5G Core Revenue Growth Shifts Outside China, Dell’Oro Reports
5G mobile core network revenue in North America and EMEA increased by 20% year-over-year. In contrast, China experienced its sharpest decline in 5G revenue since the technology's introduction. The shift towards cloud-native architectures is driving modernization efforts among operators.
Regional Divergence in 5G Revenue
According to research from Dell’Oro Group, worldwide 5G mobile core network (MCN) revenue trends diverged sharply in the first quarter of 2026.
Revenue in North America and EMEA expanded by 20% year-over-year, continuing the momentum that began in 2025.
Conversely, China recorded its most significant decline in 5G revenue since the technology was introduced.
Siân Morgan, research director at Dell’Oro Group, stated, "In North America and EMEA, the 5G core network revenue growth that started in 2025 continued into the first quarter of 2026, with revenue from those regions expanding 20 percent."
Shift to Cloud-Native Architectures
The research indicates that operators are accelerating their 5G Standalone (5G SA) upgrades as the industry transitions toward cloud-native, microservices-based network architectures.
Morgan noted, "The biggest driver of 5G SA upgrades is the recognition by mobile operators that the whole industry is moving towards a cloud-native architecture." This shift is prompting many operators to modernize their core networks, aiming to capitalize on operational efficiencies enabled by cloud-native technologies.
Vendor Concentration and Market Dynamics
Dell’Oro highlighted that the major players in the market, including Huawei, Ericsson, and Nokia, are expanding their market share as telecom operators scrutinize network spending and server costs.
Morgan commented that 5G SA deployments reached a turning point in 2025, allowing larger suppliers to strengthen their positions.
Despite rising server prices, these vendors have successfully taken share from smaller competitors.
Morgan also mentioned that operators are beginning to explore monetization opportunities tied to advanced 5G functionalities, although these expectations remain partially fulfilled.
He stated, "Operators are also starting to find ways to monetize their 5G SA networks, with functionality such as slicing, RedCap, and advanced carrier aggregation; however, there is a general sense from operators that the monetization opportunities have not yet fulfilled industry expectations."
Future Outlook
Looking ahead, Dell’Oro forecasts that regional market divergence will continue through 2026, with EMEA projected to lead global growth at 21% year-on-year.
North America is expected to follow closely with a 20% growth rate.
In contrast, China is anticipated to experience a double-digit decline in its 5G MCN spending, having peaked in the first quarter of 2025.
The multi-access edge computing market continues to grow, with China remaining the dominant region for MEC deployments, while 4G packet core revenue has outpaced overall market growth as operators invest in legacy network modernization.
