According to the latest publication from Meticulous Research®, the global virtualized evolved packet core (vEPC) market is poised for significant growth, projected to reach an impressive $19.87 billion by 2031, with a compound annual growth rate (CAGR) of 19.3% from 2024 to 2031. This growth surge is primarily fueled by the exponential increase in mobile data traffic and the surging demand for high-speed data services.

However, like many high-tech sectors, the vEPC market is not without its challenges. Concerns over data security risks associated with virtualized infrastructure have emerged as a critical obstacle. Yet, the accelerating investments in 5G technology, along with the growing adoption of cloud-native 5G core solutions and the Internet of Things (IoT), offer substantial opportunities for market players. Notably, the integration of edge computing with vEPC technology is expected to reshape the landscape, enabling faster data processing and enhanced network performance.

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Key Market Segments and Insights

The vEPC market is segmented into several key components, applications, deployment modes, and end-user categories, each playing a vital role in the market’s growth trajectory. Here's a deeper dive into these segments:

1. Component Analysis: Solutions Lead, Services Surge

The vEPC market is divided into two main components: solutions and services. In 2024, solutions are expected to dominate the market, driven by the increasing demand for flexible, scalable, and low-latency virtualized networks that can handle rapidly growing mobile data volumes. Solutions such as Mobility Management Entities, Home Subscriber Servers, and Packet Data Network Gateways are leading the charge in helping telecom operators and enterprises reduce operational and capital expenditures (OPEX and CAPEX).

For example, in December 2022, T-Mobile USA collaborated with Cisco Systems to launch a cloud-native converged core gateway, shifting all 5G and 4G traffic to this new infrastructure. This resulted in a more than 10% improvement in speed and latency for its customers, underscoring the importance of advanced vEPC solutions.

Meanwhile, the services segment is expected to register the highest growth rate during the forecast period. The increasing need for consulting, integration, and maintenance services is a key driver of this trend, as businesses strive to optimize their network performance and stay competitive in a 5G-driven world.

2. Application Breakdown: MPN & MVNO Leading the Way

The vEPC market’s applications are segmented into Mobile Private Networks & Mobile Virtual Network Operators (MPN & MVNO) , Long-term Evolution & Voice over LTE (LTE & VoLTE) , and IoT & Machine-to-Machine (M2M) .

In 2024, the MPN & MVNO segment is anticipated to account for the largest share, propelled by the rising demand for high-speed internet and low-cost mobile services. As telecom companies shift to virtualized infrastructures, the ability to quickly deploy and integrate new services is becoming critical. Notably, Summa Networks partnered with Cirrus Core Networks in April 2022 to offer innovative IaaS-based packet core solutions, further highlighting the growing importance of MPN & MVNO in the vEPC ecosystem.

However, the IoT & M2M segment is expected to register the highest CAGR during the forecast period. The rise of remote monitoring, autonomous decision-making, and the increasing need for real-time data analysis across industries are key drivers of this growth.

3. Deployment Modes: On-Premise vs. Cloud-Based Solutions

The vEPC market offers two key deployment modes: on-premise and cloud-based . While on-premise deployments are expected to maintain a larger share in 2024—primarily due to the control and security they offer to large enterprises—the cloud-based segment is predicted to grow at a faster pace. This growth is driven by the cost-effectiveness, scalability, and flexibility of cloud-based solutions, which are becoming increasingly attractive to businesses as they transition to virtualized and 5G-enabled infrastructures.

4. End-User Analysis: Telecom Operators Take the Lead

Telecom operators are set to dominate the vEPC market by 2024, driven by their need to offer enhanced speed, bandwidth, and connectivity while simultaneously reducing OPEX and CAPEX. The ongoing development of 5G infrastructures is placing immense pressure on telecom providers to adopt virtualized solutions that can improve IT agility and network performance.

Notably, in February 2024, NEC Corporation partnered with NTT DOCOMO to provide a virtualized Radio Access Network (vRAN) for the latter’s 5G commercial network. This partnership exemplifies the growing role of telecom operators in driving vEPC adoption.

Enterprises in sectors such as BFSI, healthcare, and media & entertainment are also contributing to the market’s expansion, as they increasingly rely on vEPC solutions to enhance their network infrastructure and support cloud-based applications.

Regional Outlook: North America and Asia-Pacific Lead Market Growth

Geographically, North America is expected to hold the largest share of the vEPC market in 2024, driven by the proliferation of advanced networking technologies, increasing adoption of 5G, and government initiatives to develop telecom infrastructure. Noteworthy partnerships, such as Ericsson ’s collaboration with Nex-Tech Wireless to launch 5G capabilities in rural Kansas, are further fueling this growth.

However, the Asia-Pacific region is forecasted to experience the highest CAGR during the projection period. The rapid adoption of mobile devices, increasing data traffic, and the growing penetration of 5G and IoT technologies are key drivers in this region. Major players are strategically expanding their presence in APAC, with Ericsson modernizing LTE networks in Taiwan and launching Multi-Operator Core Networks to support 5G deployments.

Key Market Players

Some of the leading players operating in the virtualized evolved packet core market include Cisco Systems, Inc. (U.S.) , Telefonaktiebolaget Lm Ericsson SE (Sweden) , Huawei Technologies Co., Ltd. (China) , Samsung Electronics Co., Ltd. (South Korea) , Nokia Corporation (Finland) , Affirmed Networks (U.S.) , Mavenir Systems, Inc. (U.S.) , ZTE Corporation (China) , and many others.

Conclusion

The virtualized evolved packet core market is on the cusp of a transformation, fueled by the rapid advancement of 5G technology, IoT adoption, and cloud-native solutions. While challenges such as data security and misconceptions around vEPC solutions remain, the opportunities for growth are immense. Businesses that prioritize agility, scalability, and low-latency performance are well-positioned to capitalize on the burgeoning demand for vEPC solutions. As the market continues to evolve, collaborations, technological advancements, and regional expansions will play pivotal roles in shaping its future.Top of Form

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