Virtualized Evolved Packet Core Market By Deployment Model, Use Case (Enhanced Mobile Broadband, Ultra-Reliable Low-Latency Communication ), End-User, & Region for 2024-2031

Virtualized Evolved Packet Core (vEPC) Market Valuation - 2024-2031

The market's increasing demand for virtualized evolved packet core (vEPC) is driven primarily by the need for increased network flexibility and efficiency. As telecoms networks transition to 4G and 5G technologies, traditional core network architectures struggle to keep up with increasing data traffic and the demand for quick service provision by enabling the market to surpass a revenue of USD 6.48 Billion valued in 2024 and reach a valuation of around USD 26.98 Billion by 2031.

The increase in mobile data consumption and the move to digital services are driving demand for vEPC. Modern applications like video streaming, the Internet of Things (IoT), and high-speed mobile internet necessitate a robust and adaptable network architecture. vEPC meets these objectives by offering dynamic network management, rapid deployment of new services, and efficient handling of a wide range of traffic kinds by enabling the market to grow at a CAGR of 19.52% from 2024 to 2031.

Virtualized Evolved Packet Core (vEPC) Market: Definition/ Overview

The virtualized evolved packet core (vEPC) is a new method of controlling telecommunications networks, particularly in 4G and 5G systems. It is a software-based solution that substitutes traditional, hardware-intensive core network components with virtualized counterparts that operate on regular servers. This change to virtualization allows the network core to be managed more flexibly and efficiently.

Virtualized evolved packet core (vEPC) has several important uses in modern telecommunications. Primarily, it aids in the efficient management of mobile networks by virtualizing core network components. This enables telecom operators to deploy and grow network functionalities in more flexible and cost-effective ways. For example, vEPC aids in traffic management across various types of networks such as 4G and 5G, enabling seamless connectivity and high-speed data services.

The future use of virtualized evolved packet core (vEPC) will enable the seamless transition from present 4G networks to 5G and beyond. As telecommunications technology advances, vEPC will play an important role in handling the increased data traffic and different application needs that 5G brings. By virtualizing essential network services, vEPC enables a more flexible and scalable architecture.

Will the Expansion in the Mobile Network Data Traffic Drive the Virtualized Evolved Packet Core (vEPC) Market?

The increase in mobile network data traffic is a major driver for the virtualized evolved packet core (vEPC) market. According to the Federal Communications Commission (FCC), mobile data traffic in the United States increased by 26% in 2021 over the previous year, totaling 42 trillion megabytes. This trend is replicated globally, with the International Telecommunication Union (ITU) estimating that global mobile data traffic will increase by 31% in 2021, reaching 222 exabytes.

According to the Global System for Mobile Communications Association (GSMA), 5G connections are estimated to total 1.8 billion by 2025, accounting for 21% of all mobile connections. The growing adoption of 5G is pushing the need for more efficient core network solutions. The National Telecommunications and Information Administration (NTIA) predicts that 5G networks would accommodate up to 1 million connected devices per square kilometer, compared to approximately 2,000 devices for 4G networks.

Will the Growing Security Concerns Hamper the Virtualized Evolved Packet Core (vEPC) Market?

Growing security issues may present a barrier to the virtualized evolved packet core (vEPC) business but they are unlikely to severely impede its expansion. As vEPC systems become more commonly used, they add complications that may enhance vulnerability to intrusions. This is especially important in settings where sensitive data and crucial network functions are handled. As a result, there is a heightened emphasis on adopting strong security measures to defend these virtualized systems.

The industry is actively addressing these challenges by using sophisticated security technology and processes. Network operators are investing in complete security frameworks including encryption, real-time threat monitoring, and intrusion detection systems to safeguard vEPC deployments. In addition, regulatory standards and guidelines are being developed to improve security protocols and assure compliance. These preemptive approaches reduce risks and reassure stakeholders allowing the vEPC industry to grow despite possible security problems.

Category-Wise Acumens

Will Flexibility and Cost-Efficiency Drive Growth in the End User Segment?

