Virtual Evolved Packet Core Market size was over USD 9.39 billion in 2024 and is poised to reach USD 187.36 billion by the end of 2037, witnessing around 25.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of virtual evolved packet core is assessed at USD 11.33 billion.
In the year 2025, the industry size of virtual evolved packet core is evaluated at USD 9.3 Billion. The market growth can be attributed owing to the increasing mobile network data traffic. The mobile network data traffic is expanding owing to the growing number of smartphone subscriptions and increased data volume per subscription. According to the Ericsson Mobility report of 2022, the total mobile network data traffic reached approximately 51 Exabytes per month by the end of 2020. Also, during the covid-19 pandemic, the mobile network data traffic dynamics changed owing to factors such as work-from-home culture, lockdown, and restrictions on the movement of people.
Another factor driving the growth of the virtual evolved packet core is that the expansion of IoT has the possibility of benefitting the MNOs. It is estimated that to serve a variety of cases the mobile network operators would utilize virtual evolved packet cores in the live networks. In the heterogeneous IoT world, the MNOs can curate their network cost-effectively as per the choices of specific clients, sectors, and customers.
Growth Drivers
Expansion in the Mobile Network Data Traffic – The main factor behind the growth of mobile data traffic is the rising penetration of smartphones and the easy and cost-friendly availability of data among the population. For instance, according to GSMA Intelligence, smartphone penetration is expected to rise from 65% in 2021, to 80% by the end of 2025. The virtual evolved packet core helps in managing data traffic effectively, therefore reducing the network congestion problem, and improving service quality at the same time optimizing resource use.
Opportunities for MNOs to Participate in the Rise of IoT – The virtual evolved packet core helps the MNOs by giving them the ability to customize the network as per the choice of an individual customer, client, or sector. This ability of MNOs plays a significant role in the rise of IoT.
Increasing demand for high-quality mobile services and rise in LTE consumers – The Lishui Municipal Emergency Management Bureau is using private 5G slicing over China’s mobile network, portable cell sites, and rapidly deployable communication vehicles as a part of disaster management and visualization system.
The ongoing development of vEPC (Virtual Evolved Packet Core) framework with 5G networking – The demand for a faster network all across the globe is rising. This gave rise to 5G network which is way faster than 4G and also enables the provisioning of the network on demand.
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
25.6% |
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Base Year Market Size (2024) |
USD 9.39 billion |
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Forecast Year Market Size (2037) |
USD 187.36 billion |
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Regional Scope |
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Component (Solutions, Services)
The global virtual evolved packet core market is segmented and analyzed for demand and supply by component into solutions and services. Amongst these the services segment is anticipated to hold the highest market share by the end of 2037. This is attributed to the increasing and changing trends in the technologies that gave rise to the services segment by the end users. The overall service segment has a high impact on the virtual evolved packet core market. The demand for virtual evolved packet core grew from 15% in 2015 to 21% in 2021.
Deployment Type (Cloud, On-premises)
The global virtual evolved packet core market is segmented and analyzed for demand and supply by deployment type into cloud and on-premises. Out of these, the cloud segment is anticipated to hold the largest market share in the forecast period. Among small and medium-scale enterprises cloud computing receiving a lot of recognition and popularity. Ease of adoption, scalability, minimal requirement of in-house infrastructure, and easy installation of the network are a few advantages of the cloud segment. These properties promote the faster growth of the cloud segment.
Our in-depth analysis of the global market includes the following segments:
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By Component |
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By Deployment Type |
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By Application |
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By End User |
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North American Market Forecast
The market in North America is projected to emerge as the fastest-growing market over the forecast period. The rise in the usage of virtual evolved packet core solutions and services including the highest rate of 5G adoption, and the collaboration of market players to deploy vEPC efficiently on large scale are the factors driving the growth of the market. It is estimated that over 60% of the total share of mobile connections in North America will be 5G networks by 2025. Also, owing to the prevalence of advanced telecom network infrastructure and the growing adoption of new technologies the market in the North American region is expected to grow at a high pace.
Europe Market Forecast
Europe region is projected to follow North America closely to hold a significant share of the global market over the forecast period. As of 2020, approximately 98% of the population in Europe was estimated to have 4G network connectivity, according to the ITU. Recently, Europe is also making efforts for bringing the 5G network to their region, to provide the population with a faster network and better services.
APAC Market Statistics
Asia-Pacific region expected to grow at a significant rate. The region is witnessing the technological transformation and infrastructural growth. In 2020, the ITU estimated that the 4G network covered approximately 94% of the population in the region. Moreover, countries such as Japan, South Korea, Australia, Singapore, China, and India are increasingly adopting technologies, such as VR and AR as well as the IoT, which are more data-intensive and demand seamless network connectivity, providing significant opportunity for the growth of the vEPC market in the region. Also, owing to the massive mobile user base, key market players in this region are becoming more competitive and are focusing on providing better services to customers.
Nokia Corporation is selected by Taiwanese mobile operator Asia Pacific Telecom as the single vendor for 5G New Radio in a deal that also encompasses 5G core, security, and monetization.
Cisco Systems, Inc. collaborated with Gogo Business Aviation, a broadband connectivity service provider in the aviation sector. As per the collaboration, the company will offer a mobile core solution, consisting of ultra cloud core solutions and packet core solutions.
Author Credits: Abhishek Verma
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