The 5G standalone (SA) core market is at a near standstill. Despite significant revenue-generating opportunities the technology can support, those opportunities continue to be a slow-simmering driver for the market.

A 5G SA core, which consists of the user plane, control plane and shared data layer network functions, allows operators to deliver a more resilient core network and support highly-touted 5G services like network slicing, automation, orchestration and mobile edge computing (MEC). This differs from a non-standalone (NSA) 5G core that relies on an operator’s legacy 4G LTE core for base processing and routing, but lacks access to the more advanced 5G features.

Stéphane Téral, chief analyst for LightCounting, noted 5G SA cores were part of only 40 of the 255 5G commercial networks launched at the end of the first quarter. This was barely more than what the analyst firm had seen 18 months ago when it found just 20 5G SA cores as part of the at-then 200 commercial 5G network deployments.

Téral linked the continued slog to ongoing use case and technical concerns.

“The lack of compelling 5G business cases beyond enhanced mobile broadband (eMBB) and fixed-wireless access (FWA), combined with some network architecture issues related to the complexity of cloud-native computing, continue to inhibit 5G SA core rollouts,” Téral wrote. “As a result, communications service providers are just sweating their [evolved packet core/virtualized EPC], saying there is no race, no rush to SA after all.”

Despite the slow roll, Téral did note that the ongoing service push around open radio access networks (RAN), FWA and private 5G networks will begin to accelerate the 5G SA market.

“So far, the ‘killer app’ has just been the gain of operating cost efficiencies rather than anything else,” Téral explained. “But now, the market dynamics are changing: more devices support 5G SA, the 5G RAN investment peak is behind, CSPs are seriously looking at their 5G SA plans and the number of 5G SA core [requests for proposals] is swelling.”

LightCounting’s numbers were corroborated by research firm Dell’Oro Group, which noted that only four new 5G SA networks were launched in the first half of this year compared to six in the first half of 2022. Dell’Oro Group Research Director Dave Bolan tied the tepid progress to several macroeconomic and geopolitical issues.

“Mobile network operators (MNOs) are concerned about inflation, a possible recession and political conflicts,” Bolan wrote. “They are therefore being restrained in their capital expenditures, another factor weighing in on a more conservative forecast.”

Many operators that jumped out early on 5G deployments did so riding on top of 5G NSA cores due to timing and maturity challenges for the 5G SA technology. Some of those operators continue to rely on the 5G NSA cores to support network traffic but are starting to integrate 5G SA to gain greater financial flexibility.

“Standalone 5G will probably have its greatest impact in the enterprise market, enabling technologies such as network slicing or supporting applications in areas like private mobile networks,” CCS Insight’s Kester Mann wrote in a recent research note tied to Vodafone’s recent consumer-focused 5G SA core launch in the United Kingdom. “It’s therefore interesting that — once again — the consumer market has formed the initial focus of marketing efforts. Given that the non-standalone version of 5G has proved something of a damp squib so far, I’ll be keeping a close watch on how customers perceive what many believe is the start of the real 5G journey.”

LightCounting noted Ericsson and Nokia “are poised to benefit the most from the market pickup,” with NEC, Mavenir, Microsoft Azure for Operators, Oracle and Samsung “showing strong market momentum.”