The Virtualized Evolved Packet Core (vEPC) Market is poised to reach a valuation of $17.6 billion by 2029, with a robust CAGR of 23.5% anticipated during the forecast period from 2023 to 2029.

Several pivotal factors are steering this growth trajectory. These include the relentless surge in mobile data traffic volumes, a pressing need for operational and capital expenditure reduction (OPEX and CAPEX), an escalating demand for the commercialization of 5G networks, the widespread deployment of IoT, and the evolution toward agile networks. Additionally, the escalating consumer demand for broadband services delivered over mobile networks contributes significantly to the buoyancy of the virtualized evolved packet core market.

Impact of COVID-19 on the vEPC Market

The global COVID-19 pandemic cast a long shadow over economies worldwide, leaving no industry unscathed, including the IT and telecommunications sector. The implementation of containment measures such as lockdowns, social distancing, and quarantines profoundly impacted the normal functioning of businesses and education. With the majority of the workforce and students transitioning to remote setups, enterprise virtual private network (VPN) servers emerged as lifelines for organizations and schools alike. UNESCO reported that a staggering 850 million students worldwide embraced remote learning, while millions of employees shifted to telecommuting, resulting in a seismic shift in communication network usage patterns. Europe, in particular, witnessed a dramatic 50% surge in network traffic as individuals stayed confined to their homes.

Adding to the challenges, the global association responsible for advancing 5G technology, 3GPP, announced a three-month delay in the completion timeline for 5G specifications in March 2020 due to the pandemic's disruptions. These delays had a ripple effect, impacting the commercial development of virtual evolved packet core solutions and 5G deployments. Supply chain disruptions further compounded the challenges faced by the virtual evolved packet core market in 2020-2021. However, industry leaders are diligently working to get the market back on track, and governments at the local level are implementing initiatives to mitigate the pandemic's adverse impacts. Consequently, the virtual evolved packet core market is poised for a recovery, expected to regain its footing by 2024.

The continual expansion of mobile data traffic volumes stands as a crucial driver propelling market growth. The global landscape has witnessed a dynamic mix of wireless devices accessing mobile networks, underpinning the surge in mobile data traffic. This flow is credited to the proliferation of smartphones and the ready availability of reasonable high-speed network services. According to GSMA Intelligence, the global penetration of smartphones is expected to climb from 65.3% in 2021 to 80.4% by 2025. Ericsson forecasts that 5G networks will shoulder 45.4% of the total mobile data traffic by 2025. This mounting demand for mobile data traffic has engendered a pressing need for virtualized evolved packet core solutions, geared towards efficient data traffic management. The adoption of virtualized evolved packet core streamlines mobile data traffic, enhancing throughput, mitigating network congestion, optimizing resource utilization, and elevating service quality.

The evolution of cellular network technology, characterized by higher data speeds and reduced latency, serves as a primary catalyst fostering the adoption of virtualized evolved packet core solutions. The exponential development in data volume is largely fueled by consumer likings for video content and the adoption of cloud services by both businesses and consumers. The extensive data volumes traversing cellular networks are bolstering mobile data traffic. Cisco Systems, Inc. projects that global business mobile data traffic will experience a six-fold increase from 2017 to 2022, with an annual growth rate of 42%. This rapid upsurge in mobile data traffic augments the prospects of virtualized evolved packet core solutions throughout the forecast period.

Key Insights from the Global Virtualized Evolved Packet Core Market Study:

In 2021, the solutions segment took precedence in the virtualized evolved packet core market

Within the component spectrum, the solutions segment established its dominance in the virtualized evolved packet core (vEPC) market in 2021. This prominence can be attributed to factors such as the growing need to curtail operational and capital expenditures (OPEX and CAPEX), the escalating mobile data traffic volume, and the surging demand for expansive network coverage and high-speed connectivity. The ease of deployment, criticality, and practicality of virtualized evolved packet core solutions further bolstered the segment's growth. To make these solutions more accessible, even to small and medium-scale enterprises, numerous providers are channeling investments into research and development. Nevertheless, the services segment is anticipated to emerge as the fastest-growing category throughout the forecast period.

The cloud-based segment is poised for the highest CAGR during the forecast period

The cloud-based deployment mode is projected to record the most substantial compound annual growth rate (CAGR) during the forecast period. Cloud computing adoption is gaining traction, particularly among small and medium-scale enterprises. Many organizations are progressively transitioning to cloud infrastructure, an upward trend expected to persist in the years to come. Cloud infrastructure offers various advantages, such as ease of implementation, minimal in-house infrastructure prerequisites, scalability, and straightforward networking solution integration, all of which contribute to the segment's accelerated growth.

In 2021, the MPN and MVNO segment commanded the virtualized evolved packet core market

Regarding end-users, the telecom sector detained the major share of the (vEPC) market in 2021. This domination is fueled by aspects like the growing penetration of mobile devices and the demand for cost-effective mobile services, high-speed internet access, and improved voice, video, and mobile internet services.

Asia-Pacific: The Fastest-Growing Regional Market

In 2021, North America claimed the most extensive portion of the virtualized evolved packet core market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Nonetheless, Asia-Pacific is expected to exhibit the swiftest growing throughout the forecast period.

Prominent Market Players

The report provides an insightful assessment of the competitive landscape, focusing on the key strategic developments undertaken by leading players in the virtualized evolved packet core (vEPC) industry over the past four years. Notable companies featured in the global virtualized evolved packet core market include ZTE Corporation (China), Cisco Systems, Inc. (U.S.), Telefonaktiebolaget LM Ericsson SE (Sweden), Affirmed Networks, Inc. (U.S.), Mavenir Systems, Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Samsung Electronics Co, Ltd. (South Korea), Tecore Inc. (U.S.), Nokia Corporation (Finland), Parallel Wireless, Inc. (U.S.), F5 Networks, Inc. (U.S.), NEC Corporation (Japan), IPLOOK Technologies Co Ltd (China), Polaris Networks (U.S.), Athonet SRL (Italy), LEMKO Corporation (U.S.), Metaswitch Networks (U.K.), and Intel Corporation (U.S.).

Report Scope:

Virtualized Evolved Packet Core (vEPC) Market, by Component

• Solutions




• Mobility Management Entity (MME)


• Home Subscriber Server (HSS)


• Serving Gateway (SGW)


• Packet Data Network Gateway (PDNGW)


• Policy and Changing Rule Function




• Services




• Professional Services




• Consulting Services


• System Integration Services


• Training and Support Services




• Managed Services

Virtualized Evolved Packet Core (vEPC) Market, by Application

• MPN and MVNO


• IoT and M2M


• LTE and VoLTE

Virtualized Evolved Packet Core (vEPC) Market, by Deployment Mode

• On-premise


• Cloud

Virtualized Evolved Packet Core (vEPC) Market, by End User

• Telecom Industry


• Enterprises


• Financial Services


• Travel & Consumers


• IT & Software


• Media & Entertainment


• Healthcare


• Other Enterprises


• Other End Users

Virtualized Evolved Packet Core (vEPC)Market, by Region

• North America




• U.S.


• Canada




• Europe




• U.K.


• Germany


• France


• Italy


• Spain


• Netherlands


• Norway


• Sweden


• Rest of Europe




• Asia-Pacific




• China


• South Korea


• Japan


• India


• Malaysia


• Singapore


• Australia and New Zealand


• Rest of Asia-Pacific




• Latin America




• Brazil


• Mexico


• Rest of Latin America




• Middle East & Africa




• Saudi Arabia


• UAE


• Israel


• Rest of MEA