
Global Virtualized Evolved Packet Core VEPC Market Insights, Size, and Forecast By Deployment Type (On-Premises, Cloud-Based, Hybrid), By Solution (Hardware Solutions, Software Solutions, Integrated Solutions), By End User (Telecommunications Service Providers, Enterprises, Government Agencies), By Service Type (Network Function Virtualization, Traffic Management, Security Management, Data Analytics), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Virtualized Evolved Packet Core VEPC Market is projected to grow from USD 18.4 Billion in 2025 to USD 65.7 Billion by 2035, reflecting a compound annual growth rate of 16.4% from 2026 through 2035. The Virtualized Evolved Packet Core VEPC market encompasses the virtualization of core network components responsible for managing data traffic in 4G LTE and 5G networks. This involves decoupling hardware from software, allowing network functions to run on standard servers, thereby enhancing flexibility, scalability, and cost efficiency for mobile operators. Key market drivers include the explosive growth in mobile data traffic, driven by increased smartphone penetration and the proliferation of data intensive applications such as video streaming and IoT devices. The pressing need for lower operational expenditures and capital expenditures in telecommunications infrastructure, coupled with the agility required for rapid service deployment and upgrades, further fuels market expansion. The ongoing global rollout of 5G networks, which inherently demand flexible and scalable core architectures, serves as a significant catalyst for VEPC adoption.
Global Virtualized Evolved Packet Core VEPC Market Value (USD Billion) Analysis, 2025-2035

2025 - 2035
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Important trends shaping the VEPC landscape include the increasing adoption of cloud native architectures, enabling even greater automation and elasticity in network operations. The convergence of fixed and mobile networks, alongside the growing emphasis on network slicing for diverse service requirements, is also driving innovation within the VEPC space. The integration of artificial intelligence and machine learning for network optimization and predictive maintenance represents another critical development. However, the market faces restraints such as the complexity of migrating from traditional hardware centric EPCs to virtualized environments, demanding substantial investment in new skillsets and infrastructure. Security concerns associated with software defined networks and the interoperability challenges between different vendor solutions also pose significant hurdles. Despite these challenges, substantial market opportunities exist in the expansion of private 5G networks for enterprises, the development of edge computing capabilities requiring localized VEPC deployments, and the provision of managed VEPC services by cloud providers.
North America stands as the dominant region in the global VEPC market, propelled by early adoption of advanced telecommunication technologies, robust investment in 5G infrastructure, and the strong presence of major technology providers and research institutions. This region's mature telecommunications market and high demand for innovative network solutions contribute significantly to its leadership. Conversely, Asia Pacific is identified as the fastest growing region, driven by massive mobile subscriber bases, rapid urbanization, and aggressive governmental initiatives to expand digital infrastructure and implement 5G across emerging economies. Key players such as Cisco Systems, IBM Corporation, Mavenir, Nokia Networks, Telefonaktiebolaget LM Ericsson, AlcatelLucent, Intel Corporation, NEC Corporation, ZTE Corporation, and Samsung Electronics are strategically focusing on research and development to enhance their VEPC offerings, forging partnerships with cloud providers, and expanding their geographical footprint to capitalize on the burgeoning demand, particularly in high growth regions. These companies are also prioritizing solutions that support hybrid cloud environments and open source initiatives to foster broader market adoption and interoperability.
Quick Stats
Market Size (2025):
USD 18.4 BillionProjected Market Size (2035):
USD 65.7 BillionLeading Segment:
Telecommunications Service Providers (85.4% Share)Dominant Region (2025):
North America (36.8% Share)CAGR (2026-2035):
16.4%
Global Virtualized Evolved Packet Core VEPC Market Emerging Trends and Insights
Edge VEPC Market Expansion
The Edge VEPC Market Expansion reflects a critical shift in how virtualized evolved packet core technology is deployed. Instead of centralized data centers, VEPC functions are increasingly being pushed closer to the network edge, often within enterprise premises, smaller regional data centers, or telecom access points. This decentralization is driven by the demand for ultra low latency and localized data processing, essential for emerging applications like industrial IoT, autonomous vehicles, and real time edge analytics. By placing the VEPC at the edge, data traffic can be processed closer to its source, minimizing backhaul to core networks and improving application responsiveness. This trend also enables enhanced security by localizing data and reduces bandwidth consumption on wide area networks, supporting a more distributed and efficient network architecture for 5G and beyond.
