Global Virtualized Evolved Packet Core (vEPC) Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• September 2022, Nokia unveiled AVA Charging, a Software-as-a-Service (SaaS) platform aimed at assisting Communication Service Providers (CSPs) and businesses in swiftly bringing new 5G and IoT offerings to market.

• October 2021, Nokia launched a suite of 5G solutions designed to support the migration of all frequency bands to 5G, signaling a significant advancement in network evolution.

• May 2019, Vodafone Idea Limited (VIL) opted to integrate Ericsson's cloud packet core into its infrastructure, a decision aimed at enhancing network performance. Ericsson's Virtualization Infrastructure (NFVI), Service-Aware Policy Controller (VSAPC), and Virtual Evolved Packet Gateway (VEPG) solutions were highlighted for their ability to ensure smooth business operations and expedite the introduction of new services for VIL.

The Global Virtualized Evolved Packet Core (vEPC) Market can be segmented based on deployment type, end-user, use case, and geography, each providing a unique perspective on market dynamics and growth opportunities. By deployment type, the market is divided into cloud-based and on-premises solutions. Cloud-based vEPC solutions offer the benefits of scalability, flexibility, and reduced capital expenditure, making them attractive for operators looking to quickly adapt to changing market demands. On-premises vEPC, on the other hand, provides greater control over network operations and security, which can be critical for certain enterprises and telecom operators with specific regulatory or operational requirements.

End-user segmentation highlights the distinct needs and preferences of different market participants, primarily telecom operators and enterprises. Telecom operators are the primary drivers of the vEPC market, leveraging these solutions to enhance network efficiency, support new services such as 5G, and manage increasing data traffic volumes. Enterprises are also adopting vEPC solutions, particularly in industries with extensive IoT and M2M (Machine-to-Machine) communication requirements, such as manufacturing, transportation, and healthcare. By optimizing their networks with vEPC, enterprises can achieve more reliable connectivity, improved network performance, and better management of connected devices.

The use case segmentation further delineates the market based on specific applications of vEPC technology, including LTE, VoLTE (Voice over LTE), VoWiFi (Voice over WiFi), Broadband Wireless Access (BWA), IoT & M2M, and MPN & MVNO (Mobile Private Networks & Mobile Virtual Network Operators). Each use case represents different requirements and benefits from vEPC implementation, ranging from enhanced voice and data services to robust connectivity for IoT devices. Geographically, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, with each region exhibiting unique growth drivers and challenges. North America and Europe lead in early adoption and advanced telecom infrastructure, while the Asia Pacific region is experiencing rapid growth due to expanding mobile user bases and aggressive 5G deployments. The Middle East and Africa and Latin America are also witnessing increasing investments in vEPC as part of broader efforts to enhance digital connectivity and support economic development.

Global Virtualized Evolved Packet Core (vEPC) Segment Analysis

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

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

The Global Virtualized Evolved Packet Core (vEPC) Market has been segmented by Deployment Type into Cloud and On-premises.

Cloud-based and on-premises solutions. Cloud-based vEPC solutions leverage the power of cloud computing to deliver scalable, flexible, and cost-effective network management. These solutions allow telecom operators and enterprises to dynamically allocate resources, quickly deploy new services, and reduce upfront capital expenditures by shifting to an operational expenditure model. The cloud deployment model is particularly advantageous for operators aiming to swiftly adapt to market changes and manage increasing data traffic without the need for significant infrastructure investments.

On the other hand, on-premises vEPC solutions offer greater control and security for organizations that require dedicated hardware and network infrastructure within their own facilities. This deployment type is often favored by enterprises and telecom operators with stringent regulatory requirements, security concerns, or specific performance needs that necessitate a more controlled environment. On-premises solutions can provide higher levels of customization and integration with existing systems, ensuring that the network operations are tailored to the unique needs of the organization.

Both deployment types address different needs and preferences within the market. Cloud-based vEPC solutions are ideal for operators looking for agility, scalability, and cost efficiency, making them well-suited for supporting rapid technological advancements such as 5G. On-premises vEPC solutions, meanwhile, cater to those who prioritize control, security, and tailored performance. The choice between cloud and on-premises deployment ultimately depends on the specific operational goals, regulatory landscape, and technological infrastructure of the telecom operators and enterprises involved. As the market continues to evolve, a hybrid approach combining both deployment models may also gain traction, offering the benefits of cloud scalability with the control and security of on-premises systems.

