Virtualized Evolved Packet Core Market 2024-2032 Overview: Trends, Competitor Dynamics, and Opportunities

Key Insights

The Virtualized Evolved Packet Core Market size was valued at USD 5.9 USD Billion in 2023 and is projected to reach USD 17.08 USD Billion by 2032, exhibiting a CAGR of 16.4 % during the forecast period. When the Evolved Packet Core is deployed in a virtual environment based on cloud technologies, this technology refers to vEPC. It eases the link between network functions and the network’s hardware platform, placing the functions on VMs or containers. This virtualization leads to improved scalability, flexibility, and such cost benefits as are derived from virtualization. There are mainly two types of vEPC deployments: On-premise in which the functions of virtualization are implemented on an organization’s private data centers and cloud where functions are hosted on a public cloud platform. These are dynamic scaling, better use of resources, and easier processes of managing the network. vEPC plays an important role in the provision of high-speed data services, management of 4G LTE and 5G networks, and the proper handling of the tremendous traffic of mobile data.

Virtualized Evolved Packet Core Market Trends

The virtualized evolved packet core (vEPC) market is gaining traction as telecom operators seek to modernize and virtualize their networks. vEPC solutions offer a range of benefits, including increased agility, flexibility, and scalability, as well as reduced costs and improved performance.

Key trends shaping the vEPC market include:

• Cloud-native vEPC: Cloud-native vEPC solutions are gaining popularity as they offer increased flexibility, scalability, and cost-effectiveness. These solutions are designed to run in the cloud, and can be easily deployed and managed using cloud-native tools and technologies.
• 5G vEPC: 5G vEPC solutions are designed to support the high-speed, low-latency requirements of 5G networks. These solutions offer a range of features, including support for network slicing, edge computing, and massive MIMO.
• Open vEPC: Open vEPC solutions are based on open-source software, which provides greater flexibility and cost-effectiveness. These solutions are typically more customizable than proprietary vEPC solutions, and can be integrated with a wider range of third-party components.

Driving Forces: What's Propelling the Virtualized Evolved Packet Core Market

1. Increased demand for network virtualization: Telecom operators are increasingly virtualizing their networks to reduce costs, improve agility, and increase flexibility. vEPC solutions can help operators achieve these goals by virtualizing the core network functions, such as the mobility management entity (MME), the serving gateway (SGW), and the packet data network gateway (PDN-GW).
2. Growing adoption of 5G networks: 5G networks are being deployed around the world, and this is creating a strong demand for vEPC solutions. vEPC solutions can help operators support the high-speed, low-latency requirements of 5G networks.
3. Government initiatives promoting digital transformation: Governments around the world are promoting digital transformation initiatives, which is leading to increased investment in network infrastructure. vEPC solutions can help operators meet the demands of digital transformation by providing a flexible and scalable network infrastructure.

Challenges and Restraints in the Virtualized Evolved Packet Core Market

1. Security concerns: vEPC solutions are based on software, which can make them vulnerable to security threats. Operators need to implement robust security measures to protect their vEPC networks from these threats.
2. Cost of implementation: vEPC solutions can be expensive to implement. Operators need to carefully consider the costs of implementation before deploying a vEPC solution.
3. Lack of skilled personnel: vEPC solutions are complex, and they require skilled personnel to operate and maintain them. Operators may need to invest in training to ensure that they have the necessary skills to support their vEPC networks.

Growth Catalysts in Virtualized Evolved Packet Core Industry

• Technological advancements in virtualization and cloud computing
• Growing demand for mobile data and video services
• Government initiatives supporting the deployment of 5G networks
• Increasing adoption of IoT and M2M devices
• Rising security concerns and the need for robust security solutions

Market Segmentation: Virtualized Evolved Packet Core Analysis

By Component:

• Solution:
  • Network Functions Virtualization (NFV)
  • Software Defined Networking (SDN)
  • Cloud-RAN
• Service:
  • Managed services
  • Professional services

By Deployment:

• Cloud:
  • Public cloud
  • Private cloud
• On-premise:

By Network:

• 5G Network:
  • 5G Standalone (SA)
  • 5G Non-Standalone (NSA)
• 4G Network:
  • LTE-Advanced
  • LTE-Advanced Pro

By End User:

• Telecom Operators:
  • Mobile network operators
  • Fixed network operators
• Enterprises:
  • Large enterprises
  • Small and medium-sized enterprises (SMEs)

Leading Players in the Virtualized Evolved Packet Core Market

• Nokia Corporation
• Cisco Systems
• Ericsson
• Mavenir
• Huawei Technologies
• ZTE Corporation
• Core Network Dynamics
• Affirmed Networks
• ExteNet Systems
• Athonet

Significant Developments in the Virtualized Evolved Packet Core Sector

• In 2020, Nokia and Vodafone launched the world's first commercial 5G SA network using Nokia's vEPC solution.
• In 2021, Cisco announced a partnership with AWS to offer a fully managed vEPC solution on AWS.
• In 2022, Ericsson launched a new cloud-native vEPC solution, the Ericsson Packet Core Cloud Native (PCN).

Comprehensive Coverage Virtualized Evolved Packet Core Market Report

The Comprehensive Coverage Virtualized Evolved Packet Core Market Report provides an in-depth analysis of the market, covering all key aspects such as market size, market share, market trends, competitive landscape, and growth opportunities. The report also provides detailed segmentation of the market by component, deployment, network, end user, and region.

Regional Insight

The Virtualized Evolved Packet Core Market is expected to witness significant growth in all regions over the forecast period. However, the Asia-Pacific region is expected to dominate the market, due to strong government support for digital transformation initiatives and the presence of a large number of mobile subscribers.

Recent Mergers & Acquisition

• In 2021, Mavenir acquired Affirmed Networks, a leading provider of cloud-native vEPC solutions.
• In 2022, Nokia acquired Wyplay, a leading provider of video software solutions for telecom operators.

Regulation

The virtualized evolved packet core market is subject to regulation by various government agencies around the world. These regulations vary by country, but they typically focus on ensuring the security and reliability of telecommunications networks.

Patent Analysis

The virtualized evolved packet core market is highly competitive, and some companies hold patents related to vEPC technology. These patents cover a wide range of technologies, from core network functions to deployment models.

Analyst Comment

The Virtualized Evolved Packet Core Market is expected to continue to grow rapidly over the forecast period, Driven by the increasing demand for network virtualization, the growing adoption of 5G networks, and government initiatives supporting digital transformation, vEPC solutions are expected to become increasingly important for telecom operators around the world.