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The Global Virtualized Evolved Packet Core Market is projected to expand significantly, rising from USD 9.28 Billion in 2025 to USD 38.85 Billion by 2031, reflecting a CAGR of 26.95%. This sector encompasses telecommunications infrastructure designed to migrate core network functions from proprietary physical hardware to software-based solutions operating on commercial off-the-shelf servers. Key drivers fueling this market include the urgent need for mobile operators to reduce capital and operational costs through hardware decoupling, alongside a demand for enhanced network agility to handle fluctuating data traffic. Furthermore, the necessity to support diverse, high-bandwidth applications, such as the Internet of Things, requires the scalable architecture inherent in virtualization. Speak directly to the analyst to clarify any post sales queries you may have.
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Despite these benefits, the market faces a substantial obstacle in integrating virtualized frameworks with legacy non-virtualized infrastructure, a process that frequently leads to interoperability issues and delays in network modernization. These operational difficulties have resulted in a cautious pace of adoption for fully cloud-native architectures. For instance, the Global mobile Suppliers Association noted that in 2024, although 151 operators were investing in 5G standalone access dependent on virtualized core networks, only 64 had successfully deployed or commercially launched these systems.
Market Drivers
The swift uptake of 5G Standalone (SA) network architectures acts as a major catalyst for the Global Virtualized Evolved Packet Core Market, as this framework fundamentally depends on cloud-native, virtualized core functions to provide advanced capabilities. In contrast to Non-Standalone (NSA) deployments that use legacy 4G cores, 5G SA demands a completely new, service-based architecture that facilitates features like network slicing and ultra-reliable low-latency communications (URLLC). This transition requires the implementation of virtualized packet cores capable of dynamically allocating resources and managing complex signaling loads independently of the underlying hardware. According to the '5G Standalone August 2025' report by the Global mobile Suppliers Association, 173 operators across 70 countries were investing in public 5G Standalone networks, emphasizing the industry's aggressive move toward these virtualized environments.Rising global mobile data traffic and bandwidth requirements further pressure operators to adopt virtualized evolved packet cores, which provide the necessary elasticity to manage unpredictable throughput surges. As consumer usage of high-definition video and real-time applications increases, legacy physical appliances struggle to scale efficiently without incurring prohibitive costs.
Virtualization enables operators to automatically scale control and user plane functions, ensuring service continuity and an optimal user experience during peak times. Ericsson's 'Mobility Report' from November 2025 indicates that mobile network data traffic rose by 20 percent year-on-year between the third quarter of 2024 and the third quarter of 2025, creating immense pressure on core networks for agile software-defined infrastructure. Additionally, 5G Americas reported that global 5G connections hit 2.25 billion in 2025, further highlighting the critical scale that virtualized cores must accommodate.
Market Challenges
The complex integration of virtualized frameworks with legacy non-virtualized infrastructure serves as a major impediment to the growth of the Global Virtualized Evolved Packet Core Market. Operators moving toward virtualized environments face critical interoperability challenges when trying to interface new software-based functions with aging proprietary hardware built on older network standards. This technical mismatch frequently leads to fragmented management systems and operational silos, forcing telecommunications providers to sustain expensive parallel infrastructures instead of achieving the desired network consolidation. As a result, the financial and operational strain of synchronizing these hybrid environments discourages the rapid decommissioning of legacy systems, thereby slowing the migration to fully cloud-native vEPC architectures.The severity of this integration bottleneck is evident in the gap between widespread industry investment and the actual deployment of modernized standalone systems utilizing virtualized cores. According to the Global mobile Suppliers Association (GSA), 619 operators were investing in 5G networks through trials, licenses, and deployments in 2024. Despite this significant engagement with next-generation technology, the persistence of legacy integration barriers means that a majority of these deployments remain tied to non-standalone configurations, which restricts the scalable expansion of the virtualized core market.
Market Trends
The growth of Private vEPC deployments for enterprise networks marks a distinct trend toward localized, secure, and highly reliable connectivity solutions designed for specific industrial use cases. In contrast to public consumer networks, these deployments enable organizations in sectors like manufacturing and mining to employ dedicated virtualized cores that guarantee data sovereignty and low latency for mission-critical applications. This movement is gaining speed as enterprises aim to adopt Industry 4.0 standards by decoupling their operational technology from congested public infrastructure. As noted in the 'Private Mobile Networks Market Update September 2025' by the Global mobile Suppliers Association (GSA), 1,846 organizations globally have deployed at least one private mobile network, signaling a rising dependence on these bespoke virtualized environments.Concurrently, the integration of AI and Machine Learning for network automation is becoming crucial for managing the operational intricacies of disaggregated virtualized cores. As operators break down monolithic architectures into microservices, manual management becomes impractical, creating a need for intelligent systems capable of predicting traffic patterns and automating fault isolation in real-time. This incorporation focuses mainly on operational efficiency, enabling virtualized cores to self-heal and optimize resource allocation without human interference. According to the 'Telco AI: State of the Market, Q3 2025' report by GSMA Intelligence, approximately 75 to 80 percent of telecom AI deployments currently target cost reductions through such automation rather than revenue generation, highlighting the vital role of intelligence in sustaining viable infrastructure.
