Virtualized Evolved Packet Core Market

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Global Virtualized Evolved Packet Core Market is valued at USD 4.87 Billion in 2022 and is projected to reach a value of USD 23.56 Billion by 2030 at a CAGR of 21.80% over the forecast period.

The key factors driving this market are rising demand for enhanced network performance and a lower cost of ownership for deployed network infrastructure. According to UNESCO, there has been a dramatic shift in the use of communication networks due to the 850 million students who are now studying and attending classes online and the several million workers who have suddenly moved to remote work. Europeans have been largely confined to their homes, leading to a roughly 50% increase in network traffic. One of the key drivers of mobile data traffic growth is the increasing number and variety of wireless devices connecting to mobile networks worldwide. The widespread availability of smartphones and the low cost of high-speed network services drive global mobile data traffic. For instance, GSMA Intelligence predicts that by 2025, smartphone penetration worldwide will have risen from 65% in 2021 to 80%. Ericsson forecasts that by 2025, 5G networks will carry 45 percent of all mobile data traffic. As a result, virtualized evolved packet core solutions are now essential for managing the explosion in mobile data traffic. A virtualized evolved packet core makes efficient management of mobile data traffic possible, which improves throughput, reduces network congestion difficulties, maximizes resource utilization, and raises service quality. According to a study by ABI Research, global business mobile data traffic is set to increase by the year 2023 by 16%.

One of the main factors that enhance the acceptance of virtualized evolved packet core solutions is the development of cellular network technology, which offers faster data speeds and lower latency. Consumer demand for video and business and consumer shifts to cloud services have been major drivers of the exponential growth in data volume. The widespread adoption of data-intensive applications like augmented reality (AR) and virtual reality (VR), as well as 3D and ultra-high definition (UHD) video content in consumer electronics and B2B communication systems, is a major factor driving demand for mobile data services. Increases in mobile data traffic can be attributed to the large amount of data transmitted through cellular networks. By 2025, 5G will account for almost half of all global internet traffic. This rapid adoption is thanks to its potential to enable extremely low-latency connections, making it ideal for remote healthcare services and autonomous vehicle applications.

Nevertheless, there are challenges ahead for mobile data traffic. One issue is that users increasingly use multiple devices and platforms to access online content, exacerbating network congestion. Another issue is that mobile devices increasingly use artificial intelligence (AI) capabilities and other cloud-based services, which require considerable bandwidth. The important reasons driving the growth of the virtualized evolved packet core market are the rising demand for broadband services across mobile networks, the commercialization of 5G networks, the deployment of IoT and agile networks, and the reduction in operational and capital expenditures. However, the expansion of the virtualized evolved packet core business has been hampered by several problems, including rising network security concerns and the economic slowdown induced by the COVID-19 pandemic. The adoption of IoT is expected to hamper the market’s growth shortly. The growing popularity of autonomous vehicles and increasing cyber-attacks are among the major challenges faced by the industry. Additionally, privacy concerns associated with data analytics are also restraining the growth of IoT.

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The major vendors in the market are Cisco Systems, Hewlett Packard Enterprise, IBM Corporation, Intel Corporation, Microsoft Corporation, NEC Corporation, and Samsung Electronics. These vendors are attempting to capitalize on the growing demand for their respective products by marketing their offerings as solutions that provide enhanced security, scalability, and performance. One of the key factors driving the growth of the Virtualized Evolved Packet Core market is the increasing adoption of virtualized environments. The trend toward virtualization is expected to increase over the next few years as organizations attempt to reduce costs and improve security. In addition, virtualization is also beneficial because it allows multiple applications to run concurrently on a single computer system. This enables organizations to reduce downtime and increase efficiency. Another important factor driving the growth of the Virtualized Evolved Packet Core market is the increasing demand for cloud-based services. Cloud-based services allow users access to applications and data from anywhere worldwide without installing software or configuring devices. Furthermore, many consumers view cloud-based services as more reliable than traditional software solutions because they are not subject to interruptions or outages caused by viruses or malware attacks.

Top Market Trends

• Accelerated Virtualization – One of the most important trends in VE-Packet Core is accelerated virtualization. With more and more devices being virtualized, businesses can create more efficient workflows and improve overall productivity. This technology also allows businesses to easily move their workloads between physical and virtual servers, thus increasing resource utilization and reducing costs.
• In today's business landscape, the role of the CIO has never been more important. With the growth of virtualized infrastructure and cloud computing, businesses increasingly rely on technology to help them run their operations efficiently. The CIO must have strong technical skills to manage these complex technologies.
• Core Optimization – Another trend that will significantly impact VE-Packet Core is core optimization. By using optimization techniques, businesses can reduce the amount of data that needs to be transferred across the network, leading to faster speeds and improved performance. Additionally, by optimizing the network’s core, businesses can ensure that their communication infrastructure remains stable and reliable during times of high activity.
• The Rise of The Cloud-Enabled Workforce – As we move away from traditional working methods, many businesses are turning to cloud-enabled technologies to improve efficiency and agility. With this in mind, it's no surprise that cloud-based solutions such as VE-Packet Core are becoming increasingly popular among business owners. Thanks to its simplified architecture and ability to scale up or down as needed, VE-Packet Core is perfect for large enterprises that need a fast, reliable solution for communication between employees and customers.

