Global Virtual Evolved Packet Core (vEPC) Market Growth, Share, Size, Trends and Forecast (2022 - 2028)

In terms of deployment, the market is segmented into cloud-based and on-premise solutions. Cloud deployment offers flexibility, scalability, and cost-effectiveness, making it increasingly popular among telecommunications operators and enterprises seeking agile network infrastructure solutions. On-premise deployments, meanwhile, provide greater control and customization options, appealing to organizations with specific security or regulatory requirements.

The market is further categorized by end-users, with telecom operators and enterprises comprising the primary segments. Telecom operators deploy vEPC solutions to manage their networks efficiently, support increasing data traffic demands, and deliver advanced services such as LTE, IoT, VoLTE, and broadband wireless access (BWA). Enterprises leverage vEPC for private network deployments, IoT connectivity, and dedicated mobile virtual network operator (MVNO) services, enabling enhanced communication and connectivity capabilities.

In terms of applications, the vEPC market encompasses various use cases, including LTE, IoT & M2M (machine-to-machine) communication, Voice over LTE (VoLTE) & Voice over Wi-Fi (VoWiFi), broadband wireless access (BWA), and MVNO & MVNE (mobile virtual network enabler) services. These applications cater to different communication needs, ranging from high-speed mobile broadband to IoT connectivity and voice services, driving demand for vEPC solutions across diverse industry verticals.

The market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America and Europe are key regions for vEPC adoption, driven by advanced telecommunications infrastructure, early 5G deployments, and the presence of leading technology vendors. Asia Pacific exhibits significant growth potential, fueled by rapid digital transformation, expanding mobile subscriber base, and investments in 5G networks across countries like China, South Korea, and Japan. Meanwhile, the Middle East and Africa, along with Latin America, present opportunities for vEPC vendors to address growing connectivity needs, support emerging use cases, and enable digital inclusion initiatives in these regions.

The Global Virtual Evolved Packet Core (vEPC) Market demonstrates a diverse landscape characterized by cloud and on-premise deployments, catering to telecom operators and enterprises across various applications and geographical regions over the forecast period.

Global Virtual Evolved Packet Core (vEPC) Segment Analysis

In this report, the Global Virtual Evolved Packet Core (vEPC) Market has been segmented by Deployment, End-User, Application and Geography.

Global Virtual Evolved Packet Core (vEPC) Market, Segmentation by Component

The Global Virtual Evolved Packet Core (vEPC) Market has been segmented by Component into Solution and Services.

The Solutions segment encompasses a wide range of software-based offerings designed to virtualize packet core functions and services. These vEPC solutions replace traditional hardware-based Evolved Packet Core (EPC) infrastructure with virtualized equivalents, enabling telecommunications operators to transition to more agile, scalable, and cost-effective network architectures. vEPC solutions typically include components such as virtualized serving gateways (vSGW), virtualized packet data networks (vPDN), virtualized mobility management entities (vMME), and other virtual network functions (VNFs) essential for packet routing, session management, and subscriber authentication within mobile networks.

The Services segment comprises a diverse array of professional and managed services aimed at supporting the implementation, integration, and operation of vEPC solutions. These services may include consulting, system integration, deployment, migration, testing, optimization, maintenance, and support services provided by vendors, system integrators, and managed service providers. Through these services, telecommunications operators can access specialized expertise, resources, and tools necessary to plan, deploy, and manage vEPC deployments effectively, ensuring seamless migration, performance optimization, and ongoing maintenance of virtualized packet core networks.

The segmentation of the Global Virtual Evolved Packet Core (vEPC) Market into Solutions and Services reflects the dual nature of vEPC deployments, encompassing both the technological solutions and the supporting ecosystem of professional and managed services required for successful implementation and operation. Together, these components enable telecommunications operators to embrace the benefits of virtualization, including greater flexibility, scalability, and cost efficiency, while addressing evolving network requirements, technological advancements, and market demands in the telecommunications industry.

Global Virtual Evolved Packet Core (vEPC) Market, Segmentation by Deployment

The Global Virtual Evolved Packet Core (vEPC) Market has been segmented by Deployment into Cloud and On Premise.

Cloud-based vEPC solutions are gaining prominence due to their scalability, agility, and cost-effectiveness. By leveraging cloud infrastructure, telecommunications operators can dynamically scale network resources in response to fluctuating demand, optimize operational efficiency, and accelerate service deployment. Cloud-based vEPC enables operators to capitalize on the benefits of virtualization and cloud computing, such as resource pooling, automated provisioning, and rapid service innovation. Cloud deployments offer flexibility in terms of pay-as-you-go pricing models and subscription-based services, aligning with the evolving business models and financial requirements of operators.

