As per MRFR analysis, the GCC Virtualized Evolved Packet Core Market Size was estimated at 46.72 (USD Million) in 2023. The GCC Virtualized Evolved Packet Core Market Industry is expected to grow from 65(USD Million) in 2024 to 580 (USD Million) by 2035. The GCC Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 22.014% during the forecast period (2025 - 2035).
Key GCC Virtualized Evolved Packet Core Market Trends Highlighted
The GCC Virtualized Evolved Packet Core Market is changing a lot because more people want mobile data services, and 5G networks are spreading across the area. As part of their national visions, the governments of the GCC countries are making technological improvements and digital transformation a top priority. For example, the UAE's Vision 2021 and Saudi Arabia's Vision 2030 both stress improving digital infrastructure. This is forcing telecom companies to use virtualized solutions to manage data and deliver services more effectively.Â
Telecom companies are moving away from traditional hardware-based systems and toward more flexible and virtualized packet core solutions because they want to save money and be able to grow. This change not only cuts costs but also speeds up the deployment of services, which meets the growing demands of customers in the area. The rise in IoT apps and connected devices also gives service providers a chance to improve their networks using virtualized packet core solutions.Â
Recent trends demonstrate that a lot of money is being put into modernizing networks so that they can support high-speed internet and good services. The COVID-19 epidemic made this tendency even stronger since more people and businesses flocked online, which made the telecom infrastructure even more important.Â
Telecom companies and technology suppliers are also working together and forming partnerships to encourage new ideas and improve the consumer experience.As the GCC region is ready for a digital transformation, operators need to use virtualized evolved packet core solutions more and more in order to stay competitive and meet the changing needs of both consumers and businesses.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
GCC Virtualized Evolved Packet Core Market Drivers
Increasing Demand for Mobile Data Services
The demand for mobile data services across the Gulf Cooperation Council (GCC) region has seen significant growth, driven by the increasing number of smartphone users and the proliferation of mobile applications. According to industry sources, mobile data traffic in the GCC is expected to witness a 40% increase by 2025, attributed to rising internet penetration rates, faster connections, and the regional populace's penchant for content consumption.
Companies such as STC and Etisalat are investing in upgrading their networks to accommodate this surge in demand, thereby fueling the growth of the GCC Virtualized Evolved Packet Core Market Industry. These investments are expected to translate into more scalable and flexible operational frameworks, providing tremendous opportunities for service providers in the region to enhance user experience and drive revenue growth.
Government Initiatives and Support
The governments within the GCC region are actively promoting digital transformation initiatives, which have a direct positive impact on the telecommunications sector. For instance, the UAE government has outlined a comprehensive strategy to become a leader in the digital economy and smart technologies, promoting projects like the Digital Economy Strategy.Â
This support is fostering an environment conducive to the adoption of advanced technologies, such as Virtualized Evolved Packet Core solutions.Investments in smart city projects and next-generation broadband infrastructure, backed by governmental agendas, not only enhance operational efficiencies but also stimulate the demand for advanced network solutions. This creates a robust market landscape for the GCC Virtualized Evolved Packet Core Market Industry.
Adoption of 5G Technology
The launch and ongoing rollout of 5G technology in the GCC region is a pivotal driver for the growth of the GCC Virtualized Evolved Packet Core Market Industry. With countries like Saudi Arabia and the UAE among the global frontrunners in 5G deployment, market stakeholders are realizing the need for efficient core network solutions that support high bandwidth and low latency requirements.Â
As per telecom regulatory authorities in these nations, 5G implementation is expected to grow significantly in the next few years, with investments exceeding millions of dollars.This not only creates a demand for Virtualized Evolved Packet Core technologies to support enhanced mobile broadband, but also enables new use cases such as IoT applications, unlocking tremendous business potential for telecom operators in the region.
Integration of Cloud Services
The growing trend towards cloud computing is reshaping the telecommunications landscape, making integration of cloud services a crucial driver for the GCC Virtualized Evolved Packet Core Market Industry. The GCC region has witnessed a rising trend in enterprises migrating their operations to cloud platforms, with estimates suggesting a 30% increase in cloud adoption among businesses by 2025, primarily driven by demand for scalability and cost-effective solutions.
Major telecom operators, such as Ooredoo and Zain, are responding to this shift by adopting virtualized core solutions that can seamlessly integrate with cloud environments. This strategic alignment not only enables operational efficiencies but also supports the rapid deployment of new services, aligning with the evolving demands of both consumers and businesses in the GCC.
