Network Slicing Market
Report ID: SQMIG50A2024
Network Slicing Market Size, Share, Growth Analysis, By Component (Solution, Services), By End User (Communication Service Providers, Enterprises), By Industry Vertical (Healthcare, Manufacturing), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG50A2024 |
Region:
Global |
Published Date: November, 2024
Pages:
189
|Tables:
0
|Figures:
0
Network Slicing Market Insights
Global Network Slicing Market size was valued at USD 475.38 Million in 2022 and is poised to grow from USD 716.40 Million in 2023 to USD 19057.37 Million by 2031, growing at a CAGR of 50.7% in the forecast period (2024-2031).
As the adoption of Internet of Things (IoT) solutions rises, it is predicted to boost the network slicing market growth. The growth will increase owing to the advent of new-age technologies such as AI, VR, and a much stronger M2M connection. In addition to that, increasing cloud services usage will also be responsible for the boom in this industry. Various industries are currently leveraging up the rising 5G network slicing deployments, including BFSI, healthcare, retail, and e-commerce. In addition, it supports straightforward service management and utilization, thus optimizing ROI. More importantly, it empowers businesses and organizations to evolve their networks rapidly yet cost-effectively according to specific requirements under the purview of a service level agreement. Network slices based on some services, applications, or user groups can be built through the help of network functions management or NFV, SDN, analytics, orchestration, and automation. For each slice, the architecture, security, and administration are different and are meant for a specific use case. It can comprise several network domains like core, transport, and access, set up across different operators. The three biggest use cases include massive machine-type communications, ultra-reliable low-latency connectivity, and improved mobile broadband. This definition requires MNOs to have mobile edge computing capacity while generating less traffic as they will be enabling video-centric apps.
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Network Slicing Market Segmental Analysis
The global network slicing market is segmented into component, end user, industry vertical, and region. By component, the market is bifurcated into solution and services. Depending on the end user, it is classified into communication service providers and enterprises. According to industry vertical, the market is divided into healthcare, government, transportation & logistics, energy & utilities, manufacturing, media & entertainment, financial services, retail, and others. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Component
The solution segment dominated the network slicing industry with the highest revenue share of 60.3% in 2022 and is expected to register a CAGR of 49.5% during the forecast period. Rising use of network slicing solutions by CSPs to accelerate the provision of these apps and services is the reason for increase in the solution segment. With this, the major players are also launching improved network slicing solutions to satisfy the needs of end customers. NFV is driving growth in the market along with ultra-low latency and high-speed and wide coverage networks. Those benefits of network slicing are also pushing CSPs to bear investments in R&D since solutions that are simultaneously cost-effective and efficient should, therefore, promise profitable opportunities for the sector.
However, as per the network slicing market forecast, the services category is going to grow at the fastest rate, that is, 52.3%. The growth in this segment is mainly accredited to the implementation and integration of network slicing services. The services offered ensure efficient operation and better operational efficiency throughout the process. Other subcategories within the services sector include professional and managed services. Professional services include business analysis and consulting, design and architecture, integration, and deployment, which help in evaluating business cases and developing cost-effective solutions offering operational efficiency, security, and quality of service. Network management, infrastructure management, data center management, backup and recovery, maintenance, and support are included in managed services. This model of services allows a company to outsource the operations, management, and delivery of activities for clever packaging, reduced TCO, and proactive network management.
Analysis By End User
The communication service providers segment dominated the market, and they have collected a high revenue share of more than 75.0% in 2022. This dominance is expected to prevail during the forecast period with a phenomenal CAGR of 49.9%. The fast development is being driven by the increasing need for higher bandwidth connection, which is necessary to satisfy changing end-user demands in several industries. The CSPs have been significantly investing in 5G infrastructure and advanced network technology to provide better services against increased demands for more data. These providers are focusing on technologies like network slicing also for maximizing the efficiency of the network, enhancing the experience of users, and providing customized solutions for various use cases and industries.
Contrarily, the network slicing market analysis highlights that the enterprise segment is predicted to experience the highest growth over the forecast period at 52.9%. The demand for enterprise networks needs to meet the growing requirement across industries for sophisticated and reliable network solutions. Businesses need to have robust, scalable, and high-performance networks in the pursuit of elevating their operational effectiveness and productivity. The increasing usage of cloud-based services and activities related to digital transformation also increases the requirement for enterprise-grade network solutions. The companies, hence, are investing in more mature network slicing solutions to drive these new use cases and guarantee seamless connection and communication because of applications for 5G, including robots, smart factories, telemedicine, remote education, and virtual offices.
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Network Slicing Market Regional Insights
North America led the network slicing industry in 2022. This is due to the fact that the region has been witnessing an increasing number of internet users, expanding availability of internet services, and growing smartphone penetration. The regional sector is catalyzed by the major firms, including Cisco System Inc., Mavenir Systems, Inc., and Intel Corporation, among others, which has increased the growth of the market. Expansion is thus spurred by many companies in this sector developing innovative solutions for providing end-to-end efficient network service management and usage. Consequently, the market is expanding because of factors such as encouraging the public rollout of 5G by various businesses, increasing investment, and encouraging early adoption of advanced technologies because of high levels of digital end-user engagement.
However, Asia-Pacific is expected to grow substantially over the projection period at a CAGR of 54.4%. The large and spread-out client bases in China and India are driving the requirements for network slicing solutions and services. This expansion mainly traces back to the rising growth in IoT infrastructure and technology, and the increased adoption of solutions in sectors such as manufacturing, financial services, healthcare, and government. In addition, the untapped potential of the domain is further offering new opportunities for regional communication service providers to invest. Further, many companies expand in the APAC region. In effect, this leads to many consumers and internet users, ensuring potential opportunities for the local industry.
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Network Slicing Market Dynamics
Drivers
- Growing Need for 5G Internet Access
One of the most significant drivers for network slicing is the fast rise of adoption of 5G technologies across industry verticals. Network slicing will allow the operators to prepare special, efficient sections of networks that correspond to the specific needs because 5G will bring more speed and lower latency together with greater capacity. Low-latency connectivity is highly demanded in sectors such as driverless cars, smart cities, and industrial Internet of things applications.
- Resource Optimization and Cost Effectiveness
In network slicing, it is possible for the use of network resources to be made more efficient through the increased flexibility of distribution of infrastructure and bandwidth by service providers. The construction of the network can be divided into slices to minimize construction costs, reduce overheads, and at the same time, boost performance. That flexibility may enable service providers to meet growing needs of a wide range of customers without undertaking significant improvements in infrastructure.
Restraints
- Implementation and Management Complexity
Network slicing requires much technical expertise and infrastructure to implement and maintain. The complexity of planning, implementing and keeping multiple slices with different requirements would cost higher operating expenses. It may become difficult for smaller operators or companies with limited resources to obtain the advanced software platforms, orchestration tools, and deep knowledge of hardware and software integration that service providers require.
- Privacy and Security Issues
While network slicing will be highly flexible, it throws its share of security and privacy risks. In this setup, several users share the same physical infrastructure, making it a must to maintain isolated slices very carefully to avoid breaches or unwanted access. As breaches in one slice may jeopardize the integrity of the whole network, a high level of security standards must be enforced on every slice. This can prove a problem for operators.
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Network Slicing Market Competitive Landscape
The market is highly fragmented and can be witnessed to witness increased rivalry over the next coming years, due to the high presence of several firms. To outperform its competitors and obtain a greater network size, businesses are also collaborating with telecom providers, advertising, and local and regional companies as well. Network slicing market players are taking on multiple strategic moves and innovations toward achieving a significant revenue share.
Top Player’s Company Profile
- Ericsson
- Samsung
- Nokia Corporation
- Huawei Technologies
- ZTE Corporation
- Cisco Systems Inc.
- HPE
- Mavenir Systems Inc.
- Amdocs, Inc.
- Intel Corporation
- Affirmed Networks
- VMware, Inc.
- DT
- NTT
- BT
Recent Developments
- February 2024: Ericsson, BT Group, and Qualcomm Advances, Inc. have successfully demonstrated end-to-end enterprise and consumer 5G network slicing. Ericsson's 5G Center and Radio Access Network Technology enables that to help drive innovation across the UK.
- August 2023: T-Mobile released a beta version of 5G network slicing for developers. T-Mobile's 5G SA (Standalone) setup allows developers to optimize video calling applications with improved arrange conditions, decreased idleness, and consistent uplink and downlink speeds and quality.
- June 2023: Nokia claims it has successfully tested a very innovative and modern configuration that lets Android smartphone users buy and activate network slices anytime they want from their administrator. The update is now available to Android 14 users, which would permit end-users to enhance their experiences across a range of apps such as social media, gaming, broadcasting, or spilling.
Network Slicing Key Market Trends
- Automation and AI in Network Slicing: One of the major network slicing market trends includes dependency of network slicing on ML and AI. They can enable automatic slicing, optimization and real-time monitoring of slices along the network so that the resource usage from a service provider can be made dynamic. With AI-based solutions where patterns of traffic can be predicted, bandwidth usage optimized and potential faults detected, human intervention can be minimized, and networks can respond more swiftly and effectively.
- Enterprise Private 5G Networks: Business organizations are embracing private 5G networks to a greater extent than ever. Private 5G networks offer network slicing with high performance, secured connectivity, and customized settings tailored to the needs of an organization. Such requirements happen to be very common in industry sectors such as manufacturing, logistics, and healthcare, which demand customized and low-latency communication. Network slicing is beneficial for companies to manage their network and supports applications such as automation, IoT, and remote monitoring that promise high performance and preserve privacy.
Network Slicing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growth in need for customized, flexible, and efficient network solutions across the 5G and beyond period will spur network slicing market with tremendous growth. Network slicing boosts the service delivery of sectors, including manufacturing, healthcare, and automotive, by helping operators dedicate specialized resources to several use cases. Network slicing would unlock newer streams of revenue and enhance the efficiency of operations while investments by telecom operators and businesses would continue to drive 5G infrastructure. In fact, the market looks promising because of this continuous innovation and uptake.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 475.38 Million |
| Market size value in 2031 | USD 19057.37 Million |
| Growth Rate | 50.7% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Network Slicing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Network Slicing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Network Slicing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Network Slicing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Network Slicing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Network Slicing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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