Virtualized Evolved Packet Core (vEPC) Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Virtualized Evolved Packet Core Market Trends and Insights

Accelerated 5G Rollouts Demanding Cloud-Native Cores

Cloud-native service-based architectures are mandatory for true 5G standalone networks, making vEPC a non-negotiable investment for operators pursuing network slicing and premium-tier services. Ericsson secured more than 120 commercial 5G core contracts by late 2024, powering 37 live 5G SA networks worldwide, providing tangible proof of commercial readiness^{[1]Ericsson, “Ericsson powers 37 live 5G Standalone networks,” ericsson.com}. Early movers such as T-Mobile leveraged nationwide 5G SA to introduce network-slice-enabled video calling, which positions them for differentiated pricing models. Competitive pressure compels lagging carriers to accelerate modernization or risk churn. Cloud-native cores also give smaller mobile virtual network operators fast-track entry into enterprise IoT niches. Consequently, the Virtualized Evolved Packet Core market experiences a compounding adoption cycle in the short term. 

CapEx/OpEx Savings from Network-Function Virtualization

Operators record sizeable cost reductions as vEPC setups shift workloads to commodity hardware and shared cloud resources. Studies show 68% lower capital outlays and 67% savings on operating expense versus monolithic hardware cores. Digital Nasional Berhad achieved 99.8% network uptime and cut customer-complaint resolution time by 90% after moving to intent-based automated operations on a virtualized core. Energy savings add a further 22% efficiency, meeting both budget and sustainability goals. Faster service launches shorten time-to-revenue from over a year to less than six months. These economics shift vEPC from optional to essential in board-level investment plans. Vendors now embed AI-powered orchestration to shrink operational workloads even further. 

Private LTE/5G Networks for Industry 4.0 and Campus Connectivity

Enterprises have begun deploying dedicated cellular solutions that deliver latency, reliability, and security beyond Wi-Fi limitations. BMW’s Spartanburg plant and Toyota Material Handling’s U.S. facilities transitioned to private 5G, improving automated-guided-vehicle coordination and predictive maintenance analytics. China already hosts more than 5,325 private 5G networks that span 40 industrial sectors and enable over 20,000 production use cases^{[2]Dan Jones, “China’s 5G private-network tally tops 5,000,” lightreading.com}. This scale demonstrates the technology’s broad viability and fuels the enterprise segment’s 29% CAGR. The Virtualized Evolved Packet Core market benefits because each private network requires a flexible, software-defined core to manage slice isolation and QoS. Vendors respond with tailored packaging, including SaaS consumption models that appeal to mid-size manufacturers. 

Telco Sustainability Mandates for Energy-Efficient Core Networks

Regulators and investors evaluate carrier decarbonization trajectories, making energy efficiency a procurement criterion. Nokia’s “extreme deep sleep” power-saving mode cuts consumption by up to eight times during off-peak hours. VMware estimates that virtualization technologies have already avoided 1.2 billion metric tons of CO2 since deployment inception. Operators facing volatile power prices recognize direct OPEX risk and pivot to vEPC to minimize footprint. The European Union’s draft Green Deal telecom guidelines will raise the bar further, rewarding early adopters. As a result, energy-efficient designs become a core competitive differentiator within the Virtualized Evolved Packet Core market.

Operator Inertia Toward Legacy Physical EPCs

Sunk investments and mission-critical risk aversion slow virtualization plans. Three UK replaced Nokia’s end-of-life CloudBand only when forced to modernize, underscoring reluctance to disrupt stable traffic flows. Verizon’s protracted 5G SA launch shows that even innovation leaders grapple with migration complexity. Mature markets face elevated regulatory oversight and stringent service-level expectations, making change management even more difficult. As a result, physical cores persist for longer than their economic utility justifies, dampening short-term momentum in the Virtualized Evolved Packet Core market.

Security and Compliance Concerns on Multi-Tenant Cloud

The UK Telecoms Security Act mandates roughly 258 controls, revealing how traditional frameworks strain to cover cloud-native functions. Operators must harden workloads, segment networks, and manage secrets with zero-trust rigor, tasks that inflate initial deployment effort. Google Cloud, AWS, and Microsoft introduce telecom-specific compliance blueprints, yet data sovereignty questions linger, particularly in Europe. Some carriers elect to keep packet-core control planes on-premises, adopting hybrid models that slow full-scale public-cloud adoption. These concerns temper otherwise compelling economics for virtualization.

Segment Analysis

By Deployment Mode: Cloud Dominance Accelerates

Cloud implementations represented 63% of the Virtualized Evolved Packet Core market share in 2024, reflecting carriers’ preference for elastic scaling and rapid service iteration. The cloud cohort is forecast to grow at 32% CAGR, outpacing on-premises and hybrid alternatives as hyperscalers strengthen telecom feature sets. Samsung, TELUS, and AWS created North America’s first virtual roaming gateway, which proves that cross-border service innovations flourish when control-plane elements run natively on the public cloud. These examples underpin a broad shift where infrastructure ownership yields to agility. 

