# Japan Virtualized Evolved Packet Core Market

> Japan Virtualized Evolved Packet Core Market Size, Share and Trends Analysis Report By Component (Solution, Services), By Deployment (On-Premise, On-Cloud), By Applications (LTE, VOLTE, VOWiFi, IoT and M2M, MPN & MVNO) and By End-User (Telecom Operators, Enterprises)- Forecast to 2035

- **Forecast Period:** 2025 - 2035
- **CAGR:** 22.23%
- **2024:** $ 380.7 Million
- **2025:** $ 465.33 Million
- **2035:** $ 3,464.32 Million
- **Key Players:** Nokia (FI), Ericsson (SE), Huawei (CN), Cisco (US), ZTE (CN), Mavenir (US), Juniper Networks (US), Samsung (KR), NEC (JP)

**Report ID:** MRFR/ICT/63357-HCR · **Pages:** 200 · **Author:** Ankit Gupta & Aarti Dhapte · **Last Updated:** August 24, 2026

**URL:** https://www.marketresearchfuture.com/reports/japan-virtualized-evolved-packet-core-market-65297

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## Market Summary

## **Japan Virtualized Evolved Packet Core Market Overview**

As per MRFR analysis, the Japan Virtualized Evolved Packet Core Market Size was estimated at 311.46 (USD Million) in 2023. The Japan Virtualized Evolved Packet Core Market Industry is expected to grow from 380.7(USD Million) in 2024 to 5321.03 (USD Million) by 2035. The Japan Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 27.095% during the forecast period (2025 - 2035).

**Key Japan Virtualized Evolved Packet Core Market Trends Highlighted**

The Japan Virtualized Evolved Packet Core market is changing a lot since the country is moving toward 5G technology, and more people want better mobile broadband services. As Japan's telecommunications industry changes, companies are putting money into virtualized network solutions to make service delivery and efficiency better. The Japanese government's push for digital transformation and smart city projects is making telecom companies focus on updating their networks, which includes using virtualized packet core technologies. 

This change is meant to improve the ability to handle data and save operational expenses, which is in line with the government's vision of a digital society. Japan's market is full of opportunities, especially now that more businesses are trying to make money from the Internet of Things (IoT) and connected gadgets. As IoT applications become more popular, there is a need for network infrastructure that can grow and change. Virtualized Evolved Packet Core can provide this. Also, the shift to 5G gives telecom companies a chance to improve their services, fulfill the needs of more customers, and get new business. 

The Japanese government's smart investments in telecommunications infrastructure make the country an even bigger leader in new ways to communicate. Recent trends show that IT businesses, government organizations, and universities are working together more and more to encourage new ideas in the telecommunications industry.More and more public-private collaborations are being formed, which makes it easier for researchers and developers to work on virtualized technologies. 

Also, Japan is seeing greater interest in and use of edge computing, which works well with virtualized networks since it lets data be processed faster, closer to end users. These trends all show how Japan is taking steps to modernize its telecommunications infrastructure to support next-generation services.

**Source: Primary Research, Secondary Research, MRFR Database and Analyst Review**

**Japan Virtualized Evolved Packet Core Market Drivers**

**Rising Demand for High-Speed Mobile Data Services**

The demand for high-speed mobile data services is a primary driver for the Japan [Virtualized Evolved Packet Core Market](../../../reports/virtualized-evolved-packet-core-market-5616) Industry. With Japan's population increasingly relying on mobile applications for business, entertainment, and connectivity, the usage of mobile data has intensified significantly. 

According to the Ministry of Internal Affairs and Communications in Japan, mobile data usage has increased by over 20% annually, leading to a surge in demand for robust back-end infrastructure.Companies like NTT DoCoMo and SoftBank are heavily investing in upgrading their networks to accommodate the burgeoning data traffic. In addition, the launch of 5G networks is expected to further escalate this demand, providing opportunities for Evolved Packet Core solutions to enhance network efficiency and performance. Given the telecom industry's rapid evolution, this trend showcases a promising growth trajectory for the Japan Virtualized Evolved Packet Core Market.

**Government Initiatives and Support for Telecommunications**

The Japanese government is actively promoting digital transformation and technological advancement within the telecommunications sector, significantly bolstering the Japan Virtualized Evolved Packet Core Market Industry. For instance, the 'Digital Garden City' policy aims to enhance regional connectivity and boost economic growth via advanced telecommunications infrastructure. 

