As per MRFR analysis, the Europe Virtualized Evolved Packet Core Market Size was estimated at 0.87 (USD Billion) in 2023.The Europe Virtualized Evolved Packet Core Market Industry is expected to grow from 1.06(USD Billion) in 2024 to 9.64 (USD Billion) by 2035. The Europe Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 22.254% during the forecast period (2025 - 2035).
Key Europe Virtualized Evolved Packet Core Market Trends Highlighted
The Europe Virtualized Evolved Packet Core market is seeing big changes because more people want mobile data services and more gadgets are linked to the internet. The growth of 5G technology is a major factor in the industry, as European telecommunications companies work to improve their networks to enable faster data speeds and less latency. As part of their digital agendas, national governments, particularly those in the EU, are actively pushing for the rollout of 5G. This makes more people want to invest in virtualized infrastructure.Â
New prospects in the market include the increased interest in edge computing and network slicing technologies. These new technologies let service providers deliver customized offerings to different groups of users while making the best use of their resources. The move to cloud-native solutions is also changing how services are delivered, making it easier to respond to changing market needs. The European telecom industry is likewise evolving toward more environmentally friendly practices, thanks to rules that aim to lower carbon footprints and energy use in telecoms.Â
European operators are using more open-source technologies and standardization efforts to make it easier for different systems to work together and for people to work together. This method not only encourages new ideas, but it also lowers the chance of being locked into a vendor.
As the market for IoT (Internet of Things) apps grows across Europe, there is more focus on making sure that security measures are strong and that networks operate well together. Also, we can't ignore the effects of new rules that are meant to improve competition and protect consumers. These rules will have a big effect on how important businesses in the area run their operations.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Virtualized Evolved Packet Core Market Drivers
Rising Demand for Improved Network Performance
The exponential growth of mobile data traffic in Europe is a significant driver for the Europe Virtualized Evolved Packet Core Market Industry. According to the European Telecommunications Network Operators Association (ETNO), mobile data traffic is projected to grow by 50% annually due to increasing smartphone and IoT device adoption.Â
This surge necessitates infrastructure upgrades, leading telecom operators such as Deutsche Telekom and Vodafone to focus on virtualized solutions for enhanced network efficiency and customer experience.As these leading organizations invest in virtualized evolved packet core technologies to improve performance and reduce latency, the demand will subsequently fuel the market growth, reflecting a strong trajectory towards 9.64 billion by 2035.
Government Initiatives and Funding for Digital Infrastructure
European governments are actively promoting the digitization of their economies, introducing policies to support the deployment of advanced telecommunications infrastructure. The European Commission's Digital Compass initiative aims to ensure that by 2030, at least 75% of households have a fixed internet subscription of 100 Mbps or more.Â
This significant policy framework encourages investment in virtualized network solutions among European telecoms such as Orange and Telefonica.Such government backing not only facilitates funding for the installation and expansion of modern communication technologies but also solidifies the pressing need for virtualized evolved packet core systems in achieving these ambitious connectivity goals.
Increased Adoption of Cloud-based Solutions
Cloud computing is making significant inroads into telecommunications in Europe, driving the growth of the Europe Virtualized Evolved Packet Core Market Industry. Research by the European Union Agency for Cybersecurity indicates that 80% of businesses in Europe plan to adopt cloud services to enhance operational efficiency.Â
Major telecom operators like BT Group are leveraging cloud-based services to manage their network operations, which reduces costs and enhances scalability.Cloud adoption not only paves the way for seamless integration of virtualized solutions, but it also accelerates the demand for virtualized evolved packet core technologies as organizations seek to optimize service delivery and support the growing number of connected devices.
Virtualized Evolved Packet Core Market Component Insights
The Europe Virtualized Evolved Packet Core Market is witnessing significant development in its Component segment, reflecting the region's ongoing digital transformation and the demand for efficient, scalable network solutions. The market comprises various components, notably the components classified as Solutions and Services, which play critical roles in enhancing network performance and service delivery. Solutions are essential as they provide the foundational frameworks and technology necessary for virtualization, enabling telecom operators to manage traffic and deliver high-quality mobile services effectively.This category typically includes software, middleware, and application-related offerings that facilitate the seamless integration of various network functions.Â
As mobile data consumption surges in Europe, the importance of effective Solutions becomes paramount in ensuring that operators can meet user demands for high-speed connectivity and reliability. Services within this market segment support the deployment, maintenance, and optimization of the virtualized core network. This includes technical support, consulting, and managed services aimed at helping telecom companies adapt their legacy systems to modern requirements.The Services aspect also provides essential support in addressing the unique challenges posed by the complexity of network virtualization and the integration of various technologies.Â
The growth of 5G technology and Internet of Things (IoT) initiatives is driving increased investments in both Solutions and Services, as telecommunications providers seek to enhance their service offerings and infrastructure capabilities. Collectively, these components are essential for helping network operators achieve operational efficiency while also preparing for future advancements in mobile communications technology, positioning the Europe Virtualized Evolved Packet Core Market for robust growth and evolution in the coming years.As the market continues to expand, both Solutions and Services will play pivotal roles in shaping the future landscape of telecommunications in Europe, paving the way for innovative applications and enhanced user experiences.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment within the Europe Virtualized Evolved Packet Core Market showcases significant growth opportunities as telecommunications continue to evolve. The industry is currently experiencing a shift towards cloud-based solutions, where On-Cloud deployments are becoming prominent due to their scalability, flexibility, and cost efficiency. Rising demands for enhanced mobile broadband services and the proliferation of IoT applications across Europe augment this trend. On-Premise deployments, while more traditional, still hold substantial importance due to organizations' need for stringent data security and control, especially in regulated sectors.The dynamic landscape of network architecture has led telecom operators to adopt a hybrid model that combines both on-premises and on-cloud solutions.Â
This strategic approach enables telecom companies to optimize performance, enhance service delivery, and manage operational costs effectively. Moreover, as governments in Europe push towards digital transformation, investments in infrastructure will further catalyze the development of Virtualized Evolved Packet Core technologies, fostering increased competition and innovation within the market landscape.Overall, the Deployment segment serves as a crucial foundation for the broader success of the Europe Virtualized Evolved Packet Core Market, driving advancements in connectivity and enabling next-generation applications.
