April 3, 2024

Last month Exact Ventures reported that in 4Q23, the total market (PCRF + PCF) grew 11% sequentially but was down 21% compared to 4Q22 when both PCRF and PCF sales showed strong growth. The year-over-year decline was due weak sales in EMEA, which was down about 50% to $55 million accounting for 24% of the market, down from 36% of the market in 4Q22. Both PCRF and PCF sales were weak in the region for the quarter. Compared to 4Q22, regional performance was mixed. Sales were essentially flat in North America while revenues declined in Asia Pacific and rose in Latin America. During the quarter, 58% of the total market was comprised of PCF revenues, up from 46% of the market in 4Q22.

We forecast that in 2024 PCF revenues will grow 26% and will account for 61% of the total policy network function market. The need for policy network functions will remain important as 5G SA investment and usage grows and spreads to different use-cases. There is increased interest in policy solutions for IoT or RedCap and continued demand from VoLTE/VoNR and billing and charging use-cases.

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