Virtual Evolved Packet Core Market Size & Share, by Component (Solutions, Services); Deployment Type (Cloud, On-premises); Application (LTE, VoLTE & VoWiFi, loT & M2M, MPN & MVNO, BWA); End-user (Telecom Operators & Enterprises) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4131
  • Published Date: Mar 24, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Virtual Evolved Packet Core Market size is projected to surpass USD 30 billion by the end of 2035, growing at a CAGR of 26% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of virtual evolved packet core was over USD 6 billion. The market growth can be attributed owing to the increasing mobile network data traffic. The mobile network data traffic is expanding owing to the growing number of smartphone subscriptions and increased data volume per subscription. According to the Ericsson Mobility report of 2022, the total mobile network data traffic reached approximately 51 Exabytes per month by the end of 2020. Also, during the covid-19 pandemic, the mobile network data traffic dynamics changed owing to factors such as work-from-home culture, lockdown, and restrictions on the movement of people.

Another factor driving the growth of the virtual evolved packet core is that the expansion of IoT has the possibility of benefitting the MNOs. It is estimated that to serve a variety of cases the mobile network operators would utilize virtual evolved packet cores in the live networks. In the heterogeneous IoT world, the MNOs can curate their network cost-effectively as per the choices of specific clients, sectors, and customers.


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Virtual Evolved Packet Core Sector: Growth Drivers and Challenges

Growth Drivers

  • Expansion in the Mobile Network Data Traffic – The main factor behind the growth of mobile data traffic is the rising penetration of smartphones and the easy and cost-friendly availability of data among the population. For instance, according to GSMA Intelligence, smartphone penetration is expected to rise from 65% in 2021, to 80% by the end of 2025. The virtual evolved packet core helps in managing data traffic effectively, therefore reducing the network congestion problem, and improving service quality at the same time optimizing resource use.

  • Opportunities for MNOs to Participate in the Rise of IoT – The virtual evolved packet core helps the MNOs by giving them the ability to customize the network as per the choice of an individual customer, client, or sector. This ability of MNOs plays a significant role in the rise of IoT.

  • Increasing demand for high-quality mobile services and rise in LTE consumers – The Lishui Municipal Emergency Management Bureau is using private 5G slicing over China’s mobile network, portable cell sites, and rapidly deployable communication vehicles as a part of disaster management and visualization system.

  • The ongoing development of vEPC (Virtual Evolved Packet Core) framework with 5G networking – The demand for a faster network all across the globe is rising. This gave rise to 5G network which is way faster than 4G and also enables the provisioning of the network on demand.

Challenges

  • Growing Security Concerns – 4G network is connected with an industrial network such as medicine, factories, automobiles, etc, and is also associated with old user networks such as 2G, and 3G. This in turn creates a network connection structure consisting of complex heterogeneous networks whose main powerhouse is the 4G network. This can lead to weak leakage from the network and can later lead to security problems.
  • The reluctance of transitioning from legacy networking infrastructure to virtualized networking
  • The lack of awareness and resources to switch over to virtualization

Virtual Evolved Packet Core Market: Key Insights

Base Year

2022

Forecast Year

2023 - 2035

CAGR

~26%

Base Year Market Size (2022)

~USD 6 billion

Forecast Year Market Size (2035)

~USD 30 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Virtual Evolved Packet Core Segmentation

Component (Solutions, Services)

The global virtual evolved packet core market is segmented and analyzed for demand and supply by component into solutions and services. Amongst these the services segment is anticipated to hold the highest market share by the end of 2035. This is attributed to the increasing and changing trends in the technologies that gave rise to the services segment by the end users. The overall service segment has a high impact on the virtual evolved packet core market. The demand for virtual evolved packet core grew from 15% in 2015 to 21% in 2021.

Deployment Type (Cloud, On-premises)

The global virtual evolved packet core market is segmented and analyzed for demand and supply by deployment type into cloud and on-premises. Out of these, the cloud segment is anticipated to hold the largest market share in the forecast period. Among small and medium-scale enterprises cloud computing receiving a lot of recognition and popularity. Ease of adoption, scalability, minimal requirement of in-house infrastructure, and easy installation of the network are a few advantages of the cloud segment. These properties promote the faster growth of the cloud segment.

Our in-depth analysis of the global market includes the following segments:

             By Component

  • Solution
  • Services

             By Deployment Type

  • Cloud
  • On-Premises

             By Application

  • LTE
  • VoLTE & VoWiFi
  •  loT & M2M
  • MPN & MVNO
  • BWA

             By End User

  • Telecom Operators
  • Enterprises

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Virtual Evolved Packet Core Industry - Regional Synopsis

North American Market Forecast

The market in North America is projected to emerge as the fastest-growing market over the forecast period. The rise in the usage of virtual evolved packet core solutions and services including the highest rate of 5G adoption, and the 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 networks by 2025. Also, owing to the prevalence of advanced telecom network infrastructure and the growing adoption of new technologies the market in the North American region is expected to grow at a high pace.

Europe Market Forecast

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. Recently, Europe is also making efforts for bringing the 5G network to their region, to provide the population with a faster network and better services.

APAC Market Statistics

Asia-Pacific region expected to grow at a significant rate. The region is witnessing the technological transformation and infrastructural growth. In 2020, the ITU estimated that the 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. Also, owing to the massive mobile user base, key market players in this region are becoming more competitive and are focusing on providing better services to customers.

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Virtual Evolved Packet Core Market Size
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Companies Dominating the Virtual Evolved Packet Core Landscape

top-features-companies
    • 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

In the News

  • Nokia Corporation is selected by Taiwanese mobile operator Asia Pacific Telecom as the single vendor for 5G New Radio in a deal that also encompasses 5G core, security, and monetization.

  • Cisco Systems, Inc. collaborated with Gogo Business Aviation, a broadband connectivity service provider in the aviation sector. As per the collaboration, the company will offer a mobile core solution, consisting of ultra cloud core solutions and packet core solutions.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 4131
  • Published Date: Mar 24, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for high-quality mobile services, and the ongoing development of vEPC framework with 5G networking, are some of the major factors anticipated to drive the growth of the virtual evolved packet core market.

The market is anticipated to attain a CAGR of 30% over the forecast period, i.e., 2023-2035.

The reluctance of transitioning from legacy networking infrastructure to virtualized networking, the lack of awareness and resources to switch over to virtualization, and the high cost associated with it are some of the factors estimated to hamper the market growth.

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Nanjing ZTE Software Co. Ltd., Nokia Corporation, Huawei Technologies Co., Ltd., Affirmed Networks, Mavenir Systems, Inc., and others.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component, deployment type, application, end-user, and by region.

The services segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Virtual Evolved Packet Core Market Report Scope
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