Operators that retain data on-site embrace transitional hybrid models to satisfy sovereignty rules without forfeiting cloud economics. Ericsson’s Compact Packet Core reduces deployment complexity by 80% and cuts energy use by 30%, making cloud‐ready bundles attractive to tier-2 carriers. As more contracts stipulate outcome-based pricing, the Virtualized Evolved Packet Core market embeds managed-service add-ons such as AI-assisted operations. Small regional telcos and MVNOs leverage SaaS delivery to launch new offers in weeks rather than quarters, broadening the customer base.

Note: Segment shares of all individual segments available upon report purchase

By Application: 5G SA Core Disrupts LTE Dominance

LTE/VoLTE still commanded 48% of the Virtualized Evolved Packet Core market size in 2024 because most mobile subscribers reside on 4G networks. However, 5G SA cores exhibit a 35.26% CAGR, indicating a structural transition toward service-based architectures that unlock network API monetization. Bharti Airtel picked Ericsson to deliver standalone signaling and charging, illustrating the commercial link between SA and revenue diversification. 

Broadband Wireless Access capitalizes on SA capacity to compete with fiber, while IoT gains deterministic latency for industrial robotics. Operators introduce subscription tiers tied to slice attributes, converting technical differentiation into ARPU uplift. Consequently, future volume may remain LTE-heavy, yet value creation migrates to SA-enabled offerings. The Virtualized Evolved Packet Core industry thus aligns product roadmaps with low-latency, uRLLC, and massive-IoT profiles that only standalone cores support. 

Note: Segment shares of all individual segments available upon report purchase

By End User: Enterprise Acceleration Reshapes Market

Telecom carriers retained 72% revenue share in 2024, yet enterprise demand expands at a 29% CAGR, driving portfolio recasting toward private network bundles rcrwireless.com. Manufacturers like Toyota Material Handling replaced plant-wide Wi-Fi with Ericsson private 5G, confirming that deterministic performance justifies investment at factory scale rcrwireless.com. MVNOs adopt cloud-native cores to address vertical niches, while cloud providers enter the arena with vEPC-as-a-Service for mid-tier operators. 

Public-sector agencies apply dedicated slices for mission-critical communications during emergencies, further diversifying use cases. NTT and LyondellBasell’s multi-site private 5G deployment signals how global enterprises treat cellular connectivity as strategic infrastructure ntt.com. As enterprise sophistication rises, vendors ship pre-integrated application stacks that bundle MEC, analytics, and cybersecurity, raising overall deal sizes. These dynamics enlarge addressable revenue and set new functional baselines for the Virtualized Evolved Packet Core market.

Geography Analysis

Asia Pacific generated 38% of the 2024 Virtualized Evolved Packet Core market size, supported by China’s 5,325 live private 5G networks that include more than 20,000 industrial use cases. Government incentives and spectrum policies accelerate manufacturing adoption, with Beijing investing USD 3 billion in 5G-Advanced coverage across 300 cities in 2025. India’s 52% 5G SA coverage, well ahead of Europe’s 2%, illustrates how emerging economies leapfrog legacy architectures via cloud-first rollouts. These programs supply scale that compels vendors to localize R&D and production, reinforcing Asia Pacific’s leadership in the Virtualized Evolved Packet Core market. 

North America emphasizes premium service tiers through network slicing and O-RAN integration. Verizon deployed more than 130,000 O-RAN-capable radios and launched slice-based video calling to capture high-value subscribers. Enterprise alliances produce headline case studies: BMW’s Spartanburg plant realized uptime gains after adopting private 5G, and Samsung, TELUS, and AWS demonstrated roaming innovation via fully virtualized cores. Regulatory clarity around spectrum leasing further supports campus deployments, bolstering regional contribution to the Virtualized Evolved Packet Core market. 

Europe shows mixed momentum. Three UK awarded Ericsson a 9 Tbps cloud-native core contract, and O2 Telefónica surpassed 1 million users on its AWS-hosted core within six months^{[3]Tom W., “Three UK taps Ericsson for 9 Tbps cloud-native core,” rcrwireless.com}. Yet overall 5G SA availability stands at 2%, restrained by strict security rules such as the UK Telecoms Security Act and by a risk-averse culture that favors stability over aggressive modernization. Operators focus on energy efficiency and open-RAN experimentation, evidenced by Deutsche Telekom’s O-RAN Town initiative. These priorities temper immediate spending but create long-term demand for highly interoperable, low-power vEPC solutions within the Virtualized Evolved Packet Core market.