Network Slicing Market Overview
The Network Slicing Market Size is expected to reach USD 4.89 Billion by 2033. The Network Slicing Market industry size accounted for USD 1.12 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 24.12% from 2023 to 2033. The Network Slicing Market refers to the industry that provides solutions and services related to the creation of multiple virtual networks within a single physical network infrastructure. Network slicing is a key feature of 5G networks, enabling network operators to divide their physical networks into multiple virtual “slices” that can be customized to meet the specific requirements of different use cases or customer groups.
Each network slice operates independently with its own resources, such as bandwidth, latency, and security protocols, tailored to specific applications like IoT, autonomous vehicles, smart cities, or enhanced mobile broadband. This allows for more efficient and flexible network management, better service quality, and the ability to support diverse applications with varying demands. Growth in the Network Slicing Market is driven by the ongoing deployment of 5G networks, the increasing demand for high-quality, low-latency applications, and the need for more efficient use of network resources.
Global Network Slicing Market Synopsis
COVID-19 Impact Analysis
The COVID-19 pandemic significantly impacted the Network Slicing Market. With the shift to remote work, online education, and telehealth services, the demand for reliable and high-performance connectivity surged. This accelerated the deployment of 5G networks, which in turn boosted interest in network slicing as a way to efficiently manage network resources and provide differentiated services. The pandemic highlighted the need for industry-specific applications that require tailored network solutions. Sectors like healthcare, manufacturing, and logistics increasingly looked to network slicing to support critical operations, such as remote diagnostics, smart manufacturing, and supply chain management. The pandemic raised awareness of the benefits of network slicing, particularly its ability to support diverse and critical applications. This is expected to drive long-term growth in the market, especially as 5G networks continue to expand. The experience of the pandemic has underscored the importance of network resilience and flexibility, positioning network slicing as a key technology for future-proofing network infrastructures.
Network Slicing Market Dynamics
The major factors that have impacted the growth of Network Slicing Market are as follows:
Drivers:
Ø Growth in IoT and Connected Devices
The explosion of IoT devices, ranging from industrial sensors to smart home devices, requires networks that can handle diverse and often conflicting requirements, such as low latency, high bandwidth, and massive connectivity. Network slicing allows operators to create customized slices that meet the specific needs of different IoT applications. Network slicing supports the scalability needed to manage the growing number of connected devices, ensuring that each application can operate effectively without compromising overall network performance. Enterprises are increasingly adopting digital transformation strategies that require tailored network services. Network slicing allows telecom operators to offer customized network slices to enterprises, supporting applications like smart factories, remote work, and secure communications.
Restraint:
- Perception of High Initial Costs and Data Privacy
The initial investment required for deploying network slicing technology, including upgrading hardware and software, can be substantial. This can be a barrier for smaller telecom operators and enterprises, particularly in regions with limited financial resources. Beyond the initial investment, ongoing operational and maintenance costs can be significant, especially if network slicing solutions require specialized skills and resources. Ensuring that network slices meet data privacy and security standards is crucial. Compliance with various regulations, such as GDPR or industry-specific standards, can add complexity and costs.
Opportunity:
⮚ Advancements in Technology
The continued advancement of network function virtualization (NFV) and software-defined networking (SDN) technologies presents opportunities for more efficient and flexible network slicing solutions. These technologies enable dynamic resource allocation and management, enhancing the capabilities of network slicing. Integrating automation and artificial intelligence (AI) into network management can optimize the operation of network slices, improving efficiency, reducing costs, and enabling proactive maintenance.
Network Slicing Market Segment Overview
By Professional Services
Based on Professional Services, the market is segmented based on Network design and planning, Integration and Deployment, Support and Maintenance. The Network design and planning segment dominant the market
By Application
Based on Application, the market segment has been divided into Healthcare, Energy and Utilities, Manufacturing and Others. The healthcare segment dominant the market. Network slicing in the healthcare industry revolutionizes the delivery of medical services by leveraging tailored virtual network segments. These slices allocate specific bandwidth, latency, and security parameters to accommodate diverse healthcare applications, such as telemedicine, remote patient monitoring, and medical IoT devices.
By End User
Based on End Users, the market segment has been divided into Telecom operators and Enterprises. Telecom operators segment dominant the market. Telecom operators have extensive networks, infrastructure, and resources, making them the primary providers of telecommunication services to businesses and consumers. They propel the market by continuously investing in the expansion and modernization of their networks. They deploy advanced technologies like 5G, fiber optic networks, and satellite communications to deliver high-speed and reliable connectivity.
Global Network Slicing Market Regional Analysis
Based on region, the global Network Slicing Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Network Slicing Market followed by the Asia-Pacific and Europe regions.
Network Slicing North America Market
North America holds a dominant position in the Network Slicing Market. North America, particularly the United States and Canada, is at the forefront of network slicing adoption due to its advanced telecommunications infrastructure and early 5G deployments and high demand for advanced applications such as autonomous vehicles, smart cities, and enterprise digital transformation are driving network slicing initiatives. Major telecom operators and technology companies in this region are actively investing in and deploying network slicing technologies.
Network Slicing Asia-Pacific Market
The Asia-Pacific region has indeed emerged as the fastest-growing market for the Network Slicing Market industry. The Asia-Pacific region is experiencing rapid growth in the network slicing market, driven by large-scale 5G rollouts in countries like China, South Korea, and Japan and the region’s significant focus on IoT, smart cities, and industrial applications fuels the demand for network slicing solutions. China, in particular, is investing heavily in 5G infrastructure and exploring various network slicing applications.
Competitive Landscape
The global Network Slicing Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.
Prominent Players:
- Nokia
- Ericsson
- Huawei
- ZTE
- Samsung
- Blue Planet
- Parallel Wireless
- Affirmed Networks
- Mavenir
- Argela
Key Development
In July 2022, Ericsson collaborated with Telefonica to demonstrate end-to-end, automated network slicing in 5G standalone in Madrid.
In October 2020, Nokia Corporation released a solution to provide 4G & 5G network slicing automation for all network domains, including core, RAN, and transport.
Scope of the Report
Global Network Slicing Market, by Professional Services
- Network design and planning
- Integration and Deployment
- Support and Maintenance.
Global Network Slicing Market, by Application
- Healthcare
- Energy and Utilities
- Manufacturing
- Others
Global Network Slicing Market, by End User
- Telecom operators
- Enterprises
Global Network Slicing Market, by Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Nordic
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- Indonesia
- Austalia
- Malaysia
- India
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of Middle East & Africa
| Parameters | Indicators |
|---|---|
| Market Size | 2033: $4.89 Billion |
| CAGR | 24.12% CAGR (2023-2033) |
| Base year | 2022 |
| Forecast Period | 2023-2033 |
| Historical Data | 2021 |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Key Segmentations | Professional Services, Application, End User |
| Geographies Covered | North America, Europe, Asia-Pacific, Latin America, Middle East, Africa |
| Key Vendors | Nokia, Ericsson, Huawei, ZTE, Samsung, Blue Planet, Parallel Wireless, Affirmed Networks, Mavenir and Argela |
| Key Market Opportunities | • Advancements in Technology |
| Key Market Drivers | • Growth in IoT and Connected Devices • Enterprise Digital Transformation |
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Network Slicing Market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Network Slicing Market historical market size for the year 2021, and forecast from 2023 to 2033
- Network Slicing Market share analysis at each product level
- Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Network Slicing Market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
