|
Forecast Period
|
2026-2030
|
|
Market Size
(2024)
|
USD 1.08 billion
|
|
Market Size (2030)
|
USD 3.08 billion
|
|
CAGR (2025-2030)
|
18.89%
|
|
Fastest Growing
Segment
|
Mobility Management Entity
|
|
Largest Market
|
North-East US
|
Market Overview
United States Virtualized Evolved Packet
Core Market was valued at USD 1.08 billion in 2024 and is expected to reach USD
3.08 billion by 2030 with a CAGR of 18.89% during the forecast period.
The United States Virtualized Evolved
Packet Core (vEPC) Market refers to the market for software-defined solutions
that virtualize the core network functions of mobile communication networks,
replacing traditional hardware-based Evolved Packet Core systems. vEPC
integrates critical network functions such as the Mobility Management Entity,
Serving Gateway, Packet Data Network Gateway, and Policy and Charging Rules
Function into a virtualized environment, enabling operators to manage data
traffic, user mobility, and service quality more efficiently. Unlike
conventional EPCs that rely heavily on physical hardware, vEPC leverages cloud
computing, network function virtualization, and software-defined networking to
offer greater flexibility, scalability, and cost-effectiveness.
This transformation allows telecom
operators to dynamically allocate resources based on traffic demand, reduce
capital and operational expenditures, accelerate service deployment, and
improve overall network performance. The market in the United States is poised
for significant growth due to several key factors. The rapid rollout of 5G
networks, which demand highly flexible and scalable core infrastructure, is a
primary driver, as operators seek to support higher data throughput, ultra-low
latency, and massive device connectivity. Additionally, increasing adoption of
Internet of Things solutions, edge computing, and cloud-based services is
further fueling the demand for virtualized core networks capable of handling
complex traffic patterns efficiently.
Enterprises and government sectors are
also embracing vEPC to enable private 5G networks, improve operational
efficiency, and enhance security protocols. Moreover, ongoing investments in
digital transformation and network modernization by leading telecom providers
are creating opportunities for vendors offering vEPC solutions and services.
With technological advancements in virtualization, orchestration, and
automation, the United States vEPC market is expected to expand rapidly, driven
by the need for cost-efficient, agile, and high-performance networks. As
service providers increasingly prioritize network flexibility, scalability, and
operational efficiency, the adoption of virtualized EPC solutions will continue
to rise, making the United States a leading market for vEPC deployment in the
coming years.
Key Market Drivers
Rapid
Deployment of 5G Networks
In the United
States Virtualized Evolved Packet Core Market, the rapid deployment of 5G
networks stands as a pivotal driver, fundamentally reshaping the
telecommunications landscape by enabling unprecedented connectivity speeds,
enhanced capacity, and ultra-low latency that traditional infrastructures
cannot match. As telecommunications operators accelerate their rollout of 5G
infrastructure to meet escalating consumer and enterprise demands for seamless
digital experiences, virtualized evolved packet core solutions emerge as the
backbone, offering scalable, flexible architectures that decouple hardware from
software functions, thereby facilitating quicker network upgrades and
optimizations without the prohibitive costs associated with physical hardware
overhauls. This shift is particularly critical in a market where competitive
pressures compel service providers to deliver innovative services such as
augmented reality applications, autonomous vehicle support, and remote
healthcare diagnostics, all of which require the robust, distributed processing
capabilities inherent in virtualized systems. Furthermore, the integration of
virtualized evolved packet core with 5G standalone architectures allows for
network slicing, enabling operators to allocate dedicated virtual networks
tailored to specific use cases, thus optimizing resource utilization and
enhancing service differentiation in a crowded marketplace.
Government
initiatives and regulatory frameworks, including spectrum auctions and
incentives for broadband expansion, further propel this driver by creating an
environment conducive to investment in next-generation technologies, ensuring
that the United States remains at the forefront of global telecommunications
innovation. Enterprises across sectors like manufacturing, logistics, and
entertainment are increasingly adopting 5G-enabled solutions to streamline
operations, reduce downtime through predictive maintenance, and harness
real-time data analytics, all underpinned by the agility of virtualized evolved
packet core deployments that can dynamically scale to accommodate fluctuating
traffic loads. This driver not only addresses the limitations of legacy 4G
cores but also positions operators to capitalize on emerging revenue streams
from enterprise-grade services, where reliability and performance are
paramount.
