Network Slicing Market - By Component, By Application, By Organization Size, By End Use, Growth Forecast 2025 – 2034

Network Slicing Market Size

The global network slicing market was valued at USD 655.5 million in 2024 and is estimated to register a CAGR of 24.1% between 2025 and 2034.
 

The need for better network efficiency and utilization serves as a powerful motivator behind the integration of network slicing. The constant growth in data traffic along with the unexpected changes in network requirements makes it extremely difficult to allocate resources in a fixed manner. Network slicing allows operators to allocate resources in real-time depending on the needs of the user, thus achieving optimal performance with minimal congestion. This guarantees that varying applications are given different levels of connectivity resulting in better overall utilization of the network.
 

For example, in February 2025 T-Mobile introduced T-Priority service, which is a 5G network slicing service dedicated for first responders. It guarantees high speed and non-congested connections during an emergency. T-Priority can increase overall network resources upto 5x and can prioritize critical communications when the situation calls for it.
 

The increasing need for innovative connectivity options is contributing to the development of network slicing technology. Companies from all business sectors need specialized services that fit their specific ultra-reliable low latency communications, high bandwidth, or both. With network slicing, service vendors can construct virtual network segments with unique performance indicators that meet the various needs of the customers, thereby boosting business profitability and customer satisfaction.
 

The rise of network slicing is being propelled by the sustained growth in real-time and high bandwidth, low latency application is accelerating the market. Cloud gaming and AR/VR technologies are augmenting demand even further.
 

Network Slicing Market Trends

• With the help of AI, automation and resource allocation have been optimized to a much greater degree regarding slicing a network. Machine learning systems studied and evaluated traffic flow and optimized network resources to increase security and performance. AI aided the telecommunications, healthcare, and financial industries in being able to simultaneously perform heavy operations while having low latency.
   
• For instance, in February 2025 BubbleRAN, Telenor, and NVIDIA showcased AI-driven 5G network slicing at MWC 2025 for maritime communication. Using NVIDIA’s NIM microservices and Llama 3.1 models, AI-powered network agents optimized traffic flow, QoS, and resource allocation in real time. This system prioritized mission-critical traffic over robotic inspections and passenger broadband, ensuring efficient operations. AI-enabled self-learning and automated reconfigurations reduced manual intervention, improving network performance and efficiency.
   
• Realtime applications heavily depend on optimal slicing of the network and have enabled rapid growth in edge computing. Businesses can enhance their responsiveness, and minimize latency, by processing information closer to the relevant source. Network slicing has aided industries such as autonomous cars, telemedicine, and industrial automation to reserve bandwidth and resources optimally while ensuring reliable connections for important activities. With the adoption of edge computing, slicing a network became a necessity for the control of distributed systems and environments.
   
• Achievements in fifth generation telecommunications have transformed the way industry’s function, utilizing customized virtual networks through slicing advanced building IoT powered smart cities, cloud services, and other industries
   

Network Slicing Market Analysis

Based on components, the market is segmented into solutions and services. The solutions segment dominated in 2024, accounting for over 60% of the market share, and is expected to exceed USD 2 billion by 2034.
 

• Telecommunications focus on enhanced service differentiation and monetization is causing the demand for end-to-end network slicing solutions to increase. These solutions allow operators to place network resources competently, guaranteeing the best enterprise resource performance for different applications.
   
• Enterprises are beginning to adopt cloud-native network slicing platforms for critical application connectivity management. These help in streamlining operational processes by providing increased flexibility and automation which, in turn, improves network responsiveness.
   
• In January 2025, Singtel entered into a partnership agreement with Singapore’s Defence Science and Technology Agency (DSTA) and the Home Team Science Technology Agency (HTX) for the deployment of 5G network slicing for critical defense and security operations. This allows the use of Singtel’s 5G network for autonomous systems and secure decision-making AI data analysis through faster, high-speed, low-latency and dedicated connectivity.
   
• Enterprises are seeking expert consulting, deployment, and managed services for slicing technology implementation, resulting in growth of these services. Service providers have begun packaging services to assist businesses with improving network security and performance.
   

Based on technology, the network slicing market is segmented into IoT, AR/VR, autonomous vehicles, smart cities, and industrial automation. The IoT segment held the largest market share in 2024, representing 33.8% of total revenue.
 

• The expansion of connected devices in industries such as healthcare, manufacturing, and transportation is driving demand for dedicated network slices. These slices ensure ultra-low latency, high reliability, and seamless connectivity for critical IoT applications. In February 2025, Ericsson launched the Cradlepoint R980 and S400 routers with 5G network slicing support for AI-driven applications. These routers ensure secure, high-performance connectivity for mission-critical IoT and vehicle networks.
   
• Smart factories and logistics companies are implementing network slicing to support real-time analytics and predictive maintenance. By enabling data-driven decision-making, businesses can improve operational efficiency and reduce downtime.
   
