Global Virtualized Evolved Packet Core (vEPC) Market Size By End-User (Telecommunication Service Providers, Businesses, Government & Public Sector), By Deployment Model (On-premises, Cloud-based), By Use Case (Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low-Latency Communication (URLLC)), By Geographic Scope and Forecast

Virtualized Evolved Packet Core (VEPC) Market Size And Forecast

Virtualized Evolved Packet Core (vEPC) Market size was valued at USD 6.48 Billion in 2024 and is projected to reach USD 26.98 Billion by 2031, growing at a CAGR of 19.52% from 2024 to 2031.

• The virtualized evolved packet core (vEPC) is a critical advancement in telecommunications infrastructure, notably for mobile networks. Traditionally, mobile networks relied on hardware-based components to provide the essential activities of packet switching, session management, and mobility management. However, with the development of virtualization technologies such as Network Functions Virtualization (NFV), the vEPC has emerged as a critical solution for increasing flexibility, scalability, and cost-efficiency in delivering mobile services.
• The major application of vEPC is to optimize network resource utilization. By virtualizing EPC operations such as the Mobility Management Entity (MME), Serving Gateway (SGW), and Packet Data Network Gateway (PGW) operators can dynamically assign resources in response to traffic demands. This flexibility enables efficient scaling of network capacity during peak usage periods resulting in optimal performance without requiring considerable upfront hardware investments.
• The future of vEPC is bright, thanks to continued advances in cloud-native designs, automation, and artificial intelligence (AI). These enhancements will improve VEPC’s scalability, performance, and operating efficiency. Furthermore, as 5G deployments grow and evolve, vEPC will play a critical role in enabling new use cases such as augmented reality, self-driving cars, and smart cities that require ultra-reliable and low-latency connectivity.

Global Virtualized Evolved Packet Core (vEPC) Market Dynamics

The key market dynamics that are shaping the virtualized evolved packet core (vEPC) market include

Key Market Drivers

• Technological AdvancementsAdvances in virtualization and cloud computing have had a huge impact on the virtual EPC market. Traditional EPC systems which rely on hardware are gradually being replaced by virtualized alternatives that use cloud technology. Virtualization enables the independence of network functions from proprietary hardware resulting in cost savings and enhanced agility. Cloud-native architectures help operators build, manage, and scale network functions more efficiently. Technologies such as Network Functions Virtualization (NFV) and Software-Defined Networking (SDN) are critical to this shift because they lay the groundwork for developing flexible, dynamic, and programmable networks.
• Increasing Mobile Data Traffic The exponential growth of mobile data traffic is another important driver for the vEPC market. The rise of smartphones, tablets, and other connected gadgets has caused an increase in data consumption. Video streaming, social networking, online gaming, and IoT devices all require high bandwidth and low latency putting a strain on traditional network infrastructures. vEPC solutions are designed to manage large amounts of data traffic efficiently. They provide operators with the scalability required to address increasing data needs without sacrificing performance. By utilizing virtualization, operators can dynamically distribute resources to meet variable traffic demands assuring the ideal customer experience.
• Demand for Network Flexibility and ScalabilityThe requirement for network flexibility and scalability is a primary driver of vEPC adoption. Traditional EPC systems are frequently stiff and difficult to scale rendering them ineffective for the dynamic needs of modern telecom networks. vEPC, on the other hand provides unprecedented flexibility and scalability. Virtualized networks are readily changed, scaled up or down, and controlled remotely which is critical for meeting the changing needs of different markets and client groups. This flexibility is especially crucial in terms of network expansion and upgrades.

