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    South Korea Virtualized Evolved Packet Core Market

    ID: MRFR/ICT/63355-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    South Korea Virtualized Evolved Packet Core Market Research 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

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    South Korea Virtualized Evolved Packet Core Market Summary

    As per MRFR analysis, the South Korea virtualized evolved-packet-core market size was estimated at 190.35 USD Million in 2024. The South Korea virtualized evolved-packet-core market is projected to grow from 232.66 USD Million in 2025 to 1732.16 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 22.23% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The South Korea virtualized evolved-packet-core market is experiencing robust growth driven by technological advancements and increasing demand for connectivity.

    • The market is witnessing an increased adoption of cloud-native solutions, enhancing operational efficiency.
    • Security enhancements are becoming a focal point as organizations prioritize data protection and compliance.
    • The integration of AI and automation is transforming network management, leading to improved performance and reliability.
    • Rising demand for 5G connectivity and government initiatives are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 190.35 (USD Million)
    2035 Market Size 1732.16 (USD Million)

    Major Players

    Nokia (FI), Ericsson (SE), Huawei (CN), ZTE (CN), Cisco (US), Juniper Networks (US), Mavenir (US), Samsung (KR), NEC (JP)

    South Korea Virtualized Evolved Packet Core Market Trends

    the virtualized evolved-packet-core market in South Korea is experiencing a transformative phase, driven by the increasing demand for efficient and scalable network solutions. As mobile data traffic continues to surge, telecommunications providers are seeking innovative ways to enhance their infrastructure. This shift towards virtualization allows for greater flexibility and cost-effectiveness, enabling operators to manage resources more efficiently. The government’s initiatives to promote digital transformation further bolster this trend, encouraging investments in advanced technologies. Additionally, the rise of IoT applications and 5G networks is propelling the need for robust core network solutions, which are essential for supporting diverse services and applications. Moreover, the competitive landscape in South Korea's telecommunications sector is intensifying, with various players striving to differentiate themselves through cutting-edge technologies. The adoption of cloud-native architectures is becoming increasingly prevalent, as it offers improved performance and agility. This evolution is not merely a response to market demands but also a proactive approach to future-proofing network capabilities. As the virtualized evolved-packet-core market continues to mature, stakeholders are likely to focus on enhancing security measures and ensuring compliance with regulatory standards, which are critical for maintaining consumer trust and operational integrity.

    Increased Adoption of Cloud-Native Solutions

    The trend towards cloud-native architectures is gaining momentum within the virtualized evolved-packet-core market. This shift allows operators to deploy applications more rapidly and efficiently, enhancing overall service delivery. As telecommunications companies in South Korea embrace this model, they are likely to experience improved scalability and reduced operational costs.

    Focus on Security Enhancements

    With the rise of cyber threats, there is a growing emphasis on security within the virtualized evolved-packet-core market. Operators are increasingly investing in advanced security protocols and technologies to safeguard their networks. This focus on security is essential for maintaining consumer confidence and ensuring compliance with regulatory requirements.

    Integration of AI and Automation

    The integration of artificial intelligence and automation technologies is transforming operations in the virtualized evolved-packet-core market. By leveraging AI, operators can optimize network performance and enhance decision-making processes. This trend indicates a shift towards more intelligent and responsive network management, which is crucial for meeting the demands of modern telecommunications.

    South Korea Virtualized Evolved Packet Core Market Drivers

    Emergence of Edge Computing

    The emergence of edge computing is reshaping the landscape of the virtualized evolved-packet-core market. As applications requiring real-time processing and low latency become more prevalent, the need for edge computing solutions is growing. South Korean telecom operators are exploring ways to integrate edge computing with their core networks to enhance service delivery and improve user experiences. This trend is expected to drive innovation within the virtualized evolved-packet-core market, potentially leading to a market expansion of approximately 18% by 2026. The synergy between edge computing and virtualized core networks is likely to create new opportunities for service differentiation and competitive advantage.

    Rising Demand for 5G Connectivity

    The increasing demand for 5G connectivity in South Korea is a primary driver for the virtualized evolved-packet-core market. As mobile operators strive to enhance their network capabilities, the need for efficient and scalable core network solutions becomes paramount. the virtualized evolved-packet-core market is expected to witness substantial growth, with projections indicating an increase of approximately 30% by 2026. This demand is fueled by the proliferation of IoT devices and the necessity for low-latency applications, which require robust core network architectures. Consequently, telecom operators are investing heavily in virtualized solutions to meet these evolving connectivity requirements, thereby propelling the market forward.

