United States Virtualized Evolved Packet Core Market By Component, By Network Function, By End-User, By Region, Competition, Forecast and Opportunities, 2020-2030F

United States Virtualized Evolved Packet Core Market was valued at USD 1.08 billion in 2024 and is expected to reach USD 3.08 billion by 2030 with a CAGR of 18.89% during the forecast period.

The United States Virtualized Evolved Packet Core (vEPC) Market refers to the market for software-defined solutions that virtualize the core network functions of mobile communication networks, replacing traditional hardware-based Evolved Packet Core systems. vEPC integrates critical network functions such as the Mobility Management Entity, Serving Gateway, Packet Data Network Gateway, and Policy and Charging Rules Function into a virtualized environment, enabling operators to manage data traffic, user mobility, and service quality more efficiently. Unlike conventional EPCs that rely heavily on physical hardware, vEPC leverages cloud computing, network function virtualization, and software-defined networking to offer greater flexibility, scalability, and cost-effectiveness.

This transformation allows telecom operators to dynamically allocate resources based on traffic demand, reduce capital and operational expenditures, accelerate service deployment, and improve overall network performance. The market in the United States is poised for significant growth due to several key factors. The rapid rollout of 5G networks, which demand highly flexible and scalable core infrastructure, is a primary driver, as operators seek to support higher data throughput, ultra-low latency, and massive device connectivity. Additionally, increasing adoption of Internet of Things solutions, edge computing, and cloud-based services is further fueling the demand for virtualized core networks capable of handling complex traffic patterns efficiently.

Enterprises and government sectors are also embracing vEPC to enable private 5G networks, improve operational efficiency, and enhance security protocols. Moreover, ongoing investments in digital transformation and network modernization by leading telecom providers are creating opportunities for vendors offering vEPC solutions and services. With technological advancements in virtualization, orchestration, and automation, the United States vEPC market is expected to expand rapidly, driven by the need for cost-efficient, agile, and high-performance networks. As service providers increasingly prioritize network flexibility, scalability, and operational efficiency, the adoption of virtualized EPC solutions will continue to rise, making the United States a leading market for vEPC deployment in the coming years.

Key Market Drivers

Rapid Deployment of 5G Networks

In the United States Virtualized Evolved Packet Core Market, the rapid deployment of 5G networks stands as a pivotal driver, fundamentally reshaping the telecommunications landscape by enabling unprecedented connectivity speeds, enhanced capacity, and ultra-low latency that traditional infrastructures cannot match. As telecommunications operators accelerate their rollout of 5G infrastructure to meet escalating consumer and enterprise demands for seamless digital experiences, virtualized evolved packet core solutions emerge as the backbone, offering scalable, flexible architectures that decouple hardware from software functions, thereby facilitating quicker network upgrades and optimizations without the prohibitive costs associated with physical hardware overhauls. This shift is particularly critical in a market where competitive pressures compel service providers to deliver innovative services such as augmented reality applications, autonomous vehicle support, and remote healthcare diagnostics, all of which require the robust, distributed processing capabilities inherent in virtualized systems. Furthermore, the integration of virtualized evolved packet core with 5G standalone architectures allows for network slicing, enabling operators to allocate dedicated virtual networks tailored to specific use cases, thus optimizing resource utilization and enhancing service differentiation in a crowded marketplace.

Government initiatives and regulatory frameworks, including spectrum auctions and incentives for broadband expansion, further propel this driver by creating an environment conducive to investment in next-generation technologies, ensuring that the United States remains at the forefront of global telecommunications innovation. Enterprises across sectors like manufacturing, logistics, and entertainment are increasingly adopting 5G-enabled solutions to streamline operations, reduce downtime through predictive maintenance, and harness real-time data analytics, all underpinned by the agility of virtualized evolved packet core deployments that can dynamically scale to accommodate fluctuating traffic loads. This driver not only addresses the limitations of legacy 4G cores but also positions operators to capitalize on emerging revenue streams from enterprise-grade services, where reliability and performance are paramount.

The convergence of 5G with other technologies, such as artificial intelligence and machine learning, amplifies the value proposition of virtualized evolved packet core, as it supports edge intelligence for faster decision-making at the network periphery, reducing reliance on centralized data centers and mitigating bottlenecks in data transmission. In urban centers where population density exacerbates network congestion, virtualized solutions provide a strategic advantage by enabling localized processing, thereby improving overall user experience and fostering customer loyalty in a market characterized by high churn rates. Moreover, the environmental sustainability aspect cannot be overlooked, as virtualized evolved packet core reduces the carbon footprint associated with traditional hardware-centric networks through efficient resource pooling and energy-optimized operations, aligning with corporate social responsibility goals that are increasingly influencing procurement decisions. International trade dynamics also play a role, with domestic operators seeking to bolster supply chain resilience by investing in software-defined networks that are less vulnerable to geopolitical disruptions in hardware sourcing.

The educational sector benefits as well, with 5G-powered virtualized networks supporting remote learning platforms that demand high-bandwidth, low-latency interactions to ensure equitable access to digital resources. Financial institutions leverage this technology for secure, real-time transaction processing, enhancing fraud detection and customer service responsiveness. Retailers utilize it for immersive shopping experiences via augmented reality mirrors and inventory management systems that respond instantaneously to consumer behaviors. In the energy sector, smart grid applications rely on virtualized evolved packet core to manage distributed energy resources efficiently, promoting grid stability and renewable integration. Transportation networks, including railways and aviation, employ it for safety-critical systems that require millisecond-level responsiveness.