This initiative is expected to attract investments from prominent organizations, including KDDI Corporation and Rakuten Mobile, to develop virtualized core solutions that cater to urban and rural areas alike.Moreover, the government's target to establish a nationwide 5G network by 2025 further reinforces the case for the expansion of virtualized Evolved Packet Core systems. These government-backed strategies are positioned to facilitate market growth and innovation in the country's telecommunications landscape.

**Increased Focus on Network Efficiency and Cost Reduction**

As telecommunications companies in Japan pursue strategies to enhance operational efficiency and reduce costs, the adoption of virtualized Evolved Packet Core solutions has become increasingly relevant. Implementing virtualized architectures can lead to significant reductions in equipment and operational costs. 

A report by the Telecommunications Carriers Association indicates that Japanese telecommunications firms aim to lower their operational costs by approximately 15% over the next five years through the integration of virtualization technologies.This trend is exemplified by major players like KDDI and NTT, who are leading the charge in adopting these solutions to streamline their networks. Thus, the growing imperative for efficiency not only beckons the shift towards virtualized core systems but also reinforces the prospects of the Japan Virtualized Evolved Packet Core Market.

**Expansion of Internet of Things (IoT) Applications**

The rapid expansion of Internet of Things (IoT) applications in Japan is a significant driver for the Japan Virtualized Evolved Packet Core Market Industry. With Japan being a leader in IoT adoption, the number of connected devices is expected to reach over 1.2 billion by 2025, according to estimates by the Ministry of Internal Affairs and Communications. 

This surging IoT ecosystem demands a highly efficient and scalable core network to handle the increased volume of data generated by these devices.Companies like Sony and Fujitsu have been investing in innovative IoT solutions that leverage virtualized core technologies to ensure seamless data flow and connectivity. This growing reliance on IoT-driven services emphasizes the importance of a virtualized Evolved Packet Core infrastructure in meeting the unique requirements of the Japan market.

**Japan Virtualized Evolved Packet Core Market Segment Insights**

**Virtualized Evolved Packet Core Market Component Insights**

The Component segment of the Japan Virtualized Evolved Packet Core Market encompasses critical elements such as Solutions and Services, which are pivotal in the infrastructure of telecommunications. The Solutions aspect focuses on the software and hardware that facilitate seamless data flow and crucial operations in mobile networks. This is particularly significant as Japan continues to enhance its 5G deployment, reflecting a substantial investment from government initiatives aimed at creating a high-tech society. 

The Services category encompasses an array of offerings, including Consultancy, Implementation, and Support Services, which ensure that telecom operators can leverage these advanced solutions effectively.The demand for such Services is growing as operators seek to optimize network performance and meet evolving customer expectations. Moreover, the increasing complexity of mobile networks amid rising data traffic necessitates robust Solutions to maintain operational efficiency. 

With the government's push for digital transformation and innovation in the telecommunications sector, there are considerable opportunities for market players to deliver tailored Solutions and comprehensive Services aimed at enhancing network resilience and scalability. An ongoing shift towards cloud-based architectures further augments this trend, driving the need for agile and adaptable Components that can support dynamic network functions.Overall, the Component segment stands as a key pillar of the Japan Virtualized Evolved Packet Core Market, reflecting both the current needs and future aspirations of the industry.

**Source: Primary Research, Secondary Research, MRFR Database and Analyst Review**

**Virtualized Evolved Packet Core Market Deployment Insights**

The Japan Virtualized Evolved Packet Core Market is witnessing significant growth in the Deployment segment, reflecting the increasing demand for efficient and robust network solutions. The deployment of On-Premise solutions is gaining traction among enterprises seeking enhanced control over their networks, enabling them to tailor configurations to meet specific operational needs. In parallel, the On-Cloud deployment model is becoming increasingly popular due to its scalability, flexibility, and cost-effectiveness, allowing organizations to easily adjust resources based on varying demand.