    Government Initiatives and Support

    Government initiatives in South Korea aimed at promoting digital transformation are significantly impacting the virtualized evolved-packet-core market. The South Korean government has launched various programs to enhance telecommunications infrastructure, which includes substantial funding for 5G and beyond. These initiatives are designed to foster innovation and encourage the adoption of advanced technologies within the telecommunications sector. As a result, the virtualized evolved-packet-core market is likely to benefit from increased investments and regulatory support, potentially leading to a market growth rate of around 25% over the next few years. This supportive environment is crucial for telecom operators looking to modernize their core networks.

    Increased Focus on Cost Efficiency

    Cost efficiency remains a pivotal concern for telecom operators in South Korea, driving the adoption of virtualized evolved-packet-core solutions. As competition intensifies, operators are compelled to optimize their operational expenditures while maintaining service quality. Virtualized solutions offer a compelling value proposition by reducing the need for expensive hardware and enabling more efficient resource utilization. This focus on cost efficiency is likely to propel the virtualized evolved-packet-core market, with estimates suggesting a growth rate of around 15% in the coming years. Operators are increasingly recognizing that investing in virtualized technologies can lead to substantial long-term savings.

    Shift Towards Network Function Virtualization (NFV)

    The shift towards Network Function Virtualization (NFV) is a critical driver for the virtualized evolved-packet-core market. Telecom operators in South Korea are increasingly adopting NFV to enhance operational efficiency and reduce costs associated with traditional hardware-based solutions. By virtualizing network functions, operators can achieve greater flexibility and scalability, which is essential in a rapidly changing telecommunications landscape. This trend is expected to contribute to a market growth of approximately 20% by 2026, as more operators recognize the benefits of transitioning to virtualized architectures. The virtualized evolved-packet-core market stands to gain significantly from this ongoing transformation.

    Market Segment Insights

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

    In the market, Solutions currently hold the largest share, dominating the landscape with a robust presence driven by established customer bases and proven technologies. Meanwhile, Services are gaining traction, especially among startups and businesses seeking scalable and flexible support systems. This dynamic creates a diverse competitive environment where both segments can thrive within their niches. The growth trends indicate a strong uptick in demand for Services, propelled by shifting needs for on-demand functionalities and customized offerings. As more organizations transition to digital platforms, the inclination towards comprehensive service packages that facilitate this migration is evident. Furthermore, Solutions are benefitting from enhancements in core functionalities, making them an attractive choice for traditional operators looking to modernize their offerings, thus reinforcing their market stability.

    Solutions (Dominant) vs. Services (Emerging)

    Solutions are characterized by their robustness and incremental innovation, appealing to enterprises seeking familiar and reliable options. They offer extensive capabilities that enhance operational efficiencies and are favored by larger institutions for their proven effectiveness. On the other hand, Services represent an emerging opportunity, focusing on agility and customer-centric features that cater to evolving market demands. Startups and smaller entities increasingly favor these offerings for their flexibility and ability to customize solutions. This juxtaposition not only highlights the contrasting approaches of the segments but also points towards a trend where adaptability is becoming paramount in the South Korea virtualized evolved-packet-core market.

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

    In the South Korea virtualized evolved-packet-core market, the deployment segment shows a significant divide between On-Premise and On-Cloud solutions. Currently, On-Premise holds the largest market share, driven by organizations that prefer to maintain control over their infrastructure. Conversely, On-Cloud alternatives are gaining traction as businesses look for scalable and flexible solutions that align with modern digital transformation strategies. The growth trends in this segment are characterized by an increasing shift towards cloud-based infrastructures, fueled by the demand for agility and cost-effectiveness. The rapid adoption of cloud technologies among telecommunication companies is propelling On-Cloud deployments as the fastest-growing option. Key drivers include the need for improved operational efficiency, enhanced security features, and the growing acceptance of cloud solutions by industry players.

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

    On-Premise deployments have long been the dominant choice for organizations in the South Korea virtualized evolved-packet-core market, primarily due to their stability, security, and control over data. These solutions are especially favored by enterprises that require stringent compliance and robust data governance. On the other hand, On-Cloud deployments are emerging rapidly, appealing to businesses seeking innovative solutions with flexible payment models and scalability. As these cloud solutions become increasingly sophisticated, they are attracting a diverse range of users. The competition between these two deployment types is intensifying, with On-Cloud poised to capture a larger share of the market in the coming years, reflecting a significant shift in corporate IT strategies.

