Global 5G Network Slicing Market Research Report: Forecast (2024-2030)

Market Definition

A crucial component of fifth-generation (5G) wireless technology is 5G Network Slicing, which enables the development of several virtual networks, or "slices," within a single physical 5G network architecture. Because each network slice is customized to match unique needs and features, services may be made to fit a wide range of use cases and applications.

Market Insights & Analysis: Global 5G Network Slicing Market (2024-30):

The Global 5G Network Slicing Market size is estimated to grow at a CAGR of around 38.5% during the forecast period, i.e., 2024-30. The adoption of 5G network slicing has been experiencing substantial growth recently, largely owing to its remarkable capacity to establish multiple virtual networks within a single physical 5G network infrastructure. This technology brings a plethora of advantages, notably enhancing network flexibility, optimizing resource utilization, improving overall network efficiency, and providing users with enhanced experiences. It empowers mobile network operators to address a broad spectrum of industries and use cases, each with unique performance requirements, thereby enabling them to differentiate their services and tap into additional revenue streams.

One major factor behind the increasing demand for 5G network slicing is the rapid proliferation of the Internet of Things (IoT). By creating dedicated network slices tailored for IoT devices, service providers can ensure these devices have the necessary resources and quality of service (QoS) to operate efficiently and effectively. As the IoT ecosystem expands exponentially, network providers can leverage 5G network slicing to scale their networks flexibly and cost-effectively, generating new slices and allocating resources as needed to stay aligned with the evolving IoT landscape.

Similarly, the integration of Artificial Intelligence (AI) and Machine Learning (ML) plays a pivotal role in the implementation of 5G network slicing. These advanced technologies offer real-time network data analysis, optimizing resource allocation, enhancing network efficiency, and bolstering network security. Furthermore, the burgeoning demand for Augmented Reality (AR) and Virtual Reality (VR) applications, particularly in the gaming sector, further amplifies the necessity for 5G network slicing. This is primarily because network slicing allows for the creation of specialized and dedicated logical networks tailored to the specific requirements of these applications.

Collaborations among industry leaders, such as Telefonaktiebolaget LM Ericsson, Samsung Electronics Co. Ltd., and Deutsche Telekom AG, are actively contributing to the development of 5G network slicing tailored to AR/VR applications. Hence, the surging adoption of 5G network slicing, driven by its ability to create versatile virtual networks and support diverse industries, is reshaping the connectivity landscape and ushering in a new era of network customization and efficiency.

Global 5G Network Slicing Market Driver:

The Proliferation of IoT Applications Driving the Global 5G Network Slicing Market – The rapid adoption of Internet of Things (IoT) devices and applications across various industries serves as a significant driver for the Global 5G Network Slicing Market. As IoT ecosystems continue to expand, there's a growing need for tailored network solutions to accommodate the diverse requirements of IoT devices. 5G Network Slicing plays a pivotal role in meeting these demands. It enables the creation of dedicated network slices optimized for specific IoT use cases, such as industrial automation, smart cities, agriculture, and healthcare. For instance, in smart manufacturing, IoT sensors and machines require low-latency, high-reliability connections for real-time monitoring and control. In contrast, smart agriculture may necessitate network slices optimized for efficient data transfer from remote sensors and agricultural machinery.

This versatility ensures that IoT applications can operate seamlessly and efficiently within a 5G network, driving the adoption of 5G Network Slicing as a fundamental enabler of IoT innovation. As industries increasingly rely on IoT for enhanced efficiency, productivity, and data-driven insights, the demand for customized, high-performance network slices continues to grow, positioning 5G Network Slicing as a critical driver in the evolving digital landscape.

Global 5G Network Slicing Market Opportunity:

Healthcare Advancements Fueled by 5G Network Slicing – With the growing adoption of telemedicine, remote patient monitoring, and the proliferation of Internet of Medical Things (IoMT) devices, there is an ever-increasing demand for ultra-reliable, low-latency communication networks. These networks are crucial to ensuring real-time data transfer, secure telehealth sessions, and timely patient care. 5G Network Slicing plays a pivotal role by creating dedicated network segments meticulously optimized for healthcare applications. These slices provide the low latency and high reliability required for seamless healthcare operations, remote diagnostics, and patient care. This presents a unique and compelling opportunity for service providers, technology companies, and healthcare institutions to collaboratively drive the digital transformation of the healthcare industry, ultimately leading to improved patient outcomes and enhanced healthcare services on a global scale.

Global 5G Network Slicing Market Challenge:

Interoperability Hurdles Challenging the Global 5G Network Slicing Market – One of the substantial challenges facing the Global 5G Network Slicing Market is the intricate issue of achieving seamless interoperability among a myriad of network components and solutions offered by different vendors. As 5G Network Slicing gains widespread adoption, numerous network infrastructure providers and service vendors are developing their proprietary slicing technologies and standards. This lack of standardized practices for 5G standalone network slicing can create significant roadblocks.

