According to the latest report released by Dell’Oro Group, the global 5G core (5GC) network market revenue in 2020 is expected to reach $1 billion dollars. As telecom operators accelerate the deployment of 5G core networks, the market will continue to grow in 2021. The revenue will always show strong growth. In the second quarter of 2020, the 5G core network accounted for nearly 15% of the overall mobile core network revenue. According to Dell’Oro the total 5G global revenue rise is largely by Chinese 5G companies. Another point of note in the Dell’Oro announcement is that Network Function Virtualization exceed 50% for the first time in Q2 2020.
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“This is the first quarter when vendors begin to report 5G core network revenue, and the revenue is surprisingly strong. Huawei and ZTE occupy the leading positions, ranking first and second respectively in 5G core network suppliers in Q2 2020. Mavenir is also very amazing in terms of 5G core network revenue.” said David Bolan, research director of Dell’Oro Group. “Accelerated deployment in the second half of 2020 has begun. T-Mobile has launched its 5G SA network in August. It also announced that Cisco and Nokia are its 5G core network suppliers.”
“Other telecom operators that will launch nationwide 5G SA networks in the second half of 2020. This includes the three major Chinese telecom operators. Their core network providers are Huawei, ZTE, Ericsson, and Nokia. South Korean telecom operators will also launch this year. 5G SA services will be launched in the second half of the year, and Ericsson, Nokia, and Samsung are expected to become their 5G core network suppliers.”
Other highlights of this report include:
- In the four quarters ending in the second quarter of 2020, 4G/5G core network revenue increased by 15% year-on-year
- In the four quarters ending in the second quarter of 2020, IMS core network VoLTE revenue increased by 8% year-on-year.
- Network Function Virtualization (NFV) exceeds 50%, for the first time in 2Q20,