Market Segmentation

The global Virtualized Evolved Packet Core Market is segmented based on Component, Solution, Services, Network, End User, Deployment, and Region. Based on the Component, the market is segmented into Solutions and Services. Based on the Solution, the market is segmented into MME, HSS, S-GW, and PDN-GW. Based on Services, the market is segmented into Professional Services, Consulting, Integration and Deployment, Training and Support, and Managed Services. Based on Network, the market is segmented into 5G Network and 4G Network. Based on End Users, the market is segmented into Telecom operators and Enterprises. Based on Deployment, the market is segmented into Cloud and On-premises. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Component

The solution segment is expected to grow at a CAGR of 10.6% during 2021-2028. The growth is attributed to the increasing demand for virtualized evolved packet core services, which are essential for modernizing and optimizing network infrastructure. The services segment is expected to grow at a CAGR of 12.5% during 2021-2028. The market’s growth is primarily due to the increasing demand for efficient data center operations and the increased adoption of cloud-based solutions. During the forecast period, the most popular type of virtualized evolved packet core solution will be application-specific integrated circuits (ASICs).

Based on Solution

The MME segment is estimated to be the largest segment in the market during the forecast period 2021-2028. This is mainly due to the increase in the demand for LTE networks. The MME segment is also witnessing a rise in the deployment of carrier-grade virtualized edge infrastructure solutions. The HSS segment is estimated to be the second largest segment in the market during the forecast period 2021-2028. This is mainly due to increased demand for broadband and cloud infrastructure solutions. The HSS segment is also witnessing a rise in deployments of carrier-grade virtualized edge infrastructure solutions. The s-GW segment is estimated to be the third largest segment in the market during the forecast period 2021-2028. This is because there is a growing need for S-GWs to provide enhanced services such as video distribution and cloud gaming. In addition, there is a growing demand for S-GWs to support multiple carriers on a single platform. The PDN-GW segment is also expected to proliferate during 2021-2028. This is because there is a growing demand for PDN-GWs to support large VoIP deployments.

Based on Services

The professional services segment is expected to grow at a CAGR of 19.5% between 2021 and 2028. The need for improved efficiency in various industries drives virtualized evolved packet core solutions adoption. The Consulting segment is expected to register the highest growth rate during the forecast period owing to the growing demand for customized solutions from various clients. The integration and Deployment Segment is likely to witness high growth owing to the increasing requirement for efficient and effective deployment of virtualized applications. The Training and Support segment is also expected to grow significantly due to the need for skilled professionals in this domain. The managed services segment is expected to be the fastest-growing segment, with a CAGR of 29.5% during this period. This growth is attributed to the increasing demand for managed services that provide flexibility and scalability for organizations' infrastructure needs.

Based on Network

The 5G Network segment is expected to grow at a higher CAGR than the 4G Network segment during the forecast period. This growth is attributed to the increasing demand for 5G services and the increased adoption of innovative technologies in this segment. The 5G Network segment also benefits from increased investments by telecom operators in this area.

Based on the End User

The telecom operators segment is expected to be the largest market for VEPCs, with a share of 53.3% in 2021 and 62.2% by 2028. This is due to their increasing emphasis on improving network resilience and performance. Enterprises are also increasingly deploying VEPCs to improve their data center efficiency and performance. The growth in the enterprise segment is expected to be due to the increased adoption of virtualized evolved packet core solutions for Enterprise networking.

Based on Deployment

The on-premises segment is expected to dominate the VEPC market in terms of revenue during the forecast period. This is due to the large size and scale of incumbent enterprises still relying on physical servers for their networking needs. However, the cloud segment is expected to grow faster than the on-premises segment due to its lower deployment costs and increased mobility options.

Based on Region

North America is expected to be the largest region in market size, with revenue estimated to be USD 5,590.4 million in 2028. This region is expected to proliferate owing to the increasing deployment of cloud-based applications and data centers. The growth in Europe is also anticipated to be strong, with revenue estimated to be USD 3,672.5 million in 2028. This region is expected to dominate the market due to the large number of end users and vendors operating in the region. The Asia Pacific region is expected to proliferate thanks to the increasing deployment of cloud-based applications and data centers in this region. The Latin America region is also expected to multiply owing to the growth in technology companies operating in this region. The Middle East & Africa region is expected to grow slowly since this region has a small population base, and limited technology companies are operating in this region.

Competitive Landscape

The key players in the Global Virtualized Evolved Packet Core market include- Cisco Systems Inc. (US), Telefonaktiebolaget LM Ericsson (Sweden), NEC Corporation (Japan), Mavenir (US), ZTE Corporation (China), Red Hat Inc. (US), Nokia Corporation (Finland), Huawei Technologies Ltd. (China), Affirmed Solutions Inc. (US), Samsung Electronics Ltd. (South Korea) and others.

Recent Developments

• Several government initiatives, such as the National Integrated Circuit Fabrication Facility (NICFF) Project, the Government of India’s Digital India Program, and the National Telecommunication Commission of China's 5G rollout, are expected to fuel the demand for virtualized evolved packet core solutions.
• Government initiatives such as the National Broadband Plan (NBP) and Digital India are also expected to stimulate market growth. The NBP envisages the provision of high-speed broadband connectivity to all citizens by 2022.
• In 2021, Nokia planned to commercialize its VEPC solution using software-defined networking (SDN). This solution would allow operators to control network traffic flows more easily.
• In 2025, Cisco plans to release a new VEPC platform that will allow operators to manage both traditional and virtualized networks. This platform will also feature automated network management capabilities, making troubleshooting easier for operators.
• In addition to these major players, other companies are developing innovative VEPC solutions. For example, Juniper Networks Incorporated is working on a VEPC product that will allow operators to use machine learning algorithms to optimize their networks. Finally, startup CloudBees is developing an open-source VEPC platform that anyone in the market can use.

Segmentation of the Global Virtualized Evolved Packet Core Market