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The virtualized evolved packet core (vEPC) market is estimated to grow at a CAGR of 59.5% between 2022 and 2027. The market size is forecasted to increase by USD 72,902.49 million. The growth of the market depends on several factors, including the rising use of multimedia services, the increasing demand for VoLTE, and the cost-effectiveness of vEPC solutions.
This virtualized evolved packet core market report extensively covers market segmentation by component (solutions and services), application (LTE/VoLTE/ VoWiFi, MPN and MVNO, IoT and M2M, and BWA), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising use of multimedia services is notably driving market growth, although factors such as complications associated with the deployment of vEPC solutions may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising use of multimedia services is notably driving market growth. Multimedia services are used for watching, reading, streaming, and posting media content. In 2022, the average time spent on social media was around 147 minutes per day, an increase of 63% when compared to 2012.
The use of multimedia services is rising rapidly due to the increasing access to multimedia services on mobile devices and the rising volume of on-demand content. For instance, in 2022, 64.4% of the global population had access to the Internet. The rising use of multimedia services increases mobile data traffic. As a result, network operators have to expand their bandwidth. They are implementing vEPC to provide smartphones with better LTE services. Therefore, the rising use of multimedia services is expected to drive the growth of the global vEPC market during the forecast period.
The deployment of 5G infrastructure is a key trend shaping the market. In recent years, the telecommunication industry has witnessed several advances in technology, such as 5G. The increasing data traffic owing to the use of technologies such as IoT is encouraging MNOs to deploy 5G infrastructure. Software-defined air interfaces are embedded into 5G network architectures.
5G will enable faster data transfer and provide network services on demand. MNOs across the world are expected to implement vEPC to efficiently utilize radio resources and increase their network capacity. For instance, in June 2020, Equinix Inc. announced the expansion of its Dallas Infomart Data Center campus with the opening of a new International Business Exchange data center and the launch of its 5G and Edge Proof of Concept Center (POCC). Such factors are expected to support the growth of the global vEPC market during the forecast period.
Complications associated with the deployment of vEPC solutions are challenging market growth. The deployment of vEPC is a complex process. Some complications associated with the deployment include stringent requirements for mobile broadband service availability, real-time performance monitoring, and time functioning in a multi-vendor environment.
IT networks and cloud-based enterprises are not designed to adhere to stringent regulations related to the requirements of the mobile core network. Governments of various countries have imposed regulations such as maintaining the functioning of the network during nodal failure. The presence of such regulations is a challenge for implementing vEPC. Moreover, the migration of current systems into a virtual environment and the running of virtual network functions in a cloud environment are also hindering the deployment of vEPC. Hence, the complications associated with the deployment of vEPC as a solution are expected to pose a challenge to the growth of the global vEPC market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Virtualized Evolved Packet Core (vEPC) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Athonet Srl - The company offers Athonet virtualized EPC with Push to Talk, IP Multimedia system, Serving PDN gateways, and home subscriber servers features. It also offers Athonet 5G Core, Athonet Dashboard, Athonet EPC, and Athonet IMS.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the solutions segment will be significant during the forecast period. This segment refers to the various software and hardware solutions offered by vendors for the deployment and operation of vEPC networks. They encompass a wide range of components and functionalities that support the virtualization and management of the core network infrastructure. These software solutions provide the necessary control, management, and processing capabilities to handle subscriber traffic and services.
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The solutions segment was valued at USD 816.36 million in 2017 and continued to grow until 2021. The solutions segment is dynamic, and vendors are continuously providing enhanced features, scalability, and compatibility with evolving network technologies such as 5G and network slicing. They are focusing on delivering comprehensive and flexible solutions that cater to the specific needs of mobile operators and enable them to build agile, scalable, and efficient core network infrastructure. Such factors are expected to drive the growth of the solutions segment of the global vEPC market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the vEPC market in North America is attributed to factors such as an advanced telecommunications infrastructure and high mobile network penetration. The increasing adoption of 4G and 5G networks, the growing demand for efficient mobile data management, and the need for network virtualization and flexibility are also driving the regional market. Key players in the virtualized evolved packet core market in North America include major technology vendors and telecommunication service providers. The demand for advanced mobile network infrastructure and virtualization technologies to is fueling the regional virtualized evolved packet core (vEPC) market. The increasing adoption of 4G and 5G networks and the rising demand for mobile data are expected to further drive the growth of the market in North America during the forecast period.
In 2020, the COVID-19 pandemic positively impacted the regional vEPC market. The pandemic led to a shift to remote work and learning, which increased the demand for high-speed mobile broadband. This resulted in an increase in the demand for vEPC solutions, which helped mobile operators deliver high-speed mobile broadband to their customers. Moreover, in 2021, vaccination drives conducted by governments led to a gradual recovery of the global economy, which increased the demand for telecommunication services. Such factors are expected to drive the growth of the regional virtualized evolved packet core market during the forecast period.
The virtualized evolved packet core market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the virtualized evolved packet core market as a part of the global systems software market within the global information technology (IT) software market. The super parent market, the global IT software market, covers companies engaged in developing and producing application and systems software. It also includes companies offering database management software. The global systems software market covers organizations that are engaged in developing application development and management software, cloud computing software, data center, hosting software, IT management software, mobility software, networking software, security software, and storage software. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Virtualized Evolved Packet Core (vEPC) Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 59.5% |
Market growth 2023-2027 |
USD 72,902.49 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
58.5 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Athonet Srl, Cassava Technologies, Cisco Systems Inc., Cumucore Oy, Druid Software, Huawei Technologies Co. Ltd., International Business Machines Corp., IPLOOK Technologies, Mavenir Systems Inc., Microsoft Corp., Mitel Networks Corp., Motorola Solutions Inc., NEC Corp., Nokia Corp., Parallel Wireless Inc., Samsung Electronics Co. Ltd., Tech Mahindra Ltd., Telefonaktiebolaget LM Ericsson, Twilio Inc., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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