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

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

Telecom operators are the main driving force behind the adoption of vEPC solutions, as they seek to modernize their network infrastructure to handle the increasing demand for mobile data and support the rollout of next-generation technologies like 5G. vEPC enables telecom operators to efficiently manage network traffic, reduce latency, and enhance overall network performance. This, in turn, helps operators to deliver superior service quality to their customers, introduce new services faster, and reduce operational costs by utilizing more flexible and scalable network architectures.

Enterprises are also significant adopters of vEPC technology, especially those in sectors with high connectivity demands such as manufacturing, healthcare, transportation, and logistics. For enterprises, vEPC solutions provide the ability to create private LTE or 5G networks, which offer enhanced security, reliability, and control compared to public networks. This is particularly important for applications involving the Internet of Things (IoT) and Machine-to-Machine (M2M) communication, where secure and reliable connectivity is crucial. Enterprises use vEPC to support a wide range of use cases, from connecting industrial machinery and smart devices to enabling advanced applications like real-time analytics and automation.

The vEPC market serves the diverse needs of telecom operators and enterprises by providing flexible, scalable, and cost-effective network solutions. For telecom operators, the focus is on enhancing network performance, supporting new services, and managing increased data traffic efficiently. Enterprises, on the other hand, benefit from improved connectivity, security, and control, enabling them to support critical applications and drive innovation within their respective industries. The adoption of vEPC by both telecom operators and enterprises underscores its versatility and essential role in the future of network infrastructure.

Global Virtualized Evolved Packet Core (vEPC) Market, Segmentation by Use Case

The Global Virtualized Evolved Packet Core (vEPC) Market has been segmented by Use Case into LTE, VOLTE, & VoWiFi, Broadband Wireless Access (BWA), IoT & M2M and MPN & MVNO.

One of the primary use cases is LTE (Long-Term Evolution), along with VoLTE (Voice over LTE) and VoWiFi (Voice over WiFi). LTE is the standard for high-speed wireless communication, and vEPC plays a critical role in optimizing network performance and managing data traffic for LTE networks. VoLTE and VoWiFi further enhance the user experience by providing high-quality voice services over LTE and WiFi networks, respectively. These technologies rely on vEPC to ensure seamless connectivity, reduced latency, and improved voice call quality, making them essential for telecom operators aiming to deliver superior service to their customers.

Significant use case for vEPC is Broadband Wireless Access (BWA). BWA enables high-speed internet access over wide areas, often in regions where traditional wired infrastructure is lacking or insufficient. vEPC supports BWA by providing scalable and efficient network management, allowing operators to extend high-speed connectivity to underserved areas and improve internet access. This use case is particularly relevant in emerging markets and rural areas, where the demand for reliable broadband services is growing rapidly.

The IoT (Internet of Things) & M2M (Machine-to-Machine) communication use case represents one of the most dynamic and rapidly expanding segments of the vEPC market. IoT and M2M applications require robust and reliable connectivity to manage a vast number of connected devices, ranging from industrial sensors to smart home devices. vEPC enables efficient handling of these connections, ensuring low latency, high reliability, and scalability. Additionally, Mobile Private Networks (MPN) and Mobile Virtual Network Operators (MVNOs) are increasingly leveraging vEPC to create customized and secure private networks tailored to specific organizational needs. MPNs benefit from vEPC's ability to offer dedicated and secure connectivity, crucial for industries like manufacturing, healthcare, and logistics, while MVNOs use vEPC to provide flexible and cost-effective mobile services to their customers. These diverse use cases highlight the versatility of vEPC in addressing the unique requirements of modern network infrastructures across various industries and applications.

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

In this report, the Global Virtualized 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 Virtualized Evolved Packet Core (vEPC) Market Share (%), by Geographical Region, 2024

In North America, the Global Virtualized Evolved Packet Core (vEPC) Market is thriving due to early adoption of cutting-edge technologies and substantial investments in 5G infrastructure. Major telecom operators and technology providers in the region are actively deploying vEPC solutions to enhance network performance, reduce operational costs, and support the increasing demand for high-speed data services. The strong focus on digital transformation, smart city initiatives, and the integration of IoT applications further drives the adoption of vEPC in North America. The region's advanced technological landscape and robust regulatory environment create a conducive atmosphere for the growth of the vEPC market, making it a leader in this sector.

The vEPC market in Europe is characterized by strong regulatory support for network modernization and a widespread rollout of 5G networks. European telecom operators are investing heavily in vEPC solutions to enhance network capabilities and meet the growing demand for data consumption and high-quality services. The region's emphasis on IoT applications, especially in industrial automation and smart manufacturing, drives the need for reliable and scalable vEPC technologies. Collaborations between telecom operators and technology vendors are common in Europe, fostering innovation and accelerating the deployment of advanced vEPC solutions. This regulatory and collaborative environment significantly contributes to the market's growth in Europe.