Virtualized Evolved Packet Core Market Applications Insights
The Applications segment of the Europe Virtualized Evolved Packet Core Market is pivotal for enabling advanced telecommunications functions, which are essential for meeting the demand for robust mobile services. The LTE segment is significant in this market as it underpins faster mobile broadband services, facilitating seamless user experiences. VoLTE enhances voice quality and network efficiency by allowing voice calls over LTE networks, further driving consumer satisfaction. Meanwhile, VOWiFi provides improved indoor coverage and connectivity, addressing the challenges posed by urban infrastructure.
Internet of Things (IoT) applications are on the rise, connecting billions of devices and creating a networked environment that supports smart city initiatives and automated industries. The M2M segment speaks to the growing integration of machines in various sectors, enhancing operational efficiency and enabling real-time data exchange. Mobile Private Networks (MPN) and Mobile Virtual Network Operators (MVNO) play critical roles in expanding market reach and providing tailored solutions. Collectively, these applications support the increasing demand for reliable, high-speed connectivity across Europe, driving innovation and competitive advantage within the Europe Virtualized Evolved Packet Core Market.
Virtualized Evolved Packet Core Market End-User Insights
The End-User segment of the Europe Virtualized Evolved Packet Core Market encompasses critical players such as Telecom Operators and Enterprises, both of which play pivotal roles in shaping the market landscape. Telecom Operators are anticipated to leverage virtualized solutions to enhance network efficiency and reduce operational costs, becoming key drivers of technological innovation in Europe. With the increasing demand for high-speed data services, these operators are likely to adopt virtualized evolved packet core systems to facilitate seamless connectivity and service delivery.
On the other hand, Enterprises are poised to benefit significantly from virtualized core networks by enhancing their operational agility and optimizing resource allocation. As businesses across various sectors continue to digitize, the adoption of such technologies is expected to rise, underscoring the importance of this segment in the broader market narrative. The growth of mobile data traffic driven by the Internet of Things and 5G technology is further propelling the significance of the End-User segment in the Europe Virtualized Evolved Packet Core Market, as organizations seek scalable and efficient solutions to handle increased data loads.
Virtualized Evolved Packet Core Market Regional Insights
The Regional landscape of the Europe Virtualized Evolved Packet Core Market reflects notable diversity and growth potential across various countries. Germany is recognized as a leader within this landscape, contributing significantly to the market's revenue and adopting advanced technological solutions. The UK follows closely, demonstrating a strong emphasis on innovation and the deployment of next-generation networking frameworks.Â
France is also making strides, pushing for enhanced connectivity and efficient mobile infrastructure to cater to an increasing demand for data services.Meanwhile, Russia's focus on modernization and digital transformation presents opportunities for market expansion, while Italy and Spain are witnessing rising investments in 5G technologies that reinforce their positions in the region.Â
The Rest of Europe segment encapsulates a variety of emerging markets that are progressively embracing virtualized solutions to meet growing consumer expectations for mobility and high-speed internet. These dynamics collectively underline the significance of regional diversification in the Europe Virtualized Evolved Packet Core Market, driven by distinct local policies and user demand patterns.Understanding each country's unique attributes is essential to capitalize on the opportunities and address the challenges facing the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The Europe Virtualized Evolved Packet Core Market is experiencing significant growth, driven by the increasing demand for high-speed data and mobile internet services. As telecommunications evolve, service providers are seeking more efficient, flexible, and cost-effective solutions to manage their network functions. The competitive landscape is characterized by a mix of established players and emerging innovators who are focusing on enhancing the scalability, reliability, and performance of their virtualized core solutions.Â
Factors contributing to this competitive environment include advancements in network virtualization technology, the rollout of 5G networks, and the need for seamless integration with existing infrastructure. The ongoing digital transformation in various industries further fuels the competition as companies strive to meet the demands of a data-driven economy. Service providers are keen to adopt solutions that not only improve operational efficiency but also enhance user experience, positioning them competitively within the fast-paced telecom market.