As a technologically advanced nation, Japan has a strong focus on telecommunications infrastructure, driving the VPS market's expansion. This market is crucial for supporting 5G applications and Internet of Things (IoT) integrations. The Japan Virtualized Evolved Packet Core Market is characterized by a trend towards hybrid models, combining both deployment strategies to leverage the strengths of each approach. The growing reliance on cloud services and the demand for seamless connectivity further highlight the importance of effective deployment models in the region's telecommunications landscape. As such, both on-premises and On-Cloud deployments play a vital role in the overall development and enhancement of Japan's digital infrastructure.

**Virtualized Evolved Packet Core Market Applications Insights**

The Applications segment of the Japan Virtualized Evolved Packet Core Market is a critical area showcasing diverse functionalities that enhance telecommunication services. With the increase in mobile data consumption, LTE has positioned itself as the backbone of high-speed mobile networks, while VOLTE is gaining traction for enabling voice calls over these networks, ensuring superior call quality and efficiency. VOWiFi contributes significantly by allowing voice services over Wi-Fi, catering to users in areas with poor cellular reception. 

Additionally, the Internet of Things (IoT) and Machine-to-Machine (M2M) communications are paramount, facilitating seamless connectivity for a multitude of devices, enhancing operational efficiency in sectors like manufacturing and transportation.Furthermore, Mobile Private Networks (MPN) and Mobile Virtual Network Operators (MVNO) are gaining importance as they provide businesses with tailored connectivity solutions and competitive pricing models. Companies in Japan are increasingly focusing on these applications to meet the rising demand for connectivity, scalability, and improved user experiences, driving growth within the Japan Virtualized Evolved Packet Core Market.

**Virtualized Evolved Packet Core Market End-User Insights**

The Japan Virtualized Evolved Packet Core Market focuses on various end-user segments, primarily targeting Telecom Operators and Enterprises. Telecom Operators play a significant role in driving the demand for virtualized solutions, as they seek to enhance network efficiency and reduce operational costs. With the growing trend of 5G deployment in Japan, these operators require a robust virtualized evolved packet core to efficiently manage the increased data traffic and improve service quality. 

On the other hand, Enterprises are increasingly adopting these solutions to support digital transformation initiatives, enabling them to scale their IT infrastructure swiftly and efficiently.As businesses in Japan evolve, the need for dynamic, scalable network solutions becomes paramount. This shift aligns with Japan's government initiatives aimed at fostering technological innovation and enhancing digital services. Overall, both Telecom Operators and Enterprises are crucial for the growth and shaping of the Japan Virtualized Evolved Packet Core Market, highlighting the importance of innovative network management solutions to meet the demands of a rapidly changing digital landscape.

**Japan Virtualized Evolved Packet Core Market Key Players and Competitive Insights**

The Japan Virtualized Evolved Packet Core Market is experiencing significant growth due to the rising demand for scalable and efficient networking solutions amidst the rapid expansion of mobile data traffic and the increasing adoption of 5G technology. As telecommunication companies and service providers strive to modernize their infrastructures, the competition among key players intensifies. Various factors contribute to the competitive landscape, such as technological advancements, innovative service offerings, strategic partnerships, and mergers and acquisitions. 

Companies are not only focused on capturing market share but also on differentiating their products and services to cater to the unique needs of the Japanese market, which is characterized by high consumer expectations and sophisticated regulatory requirements.Oracle has established a strong foothold in the Virtualized Evolved Packet Core Market in Japan with its cutting-edge technology solutions designed to enhance network performance and reliability. The company's strengths lie in its robust data management capabilities, cloud-based services, and extensive experience in enterprise solutions, enabling telecom operators to effectively manage increasing data demands. 

Oracle's focus on innovative product development allows it to deliver tailored solutions that fit the specific regulatory and operational milieu of the Japanese telecommunications landscape. Through its strategic partnerships with local telecom providers, Oracle has enhanced its market presence and reinforced its commitment to support the evolution of networking technologies in Japan.NEC has also carved a significant niche within the Japan Virtualized Evolved Packet Core Market, leveraging its deep expertise in telecommunications and IT solutions. 

The company offers a range of products and services, including network orchestration solutions, which facilitate seamless integration and management of virtualized networks. NEC's strengths include its strong research and development capabilities, enabling it to stay at the forefront of emerging technologies. The company has engaged in various mergers and acquisitions, allowing it to enhance its service portfolio and expand its reach within the region. NEC's emphasis on collaboration with domestic service providers and its commitment to innovation continue to position it as a formidable competitor in the Japanese market, as it supports the deployment of new technologies that drive digital transformation and improved user experiences.

