As per MRFR analysis, the China Virtualized Evolved Packet Core Market Size was estimated at 467.19 (USD Million) in 2023.The China Virtualized Evolved Packet Core Market Industry is expected to grow from 650(USD Million) in 2024 to 6,498 (USD Million) by 2035. The China Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 23.281% during the forecast period (2025 - 2035).
Key China Virtualized Evolved Packet Core Market Trends Highlighted
The China Virtualized Evolved Packet Core (vEPC) market is rising because more people want mobile broadband services, and more people are using 4G and 5G technologies. China's growing urbanization and focus on digital transformation mean that the telecommunications industry has to improve its infrastructure. The government's efforts to promote smart cities and the Internet of Things (IoT) have increased the demand for stronger and more flexible network solutions. This has encouraged telecoms businesses to switch to virtualized core networks.Â
Telecom companies are taking advantage of market opportunities to make their services more efficient and allow for smooth communication. Recently, a big trend has been moving away from traditional network architectures and toward more flexible and agile solutions that can easily expand, adapt, and manage resources. Businesses are putting money into cloud-native vEPC solutions to make their operations more efficient and cut down on capital costs.Â
Also, the push for network slicing in 5G networks shows how important it is to have a virtualized core that can handle different service needs and serve a variety of use cases. This lets operators provide customized services for areas like smart healthcare, autonomous transportation, and industrial automation.The competitive landscape and the increased focus on improving user experience drive ongoing innovation in the use of AI and machine learning for network management.Â
These trends indicate that as China continues to embrace digitalization, the need for advanced virtualized solutions in the Evolved Packet Core category will only rise, creating a favorable environment for development and investment in this dynamic market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
China Virtualized Evolved Packet Core Market Drivers
Rising Demand for 5G Technology
The demand for advanced mobile connectivity in China is witnessing a significant surge due to the ongoing deployment of 5G technology. The Chinese government is heavily investing in telecommunications infrastructure, with the goal of having 40% of the population covered by 5G networks by 2025, according to the Ministry of Industry and Information Technology (MIIT).Â
This rapid rollout is anticipated to drive the adoption of Virtualized Evolved Packet Core (vEPC) systems, which are integral to managing network traffic and enhancing service delivery.Leading telecommunications companies in China, such as China Mobile and China Telecom, are already incorporating vEPC solutions to improve efficiency and scalability in their networks. This trend is supported by the substantial increase in mobile data traffic, projected to reach 15 exabytes per month by 2025, establishing a firm base for the growth of the China Virtualized Evolved Packet Core Market Industry.
Government Initiatives and Policy Support
The Chinese government has been actively promoting the development of digital infrastructure, recognizing its importance for economic growth and technological advancement. Initiatives like the 'Digital China' strategy aim to accelerate the adoption of innovative technologies, including Virtualized Evolved Packet Core solutions.Â
The State Council has set a target of increasing Internet connectivity speed and coverage nationwide, which is likely to create a conducive environment for the growth of the China Virtualized Evolved Packet Core Market Industry.For instance, the government has invested in various Research and Development (R&D) programs focusing on enhancing mobile network capabilities, which can stimulate demand for vEPC systems. With an anticipated increase in internet users projected to reach 1 billion by 2025, this policy direction will facilitate significant growth in the vEPC market.
Increase in Internet of Things Deployments
The Internet of Things (IoT) ecosystem in China is expanding rapidly, with the number of connected devices projected to exceed 50 billion by 2030, according to the China Academy of Information and Communications Technology (CAICT). This exponential growth is driving the need for robust network infrastructure, including Virtualized Evolved Packet Core solutions, which can effectively handle high data volumes generated by IoT devices.Â
Various sectors, such as smart transportation, healthcare, and industrial automation, are increasingly utilizing IoT technologies, thereby enhancing the demand for efficient network management.Major players like Huawei and ZTE are actively working on IoT solutions that integrate with vEPC architectures, thereby strengthening the China Virtualized Evolved Packet Core Market Industry. As the adoption of IoT accelerates, the corresponding need for enhanced network capabilities is expected to further boost market growth.
Virtualized Evolved Packet Core Market Component Insights
The Component segment of the China Virtualized Evolved Packet Core Market encompasses critical aspects such as Solutions and Services, which play a vital role in the overall market structure. As the demand for high-performance and efficient network management solutions continues to rise in China, this segment has gained considerable attention from both telecommunications operators and technology providers. With the rapid development of mobile communication technology, particularly with the rollout of 5G, the need for advanced Virtualized Evolved Packet Core (vEPC) Solutions has become essential. These Solutions are designed to optimize network performance, enhance scalability, and reduce operational costs, thereby offering operators the flexibility to adapt to changing market demands effectively.
In conjunction with Solutions, Services associated with vEPC, such as implementation, maintenance, and support, are equally significant. As telecom operators increasingly migrate from traditional systems to virtualized environments, they require comprehensive Services to facilitate a smooth transition. The integration of cloud-based infrastructure, combined with advanced analytics and real-time monitoring, drives innovation within this segment, allowing operators to leverage data-driven insights and optimize their network operations. Consequently, the Services aspect becomes crucial as it ensures the longevity and reliability of the deployed Solutions, fostering customer satisfaction and loyalty in a competitive market landscape.
As of the recent trends, numerous initiatives by the Chinese government aimed at promoting digital transformation and enhancing connectivity across urban and rural areas further bolster market growth. Investments in telecommunication infrastructure present opportunities for Solutions and Services within the Component segment to expand and evolve in accordance with national policies aimed at boosting the digital economy. Therefore, the interplay between Solutions and Services in the Component segment not only demonstrates the growing importance of advanced network technologies but also reflects the broader movement towards modernization and efficiency in the telecommunications landscape of China.
Overall, the Component segment of the China Virtualized Evolved Packet Core Market is characterized by an ongoing evolution driven by technological advancements and government initiatives. The importance of Solutions and Services cannot be overstated, as they form the backbone of modern telecommunications operations in the country. As network demands continue to escalate, the need for flexible, scalable, and efficient Solutions alongside robust Services will remain paramount, thereby driving sustained growth within this segment. Through the integration of innovative technologies and effective service delivery, the Component segment is positioned to play a crucial role in shaping the future of telecommunication infrastructure in China.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment of the China Virtualized Evolved Packet Core Market plays a crucial role in shaping the market dynamics and continues to be a focal point for industry growth. This segment is primarily divided into on-premises and cloud solutions, providing flexibility and scalability to various organizations throughout the region. On-Premise deployment offers enhanced control and security, making it a preferred option for enterprises prioritizing data sovereignty in compliance with local regulations.Â
Meanwhile, On-Cloud solutions facilitate cost efficiency and rapid deployment, catering to the increasing demand for dynamic networking capabilities.The significant adaptation of these deployment strategies aligns with China's vigorous push towards digital transformation and improved telecommunications infrastructure, driven by government initiatives aimed at bolstering the country's technological advancements. With a focus on modernization and seamless connectivity, both deployment strategies position their businesses to effectively address the growing complexities of real-time data processing and management within the evolving telecommunications landscape in China. This trend towards a hybrid approach is expected to continue reshaping the market landscape as organizations increasingly prioritize network efficiency and data-centric strategies.
Virtualized Evolved Packet Core Market Applications Insights
The Applications segment of the China Virtualized Evolved Packet Core Market reflects a dynamic and evolving landscape, driven by the increasing demand for mobile and IoT connectivity. LTE, as a key player, significantly enhances mobile broadband access, catering to the vast number of smartphone users in China. VOLTE improves voice service quality over LTE networks, which is essential for the market's growth due to the rise in demand for seamless communication. Meanwhile, VOWiFi allows users to make calls over WiFi networks increasingly important functionality as urban areas face network congestion.
The growth of IoT and Machine-to-Machine (M2M) communications presents opportunities for numerous applications in smart cities, transportation, and healthcare, driving the need for efficient and scalable network solutions. Additionally, Mobile Private Networks (MPN) and Mobile Virtual Network Operators (MVNO) are reshaping service delivery, providing tailored and flexible communication options to businesses and consumers alike. With the ongoing push for digital transformation in China, these applications are set to aid in the development of a more connected and innovative society, ensuring the China Virtualized Evolved Packet Core Market remains robust and expansive.
Virtualized Evolved Packet Core Market End-User Insights
The End-User segment of the China Virtualized Evolved Packet Core Market is primarily composed of Telecom Operators and Enterprises, both of which play crucial roles in the market's evolution. Telecom Operators are witnessing increased demand for virtualized solutions to efficiently manage data traffic and enhance service delivery. As the government of China pushes for expanded digital infrastructure, Telecom Operators are pivotal in facilitating this growth by adopting advanced network technologies that support seamless connectivity.
Meanwhile, Enterprises are increasingly recognizing the significance of Virtualized Evolved Packet Core systems to ensure robust network performance for their operational needs.The growing trend of digital transformation among industries further emphasizes the need for scalable and agile network solutions, creating ample opportunities for both Telecom Operators and Enterprises. While Telecom Operators traditionally dominate the market in terms of network capacity and service delivery, Enterprises are emerging as key players with their focus on innovative applications and optimal network utilization, contributing to the overall growth and advancement of the China Virtualized Evolved Packet Core Market.
China Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The China Virtualized Evolved Packet Core Market is dynamic and rapidly evolving, characterized by a robust demand for efficient network architectures and mobile broadband connectivity. This market is influenced by the increasing mobile data traffic and the shift towards 5G technologies, which require advanced network capabilities. Competitive insights reveal a landscape filled with various players striving to deliver innovative solutions that cater to the growing market requirements of operators seeking to optimize their network infrastructure. Key trends include the adoption of cloud-based services and virtualization technologies, enabling service providers to enhance operational efficiency, reduce costs, and improve service quality.Â
As the market witnesses an influx of investments and technological advancements, competitive dynamics continue to shift, reflecting the urgency of meeting the evolving needs of consumers and businesses in China.Dell Technologies has established a significant presence in the China Virtualized Evolved Packet Core Market, leveraging its strong expertise in computing and networking solutions. The company’s strengths lie in its advanced technologies that support virtualization, software-defined networking, and infrastructure automation, which are critical for managing modern packet core networks. By focusing on high-performance computing and providing comprehensive solutions tailored to telecom operators, Dell Technologies enhances network efficiency and scalability. Its reputation for reliable products and strong customer support positions it favorably against competitors in China, allowing it to maintain strategic partnerships and foster long-term relationships with key industry players.Â
Furthermore, the company's commitment to innovation through research and development drives its competitiveness in the rapidly changing landscape of network technologies.ZTE holds a prominent position in the China Virtualized Evolved Packet Core Market, recognized for its comprehensive portfolio of products and services tailored to telecom operators. The company specializes in providing advanced network solutions, including virtualization software, core network infrastructure, and consulting services aimed at enhancing network performance. ZTE’s strengths include its extensive experience in telecommunications, leading-edge technology development, and ability to deliver customized solutions that meet specific market demands.Â
The company's involvement in numerous strategic partnerships further solidifies its market presence. In recent years, ZTE has engaged in mergers and acquisitions that enhance its technological capabilities and allow it to expand its service offerings across a broad customer base in China. These strategic moves enable ZTE to remain competitive, provide innovative solutions, and effectively address the evolving needs of the telecommunications sector in the region.
Key Companies in the China Virtualized Evolved Packet Core Market Include:
China Virtualized Evolved Packet Core Market Industry Developments
The China Virtualized Evolved Packet Core Market has seen several significant developments recently. As of October 2023, major companies like ZTE and Huawei continue to lead the market with innovative solutions tailored for the growing demand for 5G infrastructure.
In August 2025, key Chinese telecom companies worked with Huawei and Ericsson to launch AI-driven virtualized evolved packet core (vEPC) solutions. The goal was to make the 5G network more flexible and lower operating costs by adopting cloud-native designs. In June 2025, China Unicom teamed up with ZTE to speed up the rollout of software-defined networking and network function virtualization technologies.Â
This improved the capabilities of the virtualized evolving packet core to enable next-generation5G services and network slicing. In March 2025, the government-backed projects helped investments in vEPC infrastructure across China. These projects focused on building mobile networks that are energy-efficient and environmentally friendly, with enhanced automation and edge computing integrations to address the growing need for smart city and IoT applications.
The Chinese government has encouraged investments in 5G technology, further boosting the market valuation for companies like Nokia and Radisys. In recent years, significant events include the heightened competition among firms to provide advanced virtualized solutions, with entities like Intel and IBM investing heavily in Research and Development to stay ahead in the evolving technological landscape. The ongoing push for digital transformation in China underscores the critical importance of a robust Virtualized Evolved Packet Core infrastructure.
China Virtualized Evolved Packet Core Market Segmentation Insights
Virtualized Evolved Packet Core Market Component Outlook
Virtualized Evolved Packet Core Market Deployment Outlook
Virtualized Evolved Packet Core Market Applications Outlook
Virtualized Evolved Packet Core Market End-User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 467.19(USD Million) |
| MARKET SIZE 2024 | 650.0(USD Million) |
| MARKET SIZE 2035 | 6498.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 23.281% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Dell Technologies, ZTE, Openet, Sequans Communications, Cisco, Huawei, Radisys, Mavenir, Nokia, Intel, IBM, Amdocs, Affirmed Networks, Parallel Wireless, Ericsson |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network deployment acceleration, Increasing demand for NFV solutions, Expansion of IoT applications, Rising need for network scalability, Enhanced focus on cost efficiency |
| KEY MARKET DYNAMICS | 5G deployment acceleration, Rising demand for network scalability, Increasing adoption of cloud services, Enhanced focus on operational efficiency, Growing need for network virtualization |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ):
The market is expected to be valued at 650.0 million USD in 2024.
By 2035, the market is projected to reach a value of 6498.0 million USD.
The market is anticipated to grow at a CAGR of 23.281% from 2025 to 2035.
The key components include solutions and services, with solutions projected to be valued at 260.0 million USD in 2024.
Services are expected to be valued at 3879.0 million USD by 2035.
Some of the major players include Dell Technologies, ZTE, Cisco, Huawei, and Ericsson.
Technological advancements are expected to drive significant growth and innovation within the market.
The services segment is projected to exhibit substantial growth, given its larger market value in 2024.
Challenges include competition among major players and rapidly changing technology.
Growing demand for 5G implementation presents key opportunities for growth in this market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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