Dave Bolan, Research Director at Dell’Oro Group, stated: “With this high growth rate in 1Q 2025, we are raising our projection for the year 2025 from 2 percent Y/Y to 5 percent Y/Y.”
Several key developments contributed to the growth, particularly in China, where multiple large-scale projects were completed, significantly benefiting ZTE. Additional factors include the ongoing replacement of virtual network functions (VNFs) with cloud-native network functions (CNFs), and the accelerating migration from 4G to 5G handsets. These changes are boosting demand for capacity on newly established 5G Standalone (5G SA) networks.
Globally, momentum is also building around 5G SA network deployments. Orange in France launched a major 5G SA network in 2025, while Airtel in India and Vodafone in Spain have announced plans to prepare their infrastructure for 5G SA. Dell’Oro projects the 5G MCN market will grow by 15% Y/Y in 2025. The IMS Core segment is also expected to expand by 5% Y/Y as more 3G networks are decommissioned and modernization with CNFs progresses.
The report also offers regional insights. Excluding China, the global market is forecast to grow by 3% Y/Y, with the Europe, Middle East, and Africa (EMEA) region anticipated to lead in growth. China remains the fastest-growing market, expected to maintain a 12% growth rate in 2025 due to ongoing subscriber migration to 5G networks.
Vendor rankings for Q1 2025 show Huawei, ZTE, Ericsson, and Nokia as the leading suppliers globally. For markets outside China, the rankings were Huawei, Ericsson, Nokia, and ZTE. These positions reflect strong competition and advancements across the MCN vendor landscape.
Overall, the Q1 2025 results signal continued robust growth for the MCN market, underpinned by expanding 5G SA deployments, infrastructure upgrades, and broader subscriber migration trends. With strong performances in China and emerging developments across Europe and Asia, the sector is positioned for sustained momentum throughout the year.
