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.Â
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.Â
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.Â
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 Industry. With Japan's population increasingly relying on mobile applications for business, entertainment, and connectivity, the usage of mobile data has intensified significantly.Â
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.Â
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.Â
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.Â
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.
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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:
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
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 | 311.46(USD Million) |
| MARKET SIZE 2024 | 380.7(USD Million) |
| MARKET SIZE 2035 | 5321.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 27.095% (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, NEC, ZTE, ADVA Optical Networking, Cisco, Huawei, Samsung, Mavenir, Juniper Networks, Ruckus Networks, Nokia, Intel, Hewlett Packard Enterprise, Ericsson, Fujitsu |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network expansion, IoT integration enhancements, Scalability for telecom operators, Cost reduction through virtualization, Enhanced network security solutions |
| KEY MARKET DYNAMICS | Increasing 5G deployment, Rising mobile data traffic, Need for network flexibility, Cost-effective infrastructure solutions, Focus on operational efficiency |
| COUNTRIES COVERED | Japan |
Frequently Asked Questions (FAQ):
The market is expected to be valued at 380.7 million USD in 2024.
By 2035, the market is projected to be valued at 5321.0 million USD.
The market is expected to grow at a CAGR of 27.095% during the period from 2025 to 2035.
By 2035, the services component is expected to reach 3256.5 million USD.
The solutions segment is estimated to be valued at 152.2 million USD in 2024.
Major players in this market include Oracle, NEC, ZTE, Cisco, and Huawei.
Key growth drivers include increasing demand for high-speed mobile networks and the adoption of cloud-based solutions.
Technological advancements are leading to improved performance and cost-efficiency, hence positively impacting market growth.
Challenges include potential security concerns and the need for substantial investment in infrastructure.
The services segment is projected to significantly grow, reaching 3256.5 million USD by 2035.
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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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