The 5G Standalone (SA) Revolution: How 5G Core Network Growth Is Reshaping Telecom and Cloud Infrastructure Markets

The telecom and cloud infrastructure sectors are on the cusp of a seismic shift. Driven by the rapid adoption of 5G Standalone (SA) architecture, the global 5G Mobile Core Network (MCN) market is projected to grow at a staggering 9.5% compound annual growth rate (CAGR) through 2032, according to Market Research Future (MRFR). This figure dwarfs the 6% CAGR forecast by Dell'Oro Group for the 2024–2029 period, but the divergence makes sense when contextualized by long-term trends: MRFR's extended timeline accounts for the compounding effects of AI-driven demand, 5G-Advanced, and the eventual saturation of legacy 4G networks. For investors, this divergence signals a critical inflection point in capital allocation, as next-gen telecom infrastructure and cloud enablers prepare to outpace traditional sectors.

The 5G SA Catalyst: From Network Slicing to Autonomous AI

The 5G SA revolution is not merely about faster data speeds. At its core, SA architecture decouples the control plane from the user plane, enabling dynamic network slicing, ultra-low latency, and the integration of AI-driven automation. Dell'Oro's data shows that 70 mobile network operators (MNOs) have already deployed 5G SA in 39 countries, with five new networks launched in 2025 alone. These deployments are concentrated in Europe (26), Northeast Asia (13), and North America (5), regions where operators are leveraging SA for enterprises, Fixed Wireless Access (FWA), and eventually consumer services.

The key differentiator, however, is the convergence of 5G SA with AI. Generative AI and Agentic AI are expected to drive exponential data traffic growth, demanding networks that can scale dynamically. Dell'Oro's research director, Dave Bolan, notes that Agentic AI—a system capable of autonomous decision-making—could reduce MNO operational costs by enabling L4 autonomous networking. This shift not only accelerates demand for 5G SA but also redefines the role of cloud infrastructure, which must now support real-time analytics, edge computing, and AI model training at scale.

Market Dynamics: Why the 9.5% CAGR Is Within Reach

While Dell'Oro's 6% CAGR for 2024–2029 reflects current adoption rates, MRFR's 9.5% projection through 2032 hinges on three factors:
1. AI-Driven Infrastructure Demand: As AI models grow in complexity, the need for low-latency, high-capacity networks will surge. MNOs will invest heavily in 5G SA and Multi-Access Edge Computing (MEC), which is expected to grow at 17% CAGR.
2. 5G-Advanced and Non-Terrestrial Networks (NTN): The rollout of 5G-Advanced (3GPP Release 19) and satellite-based NTN will expand 5G SA's reach, particularly in rural and industrial areas. This will require new infrastructure investments in core networks and cloud-native virtualization.
3. Private Wireless and Industry 4.0: Enterprises are adopting private 5G SA networks for smart manufacturing, logistics, and healthcare. MRFR forecasts that private wireless will account for 5–10% of total RAN by 2029, with a 15–20% CAGR.

Capital Allocation Opportunities: Telecom Equipment vs. Cloud Enablers

Investors must navigate two complementary pathways:
- Telecom Equipment Providers: Companies like Ericsson (ERIC), Nokia (NOK), and Huawei (via partnerships) are leading 5G SA deployments. Ericsson's cloud-native 5G core solutions, for instance, are being adopted by operators in Europe and the Middle East. However, these firms face margin pressures due to competitive pricing in the MCN market.
- Cloud Infrastructure and AI Enablers: Amazon Web Services (AMZN), Microsoft (MSFT), and Google Cloud (GOOGL) are positioning themselves as key players in hybrid 5G-Cloud ecosystems. AWS's Wavelength zones and Microsoft's Azure Edge Zones are examples of cloud platforms integrating with 5G SA to support AI workloads.

A third, often-overlooked opportunity lies in RedCap (Reduced Capability) devices. These low-cost, low-power IoT devices are ideal for smart cities and industrial automation. Dell'Oro notes that RedCap will drive MEC adoption, creating demand for companies like Qualcomm (QCOM) and Intel (INTC), which supply the underlying semiconductor technology.

Regional Insights: North America and Asia-Pacific Lead the Charge

The U.S. and China are the two dominant players in 5G SA. In the U.S., AT&T (T) and Verizon (VZ) are testing 5G SA for enterprise applications, while T-Mobile (TMUS) is prioritizing FWA. Meanwhile, China Mobile (CHL) and ZTE (ZTEMF) are scaling 5G SA for smart city projects and AI-driven manufacturing.

In Asia-Pacific, Japan's NTT DoCoMo and South Korea's SK Telecom are investing in 5G SA for autonomous vehicles and remote surgery. India's Reliance Jio (RJIL) is also leveraging 5G SA to expand its digital services, aligning with the government's 5G adoption goals.

Risks and Mitigations

The 9.5% CAGR is not without risks:
- Capital Intensity: Building 5G SA infrastructure requires significant upfront investment. Smaller MNOs may struggle to compete with industry giants.
- Regulatory Uncertainty: Spectrum allocation and data privacy laws vary by region, creating compliance challenges.
- AI Investment Diversion: As noted by Dell'Oro, capital is increasingly flowing into AI data centers and semiconductors, potentially leaving 5G infrastructure underfunded.

To mitigate these risks, investors should focus on companies with diversified revenue streams. For example, Ericsson's recent AI-driven automation tools for 5G SA reduce operational costs, while AWS's partnerships with telecom operators create recurring revenue opportunities.

Conclusion: A Strategic Play for the Next Decade

The 5G SA revolution is a multi-trillion-dollar opportunity, with MRFR's 9.5% CAGR through 2032 underscoring its long-term potential. For capital allocators, the key is to balance near-term telecom equipment plays (Ericsson, Nokia) with long-term cloud and AI enablers (AWS, Microsoft). Additionally, exposure to RedCap and MEC through semiconductor firms like Qualcomm could provide a high-growth tailwind.

As the world transitions from 5G to 5G-Advanced, the winners will be those who can seamlessly integrate AI, cloud, and telecom infrastructure. The next decade is not just about connectivity—it's about building the backbone of autonomous, intelligent systems.