    By Applications: VoLTE (Largest) vs. IoT and M2M (Fastest-Growing)

    In the South Korea virtualized evolved-packet-core market, LTE remains a significant player, but VoLTE leads with the largest share due to its robust integration in mobile networks. VoWiFi also captures a notable market presence, while IoT and M2M are rapidly gaining traction. The diversification of applications across these segments highlights evolving consumer preferences and technological advancements influencing adoption rates across various sectors. Growth trends indicate that VoLTE's dominance is supported by increasing data consumption and improving quality of service, enhancing user experience. Concurrently, IoT and M2M are experiencing explosive growth driven by the rise of smart devices and the demand for seamless connectivity solutions. This shift underscores the critical role of evolving applications in shaping the future of network infrastructures.

    VoLTE (Dominant) vs. IoT and M2M (Emerging)

    VoLTE is characterized by its ability to deliver high-quality voice services over LTE networks, significantly improving call clarity and efficiency. It is considered dominant in the current market landscape, as major carriers have integrated this technology into their offerings, leading to enhanced user experiences. In contrast, IoT and M2M technologies are emerging segments that focus on connecting diverse devices and systems for enhanced data exchange and automation. Their rapid growth is fueled by innovations in smart technology, with businesses leveraging these solutions to optimize operations and enhance customer engagement. As the demand for connectivity grows, both segments are expected to play pivotal roles in the evolution of the network landscape.

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

    In the South Korea virtualized evolved-packet-core market, Telecom Operators command the largest share due to their extensive network infrastructure and established customer bases. These operators leverage virtualized solutions to enhance service delivery and reduce operational costs, making them key players in this segment. Enterprises, while currently holding a smaller share, are rapidly adopting these technologies to meet enhanced connectivity demands, thus driving their market presence.

    Telecom Operators (Dominant) vs. Enterprises (Emerging)

    Telecom Operators are the dominant force in the South Korea virtualized evolved-packet-core market, characterized by robust investments in infrastructure and cutting-edge technology to deliver high-speed connectivity. They focus on scalability and flexibility, essential for managing growing data traffic. In contrast, Enterprises represent an emerging segment, increasingly seeking virtualized solutions to optimize operations and support digital transformation initiatives. This shift is influenced by the need for Agile frameworks and innovative applications, positioning Enterprises as a significant growth driver in the market.

    Get more detailed insights about South Korea Virtualized Evolved Packet Core Market

    Key Players and Competitive Insights

    The virtualized evolved-packet-core market is currently characterized by intense competition and rapid technological advancements. Key growth drivers include the increasing demand for high-speed mobile connectivity, the proliferation of IoT devices, and the ongoing transition to 5G networks. Major players such as Nokia (Finland), Ericsson (Sweden), and Samsung (South Korea) are strategically positioned to leverage their extensive R&D capabilities and established market presence. Nokia (Finland) focuses on innovation through its cloud-native solutions, while Ericsson (Sweden) emphasizes partnerships with telecom operators to enhance service delivery. Samsung (South Korea) is actively expanding its portfolio to include advanced network functions virtualization (NFV) technologies, collectively shaping a competitive environment that prioritizes agility and technological prowess.

    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 substantial influence. This fragmentation allows for a diverse range of solutions, catering to various customer needs while fostering healthy competition among the leading firms.

    In October 2025, Nokia (Finland) announced a strategic partnership with a leading South Korean telecom operator to deploy its latest cloud-native core network solutions. This collaboration is expected to enhance network performance and reliability, positioning Nokia as a frontrunner in the local market. The strategic importance of this partnership lies in its potential to accelerate the adoption of 5G technologies, thereby solidifying Nokia's competitive edge in the region.

    In September 2025, Ericsson (Sweden) unveiled its new AI-driven network management platform, aimed at optimizing network operations for telecom providers. This innovation is significant as it aligns with the growing trend of digital transformation within the industry, enabling operators to enhance service quality and reduce operational costs. By integrating AI capabilities, Ericsson is likely to strengthen its market position and attract new clients seeking advanced solutions.

    In November 2025, Samsung (South Korea) launched a comprehensive suite of virtualized core solutions tailored for enterprise customers. This move is particularly noteworthy as it reflects Samsung's commitment to expanding its footprint in the enterprise segment, which is increasingly seeking robust and flexible network solutions. The strategic importance of this launch lies in its potential to diversify Samsung's customer base and drive revenue growth in a competitive landscape.

    As of November 2025, current competitive trends are heavily influenced by digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing service delivery. Looking ahead, competitive differentiation is expected to evolve, with a pronounced shift from price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition underscores the necessity for companies to adapt and innovate continuously to maintain their competitive edge in an increasingly dynamic market.

