As per MRFR analysis, the Italy Virtualized Evolved Packet Core Market Size was estimated at 86.52 (USD Million) in 2023. The Italy Virtualized Evolved Packet Core Market Industry is expected to grow from 105.75(USD Million) in 2024 to 265 (USD Million) by 2035. The Italy Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 8.71% during the forecast period (2025 - 2035).
Key Italy Virtualized Evolved Packet Core Market Trends Highlighted
The Italy Virtualized Evolved Packet Core Market is seeing big changes since more and more people want network solutions that are both efficient and versatile. The growing use of 5G technology is one of the main factors driving the industry. The Italian government is working to improve digital infrastructure and connection in both cities and rural areas. The goal of this project is to make the country more competitive in Europe, especially in the area of telecommunications services, where it wants to encourage new ideas.Â
People like the virtualized solutions because they can supply scalable resources, which lets operators manage network demands without having to spend a lot of money on real infrastructure. As more people use mobile data, there is an increasing need for strong packet core solutions. This tendency is clear as Italian mobile providers work hard to improve the quality and speed of their networks to fulfill customer needs.Â
Also, service providers can get into IoT and smart city applications thanks to government programs that encourage digital transformation in areas like energy management and transportation. Recently, there has been a clear shift toward cloud-native architectures, which make it easier to maintain networks. Italian telecom providers are looking into hybrid models that use both on-premises and cloud-based systems to improve speed and cut down on lag time.
This change not only makes things run more smoothly, but it also fits with the country's larger goal of building a digital economy that lasts. As these trends continue to change, the Italy Virtualized Evolved Packet Core Market seems like it will increase, which will encourage new ideas and improve connections across the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Italy Virtualized Evolved Packet Core Market Drivers
Increasing Demand for High-Speed Data Services
The demand for high-speed data services in Italy is on the rise, primarily driven by the growth of mobile broadband users. As per the Italian Communications Authority, the number of mobile broadband subscriptions in Italy increased to approximately 45 million in 2022, representing a growth rate of about 5% annually.Â
This trend correlates with the significant adoption of smartphones and other smart devices. Established telecommunications companies like Telecom Italia are investing heavily in expanding their 5G networks, which directly influences the demand for Virtualized Evolved Packet Core.As service providers strive to meet user expectations for faster internet speeds and lower latency, the Italy Virtualized Evolved Packet Core Market Industry is anticipated to benefit from this increased focus on data service quality and reliability.
Government Initiatives for Digital Transformation
The Italian government's commitment to digital transformation significantly impacts the Virtualized Evolved Packet Core Market in Italy. With the 'Digital Italy 2026' plan, which aims to enhance digital infrastructure and connectivity, substantial investments are expected to flow into the telecommunications sector.Â
The government has allocated over 6.7 billion euros for digitalisation initiatives, promoting 5G deployment and advanced network infrastructure.This institutional push supports the modernization of networks, allowing telecom operators to implement Virtualized Evolved Packet Core solutions more swiftly. The resulting improvement in network performance and service delivery can aid in expanding Italy Virtualized Evolved Packet Core Market Industry downstream services and facilitate innovations in various sectors.
Increased Mobile Network Traffic
There has been a significant increase in mobile network traffic in Italy, driven by the proliferation of mobile applications, online gaming, and streaming services. According to a report from the Italian Telecommunications Regulatory Authority, mobile data traffic grew by over 30% from 2021 to 2022 alone.Â
Organizations such as Vodafone Italy are adapting to this demand by enhancing their infrastructure, highlighting the importance of Virtualized Evolved Packet Core solutions to manage increasing mobile data loads efficiently.The subsequent optimization in data traffic handling leads to better user experiences and positions the Italy Virtualized Evolved Packet Core Market Industry for further growth in an ever-evolving digital landscape.
Virtualized Evolved Packet Core Market Component Insights
The Italy Virtualized Evolved Packet Core Market, particularly within the Component segment, comprises critical elements such as Solutions and Services that play a pivotal role in the overall functionality and efficiency of mobile network operations. The Solutions category typically entails various technologies and software vital for implementing Virtualized Evolved Packet Core systems, ensuring that telecommunications infrastructure remains robust and adaptable. These include network management software and applications designed to optimize data flow and enhance user experience, which are essential for addressing the increasing demand for data services in Italy's rapidly evolving digital landscape.Â
The Services aspect includes consultancy, implementation, and maintenance services, which are crucial for operators transitioning to virtualized systems. With Italy's ambition to enhance its telecommunications framework as part of broader European Union initiatives, there lies a significant opportunity for service providers to fill knowledge gaps and help set up these intricate systems effectively.
