Network Slicing Market Research Report: Information by Component (Solution and Services), End User (Telecom Operators and Enterprises), Application (Manufacturers, Healthcare, Automotive, Media & Entertainment, and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Forecast till 2026

Network Slicing Market Snapshot:The network slicing market size is projected to grow from USD 105.74 million in 2019 to USD 1,936.67 million by 2026, at a Compound Annual Growth Rate (CAGR) of 51.48% during the forecast period.

Network slicing technology supports multiple logical networks for different services type over one common network infrastructure. The evolution of 5G technology is expected to be one of the key drivers for the network slicing market. As 5G technology scales, network slicing is going to be one of the major 5G deployment models. Service providers are looking to maximize their RoI by targeting innovative and high revenue-generating network slicing applications such as cloud gaming, smart healthcare, and IoT applications. Network slicing among 5G networks will permit business customers to attain high connectivity and data processing speeds tailored to their specific requirements. Network slicing is considered to be the most integrated solution for unlocking opportunities among enterprises in the 5G era.

A network slice is an end-to-end logical network that runs on shared physical infrastructure, capable of providing high service quality. A network slice comprises a dedicated server and shared resources in terms of processing power, storage and bandwidth and has isolation from other network slices.

The major factors driving the growth of the network slicing market includethe advancements in the 5G technology, increasing demand for high-speed network coverage across various market segments and the integration of software-defined networking (SDN) and network function virtualization (NFV). The ability to improve operational efficiencies and time to market for delivering 5G networks across different verticals and reduce expenses & capital expenditure among network operators provide opportunities in the network slicing market. However, the security breaches while allowing resource sharing among multiple networks and proper optimization of resource usage in a network slice arefactors hindering the market growth.

Impact of COVID-19

The COVID-19 pandemic has caused widespread concern and economic hardships for consumers, businesses, and communities worldwide. The outbreak has significantly pushed demand for broadband services with high-speed connectivity as people across the globe are coping with remote working and online education. As the pandemic restrictions are easing and several economies around the world are coming out of an extensive lockdown period, businesses around the globe have started to reopen, and communication service providers have shifted their focus to a faster 5G network rollout and have accelerated investments in network slicing solutions. The use cases post covid-19 such as remote office, e-health services, remote education are expected to further boost the network slicing market growth.

Synopsis

The global network slicing market has been segmented based on component, end user, application, and region.

Based on component, the network slicing market has been segmented into solution and services. The services segment has been further subdivided into professional services & managed services.

Based on end user, the network slicing market has been segmented into telecom operators and enterprises.

Based on application, the network slicing market has been segmented into manufacturing, healthcare, government, automotive, media & entertainment, and others.

Regional Analysis

In terms of region, the network slicing market has been segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America.

North America is likely to be the dominant regional market due to the faster adoption of innovative technologies in developed countries in the region—the US and Canada. The region is one of the most technologically advanced regions with the strong presence of key industry players such as CISCO Systems, Affirmed Networks, Parallel Wireless, Mavenir and AMDOCS. Furthermore, the region is expected to become the early adopters of 5G network services in various areas such as media & entertainment, automotive, and AR/VR owing to high customer digital engagement.

Asia-Pacific is projected to register the fastest growth rate over the forecast period, with the regional market being segmented into China, Japan, India, and the rest of Asia-Pacific. This share can be attributed to the increasing developments of network infrastructure, IoT technologies and 5G technology. Furthermore, the increasing government and investments into network slicing technology in the region are likely to drive the growth of the regional market.

Companies Covered

The key players of the global network slicing market are Huawei Technologies (China), ZTE Corporation (China), Ericsson (Sweden), Affirmed Networks (US), CISCO Systems (US), Nokia (Finland), Samsung (South Korea), NTT Docomo (Japan), BT Group PLC (UK), NEC Corporation (Japan), Aria Networks (UK), Parallel Wireless (US), Mavenir (US), AMDOCS (US), and Argela Technologies (Turkey).

Key Industry Developments

In January 2021, Ericsson launched a 5G RAN Slicing software solution,enabling communication service providers to deliver 5G use cases to consumers and enterprises. The 5G RAN slicing solution is expected to strengthen end-to-end network slicing capabilities, which maybe needed to deliver different services over a common infrastructure and provide customized business models and growth requirements for the most advanced use cases.

In May 2019, the China Media Group, China Mobile and Huawei Technologies completed the first UHD live streaming verification through a real end-to-end 5G network slice. The slice is dedicated to providing CCTV 4k live streaming services with ultra-high bandwidth and ultra-low latency.

In February 2018, ZTE released the world’s first 5G end-to-end network slicing solution to push forward the technical maturity of 5G commercial systems. Additionally, the ZTE 5G E2E network slicing solution supports the life-cycle management of end-to-end network slices through its intelligent operation and orchestration system.

Global Network Slicing Market, 2018–2026 (USD Million)Source: MRFR Analysis