Virtualized Evolved Packet Core (vEPC) Market Size & Share to Surpass $8.7 Billion by 2028 | Vantage Market Research

WASHINGTON, Jan. 25, 2023 (GLOBE NEWSWIRE) -- Global Virtualized Evolved Packet Core Market is valued at USD 4.1 Billion in 2021 and is projected to reach a value of USD 8.7 Billion by 2028 at a CAGR (Compound Annual Growth Rate) of 22.1% over the forecast period 2022-2028.

Market Overview

According to Vantage Market Research, key factors are anticipated to accelerate the Virtualized Evolved Packet Core market growth over the forecast period. The key factors propelling the growth of the Virtualized Evolved Packet Core market are the rising demand for 5G network commercialization, the rising need to reduce operational expenditure (OPEX) and capital expenditure (CAPEX), IoT deployment and agile networks, and the rising demand for broadband services over mobile networks.

We forecast that the solution category in Virtualized Evolved Packet Core market sales will account for more than 59% of total sales by 2028. The reasons propelling the growth of this market segment include the increased demand for high-speed and extensive network coverage and the growing requirement to decrease OPEX and CAPEX.

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Market Dynamics

Mobile data traffic levels have significantly increased, which is boosting market expansion

The main drivers of the increase in mobile data traffic are the constantly shifting mix of wireless devices and their rapid global expansion as access points for mobile networks. Mobile data traffic is growing globally due to rising smartphone adoption and the accessibility of low-cost, high-speed network services. For instance, GSMA Intelligence predicts that the percentage of people using smartphones worldwide will rise from 65% in 2021 to 80% by the end of 2025. By 2025, 45% of all mobile data traffic will be carried by 5G networks, according to Ericson. Thus, to control the data traffic, virtualized evolving packet core solutions are now required due to the increased mobile data traffic. Managing mobile data traffic effectively improves throughput, reduces network congestion issues, optimizes resource use, and improves service quality. This is made possible by the use of a Virtualized Evolved Packet Core.

IoT & M2M Adoption to Boost Market Growth

IoT and M2M services are anticipated to grow significantly during the projection period. Numerous mobile operators have implemented vEPC in the core IoT packet network. VEPC solution suppliers are also preparing IoT cellular network NFV solutions. The operator can easily provide better connectivity for M2M devices and investigate new offerings for clients by using the vEPC solution in the IoT core network allows. Due to the rising number of deployments made by telecom operators in the North American, APAC, and MEA areas, IoT and M2M will represent the most significant opportunity for vEPC solution vendors in the next years. IoT prospects for various mobile operators are made possible by vPEC. Compared to the smartphones and tablets that dominate today's networks, IoT applications have significantly different network needs.

Top Players in the Global Virtualized Evolved Packet Core Market

  • Cisco Systems Inc. (US)
  • Telefonaktiebolaget LM Ericsson (Sweden)
  • NEC Corporation (Japan)
  • Mavenir (US)
  • ZTE Corporation (China)
  • Red Hat Inc. (US)
  • Nokia Corporation (Finland)
  • Huawei Technologies Ltd. (China)
  • Affirmed Solutions Inc. (US)
  • Samsung Electronics Ltd. (South Korea)

For Additional Information on Virtualized Evolved Packet Core Market Players and Detail List, Download a Report PDF Brochure

Top Trends in Global Virtualized Evolved Packet Core Market

  • One trend that Vantage Market Research (VMR) expects to see in the Virtualized Evolved Packet Core industry is an increase in data traffic on mobile networks. Mobile data traffic is expected to reach 51 exabytes (EB) by the end of 2020 and 226 EB by 2026. The video currently accounts for 66% of all mobile data traffic. The traffic growth is largely attributable to the rising average amount of data per subscription and the rising subscription rate for smartphones.
  • Another trend that VMR predicts will continue in the Virtualized Evolved Packet Core industry is a surge in 5G network demand. The market for vEPC is being driven by the development of 5G infrastructure. There have been numerous new technological developments, such as 5G in the telecommunications sector. Using technologies like IoT motivates MNOs to develop 5G infrastructure because of the increase in data traffic.

