As per MRFR analysis, the South Korea Virtualized Evolved Packet Core Market Size was estimated at 155.73 (USD Million) in 2023. The South Korea Virtualized Evolved Packet Core Market Industry is expected to grow from 190.35(USD Million) in 2024 to 1742.79 (USD Million) by 2035. The South Korea Virtualized Evolved Packet Core Market CAGR (growth rate) is expected to be around 22.3% during the forecast period (2025 - 2035).
Key South Korea Virtualized Evolved Packet Core Market Trends Highlighted
The South Korea Virtualized Evolved Packet Core market is mostly growing because more people want high-speed internet, and mobile data traffic is growing quickly. South Korea has a lot of excellent telecommunications infrastructure, and a lot of people use smartphones. These things are helping to make virtualized core solutions more popular. The government has been working hard to promote the growth of 5G technology. This has been a big boost for the telecoms industry and, by extension, the Virtualized Evolved Packet Core market.Â
This help includes money for new ideas in network technologies, which pushes businesses to look into better, newer ways to do things. This industry has a lot of potential since more and more industries, such as smart cities, self-driving cars, and the Internet of Things (IoT), need services that connect people and things quickly and easily. As South Korea moves toward a digital-first approach, there is more focus on adding virtualized systems to existing networks. This can make operations more efficient and lower network costs.Â
Telecom companies and technology suppliers are also starting to work together to use the latest technologies that can meet the needs of a connected society. Recent trends show that telecoms businesses are moving toward employing more cloud-native designs. These companies are working on making their systems more flexible and scalable.Companies in South Korea are focusing on using multi-access edge computing and virtualized core solutions to make service delivery and customer experiences better.Â
Telecom businesses are also putting more emphasis on automated network management and AI-driven analytics in order to make their operations more efficient and cut down on downtime. These changing patterns show that the market is becoming more dynamic. This is in line with the worldwide drive toward more flexible network solutions and meets local needs for high-quality digital services.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea Virtualized Evolved Packet Core Market Drivers
Growing Demand for High-Speed Mobile Connectivity
The rapid expansion of mobile data traffic in South Korea is a significant driver for the South Korea Virtualized Evolved Packet Core Market Industry. With the increasing proliferation of mobile devices, the country experienced a staggering increase in mobile data consumption, which surged by approximately 30% in recent years, reflecting the trend towards digital connectivity.Â
According to the Ministry of Science and ICT, South Korea's mobile data traffic reached over 4.3 million terabytes in 2022.This surge necessitates robust and scalable network infrastructure, driving the adoption of virtualized evolved packet core solutions by telecommunications providers like SK Telecom and KT Corporation, as they aim to meet this demand while optimizing performance and operational costs through virtualization technologies.
Government Initiatives Supporting 5G Implementation
The South Korean government has been actively promoting the roll-out of 5G networks, which catalyzes the growth of the South Korea Virtualized Evolved Packet Core Market Industry. Through its '5G+ Strategy', the government aims to establish a comprehensive 5G ecosystem that includes investments in next-generation networks.Â
As part of this initiative, the government allocated over USD 1.5 billion for 5G development and deployment in infrastructure, expected to directly influence the expansion of virtualized evolved packet core systems.This proactive stance from the government is pivotal for industry leaders like LG Uplus to modernize their core network and enhance service delivery to customers.
Increased Adoption of Internet of Things (IoT) Devices
The growing adoption of Internet of Things (IoT) devices in South Korea is another important factor driving the demand for virtualized evolved packet core solutions. With over 30 million IoT devices expected to be connected by 2025, as reported by the Korea Internet and Security Agency, the existing network infrastructure necessitates enhancements to efficiently handle the escalating volume of data traffic.Â
This anticipated increase in connectivity and data flow compels network operators to invest in advanced solutions such as virtualization of the evolved packet core.Companies like Samsung Electronics are pivotal in developing IoT-enabled applications, further propelling the need for scalable and efficient network solutions.
Focus on Cost Reduction and Operational Efficiency
Telecommunications operators in South Korea are increasingly focusing on reducing operational costs and improving efficiency, which is significantly driving the growth of the South Korea Virtualized Evolved Packet Core Market Industry. The shift towards virtualization allows service providers to deploy network functions efficiently, leading to reduced capital expenditures and lower maintenance costs.Â
Reports indicate that operators can achieve up to 40% reductions in operational expenses by transitioning to a virtualized architecture.Major players like KT Corporation have invested heavily in virtualization technologies, pushing for modernization and efficiency, thereby addressing market demands while ensuring cost-effectiveness.
