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The network slicing market is estimated to grow by USD 1.62 billion at a CAGR of 37.12% between 2023 and 2028. The market's expansion is driven by several factors, such as the advancement of smart infrastructures, the widespread adoption of network function virtualization and software-defined networking, and the substantial increase in mobile data traffic volumes. These factors collectively contribute to the market's growth, reflecting a shift towards more efficient and flexible network architectures. The development of smart infrastructures enables enhanced connectivity and data management, supporting the growing demand for network security software and virtualization and software-defined networking. Moreover, the increase in mobile data traffic volumes underscores the need for scalable and adaptable network solutions. These trends highlight the importance of technological advancements and strategic infrastructure development in meeting the evolving demands of modern networks.
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The market share growth by the solution segment will be significant during the forecast period. Access threats are reduced by using a network slicing system. Computers (software) and people who manage or configure IT infrastructure use network slicing solution tools. Systems for network slicing can be implemented as hardware appliances, on-premises software, or software as a service (SaaS). They also enable operators to reach out to new customers by providing customized solutions for various industry verticals, allowing for a large volume of customized use cases to generate entirely new revenue streams.
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The solution segment was valued at USD 95.80 million in 2018. Network slicing solutions provide distinct advantages at multi-tenant enterprise campuses, where multiple enterprises with stringent connectivity requirements congregate on sites in rural areas, away from highly developed connectivity infrastructure. Compared with today's fixed connectivity options, slicing can provide greater flexibility and cost-effectiveness in these environments. For example, the new Ericsson network slicing solution has been tested in CSP networks and on commercial smartphones, and it can be smoothly introduced on top of the Ericsson 5G Core. These technologies provide relevant and useful information that assists businesses in making decisions. In the market, rising solution acceptance is expected to grow at the fastest rate of any solution sector. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The adoption of Internet of things (IoT) technology is witnessing an increase in industrial applications in North America, especially in developed economies such as the US and Canada. In the US, which is a major market in the region, the telecom sector is expected to witness substantial growth during the forecast period. The increasing adoption of wireless technologies in the US is one of the major factors driving the growth of the market in the region during the forecast period.
Network slicing is a cutting-edge cellular network technology that enables the allocation of dedicated resources to different services and applications in real time. This technology is essential for delivering high-quality, low-latency services, particularly in the era of 5G technology and the increasing demand for data-intensive applications like video streaming and cloud services. The market is experiencing significant growth due to the increasing adoption of 5G services and the need for improved service quality in various sectors, including retail and e-commerce. Network slicing vendors are leveraging Software Defined Networking (SDN) and Network Functions Virtualization (NFV) technologies, along with orchestration, to provide flexible and efficient network solutions. Unlicensed and shared spectrum are key enablers of network slicing, allowing mobile network operators to optimize their network resources and offer customized services to their customers. Service level agreements (SLAs) and multi-domain infrastructure are crucial components of network slicing, ensuring service quality and enabling seamless integration across different network domains. The open source community is also playing a vital role in the development and standardization of network slicing technology, with various initiatives aimed at creating interoperable and scalable solutions. Dedicated resources and shared resources are two key aspects of network slicing, with the former providing guaranteed resources for specific applications and the latter offering flexible and cost-effective solutions for non-critical applications.
The development of smart infrastructures is the key factor driving the growth of the market. Smart cities have become more popular in recent years, perhaps more so than ever before. With the development of a slew of next-generation wireless technologies, such as Li-Fi, 5G, LoRa, and network slicing, as well as the emergence of the Internet of Things (IoT), the experience of large towns and cities is set to improve significantly. Moreover, 3G and 4G were introduced before the true emergence of IoT and smart devices, they lag significantly behind in terms of the technologies required to support such a complex network. Network operators will need to upgrade their infrastructure to accommodate the devices that will account for the USD 1.7 trillion in consumer spending by 2020.
Network slicing is the process by which network operators can divide or slice their networks based on the needs of their users. Smart services will rely on low latency to provide essential real-time and ultra-reliable connectivity and interactivity to meet the needs of smart cities. Autonomous drones, for example, will require extremely fast response times but not necessarily fast data rates. Cloud-based services, on the other hand, will require fast data rates but not necessarily low latency. This is where network slicing enters the picture. It will enable providers to slice up their 5G networks to meet the various requirements of different services, driving the market demand during the forecast period.