• The automotive sector is integrating network slicing into vehicle-to-everything (V2X) communication. This allows for reliable connectivity between vehicles, infrastructure, and cloud systems, improving safety and autonomous driving capabilities.
   
• Governments and private enterprises are leveraging network slicing to enhance smart city infrastructure. Slicing enables secure, high-performance connectivity for smart grids, surveillance systems, and emergency response networks.
   

Based on organization size, the network slicing market is segmented into small & medium enterprises (SMEs) and large enterprises. Large enterprises led in 2024, holding over 60% market share, and are expected to continue driving growth through 2034.
 

• Large companies are investing heavily to carry out tasks that require a lot of potent tools like AI powered automation, cloud computing, and more. They are doing this to improve cloud computing by optimizing the bandwidth, reducing the latency, and enabling tasks that are highly data reliant.
   
• By adopting slicing models, SMEs can maintain contact with their clients without having to spend a fortune. These slicing models enable them to custom tailor their services depending on the situation within their businesses.
   
• To be able to work with anything between large corporations to smaller companies, Verizon is developing products to do slicing-as-a-service. With this type of service, companies do not have to put a large sum of money into infrastructure, enabling more businesses to use this technology.
   

Based on end user, the network slicing market is segmented into telecom, manufacturing, energy & utility, healthcare, automotive, government, retail, BFSI, and others. The telecom sector remained the largest adopter in 2024, capturing over 40% of total market revenue.
 

• Telecom operators are utilizing network slicing to tap into new possibilities, providing customers with customized solutions for industrial automation, critical application, cloud gaming, and video streaming.
   
• In September 2024, Norwegian mobile carrier Ice launched its 5G Standalone (5G SA) network, emphasizing network slicing capabilities. Ice collaborated with Norway’s Armed Forces and emergency services to test and deploy slices for security-critical communication. The network rollout involved Mavenir for the mobile core, Nokia for radio access, and Lyse’s fiber infrastructure.
   
• Network slicing is applied by 5G infrastructure vendors to achieve operational efficiency within the network, relieve congestion in the dense user environments of stadiums, airports, and downtowns, and provide users with a frictionless experience.
   
• Telecom operators are combining slicing with edge computing to supply ultra-low-latency services that host real-time cases such as virtual reality, smart surveillance, and mission-critical IoT deployments.

North America dominated the global network slicing market with a major share of over 40% in 2024 and U.S. leads the market in the region and is projected to reach 1 billion by 2034.
 

• This dominance is driven by the presence of key players, along with strong investments in 5G, cloud computing, and AI-driven network management. The rising demand for customized network solutions in sectors like healthcare, manufacturing, and entertainment fuels rapid adoption of network slicing technologies.
   
• For instance, in December 2024 Verizon introduced Enhanced Video Calling, leveraging network slicing to improve video call quality on apps like FaceTime and WhatsApp. Available to iPhone 14+ users on select 5G plans, this feature ensures smooth connectivity in congested areas.
   
• Additionally, U.S. government initiatives to advance 5G infrastructure, particularly in critical sectors such as defense, transportation, and smart cities, further accelerate market growth. Investments in AI-driven network slicing and management tools position North America as a leader in the development of next-gen network solutions.
   

The network slicing market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• Germany's leadership is supported by its strong telecom industry, and a focus on advanced 5G infrastructure. The growing demand for efficient and reliable network solutions in sectors such as automotive, healthcare, and smart cities drive the adoption of network slicing.
   
• For instance, in February 2025 Vodafone successfully trialed the multi-use 5G Standalone (SA) network slicing at the Wales vs Ireland Six Nations match. Partnering with Ericsson, Vodafone dedicated separate network slices for a livestream watch-along and real-time high-resolution photo uploads, ensuring seamless connectivity in a crowded stadium. This trial highlighted network slicing's potential to prioritize and optimize performance for different use cases, revolutionizing connectivity at major events.
   
• Additionally, EU-wide policies promoting 5G development and digital transformation, especially in sectors like manufacturing and logistics, further enhance market growth. Investments in AI-driven network management and security solutions solidify Germany’s position as a leader in the market.
   

The network slicing market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• China’s leadership is bolstered by large telecom operators like China Mobile, China Unicom, and Huawei, which are driving the rollout of 5G and network slicing technologies. The growing demand for enhanced connectivity in industries such as manufacturing, smart cities, and IoT further fuels adoption.
   
• For example, China Mobile has been testing 5G network slicing in collaboration with major industries to optimize connectivity for smart city applications and factory automation. This initiative aligns with the country’s goal of advancing 5G infrastructure to support next-gen technologies.
   