The
convergence of 5G with other technologies, such as artificial intelligence and
machine learning, amplifies the value proposition of virtualized evolved packet
core, as it supports edge intelligence for faster decision-making at the
network periphery, reducing reliance on centralized data centers and mitigating
bottlenecks in data transmission. In urban centers where population density
exacerbates network congestion, virtualized solutions provide a strategic
advantage by enabling localized processing, thereby improving overall user
experience and fostering customer loyalty in a market characterized by high
churn rates. Moreover, the environmental sustainability aspect cannot be
overlooked, as virtualized evolved packet core reduces the carbon footprint associated
with traditional hardware-centric networks through efficient resource pooling
and energy-optimized operations, aligning with corporate social responsibility
goals that are increasingly influencing procurement decisions. International
trade dynamics also play a role, with domestic operators seeking to bolster
supply chain resilience by investing in software-defined networks that are less
vulnerable to geopolitical disruptions in hardware sourcing.
The
educational sector benefits as well, with 5G-powered virtualized networks
supporting remote learning platforms that demand high-bandwidth, low-latency
interactions to ensure equitable access to digital resources. Financial
institutions leverage this technology for secure, real-time transaction
processing, enhancing fraud detection and customer service responsiveness.
Retailers utilize it for immersive shopping experiences via augmented reality
mirrors and inventory management systems that respond instantaneously to
consumer behaviors. In the energy sector, smart grid applications rely on
virtualized evolved packet core to manage distributed energy resources
efficiently, promoting grid stability and renewable integration. Transportation
networks, including railways and aviation, employ it for safety-critical
systems that require millisecond-level responsiveness.
The healthcare
industry's telemedicine surge, accelerated by recent global events, underscores
the necessity for reliable, low-latency networks to support remote
consultations and monitoring. Entertainment providers stream high-definition
content without buffering, capitalizing on 5G's capabilities to expand market
reach. Agricultural operations use precision farming tools enabled by this
technology to optimize yields and resource usage. Public safety organizations
deploy it for enhanced situational awareness through connected surveillance and
emergency response systems. Overall, the rapid deployment of 5G networks drives
the United States Virtualized Evolved Packet Core Market by fostering
innovation, efficiency, and competitiveness across diverse economic sectors,
ensuring sustained growth and technological leadership.
According to
recent telecommunications data, North America is forecast to achieve a 90
percent 5G adoption rate by 2030, leading global regions in penetration. In the
United States, 5G connections are projected to grow from around 200 million in
2023 to over 500 million by 2025, driven by extensive network investments
exceeding $100 billion in spectrum auctions. This surge supports a compound
annual growth rate of 35 percent in 5G smartphone shipments, reaching 153
million units annually by 2025.
Surge in Mobile
Data Traffic
The surge in
mobile data traffic within the United States Virtualized Evolved Packet Core
Market represents a compelling driver, propelled by the exponential growth in
data-intensive applications, streaming services, and remote work paradigms that
demand robust, high-throughput network cores capable of handling vast volumes
of information efficiently. As consumers and businesses alike increasingly rely
on mobile connectivity for video conferencing, cloud-based collaborations, and
high-definition content consumption, virtualized evolved packet core
architectures provide the necessary elasticity to manage this influx, allowing
operators to scale resources dynamically without the constraints of rigid
hardware configurations.
This driver is
accentuated by the proliferation of connected devices, where each additional
smartphone, tablet, or IoT sensor contributes to the data deluge, necessitating
advanced packet processing that virtualized systems excel at through
software-defined networking principles. Operators benefit from reduced
operational expenditures as virtualized evolved packet core minimizes the need
for physical site visits and hardware upgrades, instead leveraging
virtualization to optimize data routing and reduce latency in high-traffic
scenarios. Enterprise adoption further fuels this trend, with sectors such as
finance requiring secure, real-time data transfers for transactions, while
e-commerce platforms depend on seamless mobile experiences to drive sales
conversions. The educational shift towards online learning platforms amplifies
data demands, where virtualized cores ensure uninterrupted access to
interactive content and virtual classrooms.
In healthcare,
the rise of telehealth services generates substantial data flows from patient
monitoring devices, underscoring the need for resilient packet cores that can
prioritize critical transmissions. Retail innovations like mobile point-of-sale
systems and augmented reality shopping tools add to the traffic burden, where
virtualized solutions enable personalized, responsive customer interactions.
