The global network slicing market was valued at USD 315.45 million in 2021 and is projected to reach USD 12.48 billion by 2030, growing at a CAGR of 50.7% from 2022 to 2030. Network slicing is an innovative technology concept that involves the creation of multiple virtual networks on a common, shared, and multi-domain physical infrastructure. This concept leverages advanced technologies that are developed with strong support from open-source communities and international standardization bodies.

A network slice functions as an independent, end-to-end virtual network, which can either utilize dedicated resources or share resources with other slices, while still maintaining the capability to deliver guaranteed service quality. Each slice is designed to include specific network functionalities, encompassing both core network elements and radio access network components. To build and manage such sophisticated virtualized network slices, a comprehensive set of systems and platforms is required, supported by well-engineered tools and mechanisms that facilitate effective orchestration and lifecycle management.

Network slicing solutions enable service providers to offer highly customized and tailored services by optimizing the utilization of limited network resources. This ability to customize individual slices enhances several network capabilities, including heightened data security, support for massive device connectivity, improved energy efficiency, minimized latency, extended reachability, and guaranteed quality of service (QoS).

The market for network slicing is poised for substantial growth, driven primarily by the rising adoption of Internet of Things (IoT) solutions and the increasing deployment of cutting-edge technologies such as artificial intelligence (AI), augmented reality/virtual reality (AR/VR), and advancements in machine-to-machine (M2M) communications. Furthermore, the growing emphasis on cloud-based services and infrastructure is expected to act as a key catalyst, further accelerating the expansion and integration of network slicing technology within telecommunications and other digital service ecosystems.

Key Market Trends & Insights:

In 2021, North America emerged as the leading region in the global network slicing market, capturing a significant revenue share of 35.5%. This leadership position is attributed to the region’s advanced telecommunications infrastructure, early adoption of innovative network technologies, and strong presence of key industry players.

Meanwhile, the Asia Pacific region is anticipated to experience rapid growth throughout the forecast period, with a robust compound annual growth rate (CAGR) of 54.4%. This substantial growth is driven by the region’s increasing investments in digital infrastructure, expanding IoT deployments, and rising demand for advanced connectivity solutions across emerging economies.

Looking at the market by component, the solution segment dominated in 2021, accounting for the largest revenue share of 60.3%. This dominance highlights the critical role of network slicing solutions—including software platforms, orchestration tools, and management systems—in enabling the deployment and operation of virtualized network slices.

By end-user, the communication service providers (CSPs) segment held a commanding revenue share of nearly 75.0% in 2021. CSPs are the primary adopters and beneficiaries of network slicing technology, as it allows them to offer customized and flexible services to their customers while efficiently managing their network resources.

When analyzing the market by industry vertical, the healthcare segment led with a revenue share of 20.6% in 2021. The healthcare industry’s increasing reliance on connected medical devices, telemedicine, and real-time data transmission drives the need for reliable and secure network slices that guarantee quality of service and low latency.

Order a free sample PDF of the Network Slicing Market Intelligence Study, published by Grand View Research.

Market Size & Forecast:

• 2021 Market Size: USD 315.45 Million

• 2030 Projected Market Size: USD 12.48 Billion

• CAGR (2022-2030): 50.7%

• North America: Largest market in 2021

Key Companies & Market Share Insights:

The network slicing market is highly fragmented, characterized by the presence of numerous key players that contribute to intense competition across the industry. This competitive landscape is expected to become even more dynamic as these companies strengthen their foothold and strive to expand their market shares. Among the leading participants in the market are globally recognized technology giants such as Ericsson, Samsung, Nokia Corporation, Huawei Technologies, ZTE Corporation, Cisco Systems Inc., Hewlett Packard Enterprise (HPE), Mavenir Systems, Inc., Amdocs, Inc., and Intel Corporation.

To maintain and enhance their competitive advantage, these companies are increasingly engaging in strategic collaborations and partnerships with various stakeholders, including telecom operators, advertisers, as well as local and regional market players. Such alliances enable them to leverage complementary strengths, expand their geographic reach, and accelerate the deployment of innovative network slicing solutions. These cooperative efforts are vital for capturing significant market share and addressing diverse customer requirements effectively.

Players in the network slicing space are also actively pursuing a range of key strategies, including technological developments, product innovations, and pilot demonstrations to establish leadership and capture substantial revenue shares. A notable example occurred in July 2022, when Ericsson announced a strategic collaboration with Telefonica to showcase an end-to-end, fully automated network slicing solution on a 5G standalone network in Madrid. This initiative highlights the ongoing efforts by market leaders to demonstrate practical applications of network slicing technology and validate its benefits in real-world environments, thereby strengthening their competitive positioning.

Key Players

• Ericsson

• Samsung

• Nokia Corporation

• Huawei Technologies

• ZTE Corporation

• Cisco Systems Inc.

• HPE

• Mavenir Systems Inc.

• Amdocs, Inc.

• Intel Corporation

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion:

The network slicing market is highly competitive and fragmented, with major global players actively investing in strategic collaborations and technological innovations to strengthen their market positions. Partnerships between technology providers and telecom operators are driving advancements and real-world deployments, underscoring the industry’s focus on delivering customized, efficient, and automated network slicing solutions. As demand for advanced connectivity grows, these efforts will be critical in shaping the future growth and competitive dynamics of the market.