5G Network Slicing Market Report
5G Network Slicing Market by Component (Solutions, Services, Professional Services, and Managed Services), Type (RAN Slicing, End-to-End Network Slicing, and Edge Slicing), Network Architecture (Standalone and Non-standalone), Vertical (Manufacturing, Smart Cities, Healthcare, Transportation & Logistics, Energy & Utilities, Media & Entertainment, Retail, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Global 5G Network Slicing Overview
A 5G network is an advanced telecommunications technology that aims to provide ultra-fast and dependable wireless connectivity on a global scale. It represents the fifth generation of wi-fi networks and offers significant transfer speeds, low latency, and larger network slicing competence in contrast to its predecessors. One of the key points of 5G is its potential to assist a wide variety of connected devices and applications. This is especially important in the era of the Internet of Things (IoT), where billions of gadgets are anticipated to be interconnected. With 5G, industries such as healthcare, transportation, manufacturing, and smart cities can gain from seamless connectivity and real-time data exchange, enabling superior services.
COVID-19 Impact on Global 5G Network Slicing Market
The global 5G network slicing market has been significantly impacted by the COVID-19 pandemic across several dimensions. Most notably, the heightened reliance on remote work and online activities during the pandemic has underscored the criticality of rapid and dependable internet connectivity. As a result, there has been a growing demand for 5G networks to grant high-speed, low-latency connections that can support the surge in information traffic. The pandemic has additionally accelerated the digital transformation of various industries. With a growth in remote collaboration, telemedicine, and e-learning, organizations and establishments have increasingly adopted digital options that count on strong and environmentally friendly network connectivity. In this context, the advanced capabilities and capacity of 5G networks have played a pivotal role in facilitating these digital shifts and ensuring seamless service delivery.
Increasing Demand for High-Speed, Low-Latency Connectivity Across Various Industries and Applications to Drive the Market Growth
The best driver of the global 5G network slicing market is the growing demand for high-speed, low-latency connectivity across several industries and applications. With the proliferation of smart devices, Internet of Things (IoT), and data-intensive applications, there is a growing demand for networks that can manage large data efficiently. 5G networks offer substantially quicker speeds and reduced latency compared to preceding generations, enabling seamless connectivity, and helping advanced technologies such as autonomous vehicles, virtual reality, and telemedicine.
High Cost of Infrastructure Deployment and Network Equipment to Restrain Market Growth
One essential issue with the global 5G network slicing market that can probably restrain its growth is the excessive cost of infrastructure deployment and network equipment. Building and expanding 5G networks require tremendous investments in infrastructure, consisting of the installation of new base stations, antennas, and fiber optic cables. These prices can be significant, particularly for telecom operators and provider companies who need to upgrade their current networks to assist 5G technology. Moreover, the complexity and technical challenges associated with deploying 5G networks can pose extra obstacles.
Advancements in Technology to Drive Excellent Opportunities
One of the key factors driving opportunities in the 5G network slicing market is the massive expansion in network speeds and bandwidth. Compared to preceding generations, 5G provides dramatically faster data switch speeds, enabling real-time streaming, high-definition video calls, and seamless connectivity for an extensive range of devices. This opens up new opportunities for immersive technologies such as virtual reality (VR) and augmented reality (AR), online gaming, and video streaming. Another promising avenue lies in the Internet of Things (IoT) and the capacity to connect to a wide variety of devices simultaneously. With 5G's low latency and high capacity, it becomes feasible to join and manage a significant network of IoT gadgets efficiently.
Global 5G Network Slicing Market Share, by Component, 2022
The solutions sub-segment accounted for a dominant market share in 2022. Component solutions are developing as a dominant catalyst within the area of network slicing in the worldwide landscape of the 5G network slicing market. Network slicing is the process of dividing a physical network into numerous independent virtual networks that are specifically tailored to meet certain requirements and applications. These virtual networks, also known as slices, have the ability to be tailored in order to meet the unique needs of various businesses, users, and applications. Component solutions play a significant role in allowing the efficient and effective implementation of network slicing in this context. They provide the necessary foundation, including both software and hardware components, to create and maintain these network slices.
Global 5G Network Slicing Market Share, by Type, 2022
The edge slicing sub-segment accounted for a dominant market share in 2022. Edge slicing, also regarded as Multi-access Edge Computing (MEC), focuses on bringing computing resources and network functions nearer to the network edge, enabling low-latency, high-bandwidth, and localized processing capabilities. Edge slicing leverages side computing infrastructure to install and manipulate network slices in close proximity to the end-users or devices they serve. This approach reduces latency and improves personal experience, making it appropriate for applications that require real-time responsiveness, such as autonomous vehicles, augmented reality, and industrial automation.
Global 5G Network Slicing Market Share, by Network Architecture, 2022
The Non-standalone (NSA) network structure sub-segment accounted for a dominant market share in 2022. Non-standalone (NSA) network structure is taking part in a dominant role in the global 5G network slicing market. NSA refers to a structure where 5G is deployed alongside present 4G infrastructure, thus leveraging the competencies of each technology network slicing. One of the key reasons for the dominance of NSA network slicing network structure in the 5G network slicing market is its compatibility with the present 4G networks. This structure permits for a smoother transition from 4G to 5G, enabling network operators to install 5G services besides having to completely overhaul their present infrastructure. By leveraging the current 4G network, NSA structure gives a most economical and environmentally friendly strategy to the deployment of 5G services.
Global 5G Network Slicing Market Share, by Vertical, 2022
The transportation and logistics sub-segment accounted for a dominant market share in 2022. One of the key reasons for the dominance of transportation and logistics in the 5G network slicing market is the growing demand for real-time records and connectivity. The transportation and logistics enterprise heavily relies on well-timed and accurate data for efficient operations, such as monitoring shipments, managing inventory, optimizing routes, and making sure supply chain visibility. 5G network slicing affords ultra-low latency and high-speed connectivity, enabling real-time records transfer and conversation between units and systems.
Global 5G Network Slicing Market Share, by Region, 2022
The Asia-Pacific region accounted for a dominant market share in 2022. The Asia Pacific region holds a substantial market share in the global 5G network slicing market. The region is witnessing speedy advancements in telecommunications infrastructure, government initiatives, and the deployment of 5G networks, positioning it as a key player in the adoption of 5G network slicing technology. One of the major factors driving the dominance of the Asia Pacific market in 5G network slicing is significantly influenced by the scope and demographic distribution of the region. This has led to tremendous investments in 5G infrastructure by telecom operators and governments in various countries like China, South Korea, Japan, and Singapore.
Competitive Scenario in the Global 5G Network Slicing Market
Investment and agreement are common strategies followed by major market players. For instance, in June 2023, The Ericsson company launched a new feature in the upcoming release of Android 14 which will allow users to request a 5G network slice for enhanced performance at specific times for any application. Some of the leading market players are AT&T, Inc., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Deutsche Telekom AG, Amdocs, Inc., Vodafone Group plc, ZTE Corporation, and Qualcomm.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Component
Segmentation by Type
Segmentation by Network Architecture
Segmentation by Vertical
Key Companies Profile
Q1. Which are the major companies in the 5G Network Slicing market?
A. Amdocs, Inc., Vodafone Group plc, and ZTE Corporation are some of the key players in the global 5G Network Slicing market.
Q2. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q3. What are the strategies opted by the leading players in this market?
A. Strategic acquisitions, partnerships, and geographic expansion and market penetration are the two key strategies opted by the operating companies in this market.