Virtualized Evolved Packet Core Market size is expected to increase considerably from 2021 to 2027, due to its ability to ensure significant TCO savings, boost time-to-market of products, and reduce operating expenses. The rising introduction of virtual EPC solutions to offer mobile network operators the flexibility and agility required to meet peak traffic demand, scale networks, and provide differentiated services for private LTE and other use cases will further foster industry demand. vEPC refers to a framework for mobile networks’ data and voice processing and switching, which is implemented by NFV (Network Functions Virtualization) to virtualize the function of an EPC. This framework is increasingly used for 4G LTE mobile networks and is poised to be a core part of the upcoming 5G network infrastructure.
Significant growth of mobile data traffic is among the prominent factors bolstering the overall virtualized evolved packet core market trends during the forecast timeframe. According to Ericsson’s mobility report, the global mobile network data traffic, excluding IoT and FWA, reached 49 exabytes per month by 2020 end and topped 66EB per month in the first quarter of 2021. This factor could stimulate the adoption of virtual EPC architecture to deliver superior quality of service and meet real-time performance requirements during peak congestion hours. In addition, the growing usage of 4G LTE will also fuel industry expansion, as virtual evolved packet core allows telecom service providers to transfer the LTE network’s network components to low-cost COTS servers.
Based on application, the virtualized evolved packet core market from the IoT & M2M segment is set to register high revenue by 2027. This is a result of the commendable increase in enterprise IoT spending, as vEPC serves as a catalyst for enterprises to offer services tailored to specific uses cases including IoT. Furthermore, the emergence of satellite communication as a complementary component in the existing network infrastructure will further push segment growth, given the ability of vEPC technology to facilitate M2M communication.
Europe virtualized evolved packet core market is predicted to exhibit a strong growth rate through 2027, driven by the high emphasis on accelerating research and innovation of the 5G technology, alongside the rise in IoT spending. Moreover, the escalating number of smartphone users in the region will further augment product demand, as it can sustain increased volume of data traffic from devices at a minimal cost.
The competitive landscape of the global market consists of companies such as ZTE Corporation, Telefonaktiebolaget LM Ericsson, Samsung, Nokia Corporation, NEC Corporation (Western Electric, AT&T Corporation), Mavenir, Huawei Technologies, Cisco Systems, Athonet Srl, and Affirmed Networks, Inc. (Microsoft Corporation). New product launches, business expansions, and collaborations are some of the key initiatives being undertaken by these companies to reinforce their presence in the global market. For example, in June 2021, Mavenir announced its campus network for 4G/5G in Dallas, which demonstrates network integration across a suite of certified solutions such as MAVcore, a 4G/5G Evolved Packet Core, delivered on-premises, cloud and hybrid hosted CBRS/OnGo as a service.
Increase in Smartphone Users During COVID-19 to Influence Virtualized Evolved Packet Core Market Trends:
The novel coronavirus pandemic has brought along a high level of uncertainty and challenges for various enterprises worldwide. As per Yelp.com's Local Economic Impact Report, above 97,966 businesses have permanently closed during the outbreak. This factor has led to the declining acceptance of broadband services across enterprises and in turn, impacted the industry worldwide. However, the rising adoption of smartphones amid the pandemic has consequently resulted in mounting data consumption, which could impel the deployment of virtualized EPC solutions to ensure consistent service availability over the coming years.
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Market, By End-Use
The above information has been provided for the following regions and countries: