Network Slicing Market Size, Share & COVID-19 Impact Analysis, By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By End-user (Healthcare, Government, Transportation & Logistics, Energy & Utilities, Manufacturing, Media & Entertainment, Financial Services, and Others), and Regional Forecast, 2023-2030

The global network slicing market size was valued at USD 518.4 million in 2022 and is projected to grow from USD 759.0 million in 2023 to USD 13,662.9 million by 2030, exhibiting a CAGR of 51.1% during the forecast period.

Network slicing is a method of producing multiple virtualized and logical networks over a shared multi-domain structure. With Software-Defined Networking (SDN), Network Functions Virtualization (NFV), automation, analytics, and orchestration, mobile network operators can speedily produce network slices to aid a group of users, specific applications, services, or networks. This platform allows a single network to provide various services based on the user's necessities. In addition, it aids network operators in minimizing capital expenditure (CAPEX) and operating expenses (OPEX), along with enhanced functioning efficiency for the delivery of network services.

Further, the need for improved analytical solutions is increasing owing to companies' challenges in analyzing their employees' substantial volumes of data. This factor is anticipated to fuel the network slicing market growth.

COVID-19 IMPACT

Increased Demand for Broadband Services with Growing Mobile Networking and Remote Access Services to Fuel the Market

The COVID-19 pandemic increased the demand for broadband services with the support of rising mobile networking and remote access services in telecom, IT, healthcare, and retail industries. As organizations have initiated to reopen, communications service suppliers are focusing on 5G rollouts and increasing investments in this platform.

Additionally, the pandemic has fueled the need for 5G use cases, such as remote education, remote office, telemedicine, and robotics, thereby boosting the market growth. The companies have released advanced network slicing solutions during the pandemic to guarantee better services. For instance,

• In October 2020, Nokia released a solution to provide 4G & 5G network slicing automation for all network domains, including core, RAN, and transport. Further, it announced new orchestration, network management, and controller abilities, allowing mobile operators to ensure and deliver its professional services.

Hence, the pandemic had a positive impact on the market.

LATEST TRENDS

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Increasing Demand for IoT Solutions to Propel the Market

Widespread acceptance of IoT and developments in Machine-to-Machine (M2M) communication networks are renovating several industries by connecting all systems, appliances, and devices. The necessities for IoT applications can be considered low-latency, high-power applications (mobile video surveillance) and long-range, low-latency, low-powered IoT applications (smart factories and smart cities), which require network slicing for these applications to work effectively.

Further, the advancement of the 5G technology is anticipated to gain speed in assisting these specific requirements for emerging IoT applications, characterized as mission-critical applications and machine-type communication, boosting the need for such solutions during the forecast period.

Therefore, the above factors will boost the market during the forecast period.

DRIVING FACTORS

Increasing Demand for Next-generation 5G Networks and Proliferation of SDN and NFV to Drive Market Growth

5G networks have improved bandwidth and speed compared to previous mobile networks. It also allows for creation of virtual networks, which can be customized to meet specific needs for latency, security, bandwidth, reliability, service levels, and coverage. Hence, this platform is expected to play a key role in the 5G market growth.

Furthermore, SDN and NFV technologies automate modern networks through software. They are driving the digital transformation of network infrastructure across the telecommunications industry. NFV virtualized network functions such as routing, load balancing, and firewalls. SDN allows network administrators to provide services across hardware components. NFV and SDN are necessary for network slicing and make it possible for networks to be quickly and easily configured to meet the needs of various applications and services.

Hence, the factors mentioned above are expected to propel the market growth.

RESTRAINING FACTORS

Security Breaches Leading to Massive Operational and Financial Loss to Hamper the Market Growth

CIOs are largely concerned with network slicing security, which can lead to a huge loss for service providers and businesses. Further, the new network infrastructure has been designed with the help of NFV, SDN, and cloud-native architecture. These network functions are disaggregated from infrastructure and placed across regional, local, and central data centers. Moreover, in a cloud-driven 5G network, most network functions are deployed over private and public cloud infrastructure. However, the security issues associated with the solution hampered the market growth.

SEGMENTATION

By Enterprise Type Analysis

Large Enterprises Segment to Dominate Supported by Escalating Product Demand

According to enterprise type, the market is bifurcated into large enterprises and small & medium enterprises. Large enterprises segment will lead the market during the forecast period due to the initial adoption of the solution. In addition, large enterprises' use of 5G networks and the Internet of Things (IoT) increased the need for this platform to provide improved services to customers without any disturbance.

