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Spain Virtualized Evolved Packet Core Market

ID: MRFR/ICT/63366-HCR
200 Pages
Aarti Dhapte
February 2026

Spain 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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Spain Virtualized Evolved Packet Core Market Summary

As per Market Research Future analysis, the Spain virtualized evolved-packet-core market Size was estimated at 95.17 USD Million in 2024. The Spain virtualized evolved-packet-core market is projected to grow from 116.28 USD Million in 2025 to 862.16 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 22.1% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Spain virtualized evolved-packet-core market is experiencing robust growth driven by technological advancements and regulatory support.

  • The market is witnessing increased adoption of cloud solutions, enhancing operational efficiency.
  • Focus on 5G integration is driving innovation and expanding service offerings in the telecommunications sector.
  • The largest segment in this market is the telecommunications sector, while the fastest-growing segment is expected to be IoT applications.
  • Rising demand for network flexibility and cost efficiency through virtualization are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 95.17 (USD Million)
2035 Market Size 862.16 (USD Million)
CAGR (2025 - 2035) 22.18%

Major Players

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

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
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Spain Virtualized Evolved Packet Core Market Trends

The virtualized evolved-packet-core market in Spain is currently experiencing a transformative phase, driven by the increasing demand for efficient and scalable network solutions. As telecommunications providers seek to enhance their service offerings, the adoption of virtualization technologies is becoming more prevalent. This shift allows for greater flexibility and cost-effectiveness, enabling operators to manage network resources more efficiently. The integration of cloud-based solutions is also contributing to the evolution of this market, as it facilitates seamless connectivity and improved user experiences. Furthermore, regulatory frameworks in Spain are evolving to support these advancements, fostering an environment conducive to innovation. In addition, the growing emphasis on 5G technology is likely to propel the virtualized evolved-packet-core market forward. As Spain continues to invest in its telecommunications infrastructure, the need for robust and agile core networks becomes increasingly apparent. This trend is further supported by the rising number of connected devices and the demand for high-speed data services. Overall, the landscape appears promising, with various stakeholders actively participating in the development and deployment of virtualized solutions, which may lead to enhanced operational efficiencies and improved service delivery across the sector.

Increased Adoption of Cloud Solutions

The trend towards cloud-based architectures is gaining momentum within the virtualized evolved-packet-core market. Telecommunications operators are increasingly leveraging cloud technologies to enhance scalability and reduce operational costs. This shift allows for more agile network management and the ability to quickly adapt to changing market demands.

Focus on 5G Integration

The integration of 5G technology is a pivotal trend influencing the virtualized evolved-packet-core market. As Spain advances its 5G rollout, the need for a robust core network becomes essential. This integration is expected to facilitate higher data speeds and improved connectivity, thereby enhancing user experiences.

Regulatory Support for Innovation

Regulatory frameworks in Spain are evolving to support advancements in the virtualized evolved-packet-core market. Government initiatives aimed at fostering innovation and investment in telecommunications infrastructure are likely to create a favorable environment for the adoption of new technologies.

Spain Virtualized Evolved Packet Core Market Drivers

Enhanced Security Features

Security concerns are paramount in the telecommunications sector, and the virtualized evolved-packet-core market in Spain is responding to this challenge with enhanced security features. As cyber threats evolve, operators are compelled to adopt solutions that offer robust security measures. Virtualized architectures can provide advanced security protocols, including network slicing and segmentation, which are essential for protecting sensitive data. The market is likely to see a growing emphasis on security as a differentiator, with operators investing in solutions that not only meet regulatory requirements but also build customer trust.

Support for Emerging Technologies

The virtualized evolved-packet-core market in Spain is increasingly driven by the need to support emerging technologies such as 5G and edge computing. These technologies require a flexible and efficient core network to deliver high-speed connectivity and low latency. As Spain continues to invest in 5G infrastructure, the demand for virtualized solutions that can seamlessly integrate with these technologies is expected to rise. The market is poised for growth as operators seek to leverage virtualization to enhance their service offerings and meet the demands of next-generation applications.

Regulatory Incentives for Innovation

Regulatory frameworks in Spain are evolving to foster innovation within the telecommunications sector, significantly impacting the virtualized evolved-packet-core market. Government initiatives aimed at promoting digital transformation are likely to provide incentives for operators to adopt virtualized solutions. These incentives may include financial support or streamlined processes for deploying new technologies. As a result, the market is expected to benefit from increased investment and innovation, as operators align their strategies with regulatory goals that encourage modernization and competitiveness.

Rising Demand for Network Flexibility

The virtualized evolved-packet-core market in Spain is experiencing a notable surge in demand for network flexibility. As businesses and service providers seek to adapt to rapidly changing market conditions, the ability to scale network resources dynamically becomes essential. This flexibility allows operators to optimize their infrastructure, reducing operational costs by up to 30%. Furthermore, the increasing reliance on mobile applications and IoT devices necessitates a robust and adaptable network architecture. The virtualized evolved-packet-core market is thus positioned to benefit from this trend, as it enables operators to deploy services more efficiently and respond to customer needs with agility.

Cost Efficiency through Virtualization

Cost efficiency remains a critical driver for the virtualized evolved-packet-core market in Spain. By transitioning to virtualized solutions, operators can significantly reduce capital expenditures associated with traditional hardware. Reports indicate that companies can save approximately 25% on infrastructure costs by adopting virtualized technologies. This shift not only lowers the barrier to entry for new players in the telecommunications sector but also allows existing operators to reallocate resources towards innovation and service enhancement. The virtualized evolved-packet-core market is thus likely to see increased investment as organizations recognize the financial benefits of virtualization.

Market Segment Insights

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

In the Spain virtualized evolved-packet-core market, the distribution between solutions and services is notably skewed, with solutions accounting for the largest share. This dominance can be attributed to the growing demand for integrated network solutions that enhance operational efficiency and performance. Meanwhile, services are gaining traction as more businesses look for tailored assistance and support to maximize the benefits of virtualized architectures. Growth trends in this segment reveal a shift toward more comprehensive service offerings, as companies seek not just solutions but ongoing support and expertise. This shift is driven by the increasing complexity of network environments and the need for continuous optimization. As businesses adapt to emerging technologies, the demand for specialized services within the virtualized evolved-packet-core segment is anticipated to surge, positioning services as the fastest growing area in the market.

Solutions: Dominant vs. Services: Emerging

Solutions in the Spain virtualized evolved-packet-core market are characterized by their comprehensive and integrated nature, serving as the backbone for network operations. They provide essential functionalities such as traffic management and resource allocation, proving critical for the fulfillment of modern communication standards. On the other hand, services are seen as an emerging value, focusing on providing tailored, adaptive support and consulting to businesses navigating the complexities of virtual networking. The increasing emphasis on digital transformation has positioned these services as indispensable, making them essential for the optimization and ongoing management of network performance.

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

The distribution of market share within the deployment segment reveals that On-Premise solutions dominate the landscape, appealing to enterprises that require enhanced control and security over their operations. On-Cloud solutions, while currently less prevalent, are gaining traction due to their flexibility and cost-effectiveness, thereby carving out a substantial niche within the Spain virtualized evolved-packet-core market. Growth trends indicate a significant shift towards On-Cloud deployment as businesses increasingly recognize the benefits of scalability and reduced operational costs. Key drivers for this trend include the rapid advancement of cloud technologies and the demand for agile networking solutions. As organizations pivot to digital-first strategies, the On-Cloud segment is positioned to experience accelerated growth, highlighting the evolving preferences of enterprises in Spain.

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

On-Premise solutions have established themselves as the dominant choice for many businesses, particularly those in regulated industries that prioritize data governance and control. These solutions offer robust performance and customization, making them suitable for large enterprises with existing infrastructures. In contrast, On-Cloud deployments are emerging as a viable alternative, appealing to startups and small to medium-sized enterprises seeking agility and lower upfront investments. The flexibility of On-Cloud solutions enables faster deployments and updates, supporting the fast-paced nature of technological advances. As digital transformation initiatives gain momentum, both segments are likely to adapt and evolve, catering to the diverse needs of businesses operating within the Spain virtualized evolved-packet-core market.

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

In the Spain virtualized evolved-packet-core market, VoLTE holds a significant market share, reflecting its critical role in enhancing voice services over LTE networks. Other segments like LTE and VoWiFi also contribute to the market dynamics, but they do not match the dominance demonstrated by VoLTE. Meanwhile, IoT and M2M are rapidly gaining traction, driven by the exponential growth in connected devices and the demand for advanced connectivity solutions. Growth trends in this market are influenced by the increasing adoption of VoLTE, which offers superior voice quality and lower latency. Concurrently, IoT and M2M applications are projected to expand due to emerging technologies and the push toward smart cities. The shift toward cloud-based solutions and the necessity for efficient communication infrastructures are key drivers fostering this growth, making the segment increasingly relevant in the evolving telecommunications landscape.

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

VoLTE is the dominant segment in the Spain virtualized evolved-packet-core market, providing high-quality voice services by leveraging LTE technology. This advancement not only enhances user experience but also allows operators to optimize their networks efficiently. In contrast, IoT and M2M segments are considered emerging, marking a significant evolution in how devices connect and communicate. These technologies are becoming essential as industries integrate automation and data-driven solutions. The requirements for reliable, low-latency connections in IoT applications position this segment for substantial growth, as they are increasingly adopted across sectors like healthcare, automotive, and manufacturing. Additionally, the overlap between these segments illustrates a growing focus on enabling seamless communication and integration, making both pivotal in shaping future market trends.

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

In the Spain virtualized evolved-packet-core market, Telecom Operators hold the largest share, reflecting their critical role in the telecommunications infrastructure. This segment is being driven by the continuous demand for enhanced connectivity, cloud services, and 5G deployments. Enterprises, on the other hand, represent the fastest-growing segment as businesses increasingly adopt virtualized solutions to streamline operations and improve efficiency through digital transformation initiatives. With the rise of remote work and demand for agile IT solutions, the enterprise segment is witnessing rapid growth. Growth trends in the Spain virtualized evolved-packet-core market indicate that while Telecom Operators are expanding their capabilities to support larger user bases and increased data traffic, Enterprises are leveraging innovations in virtualization to drive adoption. Factors such as the need for cost-effective solutions, scalability, and increased performance are propelling Enterprises towards adopting virtualized core networks. This dual demand shapes the competitive landscape, pushing innovation and development throughout the market.

Telecom Operators (Dominant) vs. Enterprises (Emerging)

Telecom Operators are the dominant players in the Spain virtualized evolved-packet-core market, characterized by their established infrastructure, extensive customer bases, and significant investment in next-generation technologies. These operators are focused on enhancing their service offerings, enabling them to provide greater bandwidth, improved reliability, and innovative solutions to consumers and businesses alike. In contrast, the Enterprises segment, while emerging, is rapidly becoming a vital player driven by the need for customization and integration of virtualized technologies. These businesses seek to harness the benefits of virtualized core networks to enhance operational efficiency and support an increasingly digital landscape. The competition between these segments is intense, pushing both types of organizations towards continuous improvement and greater service delivery.

Get more detailed insights about Spain Virtualized Evolved Packet Core Market

Key Players and Competitive Insights

The virtualized evolved-packet-core market in Spain is characterized by a dynamic competitive landscape, driven by the increasing demand for efficient network management and the transition towards 5G technologies. Key players such as Nokia (FI), Ericsson (SE), and Huawei (CN) are at the forefront, each adopting distinct strategies to enhance their market positioning. Nokia (FI) emphasizes innovation through its investments in AI and machine learning, aiming to optimize network performance and reduce operational costs. Meanwhile, Ericsson (SE) focuses on strategic partnerships and regional expansions, particularly in collaboration with local telecom operators to enhance service delivery. Huawei (CN) appears to leverage its extensive R&D capabilities to introduce cutting-edge solutions, thereby reinforcing its competitive edge in the market.The business tactics employed by these companies reflect a concerted effort to localize manufacturing and optimize supply chains, which is crucial in a moderately fragmented market. This competitive structure allows for a diverse range of offerings, with each player contributing to a collective influence that shapes market dynamics. The emphasis on localized production not only reduces lead times but also enhances responsiveness to regional demands, thereby fostering a more resilient supply chain.

In October Nokia (FI) announced a strategic partnership with a leading Spanish telecom operator to deploy its latest virtualized core network solutions. This collaboration is expected to enhance network efficiency and support the operator's transition to 5G, indicating Nokia's commitment to leveraging local partnerships for growth. The strategic importance of this move lies in its potential to solidify Nokia's presence in the Spanish market while addressing the specific needs of local operators.

In September Ericsson (SE) unveiled its new cloud-native core solution tailored for the Spanish market, designed to facilitate seamless integration with existing infrastructure. This development underscores Ericsson's focus on innovation and adaptability, allowing operators to enhance service delivery while minimizing disruption. The introduction of this solution is likely to strengthen Ericsson's competitive position by providing operators with the tools necessary to meet evolving consumer demands.

