The network slicing market is anticipated to record a CAGR of 23.2% during the forecast period (2022 to 2032). The network slicing market is expected to be valued at USD 370 Million in 2022 and is projected to reach USD 3 Billion by 2032.
The network slicing market growth is projected to get influenced by the commercialization of 5G services and the availability of unlicensed and shared spectrum around the world.
The demand for network slicing solutions is anticipated to grow due to the advancement of cellular network technology, which provides greater data rates and lower latency.
Consumer demand for video and the change in industry toward the usage of cloud services have both contributed to the rapid increase in the adoption of network slicing.
| Attributes | Details |
|---|---|
| Network Slicing Market CAGR (2022 to 2032) | 23.2% |
| Network Slicing Market Value (2022) | USD 370 Million |
| Network Slicing Market Value (2032) | USD 3 Billion |
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The adoption of network slicing is growing as it is reshaping various industries by connecting all types of devices, appliances, systems, and services, IoT adoption, and continuous developments in Machine-to-Machine (M2M) communication networks. Network slicing-enabled 5G would serve a variety of IoT use cases, allowing communication between massive numbers of sensors and linked devices. As a result of this, the demand for network-slicing solutions is predicted to grow rapidly during the forecast period.
The adoption of network slicing is increasing due to the developments in IoT technology. High-power, low-latency applications (such as mobile video surveillance) and low-power, low-latency, long-range IoT apps are two types of IoT applications (smart cities and smart factories).
The evolution of 5G technology is projected to accelerate in order to meet these needs for growing IoT applications, which are classified as huge machine-type communication and mission-critical applications.
The adoption of network slicing in every line of the industry has altered substantially as a result of Industry 4.0, automation, and digitalization. Most industries have experienced digital transformations to meet the increased demand for network-slicing solutions to maintain operational agility among customers and organizations.
There is a rising demand for network-slicing solutions among businesses to support their digital transformation efforts. The adoption of network slicing is projected to rise due to multiple technological breakthroughs and the growth in dynamic ecosystems. These factors have paved the path for new commercial applications to emerge in a variety of industries that are responsible for growth in network slicing market size.
Fixed network slices can be grown up by adding more hardware resources, however, RAN slicing is difficult to scale up since it quickly runs into a physical constraint owing to spectrum scarcity. Individual slices can be assigned dedicated carriers to bypass this issue.
The allotment of some carriers, on the other hand, would limit the network's ability to reap multiplexing advantages through the scaled-up slice. These factors are likely to limit the network-slicing market growth over the forecast period.
CIOs are mostly concerned about network slicing security, which can result in significant losses for organizations and service providers. SDN, NFV, and cloud-native architecture are used to construct the new network infrastructure, supporting the adoption of network slicing in multiple industries.
Network functions are separated from the underpinning infrastructure and distributed among local, regional, and central data centers. The demand for network slicing solutions is rising as the majority of network services in a cloud-based 5G network are implemented over public and private cloud infrastructure.
During the forecast period, the network slicing market is anticipated to be dominated by the solutions sector with a CAGR of 21.1%. The growing demand for high-speed and extensive network coverage, increasing mobile data traffic volumes, increasing demand for ultra-low latency, and expanding use of network virtualization are all driving this segment's growth.
The usefulness, criticality, and ease of implementation of network-slicing solutions all contribute to the segment's growth. Due to the benefits that network slicing solutions give, various suppliers are investing in Research and Development to improve and make them cheaper, especially for small and medium-sized businesses. As a result of this, the global network slicing market share is projected to rise during the forecast period.
By services, the professional services segment is anticipated to hold the largest share with a CAGR of 21.1% during the forecast period. This growth is due to the increasing demand for smart monitoring and the steady increase in the remote operation of processes and applications.
| Regions | CAGR (2022 to 2032) |
|---|---|
| USA Market | 22.9% |
| UK Market | 21.7% |
| China Market | 22.7% |
| Japan Market | 22.2% |
| South Korea Market | 21.9% |
The Asia Pacific region is anticipated to hold the highest proportion of the global network slicing market with an average CAGR of 22.4%. The presence of important firms delivering innovative network-slicing solutions and services to many sectors is responsible for the region's large share.
Some businesses and governments in this region have expressed an increased interest in commercializing the next-generation 5G network. Furthermore, the region's dominance in the network slicing market is likely to be maintained during the forecast period, thanks to rising demand for network virtualization, a favorable environment for start-ups, and strong government initiatives.
Increasing usage of technologies such as cloud computing, network function virtualization, and IoT is likely to propel the network slicing market in North America to new heights over the forecast period. Furthermore, the increased demand for broadband services across North America is expected to significantly boost the network-slicing market growth in the coming years.
The network slicing market is fragmented, with different players collaborating to provide the required availability, latency, data rate, and security. Carriers can use network slice management technologies to implement network slice lifecycle management in preparation for 5G.
Recent Developments in the Network Slicing Market
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The network slicing market is anticipated to record a CAGR of 23.2% during the forecast period (2022 to 2032).
The Asia-Pacific region is anticipated to hold the highest proportion of the global network slicing market.
By end user, the telecom operators sector led the global network slicing market share in 2021 and is likely to continue to do so in the coming years.
The network slicing market is expected to be valued at USD 3 Billion by 2032.
North America is expected to significantly boost network slicing market growth in the coming years.
| Market Share (2023) | USD 6,821.7 million |
|---|---|
| Market Share (2033) | USD 11,688.9 million |
| Market CAGR (2023 to 2033) | 5.5% |
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