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5G Network Slicing Market Overview
Increasing mobile data traffic, growing penetration of the 5G network, and rising demand for high-speed network are the key factors driving the growth of the market across the globe. 5G network slice is a networking architecture that leverages network functions virtualization (NFV) and software-defined networking (SDN) to break the physical infrastructure into multiple virtual networks. Using the 5G network slice, operators can allocate appropriate resources to a specific slice as per the requirements, thus improving the network efficiency.
The 5G network slicing market has been divided into solution and service, when segmented on the basis of offering. Between the two, the service category is expected to witness faster growth in the market during the forecast period (2020–2030). This can be attributed to the growing demand for professional services, such as consulting, integration, and security, for network management in compliance with government regulations. Thus, the rising demand for these services across organizations is catalyzing the market growth in this category.
The 5G network slicing market, on the basis of application, has been classified into remote monitoring, asset management, supply chain management, real-time streaming, network monitoring, and others. Among these, the remote monitoring category generated the highest revenue in the market in 2019.
In this 5G era, several industry verticals are seeking to leverage the power of the technology to boost productivity, as it addresses the need for increased speed, enhanced capacity, and lower latency and also enables organizations to monitor the performance of their assets in real time. Besides, it brings new levels of performance and functionality to cellular networks by enabling critical applications, including those pertaining to the Internet of Things (IoT). Thus, 5G network slicing solutions are increasingly being deployed for remote monitoring purposes, particularly for asset health and performance.
Globally, North America held the largest share in the 5G network slicing market in 2019 and is expected to continue leading it during the forecast period as well. This can be mainly attributed to the increasing adoption of the 5G technology in the region. As per GSMA Intelligence, 5G penetration in the region is expected to reach 46% of the total connections by the end of 2025. Moreover, increasing IT spending, early adoption of advanced technologies, and presence of a large number of players are some other factors supporting the growth of the market in the region.
5G Network Slicing Market Dynamics
Increasing mobile data traffic is one of the key factors driving the growth of the 5G network slicing market across the globe. With the growing penetration of smartphones, coupled with availability of affordable high-speed network services, mobile data usage is increasing significantly. As per GSMA Intelligence, global smartphone penetration is expected to increase from 65% in 2019 to 80% by the end of 2025. People are increasingly using smartphones for communication, work, and entertainment purposes.
Moreover, as per a study conducted by Telefonaktiebolaget LM Ericsson, global mobile data traffic is projected to increase from 38 exabytes per month in 2019 to 160 exabytes per month in 2025. Thus, to offer better service without network failure, telecom operators are increasingly deploying network slicing solutions. With network slicing, operators can easily slice a network into a number of sub-networks, each with its own characteristics enabling better control over the data traveling through the network. Moreover, network slice management solutions can also help carriers implement network slice lifecycle management in 5G preparation. It has the ability to reduce operational expenditure and increase capital expenditure (CAPEX) efficiency, while boosting operational efficiency.
5G Network Slicing Market Competitive Landscape
Owing to the presence of a large number of players, the global 5G network slicing market is highly competitive in nature. In recent years, market players have taken several strategic measures, including mergers and acquisitions, partnerships, and product launches, to strengthen their foothold. For instance, in May 2019, China Media Group, China Mobile Limited, and Huawei Technologies Co. Ltd. jointly completed the first ultra-high-definition (UHD) live streaming verification through a standalone end-to-end (E2E) 5G network slice provided by China Mobile and Huawei. The slice provides CCTV 4K live streaming services with ultra-high bandwidth and ultra-low latency. It is also the first live streaming slice on the 3rd Generation Partnership Project (3GPP)-compliant 5G network.
Some of the key players operating in the 5G network slicing market are Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd., Nokia Corporation, Intel Corporation, ZTE Corporation, Cisco Systems Inc., Samsung Electronics Co. Ltd., SK Telecom Co. Ltd., NTT DOCOMO Inc., Deutsche Telekom AG, and Telefonica SA.
The report also provides a country-wise analysis. Some of the major countries covered in the report are the U.S., Canada, Mexico, Brazil, the U.K., Germany, France, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, South Africa, Turkey, the U.A.E., and Saudi Arabia.
5G Network Slicing Market Size Breakdown by Segment
Based on Offering
Based on Enterprise
Based on Application
Based on Vertical