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Virtual Evolved Packet Core (vEPC) Market Segmentation by Component (Solutions, Services); by Deployment Type (Cloud, On-Premises); by Application (LTE, VoLTE & VoWiFi, IoT & M2M, MPN & MVNO, BWA); by End User (Telecom Operators, Enterprises) – Global Demand Analysis & Opportunity Outlook 2031

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IN THE NEWS

  • March 2020: Mavenir Systems, Inc. deployed its cloud-native LTE vEPC to support Hudson Valley Wireless’ project that was formed in a Public-Private Partnerships (P3) with State and Federal, and local governments to secure grant funding and deploy network in unserved and underserved communities.

  • October 2021: Telia Company has partnered VMware to support its transition to a cloud-native infrastructure that is a fundamental element for the successful deployment of 5G networks.

Global Virtual Evolved Packet Core (vEPC) Market Highlights Over 2022 – 2031

The global virtual evolved packet core (vEPC) market is estimated to garner a revenue of approximately USD 21 Billion by the end of 2031, by growing at a CAGR of nearly 24% over the forecast period, i.e., 2022 – 2031. The growth of the market can be attributed to the increasing demand for high-quality mobile services, and rise in LTE consumers. Between the third quarter of 2019 and 2020, mobile network data traffic increased by 50% and is expected to triple by 2026. According to the International Telecommunication Union (ITU), 4G network coverage increased two-fold globally between 2015 and 2020 and as of 2020, about 85% of the global population was covered by a 4G network. The ongoing development of vEPC framework with 5G networking, that will enhance connectivity far beyond 4G LTE, is also expected to further the growth of the market.

Virtual Evolved Packet Core Market Graph

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A Virtual Evolved Packet Core (vEPC) is a mobile networking framework that converges voice functions and data processing. It is implemented by Software-Defined Networking (SDN) technology and Network Functions Virtualization (NFV) which virtualizes the functions of an Evolved Packet Core (EPC), allowing it to be run on low-cost Commercial Off-The-Shelf (COTS) servers. It augments mobile operators’ total cost ownership (TCO) and service quality by theoretically tailoring networks, meeting the unique requirements of individual customers, mixing and matching individual network components as per needed. The framework has been introduced and been in use for 4G LTE and will play a key role in the 5G network architecture.

One of the key restraints for the growth of the vEPC market is the reluctance of transitioning from legacy networking infrastructure and competing with virtualized networking. Furthermore, the lack of awareness and resources to switch over to virtualization, and the significant amount of expenses required are also likely to hinder the growth of the market.

The market is segmented by component into solutions and services, out of which, the solutions segment is expected to hold the largest share over the forecast period owing to increasing deployment of vEPC solutions to cater the growing demand for high-speed data networks. The services segment is anticipated to grow at the highest rate during the forecast period on the back of the important role they play in deploying and integrating next-generation networking solutions for a business environment.

On the basis of deployment type, the global vEPC market is segmented into cloud and on-premises, between which the cloud segment is projected to hold the largest share of the market on account of rapid cloud migration of organisations and rising need to reduce the overall equipment costs.

The market is further segmented based on application into LTE, VoLTE & VoWiFi, IoT & M2M, MPN & MVNO, and BWA, out of which, the LTE, VoLTE & VoWiFi segment is expected to hold the largest market share over the forecast period owing to their increasing utilization on mobile core network by MNOs to deliver service to consumers. IoT & M2M segment is projected to witness the fastest growth during the forecast period on account of rising deployment of IoT packet core network by various mobile operators which makes it easy to bring superior connectivity for M2M devices. In 2020, there were nearly 9 billion M2M connections globally.

Major Macro-Economic Indicators Impacting the Market Growth

Global Research and Development Graph

The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.

Global Virtual Evolved Packet Core (vEPC) Market Regional Synopsis

Geographically, the global virtual evolved packet core (vEPC) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America region holds the largest market share and is expected to grow at a significant rate. The rise in the usage of virtual evolved packet core solutions and services including highest rate of 5G adoption, and collaboration of market players to deploy vEPC efficiently on large scale are the factors driving the growth of the market. It is estimated that over 60% of the total share of mobile connections in North America will be 5G network by 2025.

Europe region is projected to follow North America closely to hold a significant share of the global market over the forecast period. As of 2020, approximately 98% of the population in Europe was estimated to have 4G network connectivity, according to the ITU.

The market in Asia-Pacific is projected to emerge as the fastest-growing market over the forecast period. The region is witnessing dramatic technological transformation and infrastructural growth. In 2020, the ITU estimated that 4G network covered approximately 94% of the population in the region. Moreover, countries such as Japan, South Korea, Australia, Singapore, China, and India are increasingly adopting technologies, such as VR and AR as well as the IoT, which are more data-intensive and demand seamless network connectivity, providing significant opportunity for the growth of the vEPC market in the region.

Virtual Evolved Packet Core Market Share Graph

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The global virtual evolved packet core (vEPC) market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth,  Market Players Analysis & Opportunity Outlook
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global virtual evolved packet core (vEPC) market includes the following segments:

By Component

  • Solutions
  • Services

By Deployment Type

  • Cloud
  • On-Premises

By Application

  • LTE, VoLTE & VoWiFi
  • IoT & M2M
  • MPN & MVNO
  • BWA

By End User

  • Telecom Operators
  • Enterprises

Growth Drivers

  • Increasing demand for high-quality mobile services, and rise in LTE consumers
  • The ongoing development of vEPC framework with 5G networking

Challenges

  • Reluctance of transitioning from legacy networking infrastructure to virtualized networking
  • The lack of awareness and resources to switch over to virtualization

Top Featured Companies Dominating the Market

  • Metaswitch Networks
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis 
  • Cisco Systems, Inc.
  • Telefonaktiebolaget LM Ericsson
  • Nanjing ZTE software Co. Ltd. 
  • Nokia Corporation
  • Huawei Technologies Co., Ltd.
  • Affirmed Networks
  • Mavenir Systems, Inc.
  • Samsung Electronics Co., Ltd. 
  • NEC Corporation
  • Intel Corporation

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