**Key Companies in the Japan Virtualized Evolved Packet Core Market Include:**

- Oracle
- NEC
- ZTE
- ADVA Optical Networking
- Cisco
- Huawei
- Samsung
- Mavenir
- Juniper Networks
- Ruckus Networks
- Nokia
- Intel
- Hewlett-Packard Enterprise
- Ericsson
- Fujitsu

**Japan Virtualized Evolved Packet Core Market Industry Developments**

In recent months, the Japan Virtualized Evolved Packet Core Market has witnessed significant advancements, particularly with major players like Nokia and Fujitsu making strides in 5G infrastructure development.

In July 2025, Rakuten Mobile partnered with Cisco, Nokia, and F5 Networks to deploy a 5G Standalone virtualized evolved packet core (vEPC) network in Japan. This collaboration aims to enhance network agility, simplify operations using AI-driven systems, and accelerate innovative mobile services for consumers and enterprises.

In February 2024, NEC Corporation partnered with NTT DOCOMO to provide virtualized radio access network (vRAN) solutions, supporting scalable and flexible 5G networks across Japan. This initiative is indicative of ongoing efforts to integrate virtualized core architectures for better network performance and operational efficiency.

Throughout 2025, leading players in Japan's vEPC market, including Ericsson and Huawei, intensified their focus on cloud-native vEPC solutions and edge computing. This supports Japan’s ambitious goal of enabling ultra-low latency and high-bandwidth services for sectors like IoT, smart manufacturing, and digital entertainment.

**Japan Virtualized Evolved Packet Core Market Segmentation Insights**

**Virtualized Evolved Packet Core Market Component Outlook**

- - Solution - Services

**Virtualized Evolved Packet Core Market Deployment Outlook**

- - On-Premise - On-Cloud

**Virtualized Evolved Packet Core Market Applications Outlook**

- - LTE - VOLTE - VOWiFi - IoT and M2M - MPN & MVNO

**Virtualized Evolved Packet Core Market End-User Outlook**

- - Telecom Operators - Enterprises

## Market Drivers

### Advancements in 5G Technology

The rollout of 5G technology in Japan is a major catalyst for the virtualized evolved-packet-core market. With 5G expected to deliver data speeds up to 100 times faster than 4G, telecom operators are compelled to upgrade their core networks to support this new standard. The virtualized evolved-packet-core market is poised to benefit from this transition, as virtualization allows for more agile and efficient network management. By 2025, it is anticipated that 5G will account for over 50% of mobile subscriptions in Japan, further driving demand for advanced core network solutions. This shift not only enhances connectivity but also opens avenues for innovative applications, thereby propelling market growth.

### Rising Mobile Data Consumption

The surge in mobile data consumption in Japan is a pivotal driver for the virtualized evolved-packet-core market. With the increasing adoption of smartphones and IoT devices, mobile data traffic is projected to grow at an annual rate of approximately 30% through 2025. This trend necessitates robust and scalable network solutions, prompting telecom operators to invest in virtualized evolved-packet-core technologies. The ability to efficiently manage and route vast amounts of data traffic is crucial for maintaining service quality. As a result, the virtualized evolved-packet-core market is likely to experience significant growth, driven by the need for enhanced data handling capabilities and improved user experiences.

### Shift Towards Cloud-Based Solutions

The shift towards cloud-based solutions is reshaping the landscape of the virtualized evolved-packet-core market. Japanese enterprises are increasingly adopting cloud technologies to enhance operational efficiency and reduce costs. This trend is driving telecom operators to explore virtualized evolved-packet-core solutions that can seamlessly integrate with cloud environments. By leveraging cloud capabilities, operators can achieve greater scalability and flexibility in their network operations. The market is likely to witness a surge in demand for solutions that facilitate cloud integration, as businesses seek to optimize their network performance and support the growing need for remote connectivity.

### Growing Emphasis on Network Security

As cyber threats become increasingly sophisticated, the emphasis on network security is a critical driver for the virtualized evolved-packet-core market. Japanese telecom operators are prioritizing the implementation of secure network architectures to protect sensitive data and maintain customer trust. Virtualized evolved-packet-core solutions offer enhanced security features, such as dynamic threat detection and response capabilities. This focus on security is likely to lead to increased investments in virtualization technologies, as operators aim to safeguard their networks against potential breaches. The market is expected to expand as organizations recognize the importance of integrating robust security measures into their core network infrastructures.