On-Premise vEPC solutions, on the other hand, provide operators with greater control, customization, and security over their network infrastructure. By deploying vEPC functions on dedicated hardware or data center environments, operators can address specific performance requirements, compliance mandates, and security concerns associated with critical network functions. On-Premise deployments offer predictable performance, low-latency connectivity, and data sovereignty benefits, particularly for mission-critical applications and regulatory-sensitive workloads. On-Premise deployments may require higher upfront investments in hardware infrastructure, software licenses, and maintenance, compared to cloud-based alternatives.

The choice between Cloud and On-Premise vEPC deployments depends on various factors, including operator preferences, regulatory considerations, network architecture requirements, and budgetary constraints. While cloud deployments offer scalability, agility, and cost savings, On-Premise deployments provide control, customization, and security assurances. Some operators may adopt hybrid deployment models, combining the benefits of both Cloud and On-Premise solutions to optimize network performance, flexibility, and resilience.

The segmentation of the Global vEPC Market by deployment method reflects the industry's evolving landscape, with operators exploring different deployment options to meet their specific needs and priorities. Whether deployed in the cloud or on-premise, vEPC solutions play a critical role in modernizing and future-proofing telecommunications networks, enabling operators to deliver high-quality, innovative services to their subscribers while driving operational efficiency and business growth.

Global Virtual Evolved Packet Core (vEPC) Market, Segmentation by End-User

The Global Virtual Evolved Packet Core (vEPC) Market has been segmented by End-User into Telecom Operators and Enterprises.

Telecom Operators represent a significant portion of the market demand for vEPC solutions. As the backbone of mobile communication networks, telecom operators rely on vEPC to support the increasing demand for data services driven by the proliferation of smartphones, IoT devices, and emerging technologies like 5G. vEPC enables telecom operators to dynamically allocate resources, scale network capacity, and deliver high-speed data services while maintaining cost-efficiency and operational agility. VEPC solutions empower operators to transition towards virtualized network architectures, enabling them to embrace cloud-native principles, automate network operations, and accelerate service innovation in the evolving telecommunications landscape.

On the other hand, Enterprises represent an emerging segment in the vEPC market. Enterprises across various industries, including manufacturing, healthcare, transportation, and public sector, are increasingly adopting vEPC solutions to build private mobile networks, support mission-critical applications, and enable IoT connectivity. By deploying vEPC at the edge of their networks, enterprises can establish dedicated virtualized packet core infrastructure, ensuring low-latency, reliable connectivity for their IoT devices, mobile workforce, and customer-facing applications. vEPC empowers enterprises to optimize network performance, enhance security, and enable innovative use cases such as smart factories, connected vehicles, and remote monitoring, driving efficiency and competitiveness in their respective industries.

The segmentation of the vEPC market into Telecom Operators and Enterprises reflects the diverse use cases, requirements, and deployment scenarios across different customer segments. While telecom operators focus on enhancing network capacity, scalability, and service delivery to meet the demands of mobile subscribers, enterprises seek to leverage vEPC solutions to enable digital transformation, support IoT initiatives, and unlock new revenue streams. By catering to the unique needs of both telecom operators and enterprises, vEPC vendors can capitalize on market opportunities, drive innovation, and accelerate the adoption of virtualized packet core solutions in the global telecommunications and enterprise sectors.

Global Virtual Evolved Packet Core (vEPC) Market, Segmentation by Application

The Global Virtual Evolved Packet Core (vEPC) Market has been segmented by Application into LTE, IoT & M2M, Volte & VoWiFi, BWA and MPN & MVNO.

One significant application segment is LTE, which stands for Long-Term Evolution, representing the standard for wireless broadband communication. vEPC solutions play a crucial role in LTE networks by providing the packet core infrastructure needed to support high-speed data transmission, voice over LTE (VoLTE), and multimedia services. The adoption of vEPC in LTE networks enables telecommunications operators to enhance network capacity, improve quality of service, and deliver seamless connectivity to subscribers.