Manufacturing industries integrate smart factory elements, producing continuous
streams of sensor data for process optimization, which virtualized evolved
packet core handles with precision to prevent production halts. Transportation
logistics rely on real-time tracking and fleet management, generating terabytes
of location and telemetry data that require efficient core processing to
maintain operational efficiency.
Energy
utilities monitor grid performance through distributed sensors, creating data
surges during peak usage that virtualized systems manage to ensure stability.
Public sector applications, including smart city initiatives, aggregate data
from traffic cameras and environmental sensors, demanding scalable cores for
urban management. Entertainment providers stream live events and on-demand
content, where spikes in viewership test network limits, and virtualized
evolved packet core ensures quality of service. Agricultural tech employs drone
surveillance and soil sensors, producing data for precision farming that
benefits from low-latency core handling. Financial services process mobile
banking transactions in real-time, where data integrity is paramount, and
virtualized architectures provide the security and speed required. The gaming
industry, with its multiplayer online environments, generates interactive data
streams that thrive on minimal delays afforded by advanced packet cores.
Social media
platforms, central to daily communication, handle billions of uploads and
interactions, relying on virtualized systems to maintain fluidity. E-learning
providers deliver multimedia courses, where data traffic from video lectures
and assessments necessitates efficient core management. Telemedicine
consultations involve high-resolution imaging transfers, emphasizing the role
of virtualized evolved packet core in healthcare delivery. Supply chain
operations track goods via RFID and GPS, creating continuous data flows that
virtualized solutions optimize for visibility and efficiency. Environmental
monitoring networks collect climate data, where surges during events like
storms require robust core capabilities. Overall, the surge in mobile data traffic
drives the United States Virtualized Evolved Packet Core Market by
necessitating innovative, scalable solutions that support the digital economy's
relentless expansion.
Mobile data
traffic in the United States is projected to grow at a compound annual rate of
17 percent through 2030, reaching 430 exabytes per month including fixed
wireless access. Excluding fixed wireless, it will hit 280 exabytes monthly.
North America's 5G data traffic share is expected to constitute 76 percent of
total mobile traffic by 2028, reflecting exponential growth from current
levels.
Cost Reduction
and Operational Efficiency
Cost reduction
and operational efficiency serve as a cornerstone driver in the United States
Virtualized Evolved Packet Core Market, where telecommunications providers seek
to optimize capital and operational expenditures amid intensifying competition
and regulatory pressures, leveraging virtualization to transition from
capital-intensive hardware deployments to software-based models that offer
greater agility and lower total ownership costs. By abstracting core network
functions from proprietary hardware, virtualized evolved packet core enables
operators to utilize commodity servers and open-source platforms, significantly
curtailing procurement expenses while facilitating rapid provisioning of new
services through automated orchestration tools that streamline deployment
cycles from months to days.
This
efficiency is vital in a market where margins are squeezed by over-the-top
content providers, as virtualized systems reduce energy consumption and
physical footprint, leading to substantial savings in data center operations
and maintenance. Enterprises adopting these solutions benefit from
pay-as-you-grow models, aligning expenditures with actual usage and avoiding
overprovisioning that plagues legacy systems. In manufacturing, virtualized
cores support predictive analytics for equipment maintenance, minimizing
downtime costs and enhancing productivity. Healthcare providers utilize them
for efficient data handling in electronic health records, reducing
administrative overheads while ensuring compliance with stringent data privacy
regulations. Retail operations leverage virtualized evolved packet core for
inventory management systems that cut losses through accurate tracking,
optimizing supply chain expenditures.
Financial
institutions achieve cost efficiencies in transaction processing, where
virtualized architectures handle peak loads without redundant hardware
investments. Transportation firms reduce fuel and maintenance costs via
optimized routing enabled by real-time data processing. Energy companies manage
smart grids more economically, predicting demand fluctuations to avoid wasteful
generation. Public utilities streamline billing and monitoring, cutting
operational redundancies through integrated virtual networks. Entertainment
distributors lower content delivery costs by localizing caching, reducing
bandwidth expenses. Agricultural enterprises cut resource wastes with precision
tools supported by efficient cores. Educational institutions affordably scale online
platforms, managing costs during enrollment peaks.