### Government Initiatives for Digital Transformation

The Japanese government is actively promoting digital transformation initiatives, which significantly impact the virtualized evolved-packet-core market. Policies aimed at enhancing digital infrastructure and connectivity are being implemented, with a focus on fostering innovation and economic growth. For instance, the government has allocated substantial funding to support the development of next-generation networks. This commitment is expected to stimulate investments in virtualized evolved-packet-core technologies, as operators seek to align with national objectives. The market is likely to see increased collaboration between public and private sectors, facilitating the adoption of advanced network solutions that can support Japan's digital economy.

## Future Outlook

the [Virtualized Evolved Packet Core Market](https://www.marketresearchfuture.com/reports/virtualized-evolved-packet-core-market-5616) is projected to grow at a 22.23% CAGR from 2025 to 2035, driven by increasing demand for 5G services and network optimization.

**New opportunities:**

- Development of AI-driven network management tools
- Expansion of edge computing solutions for low-latency applications
- Partnerships with telecom operators for integrated service offerings

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in telecommunications.

## Segment Insights

### By Component: Solutions (Largest) vs. Services (Fastest-Growing)

In the Japan virtualized evolved-packet-core market, Solutions represent the largest segment, commanding a significant share among the various offerings. They encompass a diverse range of products and technologies that cater to the evolving needs of telecommunications providers. On the other hand, Services are emerging rapidly, gaining traction as providers seek comprehensive support and management solutions to enhance operational efficiency and customer experiences.

The market dynamics indicate a robust growth trend for Services, driven by increasing demand for network optimization and the migration towards cloud-based infrastructures. The shift towards 5G and virtualized network architectures is propelling service providers to invest heavily in managed services. This trend signifies a transformation in the operational landscape, where agility and flexibility become paramount to address the challenges posed by rising data traffic and user demands.

Solutions (Dominant) vs. Services (Emerging)

Solutions in the Japan virtualized evolved-packet-core market are characterized by their extensive capability to integrate various technologies, enabling seamless connectivity and data processing for operators. These solutions dominate due to their scalability and the ability to meet diverse customer requirements. As operators enhance their infrastructure, the demand for robust and efficient solutions continues to grow. In contrast, Services, while currently emerging, are becoming essential as they provide the necessary support frameworks for implementing these solutions. They include consulting, implementation, and ongoing management, which are critical as operators navigate the complexities of network virtualization. This growing reliance on Services showcases a significant shift towards holistic operational strategies in the telecommunications landscape.

### By Deployment: On-Premise (Largest) vs. On-Cloud (Fastest-Growing)

In the Japan virtualized evolved-packet-core market, the On-Premise deployment segment holds a significant market share, reflecting its strong presence among enterprises seeking control over their infrastructure. Conversely, the On-Cloud segment, while currently smaller, is rapidly expanding as organizations increasingly recognize the benefits of cloud computing, such as scalability and reduced operational costs. This shift is indicative of changing preferences as more businesses opt for flexible solutions.

Growth trends in this segment are primarily driven by technological advancements and the need for enhanced network agility. Businesses are increasingly adopting cloud solutions to leverage its cost-effectiveness and scalability. The On-Cloud segment is expected to show the fastest growth as operators and enterprises seek to innovate and optimize their operations in a competitive market landscape, thus pushing the demand for virtualized solutions.

Deployment: On-Premise (Dominant) vs. On-Cloud (Emerging)

The On-Premise deployment segment remains dominant in the Japan virtualized evolved-packet-core market, providing organizations with improved control, security, and customization of their core network functions. This approach allows businesses to tailor their infrastructure according to specific operational needs. In contrast, the On-Cloud segment is emerging as a viable alternative, offering flexibility and cost savings through shared resources and reduced capital expenditure. Companies are increasingly attracted to the cloud's offerings, as it supports rapid deployment and scalability, positioning it as the solution of choice for forward-thinking enterprises aiming to enhance their operational efficiencies. Both segments continue to evolve, catering to diverse organizational needs and driving innovation in network management.