The Asia Pacific region is the fastest-growing market for vEPC, driven by a rapidly expanding mobile user base, aggressive 5G deployments, and substantial investments in telecom infrastructure. Countries like China, India, Japan, and South Korea are at the forefront of adopting vEPC to support their large-scale network operations and cater to the increasing demand for high-speed internet and advanced mobile services. The proliferation of IoT devices and smart city projects across the region further propels the need for efficient and scalable vEPC solutions. The dynamic economic growth and technological advancements in the Asia Pacific region make it a key area of focus for the vEPC market.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• 5G Deployment
• Network Scalability

• Mobile Data Traffic Growth - Mobile data traffic growth is experiencing an unprecedented surge globally, driven by the proliferation of smartphones, increased usage of bandwidth-intensive applications, and the widespread adoption of digital services. This exponential growth in mobile data consumption has been fueled by various factors, including the availability of high-speed mobile networks like 4G LTE and 5G, the popularity of video streaming platforms, the rise of social media usage, and the expansion of IoT devices.

  Telecom operators are continuously investing in network infrastructure upgrades to meet the ever-growing demand for mobile data and ensure a seamless user experience. The rollout of advanced technologies such as 5G promises to further accelerate mobile data traffic growth by delivering faster speeds, lower latency, and increased network capacity. Accelerated the adoption of remote work, distance learning, telemedicine, and e-commerce, driving even higher levels of mobile data usage.

  The surge in mobile data traffic presents both opportunities and challenges for telecom operators, technology vendors, and regulators. While it offers opportunities for revenue growth through increased data consumption and the monetization of new services, it also poses challenges related to network congestion, spectrum management, infrastructure investment, and ensuring quality of service.

Restraints

• High Initial Costs
• Complex Integration

• Regulatory Challenges - Regulatory challenges pose significant hurdles to the Global Virtualized Evolved Packet Core (vEPC) Market, influencing various aspects of deployment, operation, and competition within the telecommunications industry. One prominent regulatory challenge revolves around spectrum management and allocation, where telecom operators often contend with limited radio frequency spectrum availability. Regulatory bodies must balance the need for equitable spectrum distribution with concerns such as spectrum scarcity, interference mitigation, and efficient spectrum utilization. This balancing act directly impacts vEPC deployments, as access to spectrum is essential for delivering high-speed mobile data services and supporting the growth of advanced technologies like 5G.

  Regulations related to network neutrality and open access further shape the vEPC market landscape by influencing how telecom operators manage their networks and interact with vEPC vendors and service providers. In markets where regulators enforce net neutrality rules to ensure fair and non-discriminatory treatment of internet traffic, telecom operators may face restrictions on traffic management practices and prioritization of certain services, impacting their vEPC deployment strategies and service offerings.

  Overcoming regulatory challenges requires collaboration between industry stakeholders, policymakers, and regulatory bodies to develop flexible and forward-thinking regulatory frameworks that promote innovation, competition, and investment in vEPC technologies while safeguarding consumer interests, ensuring data privacy, and fostering efficient spectrum management.

Opportunities

• 5G Rollout
• IoT Proliferation

• Emerging Markets Expansion - Expanding into emerging markets presents a significant opportunity for the Global Virtualized Evolved Packet Core (vEPC) Market, driven by the rapid growth of mobile subscribers, increasing smartphone penetration, and rising demand for high-speed data services. Emerging markets, often characterized by dynamic economic growth and infrastructure development, offer immense potential for vEPC deployments to address connectivity challenges, bridge the digital divide, and catalyze socio-economic development.

  The proliferation of IoT devices, smart city projects, and digital transformation initiatives in emerging markets presents new use cases and revenue opportunities for vEPC vendors and service providers. vEPC solutions play a crucial role in supporting IoT deployments, enabling efficient management of connected devices, and delivering low-latency, high-reliability connectivity for IoT applications across various sectors, including agriculture, healthcare, transportation, and manufacturing.

  As emerging markets continue to invest in digital infrastructure and embrace the digital economy, vEPC vendors can capitalize on these opportunities by forging strategic partnerships with local telecom operators, technology providers, and government agencies. Collaborative initiatives aimed at promoting technology transfer, knowledge sharing, and capacity building can accelerate vEPC deployments, foster innovation, and stimulate economic growth in emerging markets.

Key players in Global Virtualized Evolved Packet Core (vEPC) Market include:

• Affirmed Networks
• Ericsson
• Huawei Technologies
• Mavenir
• ZTE Corporation
• Cisco Systems
• NEC Corporation
• Nokia Corporation
• Samsung
• Athonet Srl

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