E-commerce
platforms minimize cart abandonment through faster load times, boosting revenue
while controlling infrastructure spends. Logistics providers optimize fleet
operations, reducing fuel and labor costs via data-driven insights.
Environmental agencies monitor ecosystems cost-effectively with distributed
sensors. Government operations achieve fiscal responsibility by virtualizing
communication networks, enhancing inter-agency coordination without ballooning
budgets. Media companies streamline production workflows, cutting editing and
distribution expenses. Hospitality sectors enhance guest experiences through
personalized services without excessive IT overheads. Insurance firms process
claims more efficiently, reducing administrative costs via automated data
flows.
Real estate
managers optimize building systems for energy savings, lowering utility bills.
Automotive manufacturers reduce assembly line errors, cutting rework expenses.
Pharmaceutical companies accelerate research through efficient data handling,
optimizing R&D budgets. Overall, cost reduction and operational efficiency
drive the United States Virtualized Evolved Packet Core Market by enabling
sustainable, scalable growth in a resource-constrained environment.
Telecom
operators can achieve up to 25 percent operational expenditure savings over
five years through virtualized evolved packet core, with network utilization
rates reaching 87 percent. Control and user plane separation further enables 20
to 40 percent cost efficiencies. Virtualized solutions reduce capital
expenditures by 60 percent and operational costs by 90 percent at scale.
Growth in IoT
and Connected Devices
The growth in
IoT and connected devices constitutes a primary driver in the United States
Virtualized Evolved Packet Core Market, as the proliferation of sensors,
wearables, and smart appliances generates massive connectivity demands that
require adaptable, high-capacity core networks to manage diverse traffic
patterns and ensure seamless interoperability across ecosystems. Virtualized
evolved packet core addresses this by providing a unified platform that
supports massive machine-type communications, enabling operators to handle the
influx of low-power, intermittent data transmissions from billions of devices
without overwhelming traditional infrastructures.
This driver is
amplified by industrial applications where IoT enables predictive maintenance
in factories, reducing unplanned outages and optimizing asset lifecycles
through real-time monitoring. In smart cities, connected infrastructure like
traffic lights and surveillance systems relies on virtualized cores for
efficient data aggregation and response, enhancing urban mobility and safety.
Healthcare IoT, including remote patient monitors and connected medical
devices, benefits from secure, low-latency cores that ensure timely data
delivery for critical care decisions. Agricultural IoT deploys soil sensors and
automated irrigation, where virtualized systems manage rural connectivity
challenges cost-effectively. Retail IoT with smart shelves and beacons personalizes
shopping, supported by cores that process location-based data swiftly.
Automotive IoT
for connected vehicles demands robust cores for vehicle-to-everything
communications, improving road safety. Energy sector smart meters and grid
sensors use virtualized evolved packet core for demand-response management,
promoting efficiency. Consumer wearables track health metrics, generating data
that cores aggregate for analytics. Logistics IoT tracks shipments in
real-time, optimizing routes and reducing losses. Environmental IoT monitors
pollution levels, where virtualized networks enable widespread sensor
deployment.
Education IoT
facilitates interactive learning tools, managed by scalable cores. Financial
IoT secures ATM networks and mobile payments. Entertainment IoT enhances smart
TVs and streaming devices. Hospitality IoT personalizes guest rooms. Insurance
IoT assesses risks via telematics. Real estate IoT manages smart buildings.
Pharmaceutical IoT tracks supply chains. Overall, the growth in IoT and
connected devices drives the United States Virtualized Evolved Packet Core
Market by necessitating versatile, efficient networks for the connected future.
IoT connections
in the United States are projected to reach 700 million by 2028, with global
subscriptions hitting 5 billion. North America leads with 32 percent of
wireless connections being 5G-enabled, supporting IoT growth. Enterprise IoT
spending is forecast to drive adoption, with 3.3 billion current global
subscriptions expanding significantly.
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Key Market Challenges
High
Implementation Complexity and Integration Challenges
One of the
foremost challenges in the United States Virtualized Evolved Packet Core Market
is the complexity associated with implementing and integrating virtualized
solutions into existing telecom infrastructures. Traditional Evolved Packet
Core systems rely on tightly coupled hardware and software architectures,
whereas virtualized systems require a complete decoupling of network functions
from physical devices. This transition demands careful planning, extensive
testing, and skilled personnel capable of managing software-defined networking,
cloud-native architectures, and orchestration tools. Telecom operators face
significant challenges in ensuring seamless interoperability between legacy
hardware systems and new virtualized components, as any misalignment can lead
to network downtime, degraded service quality, or security vulnerabilities.
