The global network slicing market is anticipated to exhibit significant CAGR of 25.4% during the forecast period (2021-2027). Network slicing is a network architecture that enables the multiplexing of virtualized and independent logical networks on the same physical network infrastructure. Each network slice is an isolated end-to-end network tailored to fulfill diverse requirements requested by a particular application. The growing demand for networking owing to rising penetration of smartphones and other networking devices across the globe is a key factor driving the growth of the global network slicing market.  The rising adoption of the IoT devices across the globe to meet the demand for high-speed connectivity is again driving the demand for the network slicing market. 

The rising demand for the high-speed network coverage, such as 5G and upcoming 6G along with the increasing adoption of cloud for data storage across the globe are promoting the market growth. However, the data privacy and security concerns and absence of IoT standards are the factors that may restrain the market growth. The rapid commercialization of 5G services along with the easy availability of unlicensed and shared network spectrum across the globe is offering immense opportunity to the growth of the network slicing market across the globe.

Impact of COVID-19 pandemic on network slicing industry

The COVID-19 pandemic has accelerated the demand for network slicing which in turn has driven the growth of the global network slicing market. This is due to the fact that COVID-19 pandemic and significant rise in the remote work culture has advanced the need for more robust 5G technologies across the globe. In March 2020, Hubei officials and the Chinese Academy of Sciences have jointly launched their project at Wuchang hospital. The project at the Wuchang field hospital is based on utility of 5G-powered bots in carry out tasks including taking patients’ temperatures, delivering meals and disinfecting the facility. Growing usage of 5G technology in the critical time of COVID-19 pandemic is further creating demand for network slicing market globally. 

Segmental Outlook  

The network slicing market is segmented on the basis of component and end-user industry. Based on component, the network slicing market is segmented into solution and services. The services market is further studied on the basis of professional services & managed services. Based on end-user industry, the network slicing market is segmented into healthcare, automotive, power & energy, aviation, and media & entertainment.

Healthcare held Considerable Share based on End-User Industry

 The growing demand for connectivity in medical device, the growing medical wearable industry, and rising inclination of patients towards adopting homecare medical treatment are some of the key factors driving the growth of the healthcare segment.    

Global Network Slicing Market Share by End-User Industry, 2020 (%)

Regional Outlook 

The global network slicing market is further segmented on the basis of geography including North America, Europe, Asia-Pacific and Rest of the World. In 2020, the North America held considerable market share of XX% in network slicing market. Presence of well-developed information communication technology (ICT) infrastructure and the larger number of connected devices across the region is a key factor driving the growth of the network slicing market. Increasing number of connected devices along with increasing internet penetration rate in the region is estimated to be one of the major factors that are driving the growth of the regional network slicing market.

Global Network Slicing Market Growth, by Region 2021-2027

Asia-Pacific Will Augment With the Significant Growth Rate in the Network Slicing Market 

Asia-Pacific is projected to showcase highest CAGR of XX% during the forecast period. The rising development of network infrastructure along with increasing focus towards adoption of 5G technology is a key factor driving the growth of the regional market. In 2021, China Premier Li set a goal for China to get 56% of the country on 5G networks this year, and China is aiming to complete the installation of 5G network infrastructure during the 14th Five-Year Plan (2021-25) period. According to the Ministry of Industry and Information Technology (MIIT), as of the end of 2020, China has built the largest 5G network across the globe, with over 718,000 5G base stations throughout the country and 5G coverage for all prefecture-level cities, as well as over 200 million 5G terminal connections. Such huge adoption rate of 5G technology in China is expected to offers robust growth to the Asia-Pacific network slicing market. 

Market Players Outlook

The major players contributing into the global network slicing market include Ericsson Inc., Huawei Technologies Co. Ltd., Intel Corp., NEC Corp., Nokia Corp., Samsung Group, and so on. The key players operating in the network slicing market are focusing on 5G network to expand their reach to the future of networking. For this, these key vendors are adopting several growth strategies such as advancement in the technology to meet the customer demand, mergers & acquisition, collaboration, and partnership, and so on. 

Recent Development 

• In July 2021, Samsung Group has introduced its upgraded SDN solutions to aid operators manage 5G networks better. The SDN solutions are proposed support enterprises in various sectors covering education, retail and energy. Based on open network networking system, SDN portfolio covers all layers of the SDN architecture, including controllers, orchestrators, switches and routers. Moreover, the SDN solutions can automate end-to-end network slicing, allowing telecom operators to provide customised services.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global network slicing market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.