5G Network Slicing Growth
5G network slicing is a key driver of growth in the Global Virtualized Evolved Packet Core VEPC Market. This trend signifies the increasing adoption by mobile operators of technology enabling the creation of multiple isolated virtual networks atop a shared physical 5G infrastructure. Each slice can be customized with specific latency bandwidth and reliability characteristics to meet diverse application requirements. This allows for dedicated resources for critical communications IoT devices or enhanced mobile broadband services without impacting other traffic. The flexibility and efficiency offered by network slicing empower operators to cater to new enterprise use cases and develop innovative revenue streams further fueling the demand for VEPC solutions that provide the underlying virtualization and orchestration capabilities necessary for effective slice management and deployment.
Cloud Native VEPC Adoption Surge
Operators are rapidly embracing Cloud Native Virtualized Evolved Packet Core VEPC solutions, marking a significant shift in network infrastructure. This surge is driven by the inherent benefits of cloud native architectures offering unparalleled agility, scalability, and resilience. Traditional virtualized packet cores, while a step forward, often retained monolithic tendencies. Cloud native VEPCs, built on microservices, containers, and orchestration, allow for granular resource allocation and independent scaling of control and user plane functions. This modularity enables faster deployment of new services, more efficient resource utilization, and improved network programmability. Furthermore, the inherent automation capabilities within cloud native platforms lead to reduced operational overhead and quicker recovery from failures, making them increasingly attractive for future proofing mobile networks.
What are the Key Drivers Shaping the Global Virtualized Evolved Packet Core VEPC Market
Surging Demand for 5G Deployments and Network Modernization
The widespread rollout of 5G networks is a primary catalyst for the virtualized evolved packet core VEPC market. As mobile operators worldwide accelerate their 5G deployments, they require more agile scalable and cost efficient core network infrastructure to handle the massive increase in data traffic and diverse service requirements that 5G brings. Traditional hardware centric EPCs struggle to meet these demands effectively. VEPC solutions with their software defined and cloud native architectures provide the necessary flexibility programmability and automated operations essential for 5G’s enhanced mobile broadband ultra reliable low latency communications and massive machine type communications. Furthermore the ongoing need for network modernization by operators seeking to optimize existing 4G LTE networks and prepare for future evolutionary steps also fuels the adoption of VEPC technology.
Accelerated Cloud Adoption and Edge Computing Expansion
Enterprises are increasingly embracing cloud native architectures to enhance agility, scalability, and cost efficiency. This fundamental shift fuels demand for virtualized Evolved Packet Core solutions that can seamlessly integrate with public, private, and hybrid cloud environments. Edge computing further amplifies this trend. As data generation moves closer to the source with IoT devices and real time applications, processing power and connectivity must follow. VEPC facilitates the deployment of network functions at the edge, reducing latency, conserving bandwidth, and enabling new services like autonomous vehicles and augmented reality. The inherent flexibility and programmability of VEPC are crucial for supporting the dynamic and distributed nature of both cloud and edge infrastructures, making it an indispensable enabler for future digital transformation initiatives across industries.
Cost Optimization and Operational Efficiency Imperatives for Telecom Operators
Telecom operators face immense pressure to reduce capital and operational expenditures. Traditional network infrastructure is costly to build maintain and upgrade. Virtualized Evolved Packet Core VEPC offers a solution by enabling the use of commercial off the shelf hardware and software defined networking. This significantly lowers hardware costs and simplifies network management reducing the need for specialized personnel and manual interventions. Automating network functions and scaling resources on demand further optimizes operational efficiency. By leveraging VEPC operators can achieve greater agility faster service deployment and lower total cost of ownership allowing them to invest more in innovation and customer experience. This imperative for cost reduction and operational streamlining is a primary driver for VEPC adoption.