### By Applications: LTE (Largest) vs. VoLTE (Fastest-Growing)

In the Japan virtualized evolved-packet-core market, LTE holds the largest market share, driven by the extensive 4G network infrastructure and widespread adoption among consumers and businesses. VoLTE is rapidly gaining traction, reflecting a shift towards high-quality voice calls and video services that require minimal latency. Meanwhile, VoWiFi, IoT and M2M, and MPN & MVNO segments are also significant but remain smaller in comparison.

The growth trends within this segment are predominantly influenced by advancing technologies and changing consumer preferences. As the demand for high-capacity data services continues to rise, VoLTE is expected to grow rapidly due to its efficiency and ability to offer superior call quality. Furthermore, the increasing need for IoT applications and machine-to-machine (M2M) communications solidifies the role of these segments in shaping the market's future ecosystem.

LTE (Dominant) vs. VoLTE (Emerging)

LTE remains the dominant application within the Japan virtualized evolved-packet-core market, capitalizing on its deep integration into existing telecom infrastructures. Its established networks ensure reliability and accessibility for users, making it a preferred choice for data service. Conversely, VoLTE is emerging as a vital player, offering enhanced voice quality and efficiency over traditional voice services. The growing demand for seamless communication experiences prompts telecom providers to invest in VoLTE technology, signaling its importance in the future landscape. As both segments evolve, they highlight the dynamic nature of consumer needs, with LTE focusing on broad data services while VoLTE seeks to innovate voice communications.

### By End-User: Telecom Operators (Largest) vs. Enterprises (Fastest-Growing)

In the Japan virtualized evolved-packet-core market, Telecom Operators hold a significant portion of the market share, driven largely by their need for scalable and efficient network solutions. The ongoing demand for enhanced mobile broadband services and the deployment of 5G technologies have solidified their position in the market, allowing them to leverage advanced virtualized systems for improved operational efficiencies.

On the other hand, Enterprises are emerging as the fastest-growing segment within this market. This growth is fueled by the increasing adoption of cloud-based services and the need for businesses to enhance their digital infrastructure. Enterprises are beginning to recognize the strategic advantages of virtualized evolved packet cores, enabling them to improve agility, reduce costs, and better manage data traffic, thus driving their rapid ascent in the market.

Telecom Operators: Dominant vs. Enterprises: Emerging

Telecom Operators dominate the Japan virtualized evolved-packet-core market, recognized for their robust network capabilities and extensive infrastructure investments. They utilize virtualized solutions to enhance service delivery and support vast numbers of subscribers across urban and rural areas. Conversely, Enterprises are rapidly emerging in this space, attracted by the scalability and flexibility that virtualized systems offer. Businesses that traditionally relied on physical hardware are transitioning to virtualized evolved packet cores to streamline operations and implement innovative technologies. This shift not only enhances performance but also provides cost savings and quicker deployment times, suggesting a dynamic evolution in how companies in Japan approach their networking needs.

## Competitive Benchmarking

the virtualized evolved-packet-core market is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for efficient network solutions. Key players such as Nokia (FI), Ericsson (SE), and NEC Corporation (Japan) are strategically positioned to leverage their innovative capabilities and regional expertise. Nokia (FI) focuses on enhancing its cloud-native solutions, while Ericsson (SE) emphasizes partnerships with local telecom operators to expand its market reach. NEC Corporation (Japan) is actively investing in R&D to develop next-generation network technologies, thereby contributing to the overall competitive environment.In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of offerings, enabling companies to cater to specific customer needs while fostering healthy competition among them.

In October  Nokia (FI) announced a strategic partnership with a leading Japanese telecom operator to deploy its latest cloud-native core solutions. This collaboration is expected to enhance network performance and scalability, positioning Nokia as a frontrunner in the local market. The strategic importance of this partnership lies in its potential to accelerate the adoption of advanced network technologies, thereby solidifying Nokia's competitive edge.

In September  Ericsson (SE) unveiled its new AI-driven network management platform, aimed at optimizing network operations for Japanese telecom providers. This initiative reflects Ericsson's commitment to integrating AI into its offerings, which could significantly improve operational efficiency and reduce costs for its clients. The introduction of this platform is likely to enhance Ericsson's value proposition in a market increasingly focused on digital transformation.