Key Challenges

• Technical Challenges Virtualizing the evolved packet core entails converting physical network functions (PNFs) into virtual network functions (VNFs). The technical complexities of this transition make it difficult. Traditional EPC components such as the Mobility Management Entity (MME), Serving Gateway (SGW), and Packet Data Network Gateway (PGW) must be redesigned to function well in a virtual environment. Getting these VNFs to work as well as their physical counterparts involves a large amount of software development and tuning.
• High Availability and ResilienceTelecom networks require great availability and resilience. VNFs must be built to gracefully handle failures resulting in little service disturbance. Implementing features such as live migration, automated failover, and self-healing techniques is critical but difficult. To ensure service continuity, the orchestration layer responsible for managing these VNFs must be strong and capable of making real-time decisions.
• Standards and InteroperabilityThe absence of standards in vEPC components adds another layer of complexity. Different vendors may implement VNFs differently causing interoperability concerns. This can impede seamless integration and operation in multi-vendor setups that are frequent in large-scale deployments. Furthermore, MNOs must verify that their virtualized components meet the most recent standards established by organizations such as 3GPP which is critical for future-proofing the network.

Key Trends

• Virtualization and Cloud Native Architecture Virtualization is at the heart of vEPC, converting traditional hardware-based network services into software that may run on commodity hardware or cloud infrastructure. This move increases the flexibility, efficiency, and cost-effectiveness of installing and managing network services. By isolating software from hardware, vEPC allows operators to dynamically allocate resources, scale services up or down as needed, and introduce new services quickly.
• Network Slicing and Service DifferentiationNetwork slicing is a critical element of vEPC allowing operators to establish several virtual networks on a same physical infrastructure. Each network slice is designed for a certain use case, application, or client segment with specialized resources and performance characteristics. This capability enables operators to provide unique services that address a wide range of latency, bandwidth, security, and reliability requirements.
• Automation and OrchestrationAutomation and orchestration are critical for managing the complexity of vEPC deployments while guaranteeing effective operation and maintenance. Automation entails applying cognitive algorithms and software-defined processes to automate common tasks like provisioning, configuration, monitoring, and troubleshooting. This decreases operational expenses, minimizes human error, and speeds up service delivery.

Global Virtualized Evolved Packet Core (vEPC) Market Regional Analysis

Here is a more detailed regional analysis of the virtualized evolved packet core (vEPC) market

North America

• According to Market Research analyst, North America is expected to dominate the virtualized evolved packet core (vEPC) market. North America is likely to dominate the virtualized evolved packet core (vEPC) industry with numerous major factors contributing to its significant market share. The region’s leadership in vEPC adoption is partly due to a determined push to improve network infrastructure capabilities using virtualization technology. These technologies help telecoms operators and service providers to move away from traditional, hardware-dependent network architectures and toward more agile and cost-effective software-defined alternatives.
• The region’s dominance in the virtualized evolved packet core market is supported by strategic adoption of virtualization technologies, widespread deployment of advanced networking and communication solutions, an increasing reliance on cloud-based services, and strong government support for 5G infrastructure development. These elements place the region at the forefront of telecommunications innovation allowing operators to boost network performance, improve operational efficiency, and deliver greater quality of service to satisfy the increasing demands of digital consumers and companies alike.

Asia Pacific

• The Asia-Pacific region is expected to enjoy the largest compound annual growth rate (CAGR) during the projection period owing to a number of important factors changing its telecommunications landscape. One of the key growth drivers in the region is the increased adoption of network function virtualization (NFV) solutions and cloud services. NFV signifies a shift away from traditional hardware-dependent network infrastructure and toward software-based solutions that are more flexible and cost-effective to build and manage. This transition is particularly appealing to Asia-Pacific telecommunications operators because it enables them to dynamically increase network capabilities, optimize resource allocation, and accelerate the rollout of new services in response to rising consumer demand.
• The Asia-Pacific region is expected to see a considerable increase in the adoption of NFV solutions, cloud services, and 5G-ready infrastructure driven by factors such as rising mobile penetration, digital transformation programs and the need for resilient telecommunications networks. As operators and enterprises prioritize agility, scalability, and cost-efficiency in network deployments, NFV and cloud-based solutions will play a critical role in shaping Asia-Pacific’s telecommunications future enabling innovative services and improving overall customer experiences across diverse market segments.

