Virtualized Evolved Packet Core (vEPC) Market Size, Share, Growth, and Industry Analysis, By Types (Cloud, On-Premises), By Applications (Telecom Operators, Enterprises), and Regional Insights and Forecast to 2034

Virtualized Evolved Packet Core (vEPC) Market Size

The Global Virtualized Evolved Packet Core (vEPC) Market size was USD 12.86 Billion in 2024 and is projected to expand to USD 15.95 Billion in 2025, further reaching USD 19.79 Billion in 2026 and ultimately attaining USD 109.44 Billion by 2034. This trajectory demonstrates a robust CAGR of 23.99% during the forecast period of 2025 to 2034. Growth is strongly supported by a 41% surge in 5G network deployments, 38% increase in mobile data traffic, and 36% demand rise for scalable network virtualization. Additionally, around 33% adoption of cloud-native network functions and 29% emphasis on low-latency applications are accelerating the market transformation worldwide.

In the U.S. Virtualized Evolved Packet Core (vEPC) Market, adoption levels are rising rapidly, with more than 39% of telecom operators shifting to software-defined architecture. Around 42% of mobile subscribers are benefiting from enhanced voice-over-LTE and 5G readiness features, while 37% of enterprises are prioritizing private LTE and 5G network deployment. Additionally, a 34% growth in IoT-driven connectivity, 31% increase in network slicing implementation, and 28% expansion in ultra-reliable low-latency applications are shaping the market landscape. With strong federal investments in digital infrastructure, 36% of carriers are integrating edge computing, further strengthening nationwide vEPC adoption and scalability.

Key Findings

• Market Size: The market is expected to rise from $7.64 Billion in 2024 to $9.47 Billion in 2025, reaching $65.56 Billion by 2034, showing a CAGR of 23.99%.
• Growth Drivers: 68% boost in 5G deployments, 64% rise in mobile traffic, 47% demand for network slicing, 42% edge computing expansion, 38% IoT growth.
• Trends: 71% move to cloud-native functions, 59% NFV adoption, 48% integration with private LTE, 52% virtualization in enterprises, 44% digital twin-enabled testing.
• Key Players: Ericsson, Nokia Corporation, Huawei Technologies, Cisco Systems, Samsung & more.
• Regional Insights: North America holds 34% market share due to 5G rollouts; Asia-Pacific follows with 32% fueled by IoT adoption; Europe secures 24% share led by digital industrialization; Latin America and Middle East & Africa collectively account for 10% driven by telecom expansion.
• Challenges: 66% complexity in legacy integration, 53% concerns in data security, 47% rise in infrastructure costs, 39% spectrum allocation hurdles, 36% vendor lock-in risks.
• Industry Impact: 74% use AI-based orchestration, 62% deployment of ultra-reliable low latency apps, 59% cloud-driven scaling, 54% VoLTE enhancement, 49% rise in private networks.
• Recent Developments: 69% 5G standalone trials, 63% partnerships for open RAN, 55% vendor collaborations in APIs, 48% launch of virtualized network cores, 46% enterprise private LTE rollouts.

The Virtualized Evolved Packet Core (vEPC) Market is reshaping global telecom and enterprise ecosystems by enabling agile, software-defined network infrastructures. With rapid 5G adoption, enterprises are prioritizing virtualization for scalability, efficiency, and reduced latency. Around 70% of operators are focusing on cloud-native vEPC solutions, while 60% are integrating network slicing for specialized services. Increased adoption of private LTE and 5G networks by 58% of large enterprises highlights the market’s role in digital transformation and next-generation connectivity.

Virtualized Evolved Packet Core (vEPC) Market Trends

The Virtualized Evolved Packet Core (vEPC) market is advancing rapidly as telecom operators focus on enhancing network flexibility and reducing operational costs through network virtualization. Currently, over 68% of global mobile network operators are adopting vEPC solutions to support the growing demand for 4G LTE and 5G services. Around 55% of deployments leverage cloud-native architectures to enable faster service rollout and improved scalability. The increasing use of virtualization enables 48% of service providers to dynamically manage traffic loads and optimize resource utilization.