Small & medium enterprises segment is projected to witness an average growth rate throughout the projected period as companies have recently implemented this platform for their productivity and cost-effectiveness.

By End-user Analysis

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Increasing Data Generation of Employees to Boost the Healthcare Segment

As per our study, healthcare holds the highest share of the global market due to increasing applications such as remote monitoring of patients and elders who require continuous tracking. Additionally, remote surgery is one of the most critical IoT healthcare applications requiring communication services with ultra-reliability and low latency, which boosts the segment's share.

The media & entertainment segment is expected to grow at the highest CAGR during the forecast period. More latency causes experiencing dizziness (cyber-sickness) and disorientation to users while using VR/AR devices. Hence, the Motion-to-Photon (MTP) latency, achieved through network slicing, is essential to keep less than 20ms. Moreover, national broadcasters have started to experience the benefits of this solution and 5G for the remote broadcasting of major events, thereby fueling segmental growth.

REGIONAL INSIGHTS

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As per our report, the market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific. These regions are further categorized into leading countries.            

In 2022, North America dominated the market by holding 37.2% of the global market share. North America is a technologically advanced region comprising many countries that readily accept new technological advancements. Additionally, the region is an early adopter of 5G services in augmented reality, virtual reality, autonomous driving, and artificial intelligence. Moreover, government initiatives to improve 5G telecom infrastructure in the region significantly fuel the market. For instance,

• In February 2019, the Federal Communication Commission (FCC) declared an approach to facilitate 5G technology in America.

The Asia Pacific will grow at the highest CAGR during the forecast period owing to several growing economies, such as Japan, China, and India, which are likely to record high growth in the market. Additionally, they own an established technological infrastructure, supporting the implementation of these solutions across all industry verticals. Further, the widespread acceptance of mobile devices across developing countries such as China, India, and Japan is projected to boost the market. Moreover, increasing collaborations and partnerships among regional companies to provide better solutions are driving the Asia Pacific network slicing market share.

Europe holds the second highest share in the global market owing to rising concern of handling enormous data, improving operational efficiencies, and evolving digital technologies such as 5G, cloud, mobile platforms, and Big Data. Moreover, new product launches in the region are expected to boost the market share. For instance, in September 2022, Orange Belgium deployed standalone 5G over a cloud-native architecture to offer better services to its customers.

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The Middle East & Africa and South America are expected to grow steadily during the forecast period owing to increasing footprints of key companies. Further, increase in acceptance of the cloud in the region is expected to boost the market growth.

KEY INDUSTRY PLAYERS

Key Players Launch New Products to Strengthen Market Positioning

Major players in the market are developing new and advanced solutions for customers. They also focus on improving their existing product portfolio to provide flexible solutions with unique characteristics. Additionally, the organizations aim for collaboration, partnerships, and acquisitions to strengthen their product offerings.

List of Key Companies Profiled:

• Samsung (South Korea)


• Nanjing ZTE Software Co. Ltd. (China)


• Intel Corporation (U.S.)


• Amdocs, Inc. (U.S.)


• Nokia Corporation (Finland)


• Telefonaktiebolaget LM Ericsson (Sweden)


• VMware, Inc. (U.S.)


• Mavenir Systems, Inc. (U.S.)


• Affirmed Networks (U.S.)


• Tambora Systems Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Nokia and Nedaa discovered an innovative 5G network slicing for public safety and smart city use. A 5G network with slicing functionality aids Nedaa in providing enhanced smart city and public safety services.


• July 2022: Ericsson collaborated with Telefonica to reveal its end-to-end, automated network slicing in 5G standalone in Madrid.


• June 2022: Amdocs and A1 Telekom Austria Group achieved a 5G network slicing proof of concept. This proof of concept determines the capability of Amdocs’ service and network offering to fuel on-demand connectivity and next-generation experiences for enterprises and consumers through the management, deployment, and monetization of 5G network slices.


• December 2020: Amdocs launched 5G Slice Manager, which manages the complete lifecycle of network slices and services, instantiation and closed-loop operations for open-cloud networks and 5G.


• September 2020: Telefonica Deutschland built an automated network with Blue Planet, enabling the service suppliers to lower their operating expenses (OPEX) while improving its network to provide services such as video streaming, 5G, and online gaming.

REPORT COVERAGE

An Infographic Representation of Network Slicing Market

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The research report comprises prominent areas worldwide to get a better knowledge of the industry. In addition, the study provides insights into the most recent market trends and an analysis of technologies being adopted globally. It also highlights some of the growth-stimulating restrictions and elements, enabling the reader to gain a detailed understanding of the market.

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