Virtualized Evolved Packet Core (vEPC) Market Worth $17.05 Billion by 2028 - Market Size, Share, Forecasts, & Trends Analysis Report with COVID-19 Impact by Meticulous Research®
Meticulous Market Research Pvt. Ltd.
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Virtualized Evolved Packet Core Market by Component (Solution, Services), Application (LTE and VoLTE, IoT and M2M, MPN and MVNO), Deployment Mode (On-premise, Cloud), End User (Telecom, Enterprises, and Others) - Global Forecast to 2028
Redding, California, Jan. 27, 2022 (GLOBE NEWSWIRE) -- According to a new market research report titled “Virtualized Evolved Packet Core (vEPC) Market by Component (Solution, Services), Application (LTE and VoLTE, IoT and M2M, MPN and MVNO), Deployment Mode (On-premise, Cloud), End User (Telecom, Enterprises, and Others) - Global Forecast to 2028”, published by Meticulous Research®, the virtualized evolved packet core market is expected to reach $17.05 billion by 2028, at a CAGR of 23.4% during the forecast period of 2021 to 2028.
A virtualized evolved packet core (vEPC) is a framework for a mobile network's voice and data processing and switching that is implemented by network functions virtualization (NFV), which virtualizes the functions of an evolved packet core (EPC). Virtualized evolved packet core solution offers mobile network operators the agility and flexibility necessary to keep up with traffic demand, scale their networks, and deliver differentiated services. Also, it supports capabilities such as control plane/user plane separation (CUPS), 5G non-standalone (NSA), network slicing, integrated virtual probe, virtualized Deep Packet Inspection (DPI), Gateway Internet for Local Academic Network (GiLAN), analytics and security services, virtualized Wi-Fi, and automation and orchestration solution.
The steady growth of the virtualized evolved packet core market is mainly attributed to the growing mobile data traffic volume, increasing need to reduce operational expenditure (OPEX) and capital expenditure (CAPEX), IoT deployment, agile networks, and increasing demand for broadband services over mobile networks. Furthermore, the increasing adoption of cloud-native 5G core and growing investment in 5G network is creating new growth opportunities for vendors in the virtualized evolved packet core market. However, the growing security risks associated with virtualized evolved packet core infrastructure and lack of awareness about virtualized evolved packet core solutions pose serious challenges to the adoption of virtualized evolved packet core solutions.
Based on component, the virtualized evolved packet core market is broadly segmented into solutions (mobility management entity, home subscriber server, serving gateway, packet data network gateway, policy and charging rules functions) and services (professional services and managed services). In 2021, the solution segment is expected to account for the larger share of the overall virtualized evolved packet core market. The large share of this segment is mainly attributed to the rising demand for high-speed and large network coverage, growing investment in R&D activities, rising connectivity demand, and increasing focus on solution-centric network capabilities. However, the services segment is expected to grow at the higher CAGR over the forecast period due to the growing demand for virtualized evolved packet core services among small and medium-sized enterprises and the rising need to improve business processes and optimize business infrastructure. Besides, the demand for professional services is expected to grow over the forecast period due to the consistent incorporation of virtualized evolved packet core among organizations.
Based on application, the virtualized evolved packet core market is segmented into MPN & MVNO, IoT & M2M, LTE & VoLTE. In 2021, the MPN & MVNO application segment is expected to account for the largest share of the overall virtualized evolved packet core market by application. The large share of this segment is mainly attributed to the rising penetration of mobile devices and demand for low-cost mobile services, increasing demand for high-speed internet connectivity, and the rising demand for improved voice, video, & mobile internet. However, the IoT & M2M application segment is expected to grow at the highest CAGR of 25.1% over the forecast period due to the increasing demand for remote monitoring of the devices for cost-effectiveness, which is expected to support the segment’s high growth rate.
Based on deployment, the virtualized evolved packet core market is segmented into on-premise deployments and cloud deployments. In 2021, the on-premise deployments segment is expected to account for the larger share of the overall virtualized evolved packet core market, mainly due to data sensitivity and the greater control over the network infrastructure offered by such solutions. However, with growing deployments, particularly across small and medium-scale organizations, the cloud deployments segment is expected to record the higher CAGR during the forecast period. Benefits such as flexibility, agility, and scalability offered by cloud-based solutions are key factors driving the growth of this segment.
Based on end user, the virtualized evolved packet core market is segmented into telecom operators, enterprises, and other end users. In 2021, the telecom operators’ segment is expected to account for the largest share of the overall virtualized evolved packet core market. The growth of this segment is mainly attributed to the rapid adoption of virtualized evolved packet core solutions by the telecom sector. The use of VEPC in the telecom sector offers significant benefits such as improved latency issues, enhanced IT agility, better speed, and bandwidth connectivity, and reliable application services. Besides, the increasing need to reduce operational expenditure (OPEX) and capital expenditure (CAPEX) in the telecom sector is spurring the demand for virtualized evolved packet core solutions.
However, the enterprises segment is expected to grow at the highest CAGR over the forecast period. Increasing dependence on cloud technologies and increasing the focus on network virtualization solutions are expected to support the segment’s high growth rate.
Geographically, the global virtualized evolved packet core market is segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2021, North America accounted for the largest share of the global virtualized evolved packet core market, followed by Europe and Asia-Pacific. The largest share of this region is mainly attributed to the presence of prominent players offering advanced virtualized evolved packet core solutions and services across different industry verticals. However, Asia-Pacific region is expected to record the highest CAGR during the forecast period. Several businesses and governments in this region have shown a greater inclination toward commercialization of next-generation 5G network is also anticipated to propel the demand for virtualized evolved packet core solutions over the forecast period.
The global virtualized evolved packet core market is highly fragmented in nature, comprising several small-level companies, start-ups, and international players. These companies are adopting different strategies to stay competitive and garner greater market share. At present, developing new products and services is one of the most preferred strategies adopted by the players operating in the virtualized evolved packet core market. However, strategic partnerships, collaborations, and agreements are some of the other growth strategies adopted by the leading players in this market. The majority of partnerships and collaborations aim to broaden product portfolios, advance the technological capabilities of existing products, and develop capabilities to cater to the changing demands of users.
Some of the prominent players operating in the global virtualized evolved packet core market are ZTE Corporation (China), Cisco Systems, Inc. (U.S.), Telefonaktiebolaget LM Ericsson SE (Sweden), Affirmed Networks, Inc. (U.S.), Mavenir Systems, Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Samsung Electronics Co, Ltd. (South Korea), Nokia Corporation (Finland), Parallel Wireless, Inc. (U.S.), F5 Networks, Inc. (U.S.), NEC Corporation (Japan), IPLOOK Technologies Co Ltd (China), Polaris Networks (U.S.), Athonet SRL (Italy), LEMKO Corporation (U.S.), Metaswitch Networks (U.K.), Tecore, Inc. (U.S.), and Intel Corporation (U.S.) among others.
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