As per MRFR analysis, the Germany Virtualized Evolved Packet Core Market Size was estimated at 173.03 (USD Million) in 2023. The Germany Virtualized Evolved Packet Core Market Industry is expected to grow from 211.5(USD Million) in 2024 to 1071.47(USD Million) by 2035. The Germany Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 15.894% during the forecast period (2025 - 2035).
Key Germany Virtualized Evolved Packet Core Market Trends Highlighted
The Germany Virtualized Evolved Packet Core market is growing quickly because more and more people want mobile data, and networks are moving toward 5G. The German government's push to improve digital infrastructure and assist the introduction of next-generation mobile technologies is one of the main things driving the market. This project fits in with Germany's larger digital strategy, which aims to make the whole country more connected and accessible. This will encourage investment in virtualized network solutions.Â
The growing use of IoT apps that need strong and flexible network designs also creates opportunities in the German market. Companies in Germany are starting to see the benefits of virtualized systems, such as lower costs and better operational efficiency. These are important for keeping up with the expanding number of linked devices. Businesses are looking into virtualization as a means to make their operations more efficient and improve service delivery since they require more flexibility and faster deployment times.Â
Recently, the market has seen a move toward more partnerships and collaborations between telecommunications companies and digital companies. These partnerships are focused on creating advanced solutions that use artificial intelligence and machine learning to manage networks.This tendency is clear as German telecom providers try to come up with new ways to serve their consumers better in a digital world that is changing quickly.Â
The market is also changing because companies are trying to reduce their environmental impact while improving their operational skills. This is because there is a greater focus on sustainability and energy efficiency. The Germany Virtualized Evolved Packet Core market is ready for more changes as it deals with these developments and changes to meet the needs of technology and connection.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Germany Virtualized Evolved Packet Core Market Drivers
Rising Demand for High-Speed Connectivity
Germany's Virtualized Evolved Packet Core Market Industry is witnessing significant growth driven by the increasing demand for high-speed internet connectivity. As reported by the Federal Network Agency of Germany, broadband coverage in the country reached approximately 90% in 2021, with a strong push towards 5G networks. The demand for better mobile data services is expected to escalate, particularly as more consumers and businesses rely on high-speed internet for everyday operations.
This boost in demand reflects a broader global trend, but Germany's strategic investments in digital infrastructure, including government initiatives like the 'Digital Strategy 2025,' aim to enhance the digital landscape, thus accelerating the virtualized evolved packet core market. Established telecommunications organizations like Deutsche Telekom and Vodafone Germany are actively investing in enhancing their network capabilities to meet this demand, aligning with the European Commission's goal of a gigabit society by 2025.The expected rise in mobile data traffic is estimated to reach 60 Exabytes monthly by 2025, indicating a solid foundation for the growth of the Germany Virtualized Evolved Packet Core Market Industry.
Government Initiatives and Regulation Support
The proactive stance of the German government towards supporting telecommunications advancements is another crucial driver for the Germany Virtualized Evolved Packet Core Market Industry. With policies aimed at fostering a competitive environment and stimulating innovation, the government encourages companies to adopt Virtualized Evolved Packet Core technologies.Â
The Federal Ministry for Economic Affairs and Energy reported an allocation of over 12 billion Euros for digital infrastructure enhancement.This initiative aims to improve the country’s digital framework while supporting local businesses to implement advanced telecommunications solutions. Organizations such as the Association of German Telecommunications and Digital Economy are also pushing for more efficient regulations to speed up the deployment of innovative solutions, further fueling market growth in the next decade.
Growth of Internet of Things Applications
The exponential growth of Internet of Things (IoT) applications in Germany acts as a major growth driver for the Germany Virtualized Evolved Packet Core Market Industry. With the proliferation of smart devices, there has been an estimated increase of over 30 million connected devices reported by the German Digital Association since 2020.Â
This signifies a robust demand for seamless and high-capacity networks, driving the need for effective, scalable, and flexible network solutions such as virtualized evolved packet cores.Companies like Siemens and Bosch are at the forefront of this IoT evolution, investing heavily in solutions that require efficient network management. This trend aligns with Germany's push towards innovation in sectors like smart cities and connected industries, ensuring the market environment is conducive to rapid growth.
Shift Towards Cloud-Based Solutions
The increasing trend of industries in Germany shifting towards cloud-based solutions is another prominent driver for the Germany Virtualized Evolved Packet Core Market Industry. With an estimated 40% of companies utilizing cloud services in various capacities as of 2022, this trend is likely to continue growing as organizations seek to enhance flexibility, scalability, and overall operational efficiency.Â
Established technology firms like SAP and IBM are instrumental in this shift, providing platforms that integrate seamlessly with virtualized evolved packet cores, thereby optimizing network resources.Furthermore, the rising emphasis on remote working and digital business transformation, especially driven by the challenges posed by the COVID-19 pandemic, has underscored the importance of cloud solutions in sustaining business continuity and growth in Germany, subsequently benefiting the virtualized core market.
Virtualized Evolved Packet Core Market Component Insights
The Germany Virtualized Evolved Packet Core Market, focused on the Component segment, presents notable insights into its key elements, namely Solutions and Services. As the telecommunications landscape evolves, the increasing demand for seamless connectivity and higher network efficiency fuels the relevance of these components. The Solution aspect addresses the technological requirements, providing crucial infrastructure that supports mobile operators in managing data traffic and enhancing service reliability. Solutions in this segment also intertwine with network function virtualization, which facilitates cost-effective scaling and improved resource allocation.On the other hand, Services encompass an array of offerings such as consulting, implementation, and ongoing support, essential for the effective deployment and maintenance of virtualized systems.Â
In Germany, where the push for digital transformation is significant, the adoption of these Services becomes vital for operators to remain competitive and compliant with regulatory frameworks. The telecommunications industry in the country is experiencing robust growth as operators seek ways to improve operational efficiency, with an increasing number of players investing in advanced network technologies.This growth is further driven by the government's initiatives aimed at enhancing digital infrastructure, which could lead to an increased reliance on virtualized network solutions and services. The demand for premium connectivity assurance in a highly competitive market landscape serves as an impetus for innovation in Solutions and Services within the Germany Virtualized Evolved Packet Core Market.Â
Companies that provide sophisticated solutions and comprehensive support services are likely to gain prominence as they cater to the evolving needs of operators seeking to optimize their network capabilities while addressing challenges such as data security and service continuity.Overall, the Component segment is critical to the dynamic landscape of the Germany Virtualized Evolved Packet Core Market, where technological advancement and robust service offerings are the key pillars of growth and sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment of the Germany Virtualized Evolved Packet Core Market is crucial as it encompasses the flexibility and scalability that modern telecommunications require. The major categorizations within this segment include on-premises and On-Cloud solutions, both of which play significant roles in enhancing operational efficiency. On-Premise deployments cater to organizations seeking greater control and security over their data, allowing for customization and higher compliance with strict German regulations.Â
In contrast, On-Cloud deployments offer the advantages of reduced infrastructure costs and the ability to quickly scale operations in response to changing market demands.This variability contributes to the overall dynamics of the Germany Virtualized Evolved Packet Core Market, which is supported by a growing digital infrastructure across urban regions. The ongoing trend towards digital transformation, reinforced by government initiatives promoting advanced telecommunications technologies, fuels the demand for these deployment models, making them vital for addressing both current and future market needs. Furthermore, the continuous innovation in cloud technologies enhances the appeal of On-Cloud options, allowing service providers to deliver more comprehensive solutions.This balance of offerings supports a robust competitive landscape, driving growth within the industry.
Virtualized Evolved Packet Core Market Applications Insights
The Germany Virtualized Evolved Packet Core Market is significantly driven by its Applications segment, which includes diverse areas such as LTE, VOLTE, VOWiFi, IoT and M2M, Mobile Private Network and Mobile Virtual Network Operator. The evolution towards LTE technologies facilitates faster data transmission and improved network efficiencies, catering to the growing demand for mobile internet connectivity. VOLTE enhances voice service quality over LTE networks, aligning with the increasing user preference for high-quality voice communications.
VOWiFi marks a notable trend enabling seamless connectivity by allowing mobile users to leverage Wi-Fi networks for voice and data services, thus enhancing overall user experience. The integration of IoT and M2M applications presents opportunities for sectors like logistics and automotive to thrive on connected devices, promoting real-time data sharing and operational efficiency. Meanwhile, MPN and MVNO present unique solutions in providing tailored connectivity for enterprises and customers, driving their relevance in a highly competitive market.Overall, the applications segment aligns with Germany’s push for digital transformation and innovation across telecommunications, having a profound impact on the overall Germany Virtualized Evolved Packet Core Market dynamics.
Virtualized Evolved Packet Core Market End-User Insights
The Germany Virtualized Evolved Packet Core Market is witnessing robust growth, primarily driven by its end-users, including telecom operators and enterprises. Telecom operators are crucial as they leverage virtualized networks to enhance service delivery, reduce operational costs, and improve customer experience. This segment embraces innovative technologies like 5G and IoT, thus expanding their service offerings and reaching a broader customer base. Enterprises, on the other hand, are increasingly adopting virtualized solutions to optimize their communication infrastructure, fostering agility and scalability in their operations.
These organizations require efficient network performance to support their digital transformation initiatives and enhance their competitive edge. In Germany, a country known for its strong telecommunications infrastructure and technological advancements, both segments are experiencing an increased focus on network automation and efficiency. The interplay between these segments demonstrates a significant opportunity for growth within the Germany Virtualized Evolved Packet Core Market, as industries adapt to new market demands and the ongoing trend toward digitalization.Overall, both telecom operators and enterprises are pivotal in shaping the market landscape, catering to the evolving connectivity needs of consumers and businesses alike.
Germany Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The Germany Virtualized Evolved Packet Core Market is characterized by rapid technological advancements and the growing demand for efficient, flexible, and scalable network solutions among telecommunications providers. This market enables service providers to enhance their mobile broadband services and seamlessly integrate emerging technologies such as 5G, Internet of Things (IoT), and edge computing. Competition in this space is driven by the need for improved performance, reduced operational costs, and the ability to offer superior user experiences. As various players vie for market share, the strategic positioning of companies and their ability to innovate will significantly impact their success in this dynamic environment.Â
Stakeholders are increasingly focusing on adopting virtualized solutions to achieve greater agility and efficiency in delivering network services while also responding to the unique regulatory and operational challenges inherent to the German market.Dell Technologies stands out in the Germany Virtualized Evolved Packet Core Market with its robust offerings that cater to telecommunications service providers. The company leverages its extensive expertise in virtualization, cloud services, and IT infrastructure to provide innovative solutions that enhance network performance and operational efficiency. Dell Technologies has cultivated strategic partnerships with local telecom companies, thus strengthening its market position.Â
With its emphasis on technology integration and customer support, the company offers scalable solutions that can be tailored to meet the unique needs of German telecommunications operators. This focus on delivering high-quality, flexible solutions allows Dell Technologies to maintain a competitive edge in the evolving market.Nokia Networks is a key player in the Germany Virtualized Evolved Packet Core Market, recognized for its comprehensive portfolio of products and services aimed at enhancing network efficiency and performance. The company provides advanced solutions such as Nokia's Cloud Packet Core, which supports operators in managing their data traffic effectively while ensuring seamless integration with existing infrastructure.Â
Nokia Networks has a strong market presence in Germany, bolstered by strategic alliances and acquisitions that enrich its product offerings and enhance its technological capabilities. The company emphasizes research and development, which enables it to innovate continuously and adapt to the fast-paced changes in telecommunications. Nokia's commitment to sustainability and technological advancement resonates well within the German market, reinforcing its position as a trusted partner for operators looking to upgrade to virtualized network architectures.
Key Companies in the Germany Virtualized Evolved Packet Core Market Include:
Germany Virtualized Evolved Packet Core Market Industry Developments
The Germany Virtualized Evolved Packet Core Market has observed significant developments recently, particularly with leading corporations like Dell Technologies, Nokia Networks, and Ericsson focusing on enhancing their service offerings.
In February 2025, Mavenir and O2 Telefónica Germany extended their partnership with a five-year contract to transition 4G/5G voice services to cloud-native IMS technology, boosting network agility and service quality.Throughout 2025, major German telecom operators collaborated with Ericsson, Nokia, and Huawei to deploy AI-driven virtualized evolved packet core solutions, focusing on enhancing network slicing and integrating edge computing for ultra-low latency applications.In mid-2025, the German government supported initiatives promoting sustainable, energy-efficient virtualized mobile core infrastructures, encouraging telecom providers to invest in next-generation cloud-native vEPC solutions for 5G rollouts and IoT scalability.
Moreover, Nokia reinforced its market position by launching advanced vEPC systems tailored for small and medium-sized enterprises, addressing the unique needs of the German market. Over the past two years, key players have consistently focused on Research and Development to adapt to evolving market dynamics, ensuring resilience and technological advancement in the fast-paced telecommunications sector.
Germany 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 | 173.03(USD Million) |
| MARKET SIZE 2024 | 211.5(USD Million) |
| MARKET SIZE 2035 | 1071.5(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.894% (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, Nokia Networks, ZTE, Zebra Technologies, Openet, Cisco, Huawei, Radisys, Mavenir, Juniper Networks, Nokia, Amdocs, Affirmed Networks, Wind River, Ericsson |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network expansion, Increased demand for network flexibility, Adoption of IoT applications, Cost reduction through virtualization, Enhanced customer experience solutions |
| KEY MARKET DYNAMICS | growing demand for 5G deployment, increasing mobile data traffic, cost efficiency of virtualization, need for network scalability, rising adoption of cloud technologies |
| COUNTRIES COVERED | Germany |
Frequently Asked Questions (FAQ):
The Germany Virtualized Evolved Packet Core Market is expected to be valued at 211.5 million USD in 2024.
By 2035, the Germany Virtualized Evolved Packet Core Market is projected to reach a value of 1071.5 million USD.
The market is expected to grow at a CAGR of 15.894% from 2025 to 2035.
Major players in the market include Dell Technologies, Nokia Networks, ZTE, and Cisco, among others.
The solution segment of the market is valued at 84.2 million USD in 2024.
The services segment is projected to be valued at 652.5 million USD by 2035.
Growing demand for scalable network infrastructure and increased adoption of cloud technologies are key growth drivers.
The regional market significantly influences the overall growth as Germany is a leader in telecommunications innovation.
Trends such as network slicing, 5G deployment, and increased adoption of virtualization technologies are shaping the market.
Challenges include the complexity of network integration and the need for investment in advanced infrastructure.
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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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