Network Slicing Market size is set to surpass USD 600 million by 2026, according to a new research report by Global Market Insights, Inc.
Network slicing uses the same techniques as Software Defined Networking (SDN) and Network Function Virtualization (NFV) to create multiple virtual networks over a shared physical network infrastructure. These multiple virtual networks can be customized to match the requirements of different industry applications such as smart city, supply chain management, Vehicle to Everything (V2X) connectivity, and Industrial Internet of Things (IIoT).
The market growth is attributed to the increasing demand for next generation 5G network. The growing data traffic due to rise in smartphone penetration is also fueling the demand for 5G network. Network slicing provides maximum flexibility to 5G network through its capabilities of utilization of network infrastructure and proper allocation of network resources. This helps enterprises to gain better cost efficiency compared to the traditional cellular network.
Managed services segment is expected to grow rapidly
The service segment in the U.S. market is projected witness around 20% growth rate till 2026 owing to growing demand for upgrading the existing wireless network infrastructure. Due to increase in adoption of IoT devices across different industry sectors, such as manufacturing, healthcare, BFSI, and automotive, enterprises are looking for robust network solutions to enhance their productivity. Network service providers are helping enterprises to train their technical staff, deploy & integrate slicing technology into their network infrastructure, and manage the network resources.
The managed services are estimated to showcase highest market revenue during the forecast period. The rapidly changing network demands of customers is one of the key factors contributing to the growing adoption of managed services related to network slicing deployments, and maintenance. To lower costs, minimize downtime, and increase operational efficiency, large enterprises as well as smaller organizations operating in the market are outsourcing their network and IT functions to Managed Service Providers (MSPs). The increasing enterprises’ focus on outsourcing network management activities is supporting the market value.
Browse key industry insights spread across 255 pages with 434 market data tables and 21 figures & charts from the report, “Network Slicing Market Size By Component (Solution, Service [Training & Consulting, Integration & Deployment, Managed Services]), By Application (Manufacturing [Process Monitoring, Motion Control], Energy & Utility, Healthcare [Remote Healthcare, Medical Device Tracking], Automotive [Autonomous Driving, Telematics], Government [Smart City, Public Safety], Retail [Supply Chain Management, Asset Tracking & Monitoring], BFSI), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing adoption of self-driving vehicles is augmenting the market demand
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In China, automotive segment is poised to attain a CAGR of 25% through 2026 on account of rising adoption of Cellular V2X (C-V2X) technology. The network slicing and enhanced bandwidth capabilities of the 5G network are helping C-V2X in improving performance of intervehicle communication. The major technology companies, such as Qualcomm and NTT DOCOMO, have already started trials of C-V2X technology on next-generation 5G network. The 3GPP Release 15 provided New Radio (NR 5G) capabilities, which also accelerated the adoption of C-V2X technology. The adoption of vehicular communication technology is driving the market expansion across the automotive sector.
The slicing technology is playing an increasingly major role in trials and testing of C-V2X technology. The major telecom service providers are conducting tests for C-V2X technology based on next-generation 5G network.
North America region held for significant market share
North America network slicing market will account for over 30% of revenue share by 2026 led by supportive government initiatives for development of 5G telecom infrastructure across the region. For instance, in February 2019, the Federal Communication Commission (FCC) adopted a comprehensive strategy to facilitate America's superiority in 5G technology. This strategy included three key components such as forwarding more spectrum into the market, upgrading the existing telecom network infrastructure and modernizing the outdated laws & regulations. The FCC has adopted a new rule that reduces Federal regulatory obstacles for deploying the telecom infrastructure needed for the commercialization of 5G across the country.
The rising adoption of SDN and NFV technologies in the region is also boosting the market growth. The companies operating in the country are forming strategic partnerships to develop innovative SDN and NFV solutions.
Strategic partnerships among major market players will spur the industry expansion
Some of the major players operational in the market are Affirmed Networks, Amdocs, Argela Technologies, Cisco Systems, Inc., Cloudstreet, HCL Technologies Limited, Huawei Technologies Co., Ltd., Mavenir, Nokia Corporation, Parallel Wireless, Inc., RedZinc Services Ltd., Telefonaktiebolaget LM Ericsson, and ZTE Corporation.
The companies operating in the market are introducing advanced network slicing solutions to cater to different needs of their customers. Industry leaders are also partnering with major telecom service providers to develop 5G slicing solutions.
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