Global Virtualized Evolved Packet Core VEPC Market Restraints
Lack of Interoperability Standards Across Vendor Solutions
The Global Virtualized Evolved Packet Core VEPC market faces a significant hurdle due to the lack of interoperability standards across vendor solutions. This restraint means different manufacturers’ VEPC components often struggle to communicate and integrate seamlessly. Operators deploying VEPC desire the flexibility to mix and match best-of-breed software and hardware from various vendors to build their networks. However, without universal standards, integrating these disparate systems becomes complex, time consuming, and expensive. This fragmentation stifles innovation, locks operators into specific vendor ecosystems, and delays widespread VEPC adoption. It creates compatibility challenges for network functions virtualization NFV deployments, hindering the full realization of VEPC’s benefits like agility and cost efficiency.
Security Concerns and Data Privacy Regulations for Cloud-Native EPC
Enterprises deploying cloud native evolved packet core solutions face significant hurdles related to security and data privacy. Storing sensitive network traffic and subscriber data in public or hybrid cloud environments introduces vulnerabilities to cyberattacks and unauthorized access. Compliance with a myriad of global and regional regulations such as GDPR HIPAA and CCPA becomes complex. Each jurisdiction imposes specific requirements for data residency protection and breach notification. Ensuring data sovereignty and mitigating risks associated with cross border data flows are critical concerns. Service providers must implement robust encryption access controls and continuous monitoring to satisfy stringent audit requirements and build trust with end users and regulatory bodies alike. This intricate landscape of security threats and evolving regulatory mandates slows down adoption and increases operational overhead.
Global Virtualized Evolved Packet Core VEPC Market Opportunities
Monetizing 5G Services and Reducing OPEX with Agile VEPC Deployments
The global Virtualized Evolved Packet Core VEPC market offers a prime opportunity for telecommunication operators to significantly boost profitability. Agile VEPC deployments are pivotal for monetizing advanced 5G services. They enable operators to rapidly launch and scale innovative offerings like network slicing for enterprises, specialized IoT connectivity, and low latency edge computing applications. This flexibility accelerates time to market for new revenue generating services, moving beyond traditional connectivity models.
Simultaneously, agile VEPC deployments dramatically reduce operational expenditures OPEX. By migrating from expensive proprietary hardware to a software defined, cloud native architecture, operators gain immense efficiency. Automation, dynamic resource allocation, and simplified network management reduce manual labor, power consumption, and infrastructure costs. This allows for more efficient scaling and resource utilization, directly impacting the bottom line. The dual advantage of enhanced revenue generation from diverse 5G services and substantial OPEX savings makes agile VEPC a compelling strategic imperative for market leadership.
Capturing Private Network and Edge Computing Markets with Flexible VEPC Solutions
The evolving landscape of enterprise connectivity presents a significant opportunity for Virtualized Evolved Packet Core VEPC providers. Private 5G and LTE networks are rapidly expanding across industries such as manufacturing, logistics, and healthcare, demanding dedicated, secure, and high performance communication infrastructure. Concurrently, the proliferation of Internet of Things IoT devices and real time applications fuels the demand for edge computing, pushing data processing closer to the source to minimize latency and optimize bandwidth.
Flexible VEPC solutions are uniquely positioned to capture these burgeoning markets. Their software defined, scalable, and disaggregated architecture enables agile deployment in diverse environments, from large campus networks to compact industrial sites at the network edge. By offering customizable and efficient core network functions tailored to specific enterprise needs, VEPC providers empower businesses to build robust private networks and fully leverage edge computing, driving innovation and operational efficiency across various sectors globally. This strategic alignment addresses critical enterprise requirements for agility and control.
Global Virtualized Evolved Packet Core VEPC Market Segmentation Analysis
Key Market Segments
By Deployment Type
- •On-Premises
- •Cloud-Based
- •Hybrid
By Service Type
- •Network Function Virtualization
- •Traffic Management
- •Security Management
- •Data Analytics
By End User
- •Telecommunications Service Providers
- •Enterprises
- •Government Agencies
By Solution
- •Hardware Solutions
- •Software Solutions
- •Integrated Solutions
Segment Share By Deployment Type
Share, By Deployment Type, 2025 (%)
- Cloud-Based
- On-Premises
- Hybrid

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Why are Telecommunications Service Providers dominating the Global Virtualized Evolved Packet Core VEPC Market?
Telecommunications Service Providers hold the largest share due to their critical need for scalable, flexible, and cost efficient network infrastructure to support 5G deployment, IoT, and increasing data traffic. VEPC solutions enable these providers to dynamically provision resources, accelerate service innovation, and reduce operational expenditures associated with traditional hardware centric EPC architectures. Their substantial network reach and subscriber bases necessitate advanced virtualization capabilities for efficient traffic management and service delivery.