Moreover, the
integration of Virtualized Evolved Packet Core solutions with advanced
technologies such as cloud computing, edge computing, and network slicing
introduces additional layers of operational complexity. Ensuring that these
virtualized functions perform optimally under varying traffic conditions and
service requirements is a major undertaking.
Additionally,
operators must maintain compliance with regulatory standards while managing
diverse vendor ecosystems, each providing proprietary solutions that may not
always be fully compatible. The requirement for high technical expertise,
combined with the need for robust network testing and validation, increases the
time and cost of deployment, slowing market adoption. Addressing these
integration and implementation challenges is critical for telecom providers to
realize the benefits of virtualization, yet it remains a significant barrier
for widespread Virtualized Evolved Packet Core adoption in the United States.
Security and
Data Privacy Concerns in Virtualized Environments
Security and
data privacy issues represent another substantial challenge for the United
States Virtualized Evolved Packet Core Market. Virtualization introduces
multiple layers of software abstraction, which, while offering flexibility and
scalability, also expands the attack surface for potential cyber threats. Core
network functions such as user authentication, mobility management, and policy
enforcement are highly sensitive, and any compromise can lead to service
disruption, data breaches, or financial losses. Telecom operators must
implement advanced security frameworks, including encryption, intrusion
detection, access control, and continuous monitoring, to safeguard virtualized
networks. The integration of cloud-based and edge computing components further
complicates security management, as data may traverse multiple physical and
virtual environments, each requiring strict compliance with federal regulations
and industry standards.
Data privacy
regulations, including user consent management and lawful interception
requirements, impose additional obligations on operators deploying virtualized
networks. Ensuring end-to-end security across multiple virtualized functions
and heterogeneous network infrastructures is a resource-intensive process that
demands constant vigilance, skilled personnel, and significant investment in
security technologies. Any lapse in protecting sensitive user data or network
resources can damage the reputation of telecom providers and erode customer
trust, creating resistance to the adoption of Virtualized Evolved Packet Core
solutions. Consequently, security and privacy concerns remain a major barrier
to faster deployment and expansion of the United States Virtualized Evolved
Packet Core Market.
Key Market Trends
Accelerated Deployment of
Fifth-Generation Networks Driving Virtualized Core Adoption
The rapid expansion of fifth-generation
networks across the United States is one of the most significant trends
influencing the growth of the Virtualized Evolved Packet Core Market. Telecom
operators are increasingly moving away from legacy hardware-based core
infrastructures toward virtualized solutions to meet the high-performance
demands of fifth-generation technology. The introduction of fifth-generation
networks requires networks to support ultra-low latency, high data throughput,
and massive device connectivity simultaneously, which is challenging for
traditional Evolved Packet Core systems. Virtualized Evolved Packet Core offers
flexibility through software-defined networking and cloud-native architectures,
enabling telecom providers to scale resources dynamically based on network
traffic and service demand. Moreover, the trend of deploying private
fifth-generation networks for enterprises and industrial applications is
further amplifying the need for virtualized core solutions. These networks allow
businesses to optimize operational efficiency, enhance security, and improve
service quality without relying on external infrastructure. Vendors in the
United States are responding to this trend by offering advanced virtualized
Evolved Packet Core solutions integrated with automation, orchestration, and
analytics capabilities. The demand for such solutions is expected to rise
steadily as telecom operators focus on reducing capital and operational
expenditures while ensuring high-quality service delivery. The accelerated
deployment of fifth-generation networks, combined with increasing adoption in
enterprise and industrial sectors, is thereby establishing a long-term growth
trajectory for the Virtualized Evolved Packet Core Market in the United States.
Integration of Cloud Computing and Edge
Computing Enhancing Network Efficiency
Another major trend in the United States
Virtualized Evolved Packet Core Market is the increasing integration of cloud
computing and edge computing technologies within core network architectures.
Cloud-based Virtualized Evolved Packet Core solutions allow telecom operators
to decouple hardware from software, thereby reducing infrastructure costs and
improving operational flexibility. By deploying core network functions in cloud
environments, service providers can achieve faster provisioning, streamlined
network management, and simplified upgrades without significant capital
investments. Simultaneously, edge computing integration is emerging as a
critical enabler of low-latency applications such as autonomous vehicles,
augmented reality, and industrial automation.