The strategic collaboration among market participants is the primary trend in the market. Market participants from different industries, such as information technology solutions, telecommunication network infrastructure, utilities, and semiconductor integrated circuits (IC), are aggressively investing in 5G technology. The 5G technology can provide network transmission speeds of very high magnitudes compared with the 4G network. The integration of HMI technologies across end-user industries such as automotive, aerospace and defense, consumer electronics, healthcare, and utility is driving the demand for networks that can support high-bandwidth applications with low latency.
As a result, an increasing number of companies are focusing on developing 5G compatible devices and establishing networks as a part of the 5G network ecosystem. Strategic collaboration among the market participants will result in the development of products and services supporting the 5G technology. This will result in the development of 5G network infrastructure, which, in turn, will accelerate the demand for the market during the forecast period.
The threat of cybersecurity breach is a major challenge to the growth of the market. The adoption of 5G networks is expected to facilitate communication among connected devices in autonomous cars, electronic healthcare, smart cities, and building and home automation. The use of 5G networks enables real-time monitoring and control of various connected devices in these applications. The threat of cyberattacks will increase with the integration of 5G networks in these applications.
Cyberattacks on 5G networks can be in the form of hacking of connected devices to steal consumer data or even breaching multiple devices to create a distributed-denial-of-service (DDoS) attack on critical target servers Cyberattacks can lead to widespread security implications in the form of breaches of medical research data, unauthorized remote control of devices, unauthorized access to customer data, and patient privacy violations. Therefore, cybersecurity will be a significant challenge to the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amdocs Ltd - The company offers network slicing solutions such as design, operation, and automation. Also, the company operates in one reportable segment which design, develop, market, support, implement, and operate amdocsONE.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
A Game-Changer for Various Industries Network slicing, a cutting-edge technology, is revolutionizing cellular network infrastructure by enabling the creation of customized network solutions for diverse industries and use cases. This technology offers enhanced data speeds and reduced latency, making it an ideal choice for high-bandwidth applications such as video streaming, cloud services, and IoT. Network slicing vendors are at the forefront of this transformation, providing solutions for 5G services, unlicensed spectrum, and shared spectrum to mobile network operators (MNOs) and various sectors like healthcare, media and entertainment, utilities, government institutes, large enterprises, SMEs, core industries, manufacturing, textile, transportation and logistics, travel and hospitality, consumer goods, and more. The telecom sector is undergoing a digital transformation, with network slicing playing a crucial role in enabling cloud-native architecture, automation, digitalization, and mobility.
Moreover, fixed network slices and RAN slicing are gaining traction, allowing for the efficient allocation of spectrum and the deployment of cloud-based solutions. Big data analytics is another area where network slicing shines, enabling real-time insights and improving overall network performance. Security breaches are a concern, but network slicing's ability to provide customized solutions and orchestration through Software Defined Networking (SDN) and Network Functions Virtualization (NFV) ensures robust protection. The market landscape depends on the 5G enabled network slicing, e-commerce, Multi domain infrastructure, Core network functions, Radio access network functions, Enterprise virtual private network. In conclusion, network slicing is a game-changer for the telecom sector and various industries, offering improved data speeds, reduced latency, and customized network solutions for diverse use cases. With the increasing adoption of 5G services and IoT, the demand for network slicing is expected to surge, making it an essential component of digital infrastructure.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 37.12% |
Market growth 2024-2028 |
USD 1.62 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
29.55 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, UK, Germany, China, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aarna Networks Inc., Amdocs Ltd., Cisco Systems Inc., Deutsche Telekom AG, GSM Association, HCL Technologies Ltd., Huawei Technologies Co. Ltd., Informa PLC, International Business Machines Corp., Mavenir Systems Inc., Microsoft Corp., Nippon Telegraph and Telephone Corp., Nokia Corp., Parallel Wireless Inc., Tambora Singapore Systems Pte. Ltd., Telefonaktiebolaget LM Ericsson, Turk Telekom, Viavi Solutions Inc., Vodafone Group Plc, and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market forecasting , market forecast , Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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