Virtualized Evolved Packet Core Market Component Insights
The Component segment of the GCC Virtualized Evolved Packet Core Market exhibits significant growth potential, driven primarily by the adoption of advanced technologies aimed at optimizing mobile network performance. Within this segment, the market splits into two principal categories: Solution and Services. Solutions encompass a variety of virtualized network functions, which play a crucial role in enhancing network agility and scalability for telecommunications operators across the Gulf Cooperation Council region. Meanwhile, Services cover essential offerings such as integration, support, and maintenance that ensure the continued efficiency and reliability of deployed systems.
The GCC region has seen a rapid increase in mobile data traffic, spurred by digital transformation initiatives from the government and private sectors, leading to high demand for robust virtualized solutions and services. Moreover, the growing pressure on telecom operators to reduce operational costs while maintaining high levels of service quality has necessitated the adoption of virtualized technology. The importance of this Component segment is underscored by the rising need for operators to future-proof their networks against increasing data consumption and evolving customer expectations.As the telecommunications landscape in the GCC continues to mature, the emphasis on efficient, flexible, and scalable network solutions remains crucial, ensuring that the Component segment plays a pivotal role in shaping the future of the GCC Virtualized Evolved Packet Core Market.Â
The ongoing investment in smart city projects and the push toward the Internet of Things further enhance the demand for advanced network capabilities, reinforcing the significance of both Solutions and Services within the market. Both categories are poised to capitalize on emerging opportunities created by technological advancements such as 5G deployments, which promise to transform the telecommunications ecosystem in the GCC, reinforcing the necessity for comprehensive and adaptive solutions.As this market evolves, exploring opportunities within the Component segment will be essential for stakeholders aiming to capitalize on the growing digital landscape throughout the GCC region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment of the GCC Virtualized Evolved Packet Core Market plays a crucial role in the overall market dynamics. With the rising demand for seamless connectivity and enhanced mobile broadband services across the Gulf Cooperation Council region, organizations are increasingly adopting deployment strategies tailored to their operational needs. On-Premise deployment offers businesses control and customization, appealing to those prioritizing data privacy and security, especially as data regulations tighten in the region.Â
On the other hand, On-Cloud deployment is gaining traction for its scalability, flexibility, and cost-effectiveness, enabling telecom operators to quickly adapt to changing consumer demands without heavy upfront investments.This trend is fueled by the GCC government's commitment to digital transformation and the enhancement of smart city initiatives, leading to a more connected ecosystem. Market growth in this segment reflects the ongoing transition to more agile and efficient network infrastructures, with companies seeking innovative solutions to meet the increasing data traffic. Overall, both On-premises and On-cloud deployment strategies are integral for service providers aiming to optimize their infrastructure in a region characterized by rapid technological advancement and increasing consumer expectations.
Virtualized Evolved Packet Core Market Applications Insights
The Applications segment of the GCC Virtualized Evolved Packet Core Market is evolving rapidly, driven by the increasing demand for advanced mobile network capabilities and seamless connectivity. Key components such as LTE, VoLTE, VOWiFi, IoT, M2M, Mobile Private Networks (MPN), and Mobile Virtual Network Operators (MVNO) play a crucial role in shaping this market landscape. LTE technology enhances mobile broadband experiences, while VoLTE and VOWiFi provide high-definition voice services, contributing significantly to user satisfaction.Â
The IoT and M2M applications enable smarter cities and extensive automation, crucial for economic diversification in GCC countries, aligning with national visions like Saudi Arabia's Vision 2030.MPNs are gaining traction as businesses pursue secure and dedicated networks for mission-critical applications. MVNOs are also emerging as key players, creating competitive pricing and service differentiation strategies by offering more flexible user plans. Overall, these applications are not only enhancing 4G and forthcoming 5G deployments but also driving overall market growth by addressing the increasing connectivity demands across various sectors in the GCC region.
Virtualized Evolved Packet Core Market End-User Insights
The End-User segment of the GCC Virtualized Evolved Packet Core Market plays a crucial role in shaping the overall industry landscape, primarily categorized into Telecom Operators and Enterprises. Telecom Operators are vital as they leverage virtualized technologies to improve service delivery and network efficiency, thereby supporting the rising demand for high-speed data and enhanced connectivity within the region. As the GCC countries embrace digital transformation initiatives, the telecommunications sector is poised for significant expansion, necessitating robust infrastructure investments.
Enterprises are also experiencing a paradigm shift, as they seek to adopt virtualized solutions to drive operational efficiencies and enhance customer experiences. This growing enterprise focuses on digital solutions, reflects a broader trend towards technological adoption across various sectors in the GCC. Overall, the combination of increased data consumption, the adoption of 5G networks, and the ongoing push for modernization in both telecom and enterprise landscapes underscores the importance of the End-User segment in the GCC Virtualized Evolved Packet Core Market.
