Virtualized Evolved Packet Core (vEPC) Market

Virtualized Evolved Packet Core (vEPC) Market Size, Share, Industry Growth, Latest Trends, Forecast - 2028

[280 Pages Report] The global vEPC market is USD 8.4 billion for the year 2023 and is expected to be worth USD 19.9 billion by 2028, growing at a CAGR of 18.7% during the forecast period. The rapid growth of mobile data traffic and the increasing number of connected devices create a demand for highly scalable and efficient network infrastructure. vEPC offers the flexibility and agility needed to handle this surge in data traffic and support the seamless connectivity of numerous devices.

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vEPC Market Dynamics

Driver: Increasing Demand for High-Speed and Reliable Connectivity

The growing adoption of data-intensive applications and emerging technologies like the Internet of Things (IoT) and 5G has created a significant demand for high-speed and reliable connectivity. Businesses and consumers require seamless connectivity to support bandwidth-intensive activities such as video streaming, online gaming, and real-time data transmission. vEPC solutions are crucial in meeting this demand by offering virtualized Evolved Packet Core functionality. These solutions provide efficient network management, scalability, and flexibility, enabling service providers to deliver fast and reliable customer connectivity.

Restraint: Complexity and Cost of Implementation and Management

Implementing and managing virtualized network infrastructure, including vEPC solutions, can be complex and costly for organizations. The deployment of vEPC requires skilled professionals who possess expertise in virtualization, network management, and security. Additionally, organizations need to invest in robust IT systems and infrastructure to support the virtualized environment. The complexity and cost of implementation and management can act as barriers to entry for smaller organizations or those with limited resources. Furthermore, data security and privacy concerns need to be effectively addressed to ensure the widespread adoption of vEPC solutions.

Opportunity: Adoption of Cloud Computing and Virtualization Technologies

The increasing adoption of cloud computing and virtualization technologies presents a significant opportunity for the vEPC market. Cloud-based vEPC deployments offer scalability, cost-efficiency, and easier management than traditional hardware-based solutions. By leveraging cloud infrastructure, organizations can dynamically scale their network resources based on demand, reducing operational costs and increasing flexibility. Additionally, virtualization technologies enable the decoupling of software from hardware, allowing for efficient resource utilization and simplified network management. Integrating vEPC with cloud computing and virtualization technologies opens up new possibilities for network optimization, service delivery, and enhanced user experiences.

Challenge: Interoperability and Standardization

Interoperability and standardization are major challenges in the vEPC market. As multiple vendors offer vEPC solutions, ensuring seamless interoperability between different components and networks becomes crucial. The lack of interoperability can lead to compatibility issues and limit the scalability of vEPC deployments. Additionally, the absence of standardized protocols and interfaces hinders the smooth integration of vEPC with other network elements and technologies. Establishing industry-wide standards and protocols for vEPC will promote interoperability, simplify deployment, and enhance the overall efficiency of virtualized networks.

vEPC Market Ecosystem

The vEPC market is driven by prominent companies that have established themselves as leaders in the industry. These companies are well-established, financially stable, and have a proven track record in providing innovative solutions and services in the telecommunications sector. Their diverse product portfolio spans infrastructure, devices, applications, and services, enabling them to cater to the market's evolving needs. With state-of-the-art technologies and extensive research and development capabilities, these companies are at the forefront of driving the advancement of vEPC technology.

By offering, services segment to grow at a higher CAGR during the forecast period

As organizations increasingly adopt virtualized evolved packet core solutions, they require a range of services to support their deployment and operation. These services encompass consulting, system integration, customization, training, and ongoing technical support. With the complex nature of vEPC implementations and the need for seamless integration with existing network infrastructure, businesses rely on service providers to ensure a smooth transition and optimal performance.

By network type, the 5G network segment is expected to grow at a higher CAGR during the forecast period

With the rapid adoption of 5G technology worldwide, there is a surge in demand for virtualized evolved packet core (vEPC) solutions to support the advanced capabilities of 5G networks. The 5G network segment offers unprecedented speed, ultra-low latency, and massive device connectivity, enabling transformative applications across industries. As businesses and consumers increasingly embrace the benefits of 5G, the demand for vEPC solutions tailored for 5G networks is expected to witness substantial growth, driving the overall expansion of the vEPC market.

By region, Asia Pacific to grow at a higher CAGR during the forecast period

With its large population, rapid digital transformation, and increasing smartphone penetration, the region presents immense opportunities to adopt virtualized evolved packet core (vEPC) solutions. The Asia Pacific countries are actively investing in deploying 5G networks, driving the demand for vEPC infrastructure to support the next generation of wireless communication. Additionally, the region is witnessing the emergence of innovative applications and services that leverage the capabilities of vEPC, such as smart cities, industrial automation, and IoT deployments.

Virtualized Evolved Packet Core vEPC Market Companies:

The major players in the vEPC market are Nokia (Finland), Ericsson (Sweden), Cisco(US), Huawei (China), ZTE (China), Samsung (South Korea), Affirmed Networks(US), Mavenir(US), NEC(Japan), Athonet(Italy), Cumucore(Finland), Druid Software(Ireland),  IPLook (China), Tech Mahindra (India), Parallel Wireless (US), Polaris Networks (US), Xingtera (US), Lemko (US), Tecore(US), and Telrad Networks (Israel). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, product launches and enhancements, and acquisitions to expand their footprint in the vEPC market.

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Scope of the Report

This research report categorizes the vEPC market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Solutions
• Services

Based on Solution:

• MME
• HSS
• S-GW
• PDN-GW

Based on Services:

• Professional Services
• Consulting
• Integration and Deployment
• Training and Support
• Managed Services

Based on Network

• 5G Network
• 4G Network

Based on End user:

• Telecom operators
• Enterprises

Based on Deployment mode:

• Cloud
• On-Premises

Based on Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
  • Rest Of Asia Pacific
• Middle East and Africa
  • KSA
  • UAE
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• October 2022 - To support the development of 5G ecosystems and advance 6G research in Europe, the Smart Networks and Services Joint Undertaking (SNS JU) has chosen its initial portfolio of 35 research, innovation, and trial projects. The goal is to create a world-class European supply chain for cutting-edge 5G systems and expand Europe's 6G technology capacities with total funding for this new portfolio of about €250 million under Horizon Europe.
• September 2022 - Nokia announced its Software-as-a-Service (SaaS), AVA Charging, to support CSPs and enterprises to quickly commercialize new offerings for 5G and IoT use cases.
• October 2021 - The company launched a new set of 5G solutions to enable the evolution of all frequency bands to 5G.
• May 2019 - Ericsson cloud packet core will be employed by Vodafone Idea Limited to improve network performance. Ericsson's major network applications and features, like its Virtualization Infrastructure (NFVI), Service-Aware Policy Controller (VSAPC), and Virtual Evolved Packet Gateway (VEG) solutions, which facilitate seamless business continuity and quick rollout of new services, will be advantageous to VIL.

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