Global Virtualized Evolved Packet Core (vEPC) MarketSegmentation Analysis

The Global Virtualized Evolved Packet Core (vEPC) Market is segmented based on End-User, Deployment Model, Use Case and Geography.

Virtualized Evolved Packet Core (vEPC) Market, By End-User

• Telecommunication Service Providers
• Businesses
• Government & Public Sector

Based on Type, the market is divided into Telecommunication Service Providers, Businesses, and Government & Public Sector. Among the end users mentioned, Telecommunication Service Providers (MNOs, CSPs, and MVNOs) dominate the virtualized evolved packet core (vEPC) market. This dominance stems from their critical role in deploying and managing mobile networks that serve millions of subscribers. vEPC solutions enable these providers to virtualize and centralize core network functions enhancing scalability, flexibility, and cost-efficiency in delivering 4G LTE and 5G services. Telecommunication service providers leverage vEPC to meet the increasing demand for high-speed data, low-latency connectivity, and differentiated services across consumer, enterprise, and IoT segments.

Virtualized Evolved Packet Core (vEPC) Market, By Deployment Model

• On-premises
• Cloud-based

Based on Flavor, the market is divided into On-premises, Cloud-based. In the Virtualized Evolved Packet Core (vEPC) market, cloud-based deployment models are increasingly dominant for several compelling reasons. Cloud-based vEPC systems offer significant advantages such as scalability, flexibility, and cost-effectiveness. They enable operators to quickly scale infrastructure resources up or down based on demand optimizing operational efficiency and reducing upfront capital expenditures. Moreover, cloud-based solutions are inherently more agile allowing operators to rapidly deploy new services and upgrades without the constraints of physical hardware dependencies.

Virtualized Evolved Packet Core (vEPC) Market, By Use Case

• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable Low-Latency Communication (URLLC)

Based on Distribution Channel, the market is divided into Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low-Latency Communication (URLLC). In the context of the Virtualized Evolved Packet Core (vEPC) market, Enhanced Mobile Broadband (eMBB) emerges as the dominant use case. This dominance is driven by the widespread consumer demand for high-speed data services and seamless multimedia streaming over LTE and emerging 5G networks. eMBB solutions leverage vEPC to enhance network capacity, improve data rates, and deliver superior user experiences catering to the increasing consumption of bandwidth-intensive applications such as video streaming, online gaming, and virtual reality.

Virtualized Evolved Packet Core (vEPC) Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Virtualized Evolved Packet Core (vEPC) Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. Among the regions mentioned, Asia-Pacific stands out as dominant in the virtualized evolved packet core (vEPC) market due to several compelling factors. Countries like China, India, Japan, and South Korea are at the forefront of 5G deployment and digital transformation initiatives. These nations exhibit robust growth in mobile broadband subscriptions, high smartphone penetration rates, and substantial investments in telecommunications infrastructure.

Key Players

The Virtualized Evolved Packet Core (vEPC) study report will provide valuable insight with an emphasis on the global market. The major players in the market are Cisco Systems, Inc., Nokia Corporation, Huawei Technologies Co., Ltd., Ericsson AB, ZTE Corporation, Affirmed Networks, Mavenir Systems, Inc., NEC Corporation, Samsung Electronics Co., Ltd., and Ciena Corporation.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Virtualized Evolved Packet Core (vEPC) Market Recent Developments

• In October 2022, the Smart Networks and Services Joint Undertaking (SNS JU) announced its first portfolio of 35 research, innovation, and trial projects to advance 5G ecosystems and support 6G research across Europe. The goal of this new portfolio, which will receive approximately USD 250 million in funding from Horizon Europe, is to establish a first-class European supply chain for advanced 5G equipment as well as to expand Europe’s 6G technology capacities.
• In February 2023, Intel Corporation and SK Telecom announced the availability of Intel Infrastructure Power Manager for 5G Core. The built-in acceleration meets crucial performance, scale, and power requirements while saving an average of 30% CPU power during runtime.

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