Network Slicing Market Expected to Reach $921 Million by 2027

According to a recent report published by Allied Market Research, titled, “Network Slicing Market By Component, Type, Application, End User, Industry Vertical, and Region: Opportunity Analysis and Industry Forecast, 2020-2027,” The global network slicing market size was valued at $172.56 million in 2019, and is projected to reach $921.02 million by 2027, registering a CAGR of 23.7% from 2020 to 2027.

The growth of the global network slicing market is mainly driven by factors such as increase in demand for next generation 5G network to enable better speed and bandwidth capabilities; rise in use cases of network slicing for Industry 4.0; and development of smart cities and smart services. In addition, rise in demand for network performance due to growth in mobile data-traffic volumes fuel the demand for network slicing. Moreover, the proliferation of software-defined networking (SDN) and network function virtualization (NFV) are projected to drive market growth. However, security concerns associated with network slicing are expected to hamper the market growth to some extent. On the other hand, emerging applications across government, industrial, and enterprises sectors expected to provide lucrative opportunities for the market growth during forecast period. Also, rise in adoption for remote surgery and autonomous vehicle is anticipated to be opportunistic for the market growth during the forecast period.

In 2019, the solution segment exhibited the highest growth in the network slicing market and is expected to maintain its dominance in the upcoming years, due to the increase in adoption of network slicing solutions by communication service providers to significantly accelerate the time for delivering new applications and services. In addition, the market players are introducing advanced network slicing solutions to serve various needs of their customers. However, the services segment is expected to witness the highest growth, due to an extensive adoption of deployment and integration services among end users, as it ensures effective functioning of network slicing solution throughout the process.

By end user, the global network slicing market share was dominated by the telecom operators segment in 2019 and is expected to maintain its dominance in the upcoming years, due to the increasing demand for better speed as well as bandwidth connectivity to serve customer needs. In addition, the leading telecom operators across the globe are actively partnering with network solution providers to test the network slicing technology capabilities. However, the enterprise segment is expected to witness the highest growth, owing to the demand for robust network solutions to enhance productivity among enterprises.

The COVID-19 pandemic has significantly pushed demands for broadband services with the help of growing mobile networking and remote access services in several industries such as retail, telecom, IT, and healthcare. As businesses around the globe has started to reopen, communications service providers are shifting their focus to 5G rollouts, and are accelerating investments in network slicing.  In addition, COVID-19 has driven the demand for 5G use cases such as remote office, telemedicine, remote education, and robotics which further boost the network slicing market. In addition, the market players have introduced innovative network slicing products during the pandemic to ensure better network slicing services. This factor drives the market growth. For instance, in October 2020, Nokia announced the solution to offer automation of 4G & 5G network slicing across all network domains, including RAN, core, and transport. It has introduced new network management, orchestration, and controller capabilities to its solution, enabling mobile operators to deliver and assure network slicing services. 

Key Findings Of The Study

• By component, in 2019 the solution dominated the network slicing market size. However, the services segment is expected to exhibit significant growth during the network slicing market forecast period.
• By type, the XX generated the highest revenue in 2019. However, the XX segment is expected to witness highest growth rate in the near future.
• By application, the telecom operators segment accounted for the highest revenue in 2019, however, the enterprise segment is expected to witness highest network slicing market growth rate in the forecasted period.
• Region wise, the network slicing market was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years. 

Some of the key network slicing industry players profiled in the report include Affirmed Networks Inc., Argela Technologies, Cisco Systems Inc., Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., Mavenir, Nokia, Samsung, Telefonaktiebolaget LM Ericsson, and ZTE. This study includes market trends, network slicing market analysis, and future estimations to determine the imminent investment pockets.