Top Report Findings

  • Based on the Component, the solution category controls most of the Virtualized Evolved Packet Core market's revenue. The significant market share of this sector is primarily attributable to the growing need for high-speed and extensive network coverage, the growing need to decrease OPEX and CAPEX, the rising volume of mobile data traffic, and the expanding use of network virtualization.
  • Based on the Solution, most of the MME category controls most of the Virtualized Evolved Packet Core market's revenue. In addition to supporting subscriber authentication, roaming, and network handovers, it manages mobility sessions for the LTE network.
  • Based on Service, most of the Virtualized Evolved Packet Core market's revenue is controlled by the professional services category. Professional services from VEPC help businesses perform better by increasing overall income and decreasing costs and operational costs. These services enable firms to monitor, assess, and analyze their business requirements to make more sensible decisions.
  • Based on the Network, most of the Virtualized Evolved Packet Core market's revenue is controlled by the 5G network category. The next-generation virtualized core network architecture is the VEPC market, which is cloud native. Due to legacy vendor architectures, which have practically not altered in more than 25 years of mobile networks, operators are restricted.
  • Based on End Users, most of the Virtualized Evolved Packet Core market's revenue is controlled by the telecom operators category. Telecom operators in numerous nations have already used these solutions. South Korean operator SK Telecom successfully implemented a Virtualized Evolved Packet Core solution in 2015.
  • Based on Deployment Mode, most of the Virtualized Evolved Packet Core market's revenue is controlled by the on-premise category due to the increased control that on-premise solutions' virtualized evolving packet core network infrastructure offers.

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Recent Developments in the Global Virtualized Evolved Packet Core Market

  • In 2021, Nokia planned to commercialize its VEPC solution using software-defined networking (SDN). This solution would allow operators to control network traffic flows more easily.

Solution Category in Virtualized Evolved Packet Core Market to Generate Over 59% Revenue

Virtualized Evolved Packet Cores are an expensive investment. Vantage Market Research has analyzed the Virtualized Evolved Packet Core market to understand its current state and potential future growth factors. For better understanding, based on the component, the Virtualized Evolved Packet Core market is divided into Solutions and Services.

During the forecast period, the Virtualized Evolved Packet Core market is anticipated to experience the highest CAGR for the solution category because more vEPC systems are being deployed to meet the rising need for high-speed data networks.

On the other hand, the service category is anticipated to grow significantly due to its crucial function in deploying and integrating next-generation networking systems for a corporate setting.

Asia Pacific Region in Virtualized Evolved Packet Core Market to Generate More 37% Revenue

The Asia Pacific dominates the market for Virtualized Evolved Packet Cores, and this trend of dominance will continue throughout the projection period. The increasing usage of technologies like cloud computing and IoT is the key factor behind this region's rapid growth. In addition, it is anticipated that the region will expand quickly over the next few years due to the rapid spread of 5G in Asia- Pacific nations, growing subscriber base, favorable government policies and regulations, and demand for broadband services.

Browse market data Tables and Figures spread through 142 Pages and in-depth TOC on Virtualized Evolved Packet Core Market Forecast Report (2022-2028).

Global Virtualized Evolved Packet Core Market Segmentation

By Component

  • Solution
  • Services

By Solution

  • MME
  • HSS
  • S-GW
  • PDN-GW

By Services

  • Professional Services
  • Consulting
  • Integration and Deployment
  • Training and Support
  • Managed Services

By Network

  • 5G Network
  • 4G Network

By End User

  • Telecom operators
  • Enterprises

By Deployment Mode

  • Cloud
  • On-premises

By Region

  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-East Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of MEA

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Scope of the Report:

Report AttributesDetails
Market Size in 2021USD 4.1 Billion
Revenue Forecast by 2028USD 8.7 Billion
CAGR22.1% from 2022 to 2028
Base Year2021
Forecast Year2022 to 2028
Key PlayersCisco Systems Inc., Telefonaktiebolaget LM Ericsson, NEC Corporation, Mavenir, ZTE Corporation, Red Hat Inc., Nokia Corporation, Huawei Technologies Ltd., Affirmed Solutions Inc., Samsung Electronics Ltd.
Customization OptionsCustomized purchase options are available to meet any research needs. Explore customized purchase options

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