Virtualized Evolved Packet Core
solutions located closer to the network edge facilitate real-time data
processing, ensuring minimal latency and higher quality of service for
end-users. The convergence of cloud and edge computing is also enabling
operators to implement network slicing, which allows the creation of dedicated
virtual networks for specific applications or customers. This trend is
particularly relevant for enterprise clients seeking reliable and secure
connectivity for mission-critical operations.
Furthermore, software-defined
orchestration tools integrated with virtualized core networks enhance
visibility, automation, and predictive analytics, allowing operators to
optimize resource allocation and minimize service disruptions. As enterprises
and telecom providers increasingly adopt cloud and edge computing solutions,
the demand for virtualized Evolved Packet Core systems in the United States is
projected to grow significantly, making this trend a pivotal factor in shaping
the future of the market.
Rising Focus on Operational Efficiency
and Cost Optimization
A prominent trend driving the United
States Virtualized Evolved Packet Core Market is the growing emphasis on
operational efficiency and cost optimization by telecom operators. Traditional
hardware-based core networks require substantial capital investments and incur
high maintenance costs, often resulting in inefficiencies when scaling services
or upgrading network capabilities. Virtualized Evolved Packet Core systems
offer a cost-effective alternative by enabling operators to deploy network
functions as software on commodity servers, reducing dependency on specialized
hardware. This software-centric approach allows service providers to implement
updates, monitor performance, and scale resources with minimal operational
disruptions.
In addition to reducing capital and
operational expenditures, virtualized Evolved Packet Core solutions enhance
network agility, allowing operators to respond swiftly to changing market
demands and emerging technologies. The trend toward network automation,
including self-healing and predictive maintenance features, further improves
operational efficiency by minimizing downtime and optimizing resource
utilization. Enterprises are also recognizing the benefits of virtualized core
networks, as these solutions support private networks, customized service
quality, and secure data handling while lowering operational costs.
As competition intensifies in the United
States telecommunications sector, operators are prioritizing cost-effective,
agile, and high-performance network solutions to maintain service quality and
profitability. This growing focus on efficiency and cost optimization is
expected to continue shaping investment and adoption strategies, solidifying
the United States Virtualized Evolved Packet Core Market as a critical
component of the country’s digital infrastructure evolution.
Segmental Insights
Component Insights
In the United States Virtualized Evolved
Packet Core Market, the software segment dominated in 2024 and is expected to
maintain its dominance during the forecast period due to the increasing
reliance of telecom operators on software-defined network functions to drive
efficiency, scalability, and flexibility in their core network operations.
Software solutions form the foundation of virtualized Evolved Packet Core
systems, enabling operators to decouple network functions from traditional
hardware and deploy them in cloud or on-premises environments with enhanced
agility. These solutions include virtualized Mobility Management Entity,
Serving Gateway, Packet Data Network Gateway, and Policy and Charging Rules
Function, all of which are critical for managing mobile data traffic,
subscriber mobility, and service quality across evolving fifth-generation
networks.
The growing demand for rapid service
deployment, network automation, and cost reduction has prompted operators to
prioritize software over services, as software provides the essential
infrastructure needed to enable advanced network functionalities such as
network slicing, edge computing integration, and dynamic resource allocation.
Furthermore, software solutions offer the flexibility to integrate with
existing legacy systems, allowing seamless transitions without major service
interruptions, which is crucial for large-scale operators managing extensive
subscriber bases. Cloud-native and virtualized software architectures also
support continuous upgrades and scalability, which are increasingly necessary
as mobile data traffic grows and the adoption of Internet of Things
applications expands across enterprise and industrial sectors.
While services, including consulting,
implementation, and support, remain important for optimizing software
deployment and performance, their market share is comparatively smaller because
the value proposition of the virtualized Evolved Packet Core primarily stems
from the core software capabilities. Consequently, the software segment is
expected to continue leading the United States Virtualized Evolved Packet Core
Market, driven by the need for high-performance, cost-efficient, and agile
network operations, solidifying its position as the dominant component
throughout the forecast period.