Key Players Profiled in the Virtualized Evolved Packet Core Market
- Telefonaktiebolaget LM Ericsson
- Huawei Technologies Co. Ltd.
- Cisco Systems Inc.
- NEC Corporation
- Nokia Corporation
- Affirmed Solutions Inc.
- Mavenir Inc.
- ZTE Corporation
- Athonet Srl
- Samsung Electronics Co. Ltd.
Report Scope
In this report, the Global Virtualized Evolved Packet Core Market has been segmented into the following categories:Virtualized Evolved Packet Core Market, by Component Type:
- Solution
- Service
Virtualized Evolved Packet Core Market, by Deployment Mode:
- Cloud
- On-Premises
Virtualized Evolved Packet Core Market, by End User:
- Telecom Operator
- Enterprises
Virtualized Evolved Packet Core Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Virtualized Evolved Packet Core Market.Available Customization
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Table of Contents
1. Product Overview1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. Executive Summary
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends
4. Voice of Customer
5. Global Virtualized Evolved Packet Core Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Component Type (Solution (MME, HSS, S-GW, PDN-GW), Service (Professional Services, Managed Service, Consulting, Integration & Development, and Training & Support))
5.2.2. By Deployment Mode (Cloud, On-Premises)
5.2.3. By End User (Telecom Operator, Enterprises)
5.2.4. By Region
5.2.5. By Company (2025)
5.3. Market Map
6. North America Virtualized Evolved Packet Core Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Component Type
6.2.2. By Deployment Mode
6.2.3. By End User
6.2.4. By Country
6.3. North America: Country Analysis
6.3.1. United States Virtualized Evolved Packet Core Market Outlook
6.3.1.1. Market Size & Forecast
6.3.1.1.1. By Value
6.3.1.2. Market Share & Forecast
6.3.1.2.1. By Component Type
6.3.1.2.2. By Deployment Mode
6.3.1.2.3. By End User
6.3.2. Canada Virtualized Evolved Packet Core Market Outlook
6.3.2.1. Market Size & Forecast
6.3.2.1.1. By Value
6.3.2.2. Market Share & Forecast
6.3.2.2.1. By Component Type
6.3.2.2.2. By Deployment Mode
6.3.2.2.3. By End User
6.3.3. Mexico Virtualized Evolved Packet Core Market Outlook
6.3.3.1. Market Size & Forecast
6.3.3.1.1. By Value
6.3.3.2. Market Share & Forecast
6.3.3.2.1. By Component Type
6.3.3.2.2. By Deployment Mode
6.3.3.2.3. By End User
7. Europe Virtualized Evolved Packet Core Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Component Type
7.2.2. By Deployment Mode
7.2.3. By End User
7.2.4. By Country
7.3. Europe: Country Analysis
7.3.1. Germany Virtualized Evolved Packet Core Market Outlook
7.3.1.1. Market Size & Forecast
7.3.1.1.1. By Value
7.3.1.2. Market Share & Forecast
7.3.1.2.1. By Component Type
7.3.1.2.2. By Deployment Mode
7.3.1.2.3. By End User
7.3.2. France Virtualized Evolved Packet Core Market Outlook
7.3.2.1. Market Size & Forecast
7.3.2.1.1. By Value
7.3.2.2. Market Share & Forecast
7.3.2.2.1. By Component Type
7.3.2.2.2. By Deployment Mode
7.3.2.2.3. By End User
7.3.3. United Kingdom Virtualized Evolved Packet Core Market Outlook
7.3.3.1. Market Size & Forecast
7.3.3.1.1. By Value
7.3.3.2. Market Share & Forecast
7.3.3.2.1. By Component Type
7.3.3.2.2. By Deployment Mode
7.3.3.2.3. By End User
7.3.4. Italy Virtualized Evolved Packet Core Market Outlook
7.3.4.1. Market Size & Forecast
7.3.4.1.1. By Value
7.3.4.2. Market Share & Forecast
7.3.4.2.1. By Component Type
7.3.4.2.2. By Deployment Mode
7.3.4.2.3. By End User
7.3.5. Spain Virtualized Evolved Packet Core Market Outlook
7.3.5.1. Market Size & Forecast
7.3.5.1.1. By Value
7.3.5.2. Market Share & Forecast
7.3.5.2.1. By Component Type
7.3.5.2.2. By Deployment Mode
7.3.5.2.3. By End User
8. Asia-Pacific Virtualized Evolved Packet Core Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Component Type
8.2.2. By Deployment Mode
8.2.3. By End User
8.2.4. By Country
8.3. Asia-Pacific: Country Analysis
8.3.1. China Virtualized Evolved Packet Core Market Outlook
8.3.1.1. Market Size & Forecast
8.3.1.1.1. By Value
8.3.1.2. Market Share & Forecast
8.3.1.2.1. By Component Type
8.3.1.2.2. By Deployment Mode
8.3.1.2.3. By End User
8.3.2. India Virtualized Evolved Packet Core Market Outlook