Virtualized Evolved Packet Core Market Component Insights
The Component segment within the South Korea Virtualized Evolved Packet Core Market captures crucial elements that drive the digital transformation in the telecommunications landscape of the region. This segment is primarily categorized into Solutions and Services, both critical in enhancing network flexibility and performance. Solutions within this segment refer to the various software and hardware offerings that facilitate a seamless packet management system, which is vital for handling increased data traffic. The adoption of advanced solutions is driven by the growing demand for rapid deployment of network services that support mobile broadband subscribers. On the other hand, Services encompass a range of offerings, including consulting, integration, and support, that help businesses successfully implement and optimize their Virtualized Evolved Packet Core systems. These services are particularly significant given South Korea's rapid advancement in 5G technology and the associated need for efficient packet core management.
The South Korean government has prioritized digital innovation and infrastructure upgrades, leading to increased investments in both Solutions and Services within the Component segment. The emphasis on enhancing user experience and network reliability resonates strongly in this market, supporting the proliferation of solutions and services that meet evolving consumer needs. Furthermore, the shift towards adopting cloud-native architectures resonates well with the Solutions aspect, which is pivotal for offering scalable and efficient network operations. As organizations in South Korea increasingly seek to modernize their network infrastructures in response to growing consumer expectations, the Component segment of the South Korea Virtualized Evolved Packet Core Market continues to evolve significantly, ensuring that it aligns with emerging trends in telecommunications.Â
This evolution presents numerous opportunities for businesses to leverage advanced technology, improve service delivery, and ultimately drive growth in a competitive market environment. The inclusive approach to integrating both Solutions and Services enhances the operational capabilities of telecommunications networks, thereby positioning the Component segment as a significant driver of innovation and market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtualized Evolved Packet Core Market Deployment Insights
The Deployment segment within the South Korea Virtualized Evolved Packet Core Market showcases significant growth as it adapts to the increasing demand for enhanced network flexibility and performance. Deployment options, primarily On-Premise and On-Cloud, cater to various organizational requirements. On-Premise deployment allows enterprises to maintain greater control over their network infrastructure, ensuring compliance with local regulations, which is particularly crucial in South Korea's tightly regulated telecommunications sector. On the other hand, On-Cloud deployment is increasingly favored due to its scalability and cost-effectiveness, enabling organizations to quickly adapt to changing market conditions.
As businesses continue to invest in digital transformation initiatives, these deployment models provide critical support in deploying new services and applications efficiently. The South Korean government actively encourages technological advancements, which further propels investment in virtualized solutions and infrastructure upgrades. This evolving landscape is reflected in the movement towards adopting network functions virtualization (NFV) and software-defined networking (SDN), driving demand for robust deployment methods that support enhanced service delivery and operational agility.Considering the region's aspiration towards a smart nation, these deployment strategies are poised to play a vital role in supporting the burgeoning digital economy.
Virtualized Evolved Packet Core Market Applications Insights
The Applications segment of the South Korea Virtualized Evolved Packet Core Market plays a vital role in enhancing mobile communication and data services. This segment comprises several key areas, including Long-Term Evolution (LTE), Voice over LTE (VoLTE), Voice over WiFi (VOWiFi), Internet of Things (IoT), Machine-to-Machine (M2M) communication, Mobile Private Networks (MPN), and Mobile Virtual Network Operators (MVNO). LTE remains a cornerstone of mobile internet connectivity in South Korea, driving demand for faster data speeds and improved user experiences.VoLTE and VOWiFi enable high-quality voice calls over existing data infrastructures, making them increasingly significant in urban and rural areas where traditional voice services may falter.Â
The growth of IoT and M2M is essential in South Korea, as it supports the burgeoning smart city initiatives and industrial automation trends, playing a critical role in the country’s digital transformation. MPN develops customized solutions for enterprises, enhancing security and efficiency, while MVNOs cater to specific market niches, offering competitive pricing and innovative service bundles.South Korea's robust telecommunications infrastructure and government support for technological advancement create ample opportunities for growth within these applications, paving the way for innovative solutions that meet rising consumer and business needs.
Virtualized Evolved Packet Core Market End-User Insights
The End-User segment of the South Korea Virtualized Evolved Packet Core Market plays a pivotal role in shaping the overall landscape, especially with key players such as telecom operators and enterprises utilizing these technologies. Telecom operators are increasingly adopting virtualized evolved packet core solutions to enhance network efficiency, reduce costs, and meet the growing demand for higher data rates and connectivity. This drive is fueled by the surge in mobile data consumption and the expansion of 5G networks, which necessitate more flexible and scalable network infrastructures.
