The Mobile Core Network Market Grew 10 Percent Year Over Year to Nearly $8 Billion for The Trailing Four Quarters Ending in 1Q20, According to Dell'Oro Group

Growth to Accelerate with 5G Core Deployments

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the Mobile Core Network market grew 10 percent year over year to nearly $8 Billion for the trailing four quarters ending in 1Q20. Growth is expected to accelerate over the next four quarters due to 5G Core deployments.

“Our outlook has become more positive, especially since the Chinese service providers accelerated their plans for 5G Core deployments,” stated David Bolan, Senior Analyst at Dell’Oro Group. “China Mobile and China Unicom have completed their 5G Core tenders, and plan to launch 5G service early in 3Q20. We expect other Chinese service providers will follow very soon. This has raised our outlook to an anticipated growth of 14 percent year over year for the trailing four quarters ending in 1Q21.”

“There are other factors influencing the uptake. The COVID-19 pandemic is now seen mostly as a positive for the wireless infrastructure sector with more demand for voice and data. Plus the T-Mobile/Sprint merger has completed, and the new T-Mobile is moving ahead with an aggressive 5G build,” Bolan continued.

Additional highlights from the Mobile Core Network 1Q20 report:

Revenue market share for Huawei and Ericsson combined for over half of the market, while Nokia, ZTE, and Cisco totaled over 25 percent, for the trailing four quarters ending in 1Q20.

We forecast the Network Function Virtualization penetration will approach 70 percent in 1Q21 due to the revenue growth in 5G Core deployments.

Source: Dell'Oro Group media announcement