Another important application segment is IoT & M2M (Internet of Things & Machine-to-Machine), reflecting the growing deployment of connected devices and sensor networks across various industries. vEPC solutions support IoT and M2M applications by providing the necessary network connectivity, management, and security features to enable communication between devices, collect sensor data, and facilitate real-time decision-making. By leveraging vEPC for IoT deployments, organizations can unlock new opportunities for automation, optimization, and innovation in diverse sectors such as smart cities, healthcare, agriculture, and manufacturing.

Volte & VoWiFi (Voice over LTE & Voice over WiFi) represent key applications within the telecommunications landscape, focusing on enabling voice services over IP-based networks. vEPC solutions enable telecommunications operators to deliver high-quality voice calls and multimedia services over LTE and WiFi networks, leveraging packet-switched technology for efficient voice communication. The adoption of vEPC for Volte and VoWiFi applications enhances network performance, expands coverage, and improves voice call reliability, enhancing the overall user experience for subscribers.

Broadband Wireless Access (BWA) is another application segment where vEPC solutions are deployed to provide wireless broadband connectivity to residential, business, and public sector customers. vEPC enables telecommunications operators to deliver high-speed internet access, video streaming, and multimedia services over wireless networks, catering to the growing demand for broadband connectivity in urban, suburban, and rural areas. By deploying vEPC for BWA applications, operators can extend broadband coverage, improve network performance, and deliver competitive broadband services to subscribers.

Mobile Virtual Network Operators (MVNOs) and Mobile Private Networks (MPNs) represent niche segments within the telecommunications market, focusing on specialized services and customer segments. vEPC solutions enable MVNOs and MPNs to establish their virtual network infrastructure, customize service offerings, and differentiate themselves in the market. By leveraging vEPC for MVNO and MPN deployments, operators can enhance service agility, reduce time-to-market, and address specific requirements of enterprise, wholesale, and vertical market customers.

Global Virtual Evolved Packet Core (vEPC) Market, Segmentation by Geography

In this report, the Global Virtual Evolved Packet Core (vEPC) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Virtual Evolved Packet Core (vEPC) Market Share (%), by Geographical Region, 2021

The distribution of market share in the Global Virtual Evolved Packet Core (vEPC) Market is influenced by various geographical regions, each contributing to the overall landscape of virtualized packet core solutions.

North America holds a significant portion of the market share in the vEPC market, driven by the region's early adoption of advanced telecommunications technologies and the rapid deployment of 5G networks. With major telecommunications operators investing in virtualized infrastructure to support high-speed data services and emerging IoT applications, North America leads in vEPC adoption, leveraging virtualization to enhance network flexibility, scalability, and cost-effectiveness.

Europe also commands a notable market share in the vEPC market, buoyed by the region's strong regulatory environment, technological innovation, and collaborative initiatives to accelerate 5G deployment. Countries such as the United Kingdom, Germany, and France are at the forefront of vEPC adoption, with telecommunications providers leveraging virtualized packet core solutions to deliver enhanced mobile broadband, low-latency communication, and innovative digital services to consumers and enterprises.

Asia-Pacific emerges as a key growth region in the global vEPC market, driven by the rapid expansion of mobile connectivity, the proliferation of smartphones, and the increasing demand for high-speed data services across diverse industry verticals. Countries like China, Japan, and South Korea are investing heavily in 5G infrastructure and virtualized network architectures, driving demand for vEPC solutions to support next-generation mobile networks, edge computing applications, and IoT deployments.

Latin America and the Middle East & Africa regions also contribute to the global market share of vEPC solutions, albeit to a lesser extent compared to other regions. These regions are witnessing growing investments in telecommunications infrastructure, digital transformation initiatives, and government-led efforts to bridge the digital divide and expand broadband access. With the deployment of vEPC solutions, telecommunications operators in Latin America and the Middle East & Africa aim to modernize network infrastructure, improve service delivery, and unlock new revenue streams in the evolving digital landscape.

The geographical distribution of market share in the Global Virtual Evolved Packet Core (vEPC) Market reflects the diverse adoption patterns, regulatory frameworks, and market dynamics across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Each region presents unique opportunities and challenges for vEPC vendors and telecommunications operators seeking to capitalize on the transformative potential of virtualized packet core solutions in the era of 5G and digital connectivity.