Network Function Insights
In the United States Virtualized Evolved
Packet Core Market, the Packet Data Network Gateway segment dominated in 2024
and is expected to maintain its dominance during the forecast period due to its
critical role in managing data traffic and ensuring seamless connectivity
across mobile networks. The Packet Data Network Gateway acts as the central
interface between the mobile network and external packet data networks,
handling essential functions such as routing, quality of service enforcement,
and policy implementation for subscribers. With the rapid adoption of
fifth-generation networks and the exponential increase in mobile data
consumption, the demand for robust, high-capacity, and scalable Packet Data
Network Gateway solutions has surged, as operators require reliable systems to
efficiently manage growing volumes of subscriber traffic and maintain service
quality.
The virtualization of the Packet Data
Network Gateway allows telecom providers to deploy these functions on cloud or
on-premises environments, offering flexibility in scaling resources dynamically
according to traffic demand and enabling faster service provisioning.
Additionally, Packet Data Network Gateway virtualization supports advanced
capabilities such as network slicing, edge computing integration, and enhanced
security protocols, which are increasingly critical for enterprise
applications, Internet of Things deployments, and private network
implementations.
While other network functions, including
the Mobility Management Entity, Serving Gateway, and Policy and Charging Rules
Function, play important roles in subscriber mobility management and policy
enforcement, the Packet Data Network Gateway remains the backbone for data
traffic handling and service delivery. Its strategic importance in ensuring
uninterrupted connectivity, optimizing network performance, and enabling
innovative services positions it as the most significant segment within the
United States Virtualized Evolved Packet Core Market. Consequently, the Packet
Data Network Gateway segment is projected to continue leading the market
throughout the forecast period, driven by ongoing network modernization
initiatives and the rising demand for scalable, high-performance virtualized
core network solutions.
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Regional Insights
Dominating Region
In the United States Virtualized Evolved
Packet Core Market, the South United States region dominated in 2024 and is
expected to maintain its dominance during the forecast period due to the high
concentration of leading telecom operators, data centers, and technology
infrastructure in this region. The South United States has witnessed
significant investments in network modernization and the rollout of
fifth-generation networks, creating strong demand for virtualized Evolved
Packet Core solutions that can handle increasing data traffic, support
ultra-low latency applications, and provide scalable network capabilities.
Major telecom providers in this region are actively adopting virtualized core
network functions to reduce operational costs, improve service agility, and
enable advanced functionalities such as network slicing, edge computing, and
cloud integration.
The region’s robust technological
ecosystem, including the presence of innovative software vendors, managed
service providers, and cloud infrastructure operators, further supports the
deployment and optimization of virtualized Evolved Packet Core systems.
Additionally, the South United States benefits from favorable regulatory
frameworks, advanced digital infrastructure, and a skilled workforce capable of
managing complex software-defined networks, which facilitates faster adoption
compared to other regions. Growing enterprise demand for private
fifth-generation networks, Internet of Things applications, and data-intensive
services also drives the requirement for reliable, high-performance virtualized
core solutions in the region.
While other regions such as the Midwest,
North-East, and West United States are also witnessing adoption of virtualized
Evolved Packet Core solutions, the South United States maintains a competitive
edge due to its combination of infrastructure readiness, investment activity,
and concentration of technology providers. Consequently, the South United
States is projected to remain the dominant regional market for virtualized
Evolved Packet Core, reflecting both the strategic importance of the region for
network modernization initiatives and the ongoing growth of telecom and
enterprise digital services that rely on scalable, efficient, and flexible
virtualized core networks.
Emerging Region
In the United States Virtualized Evolved
Packet Core Market, the West United States region is emerging as a key growth
area during the forecast period due to its rapidly expanding technology
infrastructure, high concentration of innovative telecom and cloud service
providers, and growing adoption of advanced digital solutions. The West United
States is home to several technology hubs, including Silicon Valley and other
metropolitan centers, which serve as incubators for software innovation, cloud
computing, and Internet of Things applications, all of which drive demand for
virtualized Evolved Packet Core solutions. Telecom operators in the region are
increasingly investing in virtualized core networks to support the rollout of
fifth-generation networks, enhance network scalability, and reduce operational
costs associated with traditional hardware-based core infrastructures. The
growing enterprise adoption of private fifth-generation networks, edge
computing solutions, and data-intensive services in the region is also
contributing to increased demand for agile and flexible core network functions.