The absence of a unified framework leads to compatibility issues when integrating and managing diverse network slices, potentially resulting in inefficiencies and a degraded quality of service. This challenge becomes increasingly significant as the complexity of network slicing configurations grows to cater to various industries and use cases. Solving these interoperability hurdles will be paramount to unlocking the full potential of 5G Network Slicing and ensuring its successful deployment across global telecommunications networks.

Global 5G Network Slicing Market Trend:

Growing Convergence of 5G Network Slicing and Edge Computing – An increasingly significant trend reshaping the Global 5G Network Slicing Market is the convergence of this technology with edge computing solutions. This synergy offers a transformative impact on various industries, notably in scenarios where ultra-low latency and real-time data processing are paramount. Consider the automotive sector, where autonomous vehicles rely on split-second decision-making. The integration of edge computing within 5G Network Slicing allows these vehicles to process data locally, ensuring rapid response times and enhancing safety. Likewise, in the healthcare industry, convergence enables healthcare IoT devices to collect and analyze patient data at the edge, facilitating immediate diagnostics and timely interventions.

Furthermore, in smart manufacturing, edge computing integrated with 5G Network Slicing optimizes machinery coordination by reducing communication latency, resulting in streamlined production processes. This trend underscores the evolving landscape of 5G Network Slicing, positioning it as a key enabler for real-time applications and the digital transformation of various sectors.

Global 5G Network Slicing Market (2024-30): Segmentation Analysis

The Global 5G Network Slicing Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on Deployment Mode:

• Standalone
• Non-standalone

The non-standalone segment dominated the market, holding a major market share. This segment's growth is attributed to the increasing uptake of 5G network services within the framework of existing network infrastructure, which helps reduce the initial costs associated with deploying a standalone 5G network. The non-standalone architecture serves as a transitional phase for 5G network deployment, utilizing existing 4G/LTE infrastructure to deliver 5G services.

However, as the market matures and the demand for 5G services escalates, there is an expected shift toward a standalone 5G network architecture. Standalone 5G architecture represents a pure 5G network deployment that operates independently without reliance on pre-existing 4G/LTE infrastructure. This architectural approach offers superior performance and enhanced flexibility when compared to non-standalone architecture. The network slices established on a standalone 5G network are characterized by higher speeds, reduced latency, and enhanced reliability, thus driving the growth of this particular segment.

Based on Vertical:

• Manufacturing
• Automotive
• Energy & Utilities
• Healthcare
• Logistics
• Government
• Media and Entertainment
• Others (BFSI, Agriculture, etc.)

The logistics sector took a leading position in the market, representing a major market share. The segment's prominence is attributed to the growing demand for tailored and optimized network services catering to specific applications like fleet management, logistics streamlining, autonomous vehicles, traffic control, and more. Additionally, numerous market players are actively engaged in the development of 5G network slicing solutions designed for a range of use cases, which is expected to contribute to the growth of this segment.

The other category encompasses various end-use industries, including financial services, agriculture, mining, public safety, IT & telecom, among others. These industries are increasingly embracing 5G network slicing due to the rising need for high-speed connectivity, driven by the integration of the Internet of Things (IoT) and the deployment of connected devices. Furthermore, the introduction of enhanced functionality and performance through 5G network slicing is propelling growth within different verticals.

Global 5G Network Slicing Market (2024-30): Regional Projections

Geographically, the Global 5G Network Slicing Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

The North American region has exhibited significant dominance in the Global 5G Network Slicing Market, and this trend is expected to persist throughout the forecast period. Several key factors contribute to North America's continued prominence in this market. Firstly, the region has been at the forefront of 5G infrastructure development, with substantial investments from major telecommunications providers. This early adoption of 5G technology has resulted in a robust ecosystem for network-slicing applications, ranging from enhanced mobile broadband to mission-critical IoT.

Moreover, North America boasts a diverse industrial landscape, with thriving sectors like manufacturing, healthcare, and automotive, all of which are actively leveraging 5G Network Slicing for enhanced connectivity and operational efficiency. The region's commitment to innovation and cutting-edge technologies, coupled with stringent cybersecurity measures, further solidifies its leadership in the Global 5G Network Slicing Market. Additionally, the ongoing convergence of 5G and edge computing in North America is fueling demand for network-slicing solutions, particularly in latency-sensitive applications such as autonomous vehicles and augmented reality. These factors collectively position North America as a pivotal hub for 5G Network Slicing, with a trajectory of continued dominance in the foreseeable future.

Global 5G Network Slicing Industry Recent Development:

• 2022: Cisco and T-Mobile's partnership has led to the launch of an innovative cloud-native 5G core gateway, elevating their 5G standalone core capabilities. This advancement not only improves network performance for both 5G and 4G users with enhanced speed and lower latency but also enables faster testing and deployment of 5G and IoT applications.
• 2023: Vodafone Group plc., became the first UK company to introduce a 5G standalone network, representing the most advanced and fully upgraded 5G technology without reliance on 4G components, setting it apart from existing 5G non-standalone networks.

Gain a Competitive Edge with Our Global 5G Network Slicing Market Report

1. Global 5G Network Slicing Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations gain a holistic understanding of market dynamics & make rational decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global 5G Network Slicing Market Report aids in assessing & mitigating risks associated with entering or operating levels in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.