Network slicing market is projected to record a substantial growth rate over the coming years owing to rapid technological advancements and growing demand from the manufacturing, retail, and healthcare industries. Network slicing is the separation of various virtual networks which function on the same physical hardware for different applications, purposes, or services.
This kind of virtual network architecture usually combines principles behind SDN (software defined networking) and NFV (network functions virtualization) on a fixed network, thereby increasing flexibility.
Network slicing is a key element of 5G networks utilized to increase cost & energy efficiencies and to enhance allocation of resources. In 5G networks, one physical network would often be nearly separated into various RANs (radio access networks). A single RAN might connect several services. This model permits 5G network operators to choose the characteristics for different capabilities like traffic capacity, connection density, and spectrum efficiency.
With network slicing, operators could allocate the appropriate amount of network resources to a particular slice. For example, a network slice linked to IoT devices could give high data rate, security, and availability. Also, network slice can be offered to give high throughput, low latency and quick data speeds.
Network management solutions could also help carriers execute network slice lifecycle management in preparation of 5G. Network slicing also has greater robustness, elasticity, stable, and secure operations through the compartmentalization of the network being applied end to end.
Utilizing network slicing, service providers could customize services for customers drawing from a pool of physical and virtual resources.
The network slicing market is bifurcated in terms of component, application, and regional landscape.
With respect to component, the market is divided into solution and service. The service segment is further bifurcated into training & consulting, managed services, integration & deployment. Among these, the integration & deployment segment held a market share of over 45% in 2019 due to the increasing demand for outsourcing the deployment of network slicing solutions.
Based on application, the market is categorized into manufacturing, healthcare, retail, automotive, energy & utility, government, and BFSI. Among these, the energy & utility segment is likely to record a CAGR of over 20% due to increasing adoption of smart meters. The government segment which is bifurcated into smart city and public safety might register a CAGR of over 5% due to increasing investments in smart city projects.
The retail segment is further classified into supply chain management and asset tracking & monitoring. The retail sector recorded a market share of over 10% in 2019 due to growing adoption of advance networking solutions by e-commerce companies.
From a regional frame of reference, the LAMEA network slicing market held a market share of over 10% in 2019 due to the significant broadband penetration across the region.