This research highlight provides an overview of the current state and future trends in the 5G Standalone (SA) market. Readers can expect to learn about the anticipated growth trajectory of 5G SA, particularly between 2027 and 2030, and how the 5G Core (5GC) is driving this development. The highlight also discusses key regions leading in SA deployments, such as North America and China, and emphasizes the increasing significance of Quality of Service (QoS) management and enterprise applications.
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5G Standalone Market Outlook
The 5G Standalone (SA) market is progressing steadily, yet it has not yet entered the widely anticipated acceleration phase. Analysis of the revenue growth of 4G and 5G infrastructure between 2023 and 2030 reveals several critical insights:
Continued Slow Growth of 5G SA
The transition to 5G SA is expected to gain momentum between 2027 and 2030. This gradual pace can be attributed to ongoing challenges faced by operators and vendors, including the investment required for 5G Core (5GC) systems and the migration from legacy technologies. By the time we reach the crossover point from 4G to 5G, the overall infrastructure market may contract due to the deepening penetration of 5G and the anticipation of 6G deployment.
Growth of 5GC as a Key Driver
5GC stands out as the sole category within network infrastructure that demonstrates accelerated growth during this period. Conversely, revenue from 4G Radio Access Network (RAN), 4G Evolved Packet Core (EPC), and 5G RAN is declining. This shift underscores the increasing significance of 5GC in the overall market landscape.
5G SA Will Accelerate, but NSA Will Persist
While an acceleration phase for 5G SA adoption is highly anticipated, it does not mean that 5G Non-Standalone (NSA) will disappear. NSA is expected to remain a viable solution for enhancing 5G coverage until the rollout of 6G. The continued revenue generation from 4G infrastructure until 2030 illustrates the sustained relevance of NSA.
Despite the slow overall transition to 5G SA, several areas are currently witnessing significant growth. The rest of this article explores these key trends.
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“Implementation record, deployment services, and non-5GC support systems are a primary axis of market differentiation in the early stages of 5G SA.” – Nelson Englert-Yang, Industry Analyst at ABI Research
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Leading Regions for 5G SA Deployments
North America, select European countries, and China are at the forefront of 5G SA deployments. Asia-Pacific, particularly China, is leading the way with the implementation of 5G-Advanced. In the United States and Canada, major Tier One operators have established 5GC systems and are increasing localized deployments, although they have not yet reached full commercial scale.
Meanwhile, European nations like Turkey, Germany, and Spain are rapidly advancing their 5G SA capabilities. For example, Deutsche Telekom (DT) Germany and Mavenir are strategic partners for 5G SA deployments, with Mavenir’s use of network Application Programming Interfaces (APIs) being a key enabler.
Quality of Service (QoS) Management as a Trending Use Case
As of 3Q 2024, QoS management has emerged as a prominent use case in 5G SA. In North America, this involves delivering on the promise of network slicing. For instance, T-Mobile is running a nationwide network slicing beta program aimed at enhancing video calling applications, while Verizon is conducting network slicing trials for first responders.
In the Asia-Pacific region, telcos are moving toward dynamic QoS control through service differentiation. This trend is exemplified by the partnership between Huawei and China Mobile for differentiated services.
Enterprise 5G SA as a Key Deployment Type
Telco operators are leveraging 5G to unlock new enterprise applications, facilitating their transition to commercial services. For example, T-Mobile US provides hybrid network services for Delta Airlines, enabling efficient 5G SA connectivity for various operational needs, including pre-flight and post-flight services. T-Mobile is also collaborating with Tractor Supply stores nationwide, testing 5G at the edge for smart store services such as inventory management and operational optimization. The high reliability and low latency of 5G make it ideal for meeting the demands of these enterprises.
Moreover, vendors have the opportunity to capitalize on enterprise 5G trends by offering private networks, as demonstrated by Ericsson’s work with Nestlé’s smart factory and Toyota Material Handling’s production complex. Some enterprises report that vendor solutions expedite deployment timelines and better address their network performance needs than traditional operators. In addition to enterprise deployments, notable commercial trials and hyperlocal "event-based" initiatives, such as network slicing for Formula 1 (F1) races by Singtel and T-Mobile, are also gaining traction.
Key Companies in the 5G SA Market
The following table summarizes the 5G SA offerings from leading vendors like Cisco, Ericsson, Huawei, Nokia, and ZTE.
Table 1: At-a-Glance Comparison of Vendor 5G Core Offerings
|
Vendor |
5G Core Offerings |
Comparative Advantages |
|
Cisco |
Cisco Ultra Cloud Core, 5G SA Cloud-Native Function (CNF) solution Cisco Ultra Packet Core, dual-mode Virtualized Network Function (VNF) solution |
Open architecture with support for multi-vendor network components, especially between 5GC and RAN, as demonstrated by multi-vendor Cisco-Samsung 5G trial deployments for Verizon and Orange. |
|
Ericsson |
Ericsson 5G Core, dual-mode |
Balanced portfolio for 1) streamlining transition of legacy with 5G Non-Standalone (NSA) packet core and intelligent deployment, and 2) heading early developments of network API and service differentiation in Western markets. |
|
Huawei |
Huawei 5G Core, dual-mode |
Automation through the integration of Huawei’s 5G Core with its Orchestration and Management (O&M) solution, the Autonomous Driving Network (ADN). The result is real-time, deterministic operations and advancement of network autonomy. |
|
Mavenir |
MAVcore Converged Packet Core, (2G/3G, 4G, 5G on 5G SA architecture) Small footprint 5GC option for enterprise |
Deployment flexibility through Any-G compatibility, CUPS architecture, small footprint option, and enhancement of basic COTS hardware through a UPF Smart Network Interface Card (SmartNIC). Mavenir’s tools and deployment strategies target vendors’ specific needs. |
|
Nokia |
Cloud Mobile Gateway |
Multi-cloud offerings by Nokia position it as a cloud-progressive vendor, which is further supported by its public cloud commercial deployment with DISH and its emphasis on granular, microservice-based architectures. |
|
ZTE |
ZTE Turbo Core |
Network infrastructure enhancement through novel use of in-line accelerator cards, including not only SmartNIC, but also NEO Cloud for offloading virtualization, a Time-Promised Communication (TPC) card for deterministic forwarding, and a Graphics Processing Unit (GPU)-based visual accelerator for media processing, all boosting network performance. |
(Source: ABI Research)
Conclusion
The 5G Standalone market is on a promising trajectory, with significant growth opportunities emerging, particularly in North America, Europe, and China. While the transition to 5G SA may be slow, the areas of enterprise applications and QoS management are poised to drive future developments.
For more in-depth insights and detailed analysis, download the report titled 5G Standalone: Market Trends and Vendor Profiles from ABI Research.
Download the Report: 5G Standalone: Market Trends and Vendor Profiles
