This acceleration is largely driven by the increasing adoption of 5G Standalone (SA) architecture.
In parallel, the Multi-Access Edge Computing (MEC) market is expected to expand at a much faster 17% CAGR, fuelled by the rollout of dynamic network slicing, Reduced Capability (RedCap) devices, and the rise of network APIs aligned with GSMA’s Open Gateway initiative.
“Our forecasts are primarily driven by subscriber growth rates and the usual subscriber behavior, and for the 5G MCN segment, our current projection is at a 6 percent CAGR,” says Dell’Oro’s Dave Bolan, “however, the emergence of Generative AI and Agentic AI, especially with increased data traffic and expectations for continuous, low-latency connectivity, may eventually require expanded network capacity, which could push the growth rate even higher. Agentic AI is also the key to reaching L4 autonomous networking, which could dramatically reduce operational costs for Mobile Network Operators (MNOs).
“MEC is expected to grow at a 17 percent CAGR due to the convergence of several key developments,” adds Bolan, “dynamic network slicing is enabling on-demand performance enhancements, RedCap is helping reduce the cost and complexity of IoT device connectivity, and the GSMA’s Open Gateway initiative (a.k.a. Network APIS) is rapidly gaining momentum. Seventeen APIs have already been defined, with support from 72 MNOs worldwide. Vendors are actively building and marketing Open Gateway-compliant solutions, further accelerating MEC adoption and ecosystem expansion.”
As 3G networks shut down, Circuit Switched Core networks must be upgraded to 
IMS Core to maintain voice calling on 4G networks. We are now estimating that the IMS Core/Voice Core cumulative revenue (2025-2029) will increase by 9 percent compared to our previous forecast.
Dell’Oro now estimates that 70 MNOs have deployed 5G SA networks in 39 countries/territories. In 2025 alone, five new 5G SA networks were launched, including Orange in France, Romania, and Slovakia; Vodafone in Spain, and O2 in the Czech Republic. Regionally, we count five networks in North America, 26 in Europe, seven in the Middle East and Africa, 13 in Northeast Asia, 13 in Southeast Asia, and six in Latin America.
Many MNOs already offer 5G SA for enterprises and Fixed Wireless Access (FWA), but have not yet opened the 5G SA network to consumers; however, they are expected to do so soon. They include MNOs such as Bouygues Telecom, O2 Telefónica, and SFR in France, Bharti Airtel in India, 3 in Ireland, Sunrise in Switzerland, and AT&T and Verizon in the US.