Which service type is fundamental to the growth of the Global Virtualized Evolved Packet Core VEPC Market?
Network Function Virtualization is fundamental as it forms the core of VEPC by decoupling network functions from proprietary hardware and running them as software instances on commodity servers. This enables telecommunications companies and enterprises to achieve greater operational flexibility, rapid service deployment, and improved resource utilization. NFV transforms network architecture, allowing for agile scaling of traffic management, security management, and data analytics capabilities within the VEPC framework.
What solution category is experiencing robust demand in the Global Virtualized Evolved Packet Core VEPC Market?
Software Solutions are experiencing robust demand as they are the primary enablers of virtualization in the VEPC market. These solutions facilitate the transformation of traditional packet core functions into flexible, software defined components, supporting features like traffic management, security, and data analytics. The inherent programmability and upgradability of software make it crucial for adapting to evolving network demands and technological advancements, driving efficiency and innovation across end user segments.
Global Virtualized Evolved Packet Core VEPC Market Regulatory and Policy Environment Analysis
The global Virtualized Evolved Packet Core VEPC market operates within a dynamic regulatory and policy framework heavily influenced by 5G rollout initiatives and data governance. Regulators worldwide are prioritizing spectrum allocation for next generation wireless services while simultaneously promoting network densification and performance. Policies encouraging open interfaces and disaggregation are pivotal, aiming to mitigate vendor lock in and foster a more competitive, innovative supplier ecosystem for core network components. Data privacy regulations, such as GDPR and similar national mandates, impose stringent requirements on data handling and security within virtualized network environments, necessitating robust compliance measures from VEPC providers. Furthermore, critical infrastructure protection policies globally influence network resilience, cybersecurity standards, and the adoption of secure, reliable VEPC solutions. Governments are increasingly offering incentives for digital transformation and 5G deployment, accelerating the adoption of virtualized core technologies. Policy emphasis on energy efficiency and sustainable networking also impacts architectural choices, favoring software defined, cloud native VEPC deployments.
Which Emerging Technologies Are Driving New Trends in the Market?
The Global Virtualized Evolved Packet Core market thrives on relentless innovation. Emerging technologies fundamentally reshape network architectures, driving significant expansion. Artificial Intelligence and Machine Learning are paramount, enabling intelligent automation, predictive analytics, and self optimizing network capabilities for enhanced performance and operational efficiency.
The push towards full 5G Standalone deployments is a critical catalyst, accelerating the adoption of cloud native VEPC solutions that facilitate dynamic network slicing. This allows carriers to offer tailored service level agreements for diverse applications, from ultra reliable low latency communications to massive machine type communications. Edge computing integration is another transformative trend, pushing VEPC functions closer to the data source. This minimizes latency, improves response times for critical applications like AR VR and autonomous vehicles, and reduces strain on core networks. Enhanced security frameworks, including zero trust principles and advanced threat detection, are also becoming integral to protect increasingly distributed and virtualized infrastructures. These innovations collectively drive the market’s robust growth.
Global Virtualized Evolved Packet Core VEPC Market Regional Analysis
Global Virtualized Evolved Packet Core VEPC Market
Trends, by Region

North America Market
Revenue Share, 2025
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Dominant Region
North America · 36.8% share
North America stands as the dominant region in the Global Virtualized Evolved Packet Core VEPC market, commanding a significant 36.8% market share. This leadership is fueled by several key factors. The region boasts a highly developed telecommunications infrastructure and early adoption of advanced mobile technologies like 5G. Furthermore, a strong presence of major telecom operators and cloud service providers accelerates the deployment and expansion of virtualized EPC solutions. Regulatory support for network modernization and a robust ecosystem of technology innovators further solidify North America's leading position, driving substantial investments in VEPC for enhanced network flexibility and scalability across the continent.