8.3.2.1. Market Size & Forecast
8.3.2.1.1. By Value
8.3.2.2. Market Share & Forecast
8.3.2.2.1. By Component Type
8.3.2.2.2. By Deployment Mode
8.3.2.2.3. By End User
8.3.3. Japan Virtualized Evolved Packet Core Market Outlook
8.3.3.1. Market Size & Forecast
8.3.3.1.1. By Value
8.3.3.2. Market Share & Forecast
8.3.3.2.1. By Component Type
8.3.3.2.2. By Deployment Mode
8.3.3.2.3. By End User
8.3.4. South Korea Virtualized Evolved Packet Core Market Outlook
8.3.4.1. Market Size & Forecast
8.3.4.1.1. By Value
8.3.4.2. Market Share & Forecast
8.3.4.2.1. By Component Type
8.3.4.2.2. By Deployment Mode
8.3.4.2.3. By End User
8.3.5. Australia Virtualized Evolved Packet Core Market Outlook
8.3.5.1. Market Size & Forecast
8.3.5.1.1. By Value
8.3.5.2. Market Share & Forecast
8.3.5.2.1. By Component Type
8.3.5.2.2. By Deployment Mode
8.3.5.2.3. By End User
9. Middle East & Africa Virtualized Evolved Packet Core Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Component Type
9.2.2. By Deployment Mode
9.2.3. By End User
9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
9.3.1. Saudi Arabia Virtualized Evolved Packet Core Market Outlook
9.3.1.1. Market Size & Forecast
9.3.1.1.1. By Value
9.3.1.2. Market Share & Forecast
9.3.1.2.1. By Component Type
9.3.1.2.2. By Deployment Mode
9.3.1.2.3. By End User
9.3.2. UAE Virtualized Evolved Packet Core Market Outlook
9.3.2.1. Market Size & Forecast
9.3.2.1.1. By Value
9.3.2.2. Market Share & Forecast
9.3.2.2.1. By Component Type
9.3.2.2.2. By Deployment Mode
9.3.2.2.3. By End User
9.3.3. South Africa Virtualized Evolved Packet Core Market Outlook
9.3.3.1. Market Size & Forecast
9.3.3.1.1. By Value
9.3.3.2. Market Share & Forecast
9.3.3.2.1. By Component Type
9.3.3.2.2. By Deployment Mode
9.3.3.2.3. By End User
10. South America Virtualized Evolved Packet Core Market Outlook
10.1. Market Size & Forecast
10.1.1. By Value
10.2. Market Share & Forecast
10.2.1. By Component Type
10.2.2. By Deployment Mode
10.2.3. By End User
10.2.4. By Country
10.3. South America: Country Analysis
10.3.1. Brazil Virtualized Evolved Packet Core Market Outlook
10.3.1.1. Market Size & Forecast
10.3.1.1.1. By Value
10.3.1.2. Market Share & Forecast
10.3.1.2.1. By Component Type
10.3.1.2.2. By Deployment Mode
10.3.1.2.3. By End User
10.3.2. Colombia Virtualized Evolved Packet Core Market Outlook
10.3.2.1. Market Size & Forecast
10.3.2.1.1. By Value
10.3.2.2. Market Share & Forecast
10.3.2.2.1. By Component Type
10.3.2.2.2. By Deployment Mode
10.3.2.2.3. By End User
10.3.3. Argentina Virtualized Evolved Packet Core Market Outlook
10.3.3.1. Market Size & Forecast
10.3.3.1.1. By Value
10.3.3.2. Market Share & Forecast
10.3.3.2.1. By Component Type
10.3.3.2.2. By Deployment Mode
10.3.3.2.3. By End User
11. Market Dynamics
11.1. Drivers
11.2. Challenges
12. Market Trends & Developments
12.1. Mergers & Acquisitions (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments
13. Global Virtualized Evolved Packet Core Market: SWOT Analysis
14. Porter's Five Forces Analysis
14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products
15. Competitive Landscape
15.1. Telefonaktiebolaget LM Ericsson
15.1.1. Business Overview
15.1.2. Products & Services
15.1.3. Recent Developments
15.1.4. Key Personnel
15.1.5. SWOT Analysis
15.2. Huawei Technologies Co. Ltd.
15.3. Cisco Systems Inc.
15.4. NEC Corporation
15.5. Nokia Corporation
15.6. Affirmed Solutions Inc.
15.7. Mavenir Inc.
15.8. ZTE Corporation
15.9. Athonet Srl
15.10. Samsung Electronics Co. Ltd.
16. Strategic Recommendations
Companies Mentioned
The key players profiled in this Virtualized Evolved Packet Core market report include:- Telefonaktiebolaget LM Ericsson
- Huawei Technologies Co. Ltd.
- Cisco Systems Inc.
- NEC Corporation
- Nokia Corporation
- Affirmed Solutions Inc.
- Mavenir Inc.
- ZTE Corporation
- Athonet Srl
- Samsung Electronics Co. Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 180 |
| Published | January 2026 |
| Forecast Period | 2025 - 2031 |
| Estimated Market Value ( USD | $ 9.28 Billion |
| Forecasted Market Value ( USD | $ 38.85 Billion |
| Compound Annual Growth Rate | 26.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