The healthcare industry's telemedicine surge, accelerated by recent global events, underscores the necessity for reliable, low-latency networks to support remote consultations and monitoring. Entertainment providers stream high-definition content without buffering, capitalizing on 5G's capabilities to expand market reach. Agricultural operations use precision farming tools enabled by this technology to optimize yields and resource usage. Public safety organizations deploy it for enhanced situational awareness through connected surveillance and emergency response systems. Overall, the rapid deployment of 5G networks drives the United States Virtualized Evolved Packet Core Market by fostering innovation, efficiency, and competitiveness across diverse economic sectors, ensuring sustained growth and technological leadership.

According to recent telecommunications data, North America is forecast to achieve a 90 percent 5G adoption rate by 2030, leading global regions in penetration. In the United States, 5G connections are projected to grow from around 200 million in 2023 to over 500 million by 2025, driven by extensive network investments exceeding $100 billion in spectrum auctions. This surge supports a compound annual growth rate of 35 percent in 5G smartphone shipments, reaching 153 million units annually by 2025.

Key Market Challenges

High Implementation Complexity and Integration Challenges

One of the foremost challenges in the United States Virtualized Evolved Packet Core Market is the complexity associated with implementing and integrating virtualized solutions into existing telecom infrastructures. Traditional Evolved Packet Core systems rely on tightly coupled hardware and software architectures, whereas virtualized systems require a complete decoupling of network functions from physical devices. This transition demands careful planning, extensive testing, and skilled personnel capable of managing software-defined networking, cloud-native architectures, and orchestration tools. Telecom operators face significant challenges in ensuring seamless interoperability between legacy hardware systems and new virtualized components, as any misalignment can lead to network downtime, degraded service quality, or security vulnerabilities.

Moreover, the integration of Virtualized Evolved Packet Core solutions with advanced technologies such as cloud computing, edge computing, and network slicing introduces additional layers of operational complexity. Ensuring that these virtualized functions perform optimally under varying traffic conditions and service requirements is a major undertaking.

Additionally, operators must maintain compliance with regulatory standards while managing diverse vendor ecosystems, each providing proprietary solutions that may not always be fully compatible. The requirement for high technical expertise, combined with the need for robust network testing and validation, increases the time and cost of deployment, slowing market adoption. Addressing these integration and implementation challenges is critical for telecom providers to realize the benefits of virtualization, yet it remains a significant barrier for widespread Virtualized Evolved Packet Core adoption in the United States.

Key Market Trends

Accelerated Deployment of Fifth-Generation Networks Driving Virtualized Core Adoption

The rapid expansion of fifth-generation networks across the United States is one of the most significant trends influencing the growth of the Virtualized Evolved Packet Core Market. Telecom operators are increasingly moving away from legacy hardware-based core infrastructures toward virtualized solutions to meet the high-performance demands of fifth-generation technology. The introduction of fifth-generation networks requires networks to support ultra-low latency, high data throughput, and massive device connectivity simultaneously, which is challenging for traditional Evolved Packet Core systems. Virtualized Evolved Packet Core offers flexibility through software-defined networking and cloud-native architectures, enabling telecom providers to scale resources dynamically based on network traffic and service demand. Moreover, the trend of deploying private fifth-generation networks for enterprises and industrial applications is further amplifying the need for virtualized core solutions. These networks allow businesses to optimize operational efficiency, enhance security, and improve service quality without relying on external infrastructure. Vendors in the United States are responding to this trend by offering advanced virtualized Evolved Packet Core solutions integrated with automation, orchestration, and analytics capabilities. The demand for such solutions is expected to rise steadily as telecom operators focus on reducing capital and operational expenditures while ensuring high-quality service delivery. The accelerated deployment of fifth-generation networks, combined with increasing adoption in enterprise and industrial sectors, is thereby establishing a long-term growth trajectory for the Virtualized Evolved Packet Core Market in the United States.

Key Market Players

• Cisco Systems, Inc.
• Ericsson Inc.
• Huawei Technologies USA Inc.
• Nokia Corporation
• Affirmed Networks (a subsidiary of Microsoft Corporation)
• Mavenir Systems, Inc.
• NEC Corporation of America
• Samsung Electronics America, Inc.
• ZTE Corporation
• Red Hat, Inc.

Report Scope:

In this report, the United States Virtualized Evolved Packet Core Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Virtualized Evolved Packet Core Market, By Component:

• Software
• Services

United States Virtualized Evolved Packet Core Market, By Network Function:

• Mobility Management Entity (MME)
• Serving Gateway (S-GW)
• Packet Data Network Gateway (P-GW)
• Policy and Charging Rules Function (PCRF)
• Others

United States Virtualized Evolved Packet Core Market, By End-user:

• Telecom Operators
• Enterprises
• Government

United States Virtualized Evolved Packet Core Market, By Region:

• South US
• Midwest US
• North-East US
• West US

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Virtualized Evolved Packet Core Market.

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Company Information

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