• Moreover, the Chinese government’s initiatives to build robust 5G infrastructure, especially in the manufacturing and transportation sectors, provide a strong foundation for market growth. Investments in AI-driven network management and optimization tools position China as a key hub for network slicing innovation in the APAC region
   

The network slicing market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• Mexico’s progress is supported by the expansion of telecom networks, including major players such as América Móvil and AT&T, along with strong government initiatives to improve digital infrastructure. The increasing demand for tailored network solutions in sectors such as agriculture, healthcare, and logistics drives the adoption of network slicing technologies.
   
• For example, América Móvil has been investing in 5G technology to enhance network flexibility and efficiency, which will enable industries to customize their network requirements for better performance. This shift meets the growing need for low-latency and high-reliability services, particularly in remote and rural areas.
   
• Additionally, government efforts to expand 5G coverage and improve IT infrastructure across Mexico, including investments in smart city projects, contribute to market growth. These initiatives, along with investments in AI-driven network slicing management, help position Mexico as a key player in the Latin American market.
   

Network Slicing Market Share

Top 7 companies leading the market in 2024 are Huawei, Cisco, ZTE, Nokia, Ericsson, Amdocs, HCL. Together, they hold around 40% market share.
 

• Ericsson integrates slicing with AI-driven management tools to boost efficiency. It collaborates with global telecom providers to support differentiated services for private 5G.
   
• For instance, in February 2025, Chunghwa Telecom and Ericsson advanced 5G slicing automation, enabling enterprises to access on-demand network slicing for industrial digitalization. Using Ericsson’s Dynamic Network Slicing solution integrated with Singtel’s Paragon platform, businesses can dynamically allocate network resources for optimized performance.
   
• Huawei focuses on end-to-end network slicing solutions, integrating cloud-native architectures to enhance service agility. It collaborates with operators to deploy intelligent slicing for 5G enterprise applications.
   
• Cisco leverages its expertise in network automation to optimize slicing across multi-cloud environments. It invests in orchestration platforms to ensure seamless connectivity and security. In February 2024, Nokia, A1 Austria, and Microsoft deployed the industry’s first 5G edge cloud network slicing solution, integrating Nokia’s 5G Edge Slicing with Microsoft Azure on A1’s live network.
   
• The solution enables A1 to provide secure, high-performance enterprise VPN services over 4G and 5G while supporting various industries like healthcare, retail, and transportation. The trial showcased real-time HD video streaming using mobile devices, demonstrating low-latency and high-bandwidth benefits.
   
• ZTE develops dynamic slicing solutions with real-time resource allocation. It partners with telecom operators to implement slicing in smart cities and industrial automation.
   
• Nokia prioritizes slicing-as-a-service, enabling operators to monetize network slices for enterprises. It enhances automation through cloud-native core and edge computing.
   
• Amdocs focuses on monetization and policy control for network slicing. It provides cloud-based solutions to help operators efficiently manage slice deployment and billing.
   

Network Slicing Market Companies

Major players operating in the network slicing industry include:

• Amdocs
• Cisco
• Ericsson
• HCL
• Huawei
• Nokia
• Samsung
• Verizon
• ZTE

• The market has attracted both incumbent telecom operators and new players who are offering improved connectivity solutions and network resource optimization. Key players are using their skills in the telecom infrastructure and new technologies to remain competitive.
   
• Industry participants have concentrated on network slicing innovations, particularly its performance, scale, and versatility. Such investments in service automation and AI solutions enable operators to serve multiple industries with little effort to customize.
   
• The implementation of network slicing grows faster through cooperation between telecom service providers and companies across verticals such as manufacturing, healthcare, and logistics. These collaborations allow enterprises to get specialized network services that enhance productivity and connectivity during peak business activities.
   

Network Slicing Industry News

• In February 2025, Bharti Airtel combined forces with Ericsson to implement 5G Standalone (SA) Core network solutions within India. This change will improve the network capacity and enable network slicing and API led monetization. Ericsson's Dual mode 5G Core will provide enabling differentiated services for customer and enterprise users.
   
• In February of 2025, Ooredoo Qatar chose Nokia to implement their AI powered 5G Standalone Core upgrade with slicing capabilities. The goal is to augment service delivery in industries by supporting ultra-low latency and thousands of virtual network slices for different applications.
   
• In September of 2024, Reliance Jio Infocomm and OnePlus tested India’s first 5G network slicing. It will ensure mobile users’ seamless connectivity through dedicated virtual network slices.
   
• In February of 2024, Cisco and DISH Wireless have tested a 5G hybrid cloud network slicing solution aimed at improving enterprise services. In this proof-of-concept trial, the Cisco infrastructure provided routing, network automation, and service assurance, utilizing network slices in a hybrid cloud environment.
   

The network slicing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Solution
• Services

Market, By Application

• IoT
• AR/VR
• Autonomous vehicles
• Industrial automation

Market, By Organization Size

• SME
• Large enterprises

Market, By End Use

• Telecommunications
• Healthcare
• Manufacturing
• Automotive
• Media & entertainment
• Energy & utilities
• Government & public sector

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia