The network slicing market is projected to grow at a CAGR of 18.29% to reach US$594.461 million by 2026, from US$183.437 million in 2019. Network slicing refers to the method of creating virtualized networks and multiple unique logical over a common multi-domain infrastructure. Using Network Functions Visualization, Software-Defined Networking (SDN), analytics, orchestration, Mobile Network Operators (MNOs), and automation can rapidly create network slices to support a specific service, application, network, or a set of users.
The increasing demand for IoT-based solutions and the growing technological advancements in Machine-to-Machine communication is leading to the revolutionization of various industries by connecting various types of appliances, devices, services, and systems. Network slicing enabled 5G could support IoT authorizing communication between a variety of connected devices and sensors. The use of network slicing in the hospitality industry amid the COVID-19 pandemic has boosted the market growth of network slicing in the global market. The requirement of connectivity through all medical devices from hospital-based multimillion-dollar imaging systems to at-home clinical diagnostic equipment has fueled the market growth of network slicing. The use of network slicing techniques enables new applications which include diagnosis, imaging, data analytics, and many more. The use of network slicing in the management of medical data to maintain electronic health records or the establishment of ambulance drones. Moreover, the growing developments over 5G technology are anticipated to boost the market growth of network slicing to support the requirements for emerging IoT applications.
By application, the network slicing market is segmented into remote monitoring, supply chain management, asset management, real-time streaming network monitoring, and multimedia. The supply chain management segment is anticipated to grow at a prominent pace owing to the rising demand for ultra-low latency for remote operations, real-time automation, autonomous robotics, and smart surveillance. Furthermore, the growing adoption of advanced technologies such as machine learning and AI for management of the supply chain demands dedicated data channels for its best performance. By end-user, the network slicing market segmented into communication and technology, media and entertainment, BFSI, manufacturing, and others.
By component, the network slicing market is segmented into technology, software-defined networking, network functions virtualization, cloud radio access network, and services. The services poultry segment is anticipated to grow at a promising rate owing to the support to the network resources to maintain the quality of services and the role played in the deployment of the 5G network. The increasing emphasis on the technological advancement in this segment by prominent market leaders is leading to the growth of the services segment in the market during the forecast period.
Geographically, the Asia Pacific region is expected to show prominent growth in the network slicing market owing to the growing support of technological and industrial growth in the developing nations including India, China, and Japan. The region possesses a developed technological infrastructure fueling the adoption of network slicing solutions across various industry sectors. The growing adoption and acceptance of cloud-based solutions, big data analytics, and mobility and the emergence of growing technologies such as IoT is boosting the market growth of network slicing in the global market.
One of the major reasons for the growth of network slicing is the growing business application of network slicing across various industry verticals including government and enterprises sectors. Digitalization, automation, and Industry 4.0 have had a rapid change in the adoption of business applications. The growing consumers and business for operation agility have led to a digital transformation across industry sectors. The demand for strong networks by businesses to support the digital transformation has led to the adoption of network slicing with the growing technological advancements and evolving ecosystem.
A major restraint in the growth of the network slicing market is the growing security breaches which in turn leads to monetary and operational loss. Information sharing and exposure constraints act as a hindrance to the market growth of network slicing. Furthermore, network slice requests brokerage may lead to the limited adoption of network slicing and also restraints the market growth of network slicing.
The COVID-19 impact on the network slicing market has been positive owing to the growing remote access services in many industry verticals including retail, telecom, healthcare, and many more. The demand for broadband services with the help of mobile networking has further fueled the market growth of network slicing during the course of the pandemic. The deployment of wireless networking in recent years has further boosted the market growth of the network slicing market. The work from home initiatives has led to companies being highly dependent on networking systems to control customer queries has led to the surging adoption of network slicing across various industry verticals. Several enterprises and companies running in the network slicing services are taking strategic initiatives to provide customers with the best network services as they are entirely dependent on the network during the pandemic.
|Market size value in 2019||US$183.437 million|
|Market size value in 2026||US$594.461 million|
|Growth Rate||CAGR of 18.29% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Component, Application, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Cisco Systems, Vodafone, Huawei, Nokia Networks, Ericsson, ZTE, Intel, Mavenir, Affirmed Networks, Samsung, Argela|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the network slicing market size by 2026?
A1. The network slicing market is projected to reach a market size of US$594.461 million by 2026.
Q2. What are the growth prospects for the network slicing market?
A2. The global network slicing market is projected to grow at a CAGR of 18.29% during the forecast period.
Q3. What is the size of the global network slicing market?
A3. Network Slicing Market was valued at US$183.437 million for the year 2019.
Q4. Which region holds the largest market share in the network slicing market?
A4. Geographically, the Asia Pacific region is expected to show prominent growth in the network slicing market owing to the growing support of technological and industrial growth in the developing nations including India, China, and Japan.
Q5. What factors are anticipated to drive the network slicing market growth?
A5. One of the major reasons for the network slicing market growth is the growing business application of network slicing across various industry verticals including government and enterprises sectors.
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