity

Let’s talk about the regions, because the market plays out differently everywhere. Asia Pacific is set to remain the largest market, thanks to big investments in 5G infrastructure and a ton of mobile subscribers. China is projected to hit maturity first, owing to its early adoption of 5G SA networks. They’re expected to experience a -4 percent CAGR. This means they’re shiftin’ from rapid expansion to fine-tuning what they’ve already built. It’s like tightening the bolts on a well-oiled machine, folks.

Despite these regional differences, the outlook remains positive. The recent growth, the embrace of 5G SA, and the integration of AI – they all spell out innovation and expansion. Operators like AT&T and Verizon are now ramping up their deployments of 5G SA, showing their commitment to the tech. Finally, the transition from non-standalone 5G to standalone 5G is happening, unlocking the true potential of the technology. The market is finally starting to see what this technology can do.

In the end, it’s all about the dollars, the future of how we connect, and who gets a bigger slice of the pie. The 5G RAN market, while facing its own challenges, is also being shaped by these developments, with operators upgrading their radio access networks to support 5G SA. It’s all connected, like a complex web of wires and decisions.

Case Closed

The case is closed, folks. 5G SA is the real deal, and it’s changing the telecommunications landscape. It is not just some tech upgrade, but a fundamental shift. The adoption of 5G SA, the integration of AI, and the growth in the MCN market—they all point to a future where mobile connectivity is faster, more reliable, and more integrated than ever before. The dollar detective has spoken. Now, where’s that ramen?