On the other hand, enterprises are leveraging this technology for seamless integration of advanced communication services, improving operational capabilities, and enhancing customer experience. The increasing digitization across various industries in South Korea further propels the demand for robust and agile network solutions. With a significant focus on digital transformation and innovation, both telecom operators and enterprises are essential in driving the growth of the South Korea Virtualized Evolved Packet Core Market, navigating challenges such as competition and regulatory considerations while seizing opportunities for modernization and improved service delivery.
South Korea Virtualized Evolved Packet Core Market Key Players and Competitive Insights
The South Korea Virtualized Evolved Packet Core Market is characterized by a dynamic landscape driven by technological advancements and an increasing demand for mobile data services. As telecommunication operators in South Korea transition to more agile, efficient network architectures, the competition has intensified. The adoption of virtualized infrastructures enables operators to meet the rising consumer expectations for high-speed internet, seamless connectivity, and reduced latency. The market is poised for growth driven by increasing investments in next-generation network technologies, the rise of 5G services, and an emphasis on operational efficiency and cost reduction in the telecommunications sector.
Oracle has established a significant presence within the South Korean Virtualized Evolved Packet Core Market, showcasing its robust suite of cloud-native solutions tailored for telecom operators. The company's strengths lie in its comprehensive offerings that optimize network management, enhance scalability, and ensure security. With its strong portfolio of innovative technologies, Oracle enables mobile network operators to deploy and run their services more efficiently. Additionally, Oracle’s services foster increased agility and responsiveness to market demands, making it a preferred partner for many South Korean telecom companies.Â
By providing advanced analytics and intelligent automation solutions, Oracle helps operators to maximize their resources and improve customer experiences in the rapidly evolving digital landscape.LG Uplus, a prominent telecommunications provider in South Korea, has made substantial strides in the Virtualized Evolved Packet Core Market, integrating advanced technologies in its service offerings. The company focuses on delivering high-speed mobile services and improving overall network reliability.Â
LG Uplus specializes in providing various products and services, including mobile broadband and 5G solutions, positioning itself strategically in a highly competitive market. The company has leveraged partnerships and collaborations to enhance its capabilities within the core network ecosystem. In addition to expanding its operational footprint, LG Uplus has explored mergers and acquisitions to augment its technology stack and strengthen market positioning. This proactive strategy enables LG Uplus to maintain its competitive edge while catering to the growing demand for innovative telecommunications services in South Korea.
Key Companies in the South Korea Virtualized Evolved Packet Core Market Include:
South Korea Virtualized Evolved Packet Core 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.Â
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.Â
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.
South Korea 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 | 155.73(USD Million) |
| MARKET SIZE 2024 | 190.35(USD Million) |
| MARKET SIZE 2035 | 1742.8(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 22.3% (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, LG Uplus, ZTE, Netcracker Technology, Red Hat, Cisco, Huawei, KT Corporation, Samsung, Mavenir, Juniper Networks, Altiostar, Nokia, Amdocs, Ericsson |
| SEGMENTS COVERED | Component, Deployment, Applications, End-User |
| KEY MARKET OPPORTUNITIES | 5G network expansion, Increased demand for IoT, Cost efficiency in network management, Enhanced mobile broadband services, Growing cloud-based service adoption |
| KEY MARKET DYNAMICS | 5G adoption acceleration, Increasing data traffic, Network function virtualization trend, Cost efficiency demands, Enhanced mobility requirements |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ):
The South Korea Virtualized Evolved Packet Core Market is expected to be valued at approximately 190.35 million USD in 2024.
By 2035, the South Korea Virtualized Evolved Packet Core Market is projected to reach around 1,742.8 million USD.
The expected CAGR for the South Korea Virtualized Evolved Packet Core Market during the forecast period of 2025 to 2035 is 22.3 percent.
Major players in the South Korea Virtualized Evolved Packet Core Market include Oracle, LG Uplus, ZTE, Netcracker Technology, Red Hat, and Cisco, among others.
The market is divided into two main components: Solution and Services.
The Solution segment of the South Korea Virtualized Evolved Packet Core Market is valued at around 95.15 million USD in 2024.
The Services segment is expected to grow to about 881.4 million USD by 2035.
Key emerging trends include increased adoption of cloud solutions and greater focus on network virtualization.
Growth drivers include rising demand for mobile data and the continuous evolution of telecommunications technology.
Current global scenarios may challenge supply chains but also drive innovation and investment in mobile network infrastructure.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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