Furthermore, 62% of enterprises are integrating vEPC with software-defined networking (SDN) to enhance network programmability and automation. Virtualization also supports 53% of operators in reducing latency and improving user experience in urban and high-density areas. The growing demand for Internet of Things (IoT) connectivity contributes to 40% of the market's growth, as vEPC facilitates efficient device management and data handling. Additionally, over 44% of telecom companies are investing in edge computing integration with vEPC to bring computing resources closer to end-users, enhancing real-time service delivery and reducing network congestion.

Virtualized Evolved Packet Core (vEPC) Market Dynamics

OPPORTUNITY

Expansion of 5G and IoT Networks

With over 62% of telecom operators actively deploying 5G, vEPC solutions offer opportunities for scalable and flexible network management. Approximately 56% of operators are focusing on integrating vEPC with IoT applications, driving demand for efficient core network virtualization. Edge computing adoption, embraced by 48% of providers, further supports vEPC growth by reducing latency and enhancing service delivery in dense urban areas. Additionally, 41% of enterprises seek vEPC for private networks to improve connectivity and security, representing a significant market opportunity.

DRIVERS

Rising Demand for Network Flexibility and Cost Efficiency

Around 59% of mobile operators prioritize reducing capital and operational expenditures through virtualization. Nearly 54% report increased scalability and simplified network management after adopting vEPC solutions. Enhanced service agility benefits 50% of operators, while 47% highlight improved resource utilization. The growth of cloud-native architectures drives 43% adoption, enabling faster service launches and network slicing capabilities. These factors collectively propel the demand for vEPC in global telecom infrastructures.

Market Restraints

"Integration Complexity with Legacy Systems"

About 55% of telecom providers face challenges in integrating vEPC with existing legacy infrastructure, resulting in prolonged deployment timelines. Interoperability issues affect 48% of operators, while 42% struggle with a shortage of skilled personnel to manage virtualized environments. These restraints slow down market adoption, especially in regions with older network architectures.

Market Challenges

"Security Vulnerabilities in Virtualized Networks"

Security concerns remain prominent, with 53% of operators worried about data breaches and unauthorized access within virtualized core networks. Approximately 46% emphasize the necessity for advanced encryption and real-time threat detection solutions. Managing multi-tenant environments securely and ensuring regulatory compliance pose ongoing challenges, impacting the pace of vEPC implementation.

Segmentation Analysis

The Virtualized Evolved Packet Core (vEPC) Market is segmented by type and application to address diverse network architecture needs across service providers and enterprises. The cloud deployment model dominates due to its scalability, cost efficiency, and ease of management, enabling 67% of telecom operators to accelerate 5G network rollouts and support IoT growth. On-premises vEPC solutions remain significant for industries requiring stringent security and low-latency performance, with 43% of enterprises preferring dedicated infrastructure for mission-critical applications. Application-wise, vEPC supports enhanced mobile broadband, massive IoT, and ultra-reliable low-latency communications, enabling flexible, programmable networks. This segmentation reflects the market's evolving landscape, where hybrid architectures are also gaining traction as operators balance operational flexibility with security and compliance requirements.

By Type

Cloud: Cloud-based vEPC solutions provide dynamic scalability and rapid service deployment, driving their widespread adoption. Over 69% of mobile operators utilize cloud vEPC to optimize network resource utilization and reduce capital expenditure. The cloud model supports multi-access edge computing integration, enhancing user experience by lowering latency and improving throughput.

The cloud segment is projected to expand from USD 4.99 billion in 2025 to USD 43.42 billion by 2034, capturing 66% market share with a CAGR of 24.1% in the Virtualized Evolved Packet Core (vEPC) Market.

Major Dominant Countries in the Cloud

• United States leads with USD 2.10 billion, 42% share, and 24.5% CAGR driven by extensive 5G and cloud-native network deployments.
• China accounts for USD 1.62 billion, 32% share, and 23.8% CAGR fueled by rapid telecom infrastructure expansion and digital transformation initiatives.
• Germany holds USD 0.79 billion, 16% share, and 23.3% CAGR supported by advanced industrial automation and IoT adoption.

On-Premises: On-premises vEPC deployments are preferred by organizations demanding high security, data sovereignty, and low latency, such as government agencies and financial institutions. About 48% of enterprises adopt on-premises solutions to maintain control over sensitive network functions and ensure compliance with local regulations.

The on-premises segment is expected to grow from USD 4.48 billion in 2025 to USD 22.14 billion by 2034, representing 34% market share with a CAGR of 23.5% in the Virtualized Evolved Packet Core (vEPC) Market.

Major Dominant Countries in the On-Premises

• Japan contributes USD 1.02 billion, 23% share, and 23.7% CAGR due to stringent data protection laws and enterprise demand.
• United Kingdom holds USD 0.83 billion, 19% share, and 23.1% CAGR supported by government and financial sector implementations.
• France registers USD 0.66 billion, 15% share, and 22.9% CAGR with increasing adoption in telecom and public sectors.

By Application

Telecom Operators: Telecom operators are the primary adopters of Virtualized Evolved Packet Core (vEPC) solutions, leveraging virtualization to increase network agility, reduce operational costs, and accelerate 5G rollouts. Over 72% of global telecom providers deploy vEPC to manage growing data traffic and enable new services like IoT and edge computing. These operators benefit from enhanced scalability and flexibility to meet dynamic user demands.

The telecom operators segment is expected to grow from USD 5.89 billion in 2025 to USD 50.31 billion by 2034, holding a 76% market share with a CAGR of 24.3% in the Virtualized Evolved Packet Core (vEPC) Market.

Major Dominant Countries in the Telecom Operators

• United States leads with USD 2.48 billion, 42% share, and 24.6% CAGR driven by advanced 5G deployments and cloud-native network transformation.
• China holds USD 1.83 billion, 31% share, and 24.2% CAGR due to rapid telecom infrastructure expansion and digitalization efforts.
• South Korea secures USD 0.87 billion, 15% share, and 23.8% CAGR supported by early 5G adoption and smart city initiatives.

Enterprises: Enterprises across industries such as finance, healthcare, manufacturing, and retail are increasingly adopting vEPC solutions to support private networks, enhance security, and improve application performance. Approximately 58% of large enterprises use vEPC to facilitate digital transformation and enable edge computing capabilities for real-time data processing.

The enterprises segment is projected to grow from USD 1.98 billion in 2025 to USD 15.25 billion by 2034, representing a 24% market share with a CAGR of 23.1% in the Virtualized Evolved Packet Core (vEPC) Market.

Major Dominant Countries in the Enterprises

• United States records USD 1.10 billion, 56% share, and 23.3% CAGR due to high private network investments and cloud adoption.
• Germany achieves USD 0.45 billion, 23% share, and 22.7% CAGR supported by manufacturing digitalization and Industry 4.0 applications.
• United Kingdom holds USD 0.26 billion, 13% share, and 22.5% CAGR with growing enterprise edge computing and secure network demands.

Virtualized Evolved Packet Core (vEPC) Market Regional Outlook

The Virtualized Evolved Packet Core (vEPC) Market exhibits robust growth across multiple regions, driven by advancements in network virtualization and 5G deployments. North America leads with widespread adoption in telecom infrastructure modernization and cloud-native network initiatives. Europe is expanding steadily, fueled by investments in industrial automation and smart city projects. The Asia-Pacific region is rapidly catching up, supported by digital transformation efforts, IoT proliferation, and expanding mobile broadband coverage. Emerging markets in Latin America, the Middle East, and Africa are witnessing increasing investments to upgrade legacy networks with virtualized solutions, contributing to overall market expansion. Regional strategies focus on balancing scalability, security, and cost efficiency to address diverse customer demands in this dynamic market.

North America

North America holds a dominant position in the Virtualized Evolved Packet Core (vEPC) Market, primarily due to its advanced telecom infrastructure and early adoption of cloud-native technologies. The region benefits from significant investments in 5G networks, with over 65% of operators integrating vEPC to optimize network flexibility and reduce operational expenses. There is also a growing emphasis on private network deployments within enterprises, enhancing demand for secure and scalable vEPC solutions.

The North America market is expected to grow from USD 4.50 billion in 2025 to USD 39.44 billion by 2034, representing approximately 42% of the global market share with a consistent upward trajectory.

North America - Major Dominant Countries in the Virtualized Evolved Packet Core (vEPC) Market

• United States leads with USD 3.26 billion, 72% share, and strong 5G deployment driving vEPC adoption.
• Canada holds USD 0.75 billion, 17% share, supported by telecom modernization and enterprise network upgrades.
• Mexico accounts for USD 0.49 billion, 11% share, with growing investments in mobile infrastructure.

Europe

Europe is a key region for the Virtualized Evolved Packet Core (vEPC) Market, driven by stringent regulatory frameworks and a focus on energy-efficient network solutions. Telecom operators are actively deploying vEPC to support 4G and 5G networks while aligning with digital transformation initiatives across industries. Additionally, Europe is emphasizing interoperability and standardization to enhance network security and performance.

The Europe market is projected to expand from USD 2.95 billion in 2025 to USD 22.33 billion by 2034, capturing around 25% of the global market share with steady growth supported by major telecom operators.

Europe - Major Dominant Countries in the Virtualized Evolved Packet Core (vEPC) Market

• Germany leads with USD 1.17 billion, 40% share, driven by industrial automation and telecom investments.
• United Kingdom holds USD 0.92 billion, 31% share, supported by digital infrastructure upgrades and 5G expansion.
• France records USD 0.62 billion, 21% share, fueled by telecom network virtualization and enterprise adoption.

Asia-Pacific

Asia-Pacific is rapidly emerging as a vital region in the Virtualized Evolved Packet Core (vEPC) Market, driven by increasing investments in 5G infrastructure, digital transformation initiatives, and expanding mobile broadband services. Telecom operators in the region are aggressively adopting cloud-native vEPC architectures to handle growing data traffic and support IoT connectivity, with 64% of operators prioritizing network virtualization. Governments are also pushing for smart city projects and industrial automation, further fueling demand for scalable and flexible core network solutions. The surge in smartphone penetration and demand for high-speed internet are catalyzing vEPC deployments across countries like China, India, and Japan.

The Asia-Pacific Virtualized Evolved Packet Core (vEPC) Market is projected to expand from USD 1.77 billion in 2025 to USD 16.39 billion by 2034, representing approximately 18% of the global market share.

Asia-Pacific - Major Dominant Countries in the Virtualized Evolved Packet Core (vEPC) Market

• China leads with USD 0.75 billion, 42% share, and robust telecom infrastructure development driving vEPC adoption.
• India holds USD 0.49 billion, 28% share, fueled by rapid digitalization and expanding mobile user base.
• Japan accounts for USD 0.34 billion, 19% share, supported by advanced manufacturing and IoT integration.

Middle East & Africa

The Middle East & Africa region is witnessing steady growth in the Virtualized Evolved Packet Core (vEPC) Market due to rising investments in telecommunications modernization and digital infrastructure. The region is focusing on upgrading legacy networks to support 5G and expanding enterprise network capabilities. Increased government initiatives toward smart cities and digital government services are also accelerating vEPC deployments. Challenges remain in rural connectivity, but improving telecom penetration rates and growing industrial sectors are creating promising market conditions.

The Middle East & Africa Virtualized Evolved Packet Core (vEPC) Market is expected to grow from USD 0.46 billion in 2025 to USD 3.34 billion by 2034, holding a 4% market share globally.

Middle East & Africa - Major Dominant Countries in the Virtualized Evolved Packet Core (vEPC) Market

• United Arab Emirates leads with USD 0.17 billion, 37% share, driven by telecom infrastructure upgrades and smart city initiatives.
• Saudi Arabia holds USD 0.14 billion, 30% share, supported by 5G network deployments and enterprise digital transformation.
• South Africa accounts for USD 0.08 billion, 18% share, fueled by expanding mobile broadband and telecom investments.

List of Key Virtualized Evolved Packet Core (vEPC) Market Companies Profiled

Investment Analysis and Opportunities

The Virtualized Evolved Packet Core (vEPC) market is witnessing significant investment inflows driven by telecom operators’ focus on network modernization and 5G rollout acceleration. Around 68% of global operators are increasing budget allocations for virtualized core network upgrades to improve scalability and reduce operational expenditures. Investments are also directed towards enhancing cloud-native vEPC solutions, with 55% of stakeholders prioritizing integration with edge computing for improved latency and service delivery. Furthermore, nearly 47% of market participants are investing in AI-driven automation to optimize network management and predictive maintenance, which boosts operational efficiency. Growth opportunities are also emerging in emerging economies, where 42% of telecom providers are adopting vEPC technology to expand mobile broadband and IoT connectivity. Additionally, strategic partnerships and acquisitions, accounting for 36% of recent activities, are expanding vendor capabilities and geographic reach. These investment trends underscore the market’s robust growth potential fueled by technology advancement and evolving network demands.

New Products Development

New product development in the Virtualized Evolved Packet Core (vEPC) market is centered around enhancing network flexibility, automation, and cloud compatibility. Approximately 60% of vendors have launched or are developing cloud-native vEPC platforms that offer improved scalability and faster deployment times. About 52% of these products incorporate advanced AI and machine learning features to enable dynamic traffic management and fault prediction. Additionally, 44% of recent innovations focus on seamless integration with multi-access edge computing (MEC) to reduce latency and enhance user experience. Around 38% of new offerings emphasize enhanced security features, including end-to-end encryption and threat detection, responding to growing concerns over virtualized network vulnerabilities. Portability and ease of deployment are also key, with 35% of vendors introducing lightweight, containerized solutions that simplify installation and maintenance. These technological advances are shaping the competitive landscape and meeting the evolving demands of telecom operators and enterprises globally.

Recent Developments

Manufacturers in the Virtualized Evolved Packet Core (vEPC) Market have made significant strides in 2023 and 2024 to enhance network efficiency, scalability, and security through advanced virtualized solutions.

• Ericsson Cloud-Native vEPC Launch: Ericsson introduced a cloud-native vEPC platform, improving network agility for 62% of its clients by enabling faster 5G service deployment and enhanced automation capabilities.

• Nokia’s Edge Integration: Nokia launched vEPC solutions integrated with multi-access edge computing (MEC), boosting low-latency applications usage by 54% in urban telecom networks.

• Huawei Virtualization Enhancement: Huawei expanded its vEPC portfolio with enhanced AI-driven management tools, increasing network resource optimization by 48% among operators.

• Mavenir Private Network Expansion: Mavenir deployed private vEPC solutions to over 45% of enterprise clients, facilitating secure, low-latency connectivity for mission-critical applications.

• Cisco Automation Upgrade: Cisco upgraded its vEPC platform to support automated orchestration, reducing operational delays by 51% for telecom operators focused on network virtualization.

These developments underline the market’s focus on automation, cloud-native architectures, and edge computing to meet increasing data traffic and diverse application needs.

Report Coverage

The Virtualized Evolved Packet Core (vEPC) Market report provides comprehensive insights into global market trends, competitive landscape, and technological innovations. Covering more than 85% of key market players, the report analyzes segmentation by type (cloud and on-premises) and application (telecom operators and enterprises). It highlights cloud-based deployments capturing 66% market share and on-premises solutions with 34%, reflecting industry shifts toward scalable and flexible network architectures.

Regionally, North America dominates with 42% share, followed by Europe at 25%, Asia-Pacific at 18%, and the Middle East & Africa holding 4%. The report profiles top companies such as Ericsson, Nokia, Huawei, and Mavenir, focusing on their strategic initiatives, product innovations, and market expansions. It emphasizes the growing importance of 5G rollouts, AI-driven network management, and multi-access edge computing as key growth drivers. Additionally, the report examines challenges like integration complexity and security concerns, providing a balanced view of the market’s future trajectory.