In August  NEC Corporation (Japan) launched a new suite of virtualized core network solutions tailored for 5G applications. This launch underscores NEC's dedication to innovation and its strategic focus on meeting the evolving demands of the telecommunications sector. By providing cutting-edge solutions, NEC aims to strengthen its position in the competitive landscape and cater to the growing needs of local operators.

As of November  current competitive trends in the market include a strong emphasis on digitalization, sustainability, and AI integration. Strategic alliances among key players are shaping the landscape, fostering collaboration that enhances technological capabilities. Looking ahead, competitive differentiation is likely to evolve, with a shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition suggests that companies will need to prioritize their R&D efforts and forge strategic partnerships to maintain a competitive advantage.

## Recent News & Developments

In recent months, the Japan Virtualized Evolved Packet Core Market has witnessed significant advancements, particularly with major players like Nokia and Fujitsu making strides in 5G infrastructure development.

In July 2025, Rakuten Mobile partnered with Cisco, Nokia, and F5 Networks to deploy a 5G Standalone virtualized evolved packet core (vEPC) network in Japan. This collaboration aims to enhance network agility, simplify operations using AI-driven systems, and accelerate innovative mobile services for consumers and enterprises.

In February 2024, NEC Corporation partnered with NTT DOCOMO to provide virtualized radio access network (vRAN) solutions, supporting scalable and flexible 5G networks across Japan. This initiative is indicative of ongoing efforts to integrate virtualized core architectures for better network performance and operational efficiency.

Throughout 2025, leading players in Japan's vEPC market, including Ericsson and Huawei, intensified their focus on cloud-native vEPC solutions and edge computing. This supports Japan’s ambitious goal of enabling ultra-low latency and high-bandwidth services for sectors like IoT, smart manufacturing, and digital entertainment.

## Report Scope

| MARKET SIZE 2024 | 380.7(USD Million) |
| --- | --- |
| MARKET SIZE 2025 | 465.33(USD Million) |
| MARKET SIZE 2035 | 3464.32(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 22.23% (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 | Nokia (FI), Ericsson (SE), Huawei (CN), Cisco (US), ZTE (CN), Mavenir (US), Juniper Networks (US), Samsung (KR), NEC (JP) |
| Segments Covered | Component, Deployment, Applications, End-User |
| Key Market Opportunities | Adoption of 5G technology drives demand for scalable solutions in the virtualized evolved-packet-core market. |
| Key Market Dynamics | Rising demand for network flexibility drives innovation in the virtualized evolved-packet-core market. |
| Countries Covered | Japan |

## Frequently Asked Questions

**Q: What was the market valuation of the Japan virtualized evolved-packet-core market in 2024?**
A: The market valuation was $380.7 Million in 2024.

**Q: What is the projected market valuation for the Japan virtualized evolved-packet-core market by 2035?**
A: The projected valuation for 2035 is $3464.32 Million.

**Q: What is the expected CAGR for the Japan virtualized evolved-packet-core market during the forecast period 2025 - 2035?**
A: The expected CAGR is 22.23% during the forecast period 2025 - 2035.

**Q: Which companies are considered key players in the Japan virtualized evolved-packet-core market?**
A: Key players include Nokia, Ericsson, Huawei, Cisco, ZTE, Mavenir, Juniper Networks, Samsung, and NEC.

**Q: What were the component segment valuations for solutions and services in 2024?**
A: In 2024, solutions were valued at $200.0 Million, while services were valued at $180.7 Million.

**Q: How does the on-cloud deployment segment compare to the on-premise segment in 2024?**
A: In 2024, the on-cloud deployment segment was valued at $230.7 Million, compared to $150.0 Million for the on-premise segment.

**Q: What were the application segment valuations for LTE and VoLTE in 2024?**
A: In 2024, LTE was valued at $76.14 Million, while VoLTE was valued at $57.1 Million.

**Q: What is the projected growth for telecom operators as an end-user segment by 2035?**
A: The telecom operators segment is projected to grow to $2000.0 Million by 2035.

**Q: What were the end-user segment valuations for enterprises in 2024?**
A: In 2024, the enterprises segment was valued at $130.7 Million.

**Q: Which application segment is expected to show the highest growth by 2035?**
A: The MPN & MVNO application segment is expected to show the highest growth, projected to reach $1596.08 Million by 2035.


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