In August Huawei (CN) launched a new initiative aimed at promoting sustainable practices within its operations in Spain, focusing on energy-efficient technologies for its virtualized core solutions. This initiative not only aligns with The virtualized evolved-packet-core market. The strategic importance of this move is multifaceted, as it enhances Huawei's brand image while addressing the growing demand for environmentally friendly solutions in telecommunications.

As of November the competitive trends in the virtualized evolved-packet-core market are increasingly defined by digitalization, sustainability, 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 likely to evolve from traditional price-based competition towards a focus on technological innovation, supply chain reliability, and sustainable practices, indicating a shift in how companies will vie for market share.

Key Companies in the Spain Virtualized Evolved Packet Core Market include

Industry Developments

Recent developments in the Spain Virtualized Evolved Packet Core Market have shown notable advancements, particularly concerning key players such as Oracle, Airspan Networks, VMware, ZTE, Cisco, Huawei, Mavenir, Altiostar, Harmonic, Nokia, IBM, Phantom Edge, Intel, Parallel Wireless, and Ericsson. Over the past year, significant market growth has been reported, driven by the increasing demand for 5G infrastructure and cloud-native solutions.

A major European mobile operator revealed in May 2025 that it was working with a Spanish vEPC technology vendor to speed up the deployment of private 5G networks and virtualization solutions for companies. The purpose was to make sure that networks could work together and be easily updated all around the country. In August 2025, two global telecom corporations teamed up with Spanish technology integrators to set up a multi-vendor vEPC lab in Madrid. 

The major goals of the facility were to test, customize, and certify cloud-native packet core deployments for a variety of businesses in Spain. A Spanish telecom company became a member of a worldwide Open RAN alliance in January 2025. This brought together local innovation partners to use vEPC technology with Open RAN infrastructure to build new smart city and IoT solutions in Spain.

The valuation of Virtualized Evolved Packet Core solutions has significantly increased, reflecting a robust interest in enhancing network agility and performance, an essential requirement for telecom providers to meet growing consumer and enterprise needs. The market has matured over the last few years, particularly notable in actions during early 2022, as several firms expanded their operations within the Spanish market.

Future Outlook

Spain Virtualized Evolved Packet Core Market Future Outlook

The Virtualized Evolved Packet Core Market in Spain is projected to grow at a 22.18% CAGR from 2025 to 2035, driven by increasing demand for 5G and IoT applications.

New opportunities lie in:

  • Development of AI-driven network optimization 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.

Market Segmentation

Spain Virtualized Evolved Packet Core Market End-User Outlook

  • Telecom Operators
  • Enterprises

Spain Virtualized Evolved Packet Core Market Component Outlook

  • Solutions
  • Services

Spain Virtualized Evolved Packet Core Market Deployment Outlook

  • On-Premise
  • On-Cloud

Spain Virtualized Evolved Packet Core Market Applications Outlook

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

Report Scope

MARKET SIZE 2024 95.17(USD Million)
MARKET SIZE 2025 116.28(USD Million)
MARKET SIZE 2035 862.16(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 22.18% (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 Spain
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FAQs

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

The expected market size of the Spain Virtualized Evolved Packet Core Market in 2024 is 105.75 million USD.

How fast is the Spain Virtualized Evolved Packet Core Market anticipated to grow from 2025 to 2035?

The market is anticipated to grow at a compound annual growth rate of 6.435% from 2025 to 2035.

What will be the market value of the Spain Virtualized Evolved Packet Core Market in 2035?

In 2035, the market is expected to reach a total value of 210 million USD.

What are the key components of the Spain Virtualized Evolved Packet Core Market?

The key components of the market are divided into Solutions and Services.

What is the expected market value for Solutions in the Spain Virtualized Evolved Packet Core Market by 2035?

The expected market value for Solutions is 120 million USD by 2035.

How much is the Services segment of the market valued at in 2024?

The Services segment of the market is valued at 45.75 million USD in 2024.

Who are the major players in the Spain Virtualized Evolved Packet Core Market?

Major players in the market include Oracle, VMware, Cisco, Huawei, and Ericsson among others.

What market value is the Services segment expected to reach by 2035?

The Services segment is expected to reach a market value of 90 million USD by 2035.

What are the implications of emerging technologies on the Spain Virtualized Evolved Packet Core Market?

Emerging technologies present opportunities for growth and innovation within the Spain Virtualized Evolved Packet Core Market.

What challenges does the Spain Virtualized Evolved Packet Core Market currently face?

Challenges include rapid technological evolution and competition among major players in the market.

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