The Global 5G vEPC Market is projected to reach a market size of USD 13.46 Billion by the end of 2030.

The Global 5G Virtualized Evolved Packet Core (vEPC) Market is experiencing strong momentum as telecom operators accelerate their transition toward cloud-native and software-defined network architectures. The market, valued at USD 3.12 billion, is projected to reach USD 13.46 billion by 2030, growing at an impressive CAGR of 23.24% during 2024–2030.

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As mobile data consumption surges and 5G deployment expands worldwide, vEPC is emerging as a foundational technology enabling scalable, cost-efficient, and flexible mobile core networks.

Understanding 5G vEPC

A Virtualized Evolved Packet Core (vEPC) is a software-based mobile core network architecture built using Software-Defined Networking (SDN) and Network Functions Virtualization (NFV). Unlike traditional EPC systems that rely on dedicated hardware, vEPC runs network functions on commercial off-the-shelf (COTS) servers, significantly reducing infrastructure costs.

Originally developed for 4G LTE networks, the vEPC framework now plays a crucial role in supporting the transition to 5G. By virtualizing packet core functions, mobile operators can:

Reduce CAPEX and OPEX
Improve network scalability and flexibility
Optimize total cost of ownership (TCO)
Accelerate service delivery
Simplify network maintenance and design

vEPC enables operators to dynamically scale network capacity based on real-time demand, ensuring better service quality and efficient traffic management.

Market Drivers

Rising Adoption of IoT and M2M

The rapid expansion of Internet of Things (IoT) and Machine-to-Machine (M2M) communication is a key growth driver for the 5G vEPC market. IoT applications require network architectures different from traditional smartphone-based networks, demanding:

Massive device connectivity
Low latency
High reliability
Efficient traffic management

vEPC solutions allow telecom operators to quickly deploy IoT core networks and deliver enhanced connectivity for M2M devices. As IoT deployments increase across North America, APAC, and the Middle East & Africa, opportunities for vEPC vendors are expanding significantly.

Surge in Mobile Data Traffic

Global mobile data traffic continues to grow exponentially due to:

Increasing smartphone penetration
Affordable high-speed data plans
Growth of video streaming and digital content

According to industry projections, 5G networks are expected to carry nearly 45% of global mobile data traffic by 2025. Managing such massive data volumes requires flexible and scalable packet core solutions. vEPC enhances throughput, reduces congestion, and optimizes resource utilization, making it critical for modern mobile networks.

Growth in LTE Subscribers and 5G Infrastructure

The expanding LTE subscriber base and ongoing 5G infrastructure rollouts are driving adoption of virtualized packet core systems. Telecom operators are seeking solutions that:

Lower network costs
Improve automation
Increase architectural flexibility
Support VoLTE and VoWiFi services

By consolidating packet core services into cloud-based platforms, vEPC allows operators to decouple network functions from hardware, offering greater design flexibility and operational efficiency.

Market Challenges

Despite strong growth prospects, several challenges persist:

High implementation complexity requiring skilled professionals in virtualization and network security
Significant investments in IT infrastructure to support cloud-based operations
Data security and privacy concerns
Limited resources among small telecom operators

Organizations must address security, scalability, and operational complexity to ensure smooth adoption of vEPC solutions.

COVID-19 Impact

The COVID-19 pandemic positively influenced the 5G vEPC market. With the surge in remote work, online education, and digital services, demand for high-speed mobile broadband increased significantly. Telecom operators deployed vEPC solutions to manage rising traffic and ensure uninterrupted connectivity.

As global economies recovered in 2021 through vaccination programs, telecommunication demand remained strong, further supporting vEPC market growth.

Market Segmentation

By Component

Solutions
Services

The Services segment is expected to grow at a higher CAGR during the forecast period. Services such as network planning, testing, optimization, consulting, and support play a critical role in successful vEPC deployment and integration.

By Application

LTE, VoLTE, and VoWiFi
IoT and M2M
MPN and MVNO
BWA

The LTE, VoLTE, and VoWiFi segment is projected to dominate the market. Virtualized core networks allow operators to deliver voice and data services more cost-effectively compared to traditional EPC systems. Wi-Fi calling services also help improve coverage in low-signal areas.

By End User

Telecom Operators
Enterprises

Telecom operators are expected to hold the largest market share. Leading operators across South Korea, North America, and Asia-Pacific have already implemented vEPC to enhance network efficiency and support 5G services.

By Deployment Mode

Cloud
On-premises

The on-premises segment currently dominates due to the greater control it provides over network infrastructure. However, cloud-based deployments are gaining traction as operators adopt cloud-native architectures.

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Regional Insights

Asia-Pacific – Fastest Growing Region

Asia-Pacific is anticipated to witness the fastest growth during the forecast period. Countries such as Japan, South Korea, China, India, Australia, and Singapore are investing heavily in 4G and 5G infrastructure.

The rising adoption of VR, AR, IoT, and data-intensive applications in the region demands robust and scalable packet core solutions, creating substantial opportunities for vEPC providers.

North America and Europe

North America remains a mature market with early 5G adoption and strong telecom infrastructure. Europe is also witnessing increasing virtualization initiatives driven by digital transformation and regulatory support.

Key Market Players

Prominent players in the Global 5G vEPC Market include:

Ericsson India Pvt. Ltd.
Huawei Technologies Co. Ltd.
Cisco Systems Inc.
NEC Corporation
Nokia Corporation
Affirmed Solutions Inc.
Mavenir Inc.
ZTE Corporation
Athonet Srl
Samsung Electronics Co. Ltd.
Telad Networks Ltd.
Core Network Dynamics Inc.
Cumcore
Druid Software
IPLook
Tech Mahindra
Parallel Wireless
Polaris Networks

These companies are investing in cloud-native architectures, strategic partnerships, and innovation to strengthen their competitive positions.

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Conclusion

The Global 5G vEPC Market is on a strong upward trajectory, driven by IoT expansion, rising mobile data traffic, 5G infrastructure development, and growing demand for cost-efficient network virtualization. While implementation complexity and security concerns pose challenges, ongoing technological advancements and increasing operator investments are expected to sustain robust growth.

As telecom networks evolve toward fully virtualized and cloud-native ecosystems, vEPC will remain a cornerstone technology enabling the seamless delivery of next-generation mobile services worldwide.