Telecommunication service providers dominate the market for virtualized evolved packet cores (vEPCs). Their market leadership is based on their prominent role in the deployment and administration of large mobile networks with millions of subscribers. This transition improves scalability, flexibility, and cost-efficiency which are critical for offering advanced 4G LTE and 5G services.

The increased demand for high-speed data, low-latency connection, and different service offerings across several segments, including consumer, enterprise, and Internet of Things (IoT) is driving the use of vEPC solutions. Telecommunication service providers use vEPC to meet these demands by improving their network infrastructures to handle greater data traffic and more sophisticated service requirements in modern applications.

Will Operational Efficiency and Reducing Upfront Capital Expenditures Drive the Deployment Model Segment?

Cloud-based deployment approaches are dominant due to the preferred option for virtualized evolved packet core (vEPC) systems due to their appealing scalability, flexibility, and cost-effectiveness benefits. One of the most significant advantages is the capacity to easily scale infrastructure resources in response to fluctuations in demand. Cloud-based vEPC systems allow operators to dynamically change their resources, scaling up during peak consumption and down during quieter periods.

Cloud-based vEPC solutions provide greater agility than traditional deployment techniques. The lack of physical hardware constraints enables operators to quickly deploy new services and improvements reacting to changing market demands and technical breakthroughs without being hampered by the limitations of on-premise systems. This agility not only shortens the time to market for new features and services but also allows for continual development and innovation across the network.

Country/Region-wise Acumens

Will Digital Transformation Initiatives Drive the Market in the Asia Pacific Region?

The Asia-Pacific region is growing as a dominant region in the virtualized evolved packet core (vEPC) market owing largely to strong digital transformation initiatives in various nations. China and India are in the vanguard of this expansion because of their huge populations and fast-evolving telecommunications sectors. The Asian Development Bank (ADB) estimates that digital transformation will add USD 8.6 Trillion to Asia's GDP by 2025.

Another important factor driving the regional vEPC market is the adoption of 5G technology. According to the Global System for Mobile Communications Association (GSMA), Asia Pacific will have the world's most 5G connections by 2025 with 675 million. The deployment of 5G networks necessitates a more flexible and scalable core network which vEPC offers. South Korea which is often regarded as a leader in 5G adoption predicted that 5G subscribers would reach 15.8 million in 2021 accounting for 22% of total mobile subscriptions.

Will the Increasing Use of Multimedia Services Drive the Market in the North American Region?

The North American virtualized evolved packet core (vEPC) industry is expanding rapidly with multimedia services emerging as the fastest-growing segment. This acceleration is mostly driven by the growing demand for high-quality video streaming, online gaming, and other data-intensive services across mobile networks. The growth of multimedia services is a major driver of the North American vEPC industry. According to the Federal Communications Commission (FCC), mobile data traffic in the United States increased by almost 36% in 2020 alone. This surge is largely due to the increased consumption of video material on mobile devices.

According to the National Telecommunications and Information Administration (NTIA), the US government has set aside more than USD 25 Billion to fund 5G implementation and related technologies. 5G networks, enabled by vEPC, are critical for providing high-quality multimedia experiences with reduced latency. According to the CTIA, a trade body that represents the US wireless communications sector, 5G networks are estimated to produce 4.5 million jobs and contribute USD 1.5 Trillion to the US economy by 2030.

Competitive Landscape

The Virtualized Evolved Packet Core (vEPC) Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the virtualized evolved packet core (vEPC) market include:

ERICSSON

HUAWEI

NOKIA

ZTE

CISCO

Samsung

Affirmed Network

Mavenir

NEC

Tech Mahindra

Latest Developments

In February 2023, Intel Corporation and SK Telecom announced the availability of Intel Infrastructure Power Manager for 5G Core. It saves an average of 30% CPU power during runtime by leveraging built-in acceleration to meet crucial performance, scale, and power requirements.

Virtualized Evolved Packet Core (vEPC) Market, By Category

• Deployment Model:
• On-premises
• Cloud-based
• Use Case:
• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable Low-Latency Communication (URLLC)
• End-User:
• Telecommunication Service Providers
• Businesses
• Government & Public Sector
• Region:
• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa