Global 5G vEPC Market Size (2023 – 2030)

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The Global 5G vEPC Market was valued at USD 3.12 Billion and is projected to reach a market size of USD 13.46 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 23.24%.

LTE access systems can be supported by a virtualized evolved packet core (VEPC), which is supported by Software-Defined Networking (SDN) technology and a carrier-grade virtualization platform. It is a mobile core network system that, in theory, adapts networks to meet the unique requirements of different customers and blends and matches different network components as necessary to optimize the TCO and service quality for mobile operators. The parts of the core network that were formerly run on dedicated hardware are now run by software on inexpensive commercial off-the-shelf (COTS) servers.

The building of a voice and data 4G (Long Term Evolution [LTE]) network can be virtualized with the help of a system called virtualized Evolved Packet Core (VEPC) solutions. VEPC switches the many essential network components, which up until now were run on dedicated hardware, to software that operates on inexpensive commercial off-the-shelf servers. By virtualizing the capabilities of the evolving packet core, mobile operators can effectively modify the network to meet the specific needs of their customer base. VEPC is anticipated to see a lower capital expenditure (CAPEX) and operating expenditure (OPEX) as the framework reduces the dependency on specialized & dedicated hardware.

Furthermore, it improves the network's packet core infrastructure's efficiency, reducing the network's footprint and simplifying network design and maintenance. By enabling on-demand scaling and effectively responding to user needs and real-time network conditions, the framework speeds up the delivery of services as a whole. The future 5G network will be developed using the VEPC framework, which has been used for 4G LTE mobile networks. Mobile carriers can theoretically adapt networks to fit the unique needs of various customers by merging and rearranging different network components as appropriate by utilizing VEPC technology.

Global 5G vEPC Market Drivers:

• Adoption of IoT & M2M will result in boosted growth in the 5G vEPC Market.

During the projected period, it is anticipated that IoT and M2M services will expand dramatically. The primary IoT packet network now uses vEPC thanks to the efforts of numerous mobile operators. IoT cellular network NFV solutions are also being prepared by VEPC solution providers. Using the vEPC solution in the IoT core network enables the operator to quickly provide better connectivity for M2M devices and examine new options for clients. IoT and M2M will give the biggest opportunity for suppliers of vEPC solutions in the coming years due to the increasing number of deployments performed by telecom operators in the North American, APAC, and MEA sectors. vPEC enables IoT opportunities for multiple mobile providers. IoT applications require entirely different types of networks than smartphones and tablets that currently monopolize the internet.

• Mobile data traffic levels have significantly increased, which is boosting the expansion of the 5G vEPC Market.

The continually changing mix of wireless devices and their quick global spread as access points for mobile networks are the key causes of the rise in mobile data traffic. Globally, mobile data traffic is increasing as a result of more people using smartphones and the availability of low-cost, high-speed network services. 5G networks will carry 45% of all mobile data traffic by 2025, predicts Ericson. As a result of the growing mobile data traffic, virtualized developing packet core solutions are now needed to govern the data flow. Effective mobile data traffic management boosts throughput, lowers network congestion problems, makes the best use of resources, and enhances service quality. The employment of a virtualized evolved packet core makes this possible.

• Rise in the number of LTE subscribers and the development of 5G infrastructure is driving growth in the 5G vEPC Market.

This virtualized evolving packet core market is expected to expand as a result of the rising LTE subscriber base, continuous 5G infrastructure construction, growing demand for greater customer support, and increased attention to assessing service quality and performance. A Virtual Evolved Packet Core (VEPC) framework offers several significant advantages, including decreased network costs, enhanced automation, and increased network architectural flexibility. Packet core services are consolidated by VEPC into a virtual cloud solution. Due to the solution's isolation from the physical layer and hypervisor and the market's availability of a wide variety of VEPC solutions, operators have more latitude to change the design of their packet core.

Global 5G vEPC Market Challenges:

Organizations may find it difficult and expensive to implement and manage virtualized network infrastructure, including vEPC solutions. It takes qualified experts with knowledge of virtualization, network management, and security to deploy VEPC. Organizations must also spend money on reliable IT infrastructure and systems to support the virtualized environment. Smaller organizations or those with low resources may find it difficult to enter the market due to the complexity and expense of installation and management. To enable the wide adoption of vEPC solutions, data security, and privacy concerns also need to be appropriately addressed.

COVID-19 Impact on Global 5G vEPC Market:

The local vEPC market benefited from the COVID-19 epidemic. Due to the epidemic, more people started working from home and taking classes online, which raised the demand for high-speed mobile internet. Due to this, there was a surge in demand for vEPC solutions, which enabled mobile carriers to provide their clients with high-speed mobile broadband. A slow revival of the world economy in 2021 as a result of government immunization campaigns also raised the demand for telecommunication services. During the forecast period, these factors are anticipated to fuel the expansion of the regional virtualized evolving packet core market.

5G vEPC MARKET REPORT COVERAGE:

Global 5G vEPC Market Segmentation:

Global 5G vEPC Market Segmentation: By Component

• Solutions
• Services

The market is divided into solutions and services based on components. During the forecast period, a greater CAGR is envisaged for the Services section. Services play a significant role in the adoption and integration of next-generation networking solutions in an organization's operational environment. Because they primarily focus on optimizing business operations and improving the network of the organization, services are seen as a significant component of the VEPC industry. Because they are essential to meeting the needs of the clients, services including network testing, planning, optimization, support, and advising are regarded as the heart of VEPC.

Global 5G vEPC Market Segmentation: By Application

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

The market is divided into LTE, VoLTE, and VoWiFi, IoT and M2M, MPN and MVNO, and BWA based on Application. During the forecast period, LTE, VoLTE, and VoWiFi are anticipated to have the biggest market shares. MNOs implement VEPC solutions on their mobile core network to provide LTE, Voice over LTE (VoLTE), and Voice over Wi-Fi (VoWiFi) service to mobile subscribers. The virtualizing core network is significantly more affordable for operators as compared to traditional EPC solutions. Additionally, the same mobile core network supports both VoLTE and VoWiFi. Mobile providers offer Wi-Fi calling services to customers in areas with limited network coverage. Some operators have implemented VEPC to increase VoLTE and VoWiFi services for subscribers around the globe, and this trend is predicted during the forecast period.

Global 5G vEPC Market Segmentation: By End User

• Telecom Operators
• Enterprises

The market is divided into Telecom Operators and Enterprises based on End Users. During the projected period, the LTE telecom operators are anticipated to hold the greatest market share. Telecom operators in many countries have already started using virtualized evolved packet core solutions. The South Korean carrier SK Telecom has successfully implemented a virtualized evolving packet core system. Telecom companies in North America and Asia Pacific have also applied the technology to boost overall network effectiveness.

Global 5G vEPC Market Segmentation: By Deployment Mode

• Cloud
• On-premises

Due to the additional control that on-premise solutions' virtualized developing packet core network infrastructure provides, the on-premise category dominates the virtualized evolved packet core market in terms of revenue, according to deployment mode.

Global 5G vEPC Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

The Global Virtualized Evolved Packet Core (VEPC) Market is segmented into North America, Europe, Asia Pacific, the Middle East, and Africa based on geographic regions. During the anticipated period, Asia and the Pacific are expected to grow faster than other regions. The area is changing quickly due to the introduction of new technology in numerous areas. Infrastructure growth in APAC, particularly in Japan, South Korea, Australia, Singapore, China, and India, as well as the expanding rollout of 4G and 5G networks, present huge opportunities for the application of the VEPC solution. The increased usage of technologies like VR, AR, and the IoT will present numerous opportunities for the region's VEPC industry. Because of this, the content will use much more data, demanding constant network connectivity and coverage.

Global 5G vEPC Market Key Players:

1. Ericsson India Pvt. Ltd.
2. Huawei Technologies Co. Ltd.
3. Cisco Systems Inc.
4. NEC Corporation
5. Nokia Corporation
6. Affirmed Solutions Inc.
7. Mavenir Inc.
8. ZTE Corporation
9. Athonet Srl
10. Samsung Electronics Co. Ltd.
11. Telad Networks Ltd.
12. Core Network Dynamics Inc.
13. Cumcore
14. Druid Software
15. IPLook
16. Tech Mahindra
17. Parallel Wireless
18. Polaris Networks