GCC Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The GCC Virtualized Evolved Packet Core Market is witnessing significant growth as telecommunications providers increasingly shift towards virtualization to enhance service efficiency and reduce operational costs. The competitive landscape is evolving rapidly, driven by the emergence of advanced technologies that support the demands of high-speed data processing and seamless connectivity. This market is characterized by the participation of both established players and new entrants, each vying for a competitive edge through innovative solutions, strategic partnerships, and customer-centric offerings. As operators in the region look to meet the growing demand for mobile data services, there is an increasing focus on scalability, flexibility, and robust security in their core network infrastructure.
Oracle's presence in the GCC Virtualized Evolved Packet Core Market is marked by its strong portfolio of cloud and network solutions tailored for service providers. The company’s strengths lie in its advanced technological capabilities, which enable operators to efficiently manage their network resources and deliver high-quality services to customers. Oracle's comprehensive offerings help transform traditional networks into more flexible and cost-effective virtualized environments, enhancing operational agility. Its products support a wide range of applications, making it an essential partner for telecommunications companies looking to modernize their infrastructure.Â
Furthermore, Oracle’s commitment to innovation and customer success has solidified its reputation within the GCC market, drawing attention from telecom operators aiming for digital transformation.ZTE is strategically positioned within the GCC Virtualized Evolved Packet Core Market, offering a range of key products and services that meet the growing demands of network operators in the region. The company provides a comprehensive suite of virtualized network functions designed to facilitate the deployment and management of packet core networks.Â
ZTE’s strengths include its ability to deliver cost-effective, high-performance solutions that support both mobile broadband and IoT applications, making it a valuable partner for telecommunications companies navigating the complexities of modern networks. The company has also been actively involved in mergers and acquisitions to strengthen its market position and expand its technology offerings in the GCC region. ZTE's focus on innovation and its established relationships with telecom operators underscore its commitment to driving advancements in the virtualized packet core domain, positioning it as a key player in the ongoing evolution of telecommunications in the GCC.
Key Companies in the GCC Virtualized Evolved Packet Core Market Include:
GCC Virtualized Evolved Packet Core Market Industry Developments
Recent developments in the GCC Virtualized Evolved Packet Core Market have showcased an upward trend, driven by the increasing demand for flexible and scalable network solutions. Companies like Oracle and Huawei are actively investing in cloud-native technologies that enhance network capabilities for mobile operators across the GCC region. In September 2023, F5 Networks announced a strategic partnership with Mavenir to integrate their solutions and improve service delivery, addressing the region's growing 5G demands.Â
Concurrently, from March 2021, Nokia expanded its Virtualized Evolved Packet Core offering in Saudi Arabia, enhancing connectivity for various sectors, including healthcare and education. Recent acquisition activities include IBM's purchase of a small cloud-native startup in January 2023 to bolster its portfolio in telecommunications, highlighting trends toward consolidation in this space.Â
Growth in market valuation has been notable, with estimates projecting substantial increases due to heightened investment in digital transformation initiatives. Organizations like Ericsson and Cisco have been enhancing their presence in the GCC, fostering opportunities for long-term contracts and innovations in network service delivery. The GCC's commitment to diversifying its economy is further stimulating advancements in virtualized network solutions, positioning the region as a global technology leader.
GCC 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 | 46.72(USD Million) |
| MARKET SIZE 2024 | 65.0(USD Million) |
| MARKET SIZE 2035 | 580.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 22.014% (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 | Oracle, ZTE, F5 Networks, Cisco, Huawei, Radisys, Mavenir, Juniper Networks, netPlan, Altiostar, Nokia, IBM, Amdocs, Intel, Ericsson |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network deployment acceleration, Increasing IoT connectivity demand, Enhanced scalability and flexibility, Cost reduction through virtualization, Rising focus on network automation |
| KEY MARKET DYNAMICS | growing mobile data demand, cloud infrastructure adoption, regulatory support for virtualization, increasing 5G deployments, cost efficiency and scalability |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ):
The GCC Virtualized Evolved Packet Core Market is expected to be valued at 65.0 million USD in 2024.
By 2035, the market value is expected to reach 580.0 million USD.
The expected CAGR for the GCC Virtualized Evolved Packet Core Market from 2025 to 2035 is 22.014%.
The Solution component is valued at 35.0 million USD in 2024 and is projected to reach 300.0 million USD by 2035.
The Services component is expected to be valued at 280.0 million USD in 2035.
Major players include Oracle, ZTE, F5 Networks, Cisco, Huawei, Radisys, Mavenir, Juniper Networks, and others.
Key applications driving growth include enhanced mobile broadband and IoT connectivity.
The current global scenario creates both opportunities and challenges for the GCC Virtualized Evolved Packet Core Market.
The CAGR of 22.014% indicates significant growth potential that can benefit stakeholders in the market.
The GCC region shows robust growth in the Virtualized Evolved Packet Core Market compared to other regions due to increasing digital transformation investments.
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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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