Fastest Growing Region
Asia Pacific · 18.2% CAGR
Asia Pacific is poised to be the fastest growing region in the Global Virtualized Evolved Packet Core VEPC Market with an impressive Compound Annual Growth Rate CAGR of 18.2% during the forecast period of 2026 to 2035. This remarkable growth is fueled by increasing internet penetration and smartphone adoption across the region. Rapid digitalization initiatives by governments and enterprises further accelerate the demand for scalable and flexible network infrastructures that VEPC solutions offer. Moreover the expanding deployment of 5G networks in countries like China India and Southeast Asian nations is a significant catalyst. VEPC is crucial for optimizing these next generation networks enabling efficient resource allocation and enhanced service delivery driving the region's prominent market expansion.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical shifts, particularly in cybersecurity policy and data sovereignty regulations, heavily influence VEPC adoption. Nations prioritizing national cloud initiatives and indigenous tech development may favor specific vendors or domestic solutions, impacting market access for international players. Trade tensions concerning critical infrastructure technology and intellectual property further complicate supply chains and partnerships, potentially fragmenting the market along geopolitical lines. The ongoing US-China tech rivalry, for instance, could drive divergent VEPC architectural standards and deployments in their respective spheres of influence.
Macroeconomic factors, like inflation and interest rates, directly affect telecommunication operators' capital expenditure and investment in network upgrades, including VEPC. A tight monetary environment might delay or scale back deployments. Economic growth forecasts dictate subscriber growth and data traffic demand, driving the need for scalable and efficient core networks. Furthermore, currency fluctuations impact equipment costs and service pricing, affecting profitability and market competitiveness, especially for multinational vendors and operators in emerging economies.
Recent Developments
- March 2025
Mavenir and a Tier-1 Asian telco announced a strategic partnership to deploy Mavenir's cloud-native 5G Core, including its virtualized Evolved Packet Core (vEPC) components, across the telco's network. This collaboration aims to accelerate the telco's 5G rollout and enhance network flexibility and scalability.
- February 2025
Nokia Networks launched an enhanced version of its Cloud Packet Core solution, featuring advanced AI/ML capabilities for network optimization and predictive maintenance of vEPC functions. This product launch focuses on delivering superior performance, reduced operational costs, and improved customer experience for mobile network operators.
- January 2025
Cisco Systems acquired a specialized startup focused on network slicing and orchestration for 5G core networks. This acquisition strengthens Cisco's vEPC portfolio by integrating cutting-edge capabilities essential for dynamic resource allocation and service differentiation in next-generation networks.
- April 2025
Telefonaktiebolaget LM Ericsson expanded its strategic initiative to offer vEPC as a managed service for enterprises and private networks. This move enables businesses to leverage Ericsson's expertise in core network operations, simplifying their journey towards deploying dedicated 5G and LTE networks.
Key Players Analysis
Cisco, Ericsson, and Nokia dominate the VEPC market, leveraging their established network infrastructure and strong R&D in NFV/SDN technologies. IBM and Intel provide foundational hardware and software solutions, enabling carrier grade performance. Mavenir and Samsung focus on cloud native 5G core solutions, while AlcatelLucent, NEC, and ZTE offer comprehensive end to end EPC solutions. Strategic partnerships and acquisitions drive their market expansion, capitalizing on the demand for agile, scalable, and cost effective mobile networks.
List of Key Companies:
- Cisco Systems
- IBM Corporation
- Mavenir
- Nokia Networks
- Telefonaktiebolaget LM Ericsson
- AlcatelLucent
- Intel Corporation
- NEC Corporation
- ZTE Corporation
- Samsung Electronics
- Oracle Corporation
- Verizon Communications
- Rockwell Automation
- Ciena Corporation
- Huawei Technologies
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 18.4 Billion |
| Forecast Value (2035) | USD 65.7 Billion |
| CAGR (2026-2035) | 16.4% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 2: Global Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 3: Global Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 4: Global Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 5: Global Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 7: North America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 8: North America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 9: North America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 10: North America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 12: Europe Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 13: Europe Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 14: Europe Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 15: Europe Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 17: Asia Pacific Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 18: Asia Pacific Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 19: Asia Pacific Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 20: Asia Pacific Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 22: Latin America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 23: Latin America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 24: Latin America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 25: Latin America Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Deployment Type, 2020-2035
Table 27: Middle East & Africa Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 28: Middle East & Africa Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by End User, 2020-2035
Table 29: Middle East & Africa Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Solution, 2020-2035
Table 30: Middle East & Africa Virtualized Evolved Packet Core VEPC Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