    Industry Developments

    The South Korea Virtualized Evolved Packet Core Market has seen significant developments recently, with a growing focus on digital transformation among telecom providers. Companies like LG Uplus and KT Corporation are investing in enhancing their network infrastructures to support the increasing demand for 5G connectivity. In September 2023, Nokia announced a partnership with a South Korean telecom operator to deploy itsvirtualized core technology, reflecting the competitive landscape of the market. 

    Notable mergers and acquisitions include ZTE's acquisition of a local tech firm aimed at bolstering itsvirtualized core offerings, reported in August 2023. Furthermore, the valuation of South Korea's virtualized core market is experiencing growth, driven by the expansion of Internet of Things (IoT) applications and an increase in data traffic. Governments like the Ministry of Science and ICT are actively supporting this transformation by providing funding for Research and Development initiatives. 

    Additionally, companies like Oracle and Cisco are adapting their strategies to enhance their presence in this rapidly evolving market. Overall, the dynamics of the South Korea Virtualized Evolved Packet Core Market exhibit a proactive shift towards innovation and technology partnerships, essential for meeting future connectivity demands.

    Future Outlook

    South Korea Virtualized Evolved Packet Core Market Future Outlook

    The virtualized evolved-packet-core market is projected to grow at a 22.23% CAGR from 2024 to 2035, driven by increasing demand for 5G connectivity and network efficiency.

    New opportunities lie in:

    • Development of AI-driven network optimization tools
    • Expansion of edge computing solutions for low-latency applications
    • Partnerships with IoT providers for integrated service offerings

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

    Market Segmentation

    South Korea Virtualized Evolved Packet Core Market End-User Outlook

    • Telecom Operators
    • Enterprises

    South Korea Virtualized Evolved Packet Core Market Component Outlook

    • Solutions
    • Services

    South Korea Virtualized Evolved Packet Core Market Deployment Outlook

    • On-Premise
    • On-Cloud

    South Korea Virtualized Evolved Packet Core Market Applications Outlook

    • LTE
    • VoLTE
    • VoWiFi
    • IoT and M2M
    • MPN & MVNO

    Report Scope

    MARKET SIZE 2024 190.35(USD Million)
    MARKET SIZE 2025 232.66(USD Million)
    MARKET SIZE 2035 1732.16(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 22.23% (2024 - 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), ZTE (CN), Cisco (US), Juniper Networks (US), Mavenir (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 South Korea

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    FAQs

    What is the expected market size of the South Korea Virtualized Evolved Packet Core Market in 2024?

    The South Korea Virtualized Evolved Packet Core Market is expected to be valued at approximately 190.35 million USD in 2024.

    What is the projected market size for the South Korea Virtualized Evolved Packet Core Market by 2035?

    By 2035, the South Korea Virtualized Evolved Packet Core Market is projected to reach around 1,742.8 million USD.

    What is the anticipated CAGR for the South Korea Virtualized Evolved Packet Core Market from 2025 to 2035?

    The expected CAGR for the South Korea Virtualized Evolved Packet Core Market during the forecast period of 2025 to 2035 is 22.3 percent.

    Who are the key players in the South Korea Virtualized Evolved Packet Core Market?

    Major players in the South Korea Virtualized Evolved Packet Core Market include Oracle, LG Uplus, ZTE, Netcracker Technology, Red Hat, and Cisco, among others.

    How is the market divided by component in the South Korea Virtualized Evolved Packet Core Market?

    The market is divided into two main components: Solution and Services.

    What is the estimated value of the Solution segment in 2024 for the South Korea Virtualized Evolved Packet Core Market?

    The Solution segment of the South Korea Virtualized Evolved Packet Core Market is valued at around 95.15 million USD in 2024.

    What is the expected value of the Services segment in 2035 for the South Korea Virtualized Evolved Packet Core Market?

    The Services segment is expected to grow to about 881.4 million USD by 2035.

    What emerging trends are influencing the South Korea Virtualized Evolved Packet Core Market?

    Key emerging trends include increased adoption of cloud solutions and greater focus on network virtualization.

    What are the growth drivers for the South Korea Virtualized Evolved Packet Core Market?

    Growth drivers include rising demand for mobile data and the continuous evolution of telecommunications technology.

    How does the current global scenario impact the South Korea Virtualized Evolved Packet Core Market?

    Current global scenarios may challenge supply chains but also drive innovation and investment in mobile network infrastructure.

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