The component aspects of the Italy Virtualized Evolved Packet Core Market are influenced by trends such as the rising demand for high-speed internet connectivity and the proliferation of IoT devices, leading to an increased necessity for seamless data processing capabilities. Moreover, with the Italian government investing in digital infrastructure to drive economic growth, the role of both Solutions and Services becomes more pronounced, ensuring that mobile operators can meet regulatory requirements while enhancing service delivery. Thus, the Component segment not only supports the current telecommunications framework but also positions Italy to leverage future technological advancements, making it a focal point for growth and development within the market.
As Italy continues to embrace 5G technology, the interplay between Solutions and Services will likely dictate the operational efficiency and customer satisfaction within the mobile telecommunications sector. This segment promises to maintain a vital role in responding to industry challenges and harnessing new opportunities, paving the way for Italy to secure a competitive advantage in the global telecommunications arena.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment of the Italy Virtualized Evolved Packet Core Market is critical in shaping the telecom infrastructure of the region. This segment is primarily divided into On-Premise and On-Cloud deployments, each serving the unique needs of telecommunications providers. On-Premise solutions allow operators to maintain control over their hardware and software, which is crucial for ensuring security and compliance. These solutions are particularly significant in Italy, where data protection laws are stringent.Â
Conversely, On-Cloud deployments are increasingly popular due to their flexibility and cost-effectiveness, allowing operators to scale resources according to demand without heavy initial capital investments.The ongoing digital transformation in Italy presents significant opportunities for cloud-based solutions, as businesses seek to embrace automation and advanced analytics. As the Italian government promotes digitalization initiatives, investments in these deployment options align with national goals, leading to enhanced connectivity and service availability. The combination of both deployment types empowers operators to meet the diverse demands of the market while navigating the evolving technological landscape, thereby driving overall growth in the Italy Virtualized Evolved Packet Core Market.
Virtualized Evolved Packet Core Market Applications Insights
The Applications segment of the Italy Virtualized Evolved Packet Core Market plays a crucial role in shaping the future of mobile communications and connectivity. One of the significant drivers of market growth is the increasing demand for LTE and VOLTE as they provide high-speed data and voice communication, which is essential for both consumers and businesses. With the rise of Internet of Things (IoT) devices, the need for reliable connectivity has further amplified, leading to innovation in M2M technologies that enable seamless communication between devices.Similarly, services like VOWiFi are gaining traction as they allow users to make calls over Wi-Fi networks, effectively enhancing connectivity in areas with poor cellular service.Â
Furthermore, Mobile Private Networks (MPN) and Mobile Virtual Network Operators (MVNO) are emerging as important segments catering to specific customer needs for tailored telecommunications solutions. This diversified approach in applications reflects a wider trend towards personalized and efficient communication systems, which address the evolving demands of businesses and consumers in Italy.As the market matures, these applications continue to foster opportunities and challenges, driving ongoing innovation across the sector.
Virtualized Evolved Packet Core Market End-User Insights
The End-User segment of the Italy Virtualized Evolved Packet Core Market encompasses critical players such as Telecom Operators and Enterprises, each contributing to the market's robust growth. Telecom Operators serve as the backbone of mobile networking in Italy, leveraging virtualized solutions to enhance service delivery and network efficiency. By adopting advanced packet core architectures, these operators are able to manage increasing data traffic and offer improved quality of service to customers. Enterprises, on the other hand, are increasingly turning to virtualized evolved packet core solutions to support their operational needs, particularly with the rise of remote work and digital transformation initiatives.
This trend is driving the demand for more flexible and scalable network infrastructures, making Enterprises significant contributors to market dynamics. Together, these user segments highlight the comprehensive evolution of network architectures within Italy, as they adapt to emerging technologies such as 5G, presenting opportunities for innovation and enhanced user experiences. The gradual shift towards virtualization is creating a competitive landscape, encouraging both sectors to invest in newer technologies to maintain market relevance and efficiency.
Italy Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The Italy Virtualized Evolved Packet Core Market is characterized by rapid advancements and increasing demand for network connectivity solutions driven by the growing need for high-speed internet and mobile services. As communication technology continues to evolve, the adoption of virtualized solutions has gained momentum within the telecom sector, thereby enhancing operational efficiency and reducing costs for service providers. The competitive landscape in this market is marked by a range of players that are vying to establish a stronghold by leveraging innovative technologies and strategic partnerships.Â
The transition from traditional infrastructure to virtualized networks not only offers increased flexibility and scalability but also supports the implementation of advanced services such as Internet of Things (IoT) applications, thereby propelling market growth further.In examining the competitive positioning of ZTE within the Italy Virtualized Evolved Packet Core Market, the company has positioned itself as a key player by focusing on innovation and technology development.Â
ZTE benefits from strong research and development capabilities, enabling it to deliver tailored solutions that meet the specific requirements of the Italian telecom landscape. In addition to its state-of-the-art product offerings, which include robust core network solutions optimized for virtualized environments, ZTE leverages its extensive experience in deploying advanced telecom technologies across various networks. This experience translates into customer confidence, as ZTE continues to secure significant partnerships with local telecom operators and service providers, thus reinforcing its presence in the market. The company's ability to provide end-to-end solutions, including integration services and ongoing support, enhances its competitiveness while catering to the evolving needs of Italian consumers and enterprises alike.
