5G Segment Routing Market Size, Share, Opportunities, And Trends By Technology (Compressed, Uncompressed), By Application (Network Slicing, MEC), And By Geography - Forecasts From 2023 To 2028

The 5G segment routing market is expected to grow at a CAGR of 60.19% during the forecast period.

Segment routing plays a vital role in bringing a simplified approach to traffic engineering and in the management of a cross-network domain. It removes the network state information from the transit routers and nodes from the network and path state. Strategic partnership and collaboration are happening in the market looking at the increased demand for 5G networks.

Growth drivers for the 5G segment routing market

The demand for 5G segment routing is also increasing owing to the increased demand for fast data transfer, with the younger professionals in the coming year demanding a network that can instantly transfer loads of data within seconds. Moreover, the demand is anticipated to rise in the forecast period due to features like scalable network flexibility, and efficiency. The increasing use of IPv6 (Internet Protocol Version 6) is also increasing the demand for 5G segment routing. For instance, Google collects the statistics of IPv6 adoption on the internet on an ongoing basis, for the understanding of website owners, internet providers, and policymakers. According to the statistics 40.01% were browsing Google with the help of IPv6. Hence, with the increased use of IPv6, there is an anticipation that the 5G segment routing industry will expand in the projected period. 

Increasing adoption of the 5G Internet

The increasing adoption of 5G internet as it is easy to transfer data for efficiency and increasing deployment of this technology in developing countries such as India are aiding the 5G segment routing market growth in the forecasted period. For instance, the 5G services launched in India in October 2022, according to the Ministry of Communication the increasing teledensity in rural areas is also increasing which can be one of the reasons for increased 5G segment routing industry demand. The data suggested that the rural tele-density in March 2014 was 44% which grew to 58% in October 2022. The FDI flow for the Indian telecommunication sector was US$694 million in April to September 2022-23 up from US$668 million during 2021-22. Hence, the deployment of 5G services in countries such as India and other developing countries is also pushing the 5G segment routing market in an upward direction in the projected period.

Framework to support 5G rollout and 5G applications in Germany

The IT Security Act 2.0, passed by the German Bundestag on April 23, 2021, includes provisions that prohibit the use of critical components for safeguarding public order and security within Germany. The law mandates stringent security criteria for network operators, requiring certification of critical components. Its scope encompasses ensuring information security in 5G mobile networks. First released in January 2020, the EU Toolbox on 5G cybersecurity was developed to tackle cybersecurity vulnerabilities in 5G networks. It outlines strategic and technical measures along with supporting actions to enhance their efficacy in addressing these risks.

In September 2021, the German Federal Office for Information Security (BSI) introduced a domestic product certification program named NESAS Cybersecurity Certification Scheme - German Implementation (NESAS CCS-GI). This initiative is built upon the GSMA-NESAS assessment scheme and enables equipment vendors to showcase adherence to essential security attributes by obtaining an IT security certificate for their 5G mobile network equipment.

5G strategy by the Federal Government

Germany's radio spectrum policy encourages timely recognition of harmonized frequency bands within Europe, while also endorsing harmonization of the 5G candidate bands designated by the 2015 World Radiocommunication Conference. The Federal Government plans to designate the frequency range of 26.5 to 27.5 GHz within the 26 GHz band for 5G applications, considering security and compatibility. This strategy allows Germany to actively engage in the advancement of 5G technology.

It is projected that the China 5G segment routing market will grow steadily. 

The desire for effective, adaptable, and scalable network solutions that can serve various and changing service requirements is driving the 5G segment routing industry in China. Additionally, it makes use of NFV and SDN technologies to offer programmable and flexible network services. 5G segment routing provides faster router interface speeds, cheaper bit costs, and new corporate use cases that require specialized, SLA-based network services. According to the newly published static by the State Council Information Office, China had 763 million active users of Internet Protocol version 6 (IPv6) by the end of May 2023, or 71.51 percent of the overall user base. In 2017, China unveiled a strategy to promote widespread IPv6 network use. According to the plan, China will have the most IPv6 users in the world by the end of 2025 and network and terminal devices will completely support IPv6 adoption in China. The 5G segment routing market is significantly driven by the percentage of IPv6 users. An expanding user base that depends on IPv6 for connection is indicated by the proportion of IPv6 users. This development is advantageous for segment routing in 5G networks because it promotes compatibility and interoperability, enabling effective routing and resource optimization.

Rising utilization of mobile edge computing

Since most edge devices need extremely low latency to process and analyze high-volume data flows in real-time, 5G networks' extensive coverage has been hailed as the primary enabler of edge computing. The innovation and evolution of the Internet of Things are gaining popularity due to the quick development of communication and network technology. According to the Ministry of Industry and Information Technology (MIIT) published report, by the end of March 2023, China had more than 2.64 million 5G base stations and there were 620 million 5G mobile subscribers nationwide, and 5G signals were available in every county. By the end of 2023, China intends to have 2.9 million 5G base stations, up from around 600,000, according to Jin Zhuanglong, minister of industry and information technology. Chinese businesses like Alibaba, Baidu, Huawei, and ZTE are influencing the route that edge computing-based surveillance technologies will take in the future.

Market Key Developments

• In August 2023, Ecrisson and M1 partnered to deploy the new generation of 5G routers that enable a future-ready mobile transport network. These will have different applications including scalability, capacity, and responsiveness with features such as higher density of 256 ports with a capability of 100G and segment routing.
• In February 2023, Segment Routing IPv6 Mobile User Plane (SRv6 MUP*1) field testing has begun by SoftBank in its operational 5G network. SRv6 MUP, which SoftBank is leading, can enable 5G Multi-access Edge Computing (MEC) and network slicing with cost-efficiency and operational advantages over legacy technologies, according to SoftBank
• In March 2022, to acquire a competitive edge in the global MEC industry, SK Telecom, and Dell Technologies announced the launch of "Petasus," an enterprise 5G mobile edge computing (MEC) solution.

5G Segment Rotuing Market Scope:

Segmentation:

• By Technology
  • Compressed
  • Uncompressed
• By Application
  • Network Slicing
  • MEC
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • United Kingdom
    • Others
  • Asia Pacific
    • Japan
    • China
    • South Korea
    • Others