“Global Network Slicing Market to reach a market value of USD 19 Billion by 2031 growing at a CAGR of 50.2%”
The Global Network Slicing Market size is expected to reach $19 billion by 2031, rising at a market growth of 50.2% CAGR during the forecast period.
Government agencies require reliable, secure, high-performance networks to deliver critical services to citizens, such as emergency response, public safety, and healthcare. Thus, the government segment acquired $140.9 million revenue in 2023. Network slicing can ensure that these services receive dedicated network resources, prioritization, and quality of service guarantees. Many governments are investing in smart city initiatives, which rely on connected devices and sensors to improve city services and infrastructure.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In, February 2024, Ericsson AB came into partnership with Telstra. Through this partnership, both companies would provide a world-class infrastructure and solutions in delivering 5G network slicing services tailored for Australian enterprises. Additionally, In, February 2024, ZTE Corporation collaborated with Red Hat. This collaboration seeks to empower service providers to achieve cloud-native, high-performance networks for the swift deployment of 5G service applications.
Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems Inc., Samsung Electronics Co., Ltd., Huawei Technologies Co., Ltd., and VMware, Inc. are the forerunners in the Network Slicing Market. In September 2023, Samsung Electronics Co., Ltd. signed a collaboration with KDDI, a leading telecommunications operator in Japan, providing a wide range of services including mobile, fixed-line, and internet solutions. Under this collaboration, both companies would introduce various commercial 5G network slicing services and explore novel business models enabled by this groundbreaking technology. Companies such as Hewlett Packard Enterprise Company, Nokia Corporation, Intel Corporation are some of the key innovators in Network Slicing Market.
Different applications and services have varying bandwidth, latency, reliability, and security requirements. For example, streaming video services may prioritize high bandwidth, while real-time applications like telemedicine require low latency and high reliability. Therefore, the growing demand for customized services is significantly boosting the growth of the market.
Additionally, Edge computing is a rapidly growing trend in technology, driven by the need to process data closer to where it is generated. It is crucial in supporting edge computing by providing dedicated resources at the network's edge. Thus, the expansion of edge computing also supports the development of the market.
Implementing network slicing involves significant investment in upgrading and modernizing network infrastructure. This may include deploying software-defined networking (SDN) controllers, virtualized network functions (VNFs), and cloud-native architectures to support the dynamic creation and management of network slices. Thus, the high initial investment required for implementing network slicing can hinder its widespread adoption.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
By offering, the market is bifurcated into solution and services. The solution segment acquired a 74.2% revenue share in the market in 2023. Network slicing solutions provide businesses with greater control and visibility over their network resources. These solutions typically include software-defined networking (SDN) and network functions virtualization (NFV) technologies, which allow businesses to dynamically allocate and manage network resources. Network slicing solutions also offer enhanced security.
Based on end-user, the market is characterized into communication service providers and enterprises. In 2023, the enterprises segment procured a significant 23% revenue share in the market. It offers enterprises a way to create more agile, efficient, and secure networks that can better support their business objectives.
On the basis of vertical, the market is classified into healthcare, government, transportation & logistics, energy & utilities, manufacturing, media & entertainment, financial services, retail, and others. The healthcare segment acquired a 22% revenue share in the market in 2023. Healthcare data is highly sensitive and requires stringent security measures. It can create isolated networks for healthcare data, ensuring that patient information remains confidential and protected from unauthorized access.
Free Valuable Insights: Global Network Slicing Market size to reach USD 19 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured a 37% revenue share in the market in 2023. North America is one of the leading regions in market size and growth for market.
Competition in the network slicing market is intense as telecom giants like Ericsson, Huawei, and Nokia vie for dominance. Startups and cloud service providers also enter the fray with innovative solutions. Regulatory policies and standardization efforts shape the landscape, fostering a dynamic ecosystem focused on optimizing network resources for diverse user needs.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 776.9 Million |
| Market size forecast in 2031 | USD 19 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 50.2% from 2024 to 2031 |
| Number of Pages | 260 |
| Number of Tables | 392 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Offering, End-user, Vertical, Region |
| Country scope |
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| Companies Included | Ericsson AB, Samsung Electronics Co., Ltd. (Samsung Group), Nokia Corporation, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ZTE Corporation, Cisco Systems Inc., Hewlett Packard Enterprise Company, Intel Corporation, VMware, Inc. (Broadcom Inc.), BT Group plc |
By Offering
By End-user
By Vertical
By Geography
This Market size is expected to reach $19 billion by 2031.
Growing demand for customized services are driving the Market in coming years, however, High cost of initial investment restraints the growth of the Market.
Ericsson AB, Samsung Electronics Co., Ltd. (Samsung Group), Nokia Corporation, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ZTE Corporation, Cisco Systems Inc., Hewlett Packard Enterprise Company, Intel Corporation, VMware, Inc. (Broadcom Inc.), BT Group plc
The expected CAGR of this Market is 50.2% from 2024 to 2031.
The Communication Service Providers segment is leading the Market by End-user in 2023; thereby, achieving a market value of $14.4 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $6.6 billion by 2031.
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