This report provides an in depth analysis of various factors that impact the dynamics of Global Virtual Evolved Packet Core (vEPC) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rapid Growth in Mobile Data Traffic
• Transition to 5G Networks

• Cost Savings and Operational Efficiency: vEPC presents significant advantages in terms of cost savings and operational efficiency when compared to traditional hardware-based EPC deployments. Through the virtualization of packet core functions, operators can leverage standard commercial off-the-shelf (COTS) hardware or cloud infrastructure to host these functions. This approach allows for a reduction in both capital expenditures (CAPEX) and operating expenses (OPEX) associated with purchasing, maintaining, and upgrading specialized hardware equipment. Virtualization enables operators to accelerate service deployment, as they can quickly provision and scale resources as needed, without the constraints imposed by physical hardware limitations.

  The adoption of vEPC not only drives cost savings but also enhances agility and scalability in network operations. By decoupling packet core functions from hardware dependencies, operators gain greater flexibility to adapt to changing network demands and market conditions. With vEPC, operators can dynamically allocate resources, scale capacity up or down in response to traffic fluctuations, and introduce new services or features more rapidly. This agility and scalability empower operators to better meet customer expectations, optimize network performance, and capitalize on emerging opportunities in the telecommunications landscape.

  Overall, vEPC represents a transformative shift in network architecture, offering operators a pathway to cost-effective, agile, and scalable packet core solutions. By embracing virtualization technologies and leveraging standard hardware or cloud infrastructure, operators can not only realize immediate cost savings but also position themselves to thrive in a rapidly evolving digital ecosystem, where speed, flexibility, and innovation are paramount.

Restraints

• Security and Compliance Concerns
• Interoperability and Integration Challenges

• Network Reliability and Performance: Despite the advantageous flexibility and scalability inherent in virtual Evolved Packet Core (vEPC) solutions, guaranteeing network reliability, availability, and performance amidst fluctuating traffic conditions and network demands poses a significant challenge. Effective resource allocation, dynamic scaling mechanisms, and precise network orchestration are pivotal factors in sustaining Quality of Service (QoS) levels, mitigating latency, and ensuring a seamless user experience across a spectrum of network environments and service provisions.

  The intricate balance between resource allocation, dynamic scaling, and network orchestration is critical to maintaining optimal performance and QoS standards. Efficiently allocating resources based on real-time demand, dynamically scaling network capacity to accommodate fluctuations in traffic, and orchestrating network functions seamlessly are indispensable components in meeting the evolving needs of users and applications. These factors are essential for minimizing latency, enhancing reliability, and delivering consistent service quality across diverse network scenarios and service offerings.

  Addressing the challenge of ensuring network reliability and performance under varying conditions requires a multifaceted approach that encompasses advanced resource management techniques, automated scaling mechanisms, and robust network orchestration frameworks. By optimizing resource allocation, enabling dynamic scalability, and orchestrating network functions effectively, vEPC deployments can achieve the necessary agility, resilience, and responsiveness to meet the demands of today's dynamic digital landscape while delivering a superior user experience.

Opportunities

• Expansion of Edge Computing and IoT
• Network Slicing and Service Differentiation

• Cloud-Native Architectures and Orchestration: The transition towards cloud-native architectures and orchestration platforms presents promising avenues for advancing vEPC deployments. Embracing containerization, microservices, and DevOps methodologies enables operators to enhance agility, scalability, and automation within their vEPC infrastructures. By breaking down monolithic architectures into smaller, modular components, operators can efficiently manage resources, scale deployments as needed, and automate repetitive tasks, fostering greater flexibility and responsiveness to evolving network demands.

  This shift towards cloud-native approaches empowers operators to accelerate service innovation and time-to-market for new offerings. By leveraging containerized environments and agile development practices, operators can rapidly iterate on vEPC functionalities, introduce new services, and respond quickly to market trends and customer demands. This agility not only enhances competitive positioning but also enables operators to capitalize on emerging opportunities and stay ahead in a dynamic telecommunications landscape.

  Embracing cloud-native architectures and DevOps practices contributes to operational efficiency and cost optimization in vEPC deployments. By streamlining infrastructure management, minimizing resource overhead, and automating deployment workflows, operators can reduce operational expenses while improving the overall customer experience. This optimization allows operators to deliver reliable, high-performance vEPC services at lower costs, driving increased value for both operators and end-users alike.

Key players in Global Virtual Evolved Packet Core (vEPC) Market include.

• Ericsson AB
• Nokia Corporation
• ZTE Corporation
• Huawei Technologies Co., Ltd
• Cisco Systems Inc
• Intel Corporation
• NEC Corporation
• Mavenir
• Affirmed Networks
• Ng4T GmbH

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis