The global Virtualized Evolved Packet Core (vEPC) market is poised for substantial growth from 2025 to 2032, driven by the rapid adoption of 5G technology, increasing data traffic, and the proliferation of Internet of Things (IoT) devices. The market is projected to expand from USD 8.4 billion in 2023 to USD 38.96 billion by 2032, reflecting a robust Compound Annual Growth Rate (CAGR) of 18.7% during the forecast period.
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2. Introduction
The vEPC is a software-based framework that virtualizes the functions of the traditional Evolved Packet Core (EPC), enabling more flexible and scalable mobile network operations. This virtualization is crucial for supporting the demands of modern mobile networks, including high-speed data services, IoT connectivity, and the rollout of 5G networks. The transition from hardware-centric to software-defined core networks allows operators to optimize resources, reduce operational costs, and accelerate service deployment.
5G Network Deployment: The global rollout of 5G networks necessitates advanced core network solutions capable of handling increased data loads and providing low-latency services. vEPC facilitates the efficient deployment and management of 5G services, making it integral to modern network infrastructures.
IoT and M2M Communication: The exponential growth of IoT devices and Machine-to-Machine (M2M) communications requires scalable and flexible network architectures. vEPC supports the massive connectivity needs of IoT applications, enabling efficient data routing and management.
Cost Efficiency and Network Optimization: By virtualizing core network functions, operators can reduce reliance on specialized hardware, leading to lower capital and operational expenditures. vEPC allows for dynamic resource allocation, enhancing network efficiency and adaptability.
Security Concerns: The shift to virtualized networks introduces new security challenges, including vulnerabilities in software-defined components and potential cyber threats. Ensuring robust security measures is critical to maintaining network integrity.
Transition from Legacy Systems: Operators with substantial investments in traditional EPC infrastructure may face challenges in transitioning to virtualized environments, including technical complexities and integration issues.
Edge Computing Integration: Combining vEPC with edge computing can enhance network performance by processing data closer to end-users, reducing latency, and supporting real-time applications such as autonomous vehicles and industrial automation.
Private LTE and 5G Networks: Enterprises are increasingly deploying private LTE and 5G networks to meet specific connectivity requirements. vEPC provides the flexibility and control necessary for these customized network solutions, opening new revenue streams for service providers.
By Component:
By Deployment Mode:
By Network Type:
By Application:
LTE, VoLTE, and VoWiFi: Enhancing voice and data services over LTE and Wi-Fi networks.
IoT and M2M: Supporting connectivity for IoT devices and M2M communications.
Mobile Private Networks (MPN) & Mobile Virtual Network Operators (MVNO): Facilitating customized network solutions for enterprises and virtual operators.
North America: Expected to maintain a significant market share due to early adoption of 5G and advanced network infrastructures.
Asia Pacific: Anticipated to experience the fastest growth, driven by large-scale 5G deployments and increasing mobile subscriber base in countries like China and India.
Europe: Projected to see steady growth with ongoing investments in network modernization and 5G rollout.
Key players in the vEPC market include Ericsson, Huawei, Nokia, ZTE, Cisco, Samsung, Affirmed Networks, Mavenir, NEC, and Tech Mahindra. These companies are focusing on strategic partnerships, product innovations, and acquisitions to strengthen their market positions.