Moreover, the West United States benefits from a highly skilled workforce
proficient in software-defined networking, network orchestration, and
virtualization technologies, which facilitates faster deployment and management
of virtualized Evolved Packet Core systems. Favorable investment trends and
partnerships between telecom providers and technology vendors in the region are
accelerating the adoption of virtualized solutions, particularly among small
and medium-sized operators seeking cost-effective alternatives to conventional
core networks. While established regions such as the South United States
continue to dominate the market, the West United States is gaining traction as
an emerging region due to its robust technology ecosystem, strategic focus on
innovation, and increasing demand for high-performance, scalable, and secure
virtualized network infrastructure. This combination of factors positions the
West United States as a promising growth area, likely to witness substantial
expansion in the United States Virtualized Evolved Packet Core Market
throughout the forecast period.
Recent Developments
- In December 2024, Cisco revealed plans to acquire
SnapAttack, aiming to strengthen its digital resilience and expand its security
operations center capabilities. The acquisition is intended to enhance Cisco’s
ability to detect, respond to, and mitigate cybersecurity threats across
enterprise networks. By integrating SnapAttack’s advanced solutions, Cisco
seeks to provide more robust, real-time security monitoring and threat
intelligence, supporting organizations in safeguarding critical data and
infrastructure. This strategic move reinforces Cisco’s commitment to innovation
and comprehensive cybersecurity offerings.
- In December 2024, Cisco announced plans
to acquire Robust Intelligence to help organizations deploy artificial
intelligence applications securely while ensuring compliance with industry and
regulatory standards. The acquisition is designed to integrate Robust
Intelligence’s advanced tools into Cisco’s portfolio, enabling enterprises to
manage risks associated with artificial intelligence, maintain data integrity,
and implement governance frameworks effectively. This strategic move
strengthens Cisco’s position in the artificial intelligence market and
reinforces its commitment to providing secure, compliant, and scalable
solutions for businesses leveraging artificial intelligence technologies.
- In May 2025, Cisco introduced a
prototype chip designed to network quantum computers and announced the launch
of a new quantum computing laboratory in Santa Monica, California. The chip
leverages existing networking technologies to connect smaller quantum
computers, enabling them to function collectively as larger, more powerful
systems. This innovation aims to accelerate advancements in quantum computing
by improving scalability, efficiency, and interconnectivity. The new lab will
support research, development, and testing, positioning Cisco at the forefront
of quantum networking technology and enterprise-ready solutions.
- In August 2025, Cisco carried out another round of
layoffs affecting 221 employees, mainly software engineers, in the San
Francisco Bay Area. This follows a 2024 restructuring that reduced the global
workforce by around 6,000. Cisco explained that the move is part of a strategic
effort to lower operational costs while redirecting resources toward
high-growth areas, including artificial intelligence. The company aims to
optimize efficiency, support innovation, and strengthen its focus on emerging
technologies that drive long-term growth and competitiveness in the market.
Key Market Players
- Cisco Systems, Inc.
- Ericsson Inc.
- Huawei Technologies USA Inc.
- Nokia Corporation
- Affirmed Networks (a subsidiary of
Microsoft Corporation)
- Mavenir Systems, Inc.
- NEC Corporation of America
- Samsung Electronics America, Inc.
- ZTE Corporation
- Red Hat, Inc.
|
By Component
|
By Network Function
|
By End-user
|
By Region
|
|
|
- Mobility Management Entity (MME)
- Serving Gateway (S-GW)
- Packet Data Network Gateway (P-GW)
- Policy and Charging Rules Function (PCRF)
- Others
|
- Telecom Operators
- Enterprises
- Government
|
- South US
- Midwest US
- North-East US
- West US
|
Report Scope:
In this report, the United States Virtualized
Evolved Packet Core Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- United
States Virtualized Evolved Packet Core Market, By Component:
o Software
o Services
- United
States Virtualized Evolved Packet Core Market, By Network Function:
o Mobility Management Entity (MME)
o Serving Gateway (S-GW)
o Packet Data Network Gateway (P-GW)
o Policy and Charging Rules Function (PCRF)
o Others
- United
States Virtualized Evolved Packet Core Market, By End-user:
o Telecom Operators
o Enterprises
o Government
- United
States Virtualized Evolved Packet Core Market, By Region:
o South US
o Midwest US
o North-East US
o West US
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the United States Virtualized Evolved Packet Core Market.
Available Customizations:
United States Virtualized Evolved Packet Core
Market report with the given market data, TechSci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
United States Virtualized Evolved Packet Core
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