Oracle has a strong presence in the Europe Virtualized Evolved Packet Core Market, leveraging its established reputation for providing robust and scalable solutions. The company focuses on delivering high-performance networking solutions that empower service providers to optimize their operations and meet growing consumer demands. One of Oracle's key strengths is its extensive experience in the telecommunications sector, which allows it to offer exceptional integration capabilities and support for multiple cloud environments. Additionally, Oracle's commitment to innovation is evident in its ongoing investments in research and development, ensuring that its offerings stay at the forefront of industry advancements.Â
This strategic focus enables Oracle to provide comprehensive solutions that address the unique needs of European telecom operators, aiding in the efficient deployment and management of virtualized core networks.CommScope is a formidable player in the Europe Virtualized Evolved Packet Core Market, recognized for its broad portfolio of networking solutions tailored for modern telecommunications infrastructure. The company offers a range of products and services, including antennas, in-building wireless solutions, and infrastructure management tools that facilitate seamless connectivity and efficient network management.Â
CommScope stands out due to its strengths in providing advanced mobile network solutions and its expertise in enhancing data analytics capabilities through its products. The company has established a significant presence in the region, often engaging in strategic partnerships and collaborations to strengthen its market footprint. Recent mergers and acquisitions have further bolstered CommScope’s capabilities, enabling it to enhance its service offerings and customer reach in Europe. This proactive approach positions CommScope favorably in addressing the evolving needs of telecom operators as they transition to more virtualized network architectures, ensuring they can deliver high-quality service in the rapidly changing landscape of mobile communications.
Key Companies in the Europe Virtualized Evolved Packet Core Market Include:
Europe Virtualized Evolved Packet Core Market Industry Developments
The Europe Virtualized Evolved Packet Core Market has seen significant developments as telecommunications companies adapt to the increasing demand for high-speed mobile connectivity. In October 2023, Ericsson expanded its partnerships with various European network operators to enhance 5G operations, facilitating a smooth transition to virtualized solutions.Â
Meanwhile, in September 2023, Cisco revealed advancements in its virtualized core solutions aimed at improving the network performance for service providers across Europe. In terms of mergers and acquisitions, Oracle announced its acquisition of an undisclosed European technology firm in August 2023, bolstering its cloud services, which arecrucial in the virtualized packet core landscape.Â
Additionally, the market shows positive growth trends, with companies like Nokia and Huawei reporting increased revenues attributed to investments in cloud-native technologies. Over the last couple of years, major initiatives included Mavenir’s launch of innovative solutions in March 2022, which significantly contributed to the market's evolution. The ongoing developments point towards a competitive atmosphere in Europe, with key players investing heavily in research and development to maintain their edge in the rapidly changing telecommunications sector.
Europe Virtualized Evolved Packet Core Market Segmentation aInsights
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
Virtualized Evolved Packet Core Market Regional Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 0.87(USD Billion) |
| MARKET SIZE 2024 | 1.06(USD Billion) |
| MARKET SIZE 2035 | 9.64(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 22.254% (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 Billion |
| KEY COMPANIES PROFILED | Oracle, CommScope, ZTE, Cisco, Huawei, Samsung, Mavenir, Juniper Networks, Nokia, Amdocs, Platinum Equity, Affirmed Networks, Keysight Technologies, Ericsson, Fujitsu |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User, Regional |
| KEY MARKET OPPORTUNITIES | 5G network expansion, Increased IoT adoption, Cloud-native solutions demand, Enhanced network security requirements, Cost reduction and efficiency improvements |
| KEY MARKET DYNAMICS | 5G network expansion, Increasing IoT adoption, Need for cost efficiency, Demand for network flexibility, Rising data traffic management |
| COUNTRIES COVERED | Germany, UK, France, Russia, Italy, Spain, Rest of Europe |
Frequently Asked Questions (FAQ):
The Europe Virtualized Evolved Packet Core Market is expected to be valued at 1.06 USD Billion in 2024.
By 2035, the market is projected to reach a value of 9.64 USD Billion.
The expected CAGR for the market during this period is 22.254%.
Germany is expected to have the largest market share, valued at 0.35 USD Billion in 2024 and projected to grow to 3.1 USD Billion by 2035.
The UK market is valued at 0.25 USD Billion in 2024, with an expected increase to 2.15 USD Billion by 2035.
Major players in the market include Oracle, Cisco, Huawei, Ericsson, and Nokia among others.
The market size for the Services component is projected to reach 3.95 USD Billion by 2035.
The Solutions segment is expected to grow more, reaching 5.69 USD Billion by 2035 compared to Services.
France is valued at 0.2 USD Billion in 2024 and is expected to reach 1.75 USD Billion by 2035.
Key growth drivers include the increasing demand for cloud services and advancements in 5G technology.
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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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