Network Slicing Market worth over $600mn by 2026

Network Slicing Market size is set to exceed USD 600 million by 2026, according to a new research report by Global Market Insights, Inc.
 

The network slicing market growth is attributed to increasing demand for next generation 5G network. The increasing data traffic due to increase 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.

 

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Managed services segment in the network slicing market is expected to grow rapidly during the forecast period

The service segment in the U.S. is expected to grow at a CAGR of over 20% through 2026 due 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 segment is expected to grow at the highest rate till 2026. 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 market size.
 

China Network Slicng Market By Application

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Growing adoption of self-driving vehicles is fueling the market demand

The automotive segment in China is predicted to witness around 25% growth from 2020 to 2026 propelled by 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 network slicing market growth 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.
 

In January 2018, Korea Telecom, a South Korean telecom operator announced that it is conducting field trials with a 45-seat autonomous bus that utilizes 5G and LTE-based C-V2X technology for applications such as collision avoidance and red-light awareness. The increasing adoption of autonomous vehicle is also supporting market revenue.
 

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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/network-slicing-market
 

North America held the highest market share in 2019

North America network slicing market is poised to hold a revenue share of above 30% by 2026 driven 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 fueling the market revenue. The companies operating in the country are forming strategic partnerships to develop innovative SDN and NFV solutions.
 

For instance, in October 2017, NoviFlow and Lumia Networks partnered to deliver a software-defined core networking solution. The solution enabled network providers to upgrade their core networks to SDN without changing the protocols and reliability of their existing networks. The increasing adoption of network virtualization techniques is also helping market growth.
 

Strategic partnerships among major market players are driving network slicing market growth

The companies operating in the market are introducing advanced network slicing solutions to cater to different needs of their customers. For instance, in February 2018, ZTE introduced a 5G E2E network slicing solution. This new solution helped the company to lay a foundation for 5G slicing and support development of different 5G applications across different sectors. This solution also helped the company to develop Network Slice as a Service (NSaaS) capabilities.
 

The companies operating in the market are also partnering with major telecom service providers to develop 5G slicing solutions. For instance, in November 2019, ZTE partnered with China Mobile to develop a 5G network slicing solution. This partnership helped both the companies to rapidly develop advanced 5G network solutions. This partnership also helped both the companies to gain a competitive advantage in the market.
 

The major players operating in the network slicing 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.
 

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