Aviat Networks has established its footprint in the Italy Virtualized Evolved Packet Core Market by focusing on providing high-performance, reliable communication solutions that support both traditional and next-generation networks. Featuring a product portfolio that includes advanced microwave transmission systems, backhaul solutions, and integrated network management services, Aviat Networks stands out for its commitment to ensuring seamless connectivity for its customers. The company's strengths in offering customizable solutions allow it to address specific market demands, thereby reinforcing its relevance in a rapidly evolving telecommunications landscape. Additionally, Aviat Networks has been involved in strategic mergers and acquisitions aimed at expanding its market reach and enhancing its technological capabilities.Â
By integrating innovative technologies and leveraging synergies from acquired assets, Aviat Networks is positioned to strengthen its competitive edge, enabling it to effectively cater to the needs of operators looking to modernize their network infrastructures in Italy. Through these initiatives, Aviat Networks continues to enhance its market presence while delivering value-driven solutions to its clients.
Key Companies in the Italy Virtualized Evolved Packet Core Market Include:
Italy Virtualized Evolved Packet Core Market Industry Developments
Recent developments in the Italy Virtualized Evolved Packet Core Market highlight significant advancements and shifts among key players like ZTE, Huawei, and Ericsson. Notably, in September 2023, ZTE announced a partnership with a major Italian telecommunication provider, enhancing network performance and supporting 5G capabilities.
In July 2025, Ericsson and Nokia partnered with major Italian telecom operators to deploy AI-integrated virtualized evolved packet core (vEPC) networks, enhancing 5G infrastructure agility and enabling customized network slicing for enterprise applications.In May 2025, the Italian government initiated funding programs to support telecom providers transitioning to cloud-native vEPC architectures, aiming to boost digital connectivity in rural and underserved regions while promoting sustainable network solutions.In March 2025, Cisco and Huawei launched advanced vEPC platforms in Italy, featuring automation and edge computing capabilities to cater to low-latency demands for IoT, smart manufacturing, and enhanced multimedia services.
Furthermore, the Italian government has been promoting digital infrastructure investments, aligning with EU directives, thereby fostering a conducive environment for innovation within the Virtualized Evolved Packet Core sphere, positioning Italy as a competitive player in the European telecommunications market.
Italy 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 | 86.52(USD Million) |
| MARKET SIZE 2024 | 105.75(USD Million) |
| MARKET SIZE 2035 | 265.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.71% (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 | ZTE, Aviat Networks, NEC Corporation, Telefonaktiebolaget LM Ericsson, Cisco, Huawei, Radisys, Mavenir, Juniper Networks, Altiostar, Nokia, Intel, Openwave Mobility, CommuniTake, Ericsson |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network expansion initiatives, Increased demand for IoT solutions, Cost-effective infrastructure modernization, Rising adoption of cloud-native solutions, Enhanced network reliability and performance |
| KEY MARKET DYNAMICS | rising demand for 5G connectivity, increasing adoption of cloud solutions, need for network virtualization, growing mobile data consumption, focus on operational cost reduction |
| COUNTRIES COVERED | Italy |
Frequently Asked Questions (FAQ):
In 2024, the Italy Virtualized Evolved Packet Core Market is expected to be valued at 105.75 million USD.
By 2035, the market is anticipated to reach a valuation of 265.0 million USD.
The expected compound annual growth rate (CAGR) for this market during the period from 2025 to 2035 is 8.71 percent.
In 2024, the services segment is expected to be valued at 60.75 million USD, indicating it will have a significant share of the market.
The solution segment of the Italy Virtualized Evolved Packet Core Market is projected to reach a value of 115.0 million USD by 2035.
Major players in this market include Cisco, Huawei, Ericsson, Nokia, and ZTE, among others.
There are significant opportunities for growth due to increasing demand for enhanced mobile broadband and IoT connectivity.
Challenges include rapid technological changes and the need for significant investment in infrastructure.
Emerging trends such as network virtualization and automation are expected to drive growth and innovation in the market.
By 2035, the services segment is expected to be worth 150.0 million USD.
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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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