Huawei Retains Lead in Mobile Core Network Market in 2Q 2023

In a recent report by Dell’Oro Group, the Mobile Core Network (MCN) market has shown a robust return to growth during the second quarter of 2023. Notable highlights include the resumption of growth in the China region, as well as the Europe, Middle East, and Africa (EMEA) region recording its most substantial quarterly growth rate since the third quarter of 2020.
Mobile core network revenue growth Q2 2023The China region’s resurgence was attributed to increased spending by two out of the four major Mobile Network Operators (MNOs). This upswing has significantly contributed to the overall positive performance of the MCN market. Simultaneously, the EMEA region’s remarkable quarterly growth rate marked a positive turning point, showcasing its best performance since the year 2020.

Among the key players, Huawei emerged as a standout performer, achieving record-high revenues for the quarter. Ericsson, another prominent player in the MCN market, experienced its most substantial growth rate since the second quarter of 2020, indicating a strong rebound in its operations.

“We are revising our projections for the Mobile Core Network (MCN) market’s year-over-year growth rate for 2023, upgrading it from a low single-digit percentage to a mid-single-digit percentage,” stated Dave Bolan, Research Director at Dell’Oro Group, underscoring the positive trajectory that the market is currently experiencing.

The MCN landscape has also witnessed noteworthy advancements in the deployment of 5G Standalone (SA) networks. As of the second quarter of 2023, a total of 44 Mobile Network Operators (MNOs) have successfully launched commercial 5G SA networks.

This period saw the addition of Telefonica from Spain to the list of operators offering these cutting-edge networks. Of particular note, the North America and EMEA regions showcased triple-digit year-over-year growth rates in the 5G MCN segment. This spike indicates substantial capacity enhancements to the 5G SA networks in both regions.

The leading contenders in the MCN market for the second quarter of 2023 included Huawei, Ericsson, Nokia, and ZTE. These companies have consistently demonstrated their dominance and influence in shaping the MCN landscape.

Furthermore, the 5G MCN sector saw the top vendors continuing to assert their prowess. The leading players for the second quarter of 2023 in this category were Huawei, Ericsson, ZTE, and Nokia, further solidifying their leadership roles in driving the adoption and evolution of 5G technology.

Concluding the report, it was highlighted that a total of five Mobile Network Operators launched commercial 5G SA networks in the first half of 2023, further underscoring the continued momentum in the adoption and deployment of advanced 5G infrastructure.

The resurgence of the Mobile Core Network market, driven by factors such as renewed investments and technological advancements, indicates a promising outlook for the industry as it continues to pave the way for the future of wireless connectivity.