5G Network Slicing Market Primed for Strong Growth in the Enterprise Segment

Enterprises are potentially looking to adopt 5G to support innovative real-time use cases. Those that require very low latency or use technologies such as augmented reality (AR) and virtual reality (VR) for training, sales, and simulation. They may also benefit from 5G’s speed and capacity to support large IoT deployments.

Another potential opportunity is the use of 5G in private networks to support industrial automation, and oil and gas, mining, and port communications and control.

Definition / Scope
Market Overview
Market Risks
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Regulatory Trends
Post COVID-19 Recovery
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Network slicing is a sort of virtual networking architecture that is closely related to software-defined networking (SDN) and network functions virtualization (NFV). The goal of these technologies is to drive current networks toward software-based automation. Network slicing is a concept that encompasses all existing network segments from beginning to end. Network slicing allows several logical, self-contained, and independent shared or partitioned networks to be deployed on a single infrastructure platform at the same time.

By abstracting, isolating, coordinating, and separating the logical network components from the underlying physical network resources, network slicing significantly changes the entire perspective of networking. As a result, the principles and capabilities of network architecture are improved. While the underlying physical components are minor in these virtualized network situations, logical, software-based partitions are critical, allowing for dynamic network capacity allocation based on demand. The assigned resources can change as the requirements change. Network slicing allows the construction of logical, self-contained, and partitioned network operations using shared resources such as storage and CPUs.

5G NETWORK SLICING

5G networks, in conjunction with network slicing, allow users to enjoy requirement-specific tailored connectivity and data processing that adheres to a Service Level Agreement (SLA) agreed upon by mobile operators. Data speed, quality, latency, reliability, security, and services are all customizable network capabilities.

According to Ericsson’s report, some of the 5G network slicing use cases will include increased video bandwidth, faster speeds, and wide-scale availability; extensive machine-type communication monitoring of transportation and control; and critical machine-type communication with remote operations.

Some of the benefits of 5G network slicing are:

A single network can be used to provide a variety of services based on the user’s needs and use cases.

Network operators can allocate the appropriate number of resources per network slice. As a result, it aids in the effective and efficient use of resources. For example, one network slice may be designed to provide low latency and low data rate, whereas another network slice may be configured to provide high throughput.

It assists network operators in lowering operating expenses (OPEX) and capital expenditures (CAPEX).

It vastly improves operational efficiency and time to market for 5G network service delivery.

It overcomes all of the shortcomings of the most popular QoS solution, “DiffServ.”

Market Overview

The global 5G network slicing market is expected to grow at a CAGR of 46 % from USD 650 Million in 2020 to USD 4,310 Million by 2026. Due to the advancement of mobile network technology, which has provided greater data rates and lower latency, the network slicing market is gaining pace. Consumer demand for video and the shift in business toward the use of cloud services have both contributed to the rapid increase in the volume of data carried by mobile networks.

The solution segment grew the fastest in the network slicing market in 2020 and is expected to maintain its dominance in the coming years due to the increased adoption of network slicing solutions by communication service providers to significantly accelerate the time for delivering new applications and services, Furthermore, market participants are providing innovative network slicing solutions to meet a variety of client needs. The services market, on the other hand, is predicted to increase the most, thanks to widespread acceptance of deployment and integration services among end users, which ensures the proper operation of network slicing systems.

The telecom operators sector dominated the global 5G network slicing market share by end user in 2020 and is likely to maintain its dominance in the coming years. Due to the increasing demand for faster speed and bandwidth connectivity to suit customer needs, Furthermore, top telecom operators throughout the world are actively collaborating with network solution suppliers to explore the possibilities of network slicing technologies. The enterprise market, on the other hand, is predicted to expand the most, owing to the demand for reliable network solutions to help businesses increase efficiency.

North America is the industry leader in network slicing since it is a pioneer in 5G services such as autonomous driving, augmented reality (AR), virtual reality (VR), and artificial intelligence (AI). Furthermore, government initiatives for the construction of 5G communication infrastructure in the region are propelling the industry forward. For example, the Federal Communication Commission (FCC) unveiled a policy in February 2020 to make 5G technology more accessible in the United States. This approach contained critical components such as reforming old regulations and laws, upgrading existing telecom network equipment, and forwarding more spectrum into the market. However, due to the widespread adoption of mobile devices in developing nations such as China and India, Asia-Pacific is predicted to grow at the fastest rate throughout the projection period.

Market Risks

Porter’s Five Forces Analysis is performed to analyze the risks associated in the Global 5G Network Slicing Market

Bargaining Power of Suppliers: The number of network slicing service suppliers is moderate, as are the number of established network slicing service providers. As a result, the supplier’s bargaining power is Moderate.

Bargaining Power of Buyer: Because of the numerous players involved in network slicing services, buyers will have enormous bargaining power. Buyers are free to select the services that best suit their needs. As a result, the buyer has a lot of negotiating power.

Threat of New Entrants: Companies entering the network slicing market are adopting technological innovations such as 5G network service delivery, as well as increasing customer demand for quality of service (QoS), data security, energy efficiency, and massive connectivity. As a result, the new entrant’s bargaining power is Moderate.

Threat of Substitutes: A number of companies are racing to develop and introduce similar technology, raising the threat of substitutes. However, such alternatives cannot provide the same level of accessibility and convenience as a network slicing service. Thus, the threat of substitution is low.

Competitive Rivalry in the Market: The market’s competitive rivalry is fierce, particularly between global players Nokia, Huawei, and Parallel Wireless. These companies are launching value-added services in the international market and expanding their global footprint. As a result, the market’s competitive rivalry is high.

Top Market Opportunities

The Key Opportunities for Market Players in the 5G Network Slicing Market include

Expanded capabilities for virtual network operators (VNO) result in new business development

One of the opportunities for carriers is to use 5G network slicing to improve capabilities for virtual network operators, which might lead to new business development (VNO). A VNO might serve a variety of customers, including consumers, enterprises, and industrial organizations, thanks to 5G network slicing, which allows numerous logical networks to operate independently. A network slice for a consumer utilizing an eMBB application vs an industrial URLLC application could be radically different.

5G network slicing, for example, provides for the separation of bandwidth, processing, storage, and traffic. This enables resources to be assigned to specific QoS requirements.

Emerging business application across industrial, government, and enterprises sector

The adoption of mission-critical business applications in every line of industry has altered substantially as a result of Industry 4.0, automation, and digitalization. Most industries have experienced digital transformations to meet the increased need for operational agility among customers and organizations. Businesses urgently require a solid network to support their digital transformation efforts. Technological breakthroughs and the dynamic ecosystem have paved the path for new commercial applications to emerge in across a scope of industries.

For Instance, In May 2019, China Media Group, China Mobile, and Huawei Technologies accomplished the first end-to-end 5G network slice certification of UHD live streaming. The slice is committed to offering ultra-high bandwidth and ultra-low latency CCTV 4k live streaming services.

Similarly, Ericsson is collaborating with AstraZeneca on 5G-enabled medical devices that offer predictive product maintenance. As a result, the use of 5G network slicing presents significant prospects over the projection period.

Market Drivers

The Major Drivers of the 5G Network Slicing Market are

Increasing demand for IoT solutions

By connecting all types of devices, appliances, systems, and services, IoT adoption and continual developments in Machine-to-Machine (M2M) communication networks are altering numerous industries. Network slicing-enabled 5G would serve a variety of IoT use cases, allowing communication between massive numbers of sensors and linked devices. High-power, low-latency applications (such as mobile video surveillance) and low-power, low-latency, long-range IoT apps are two types of IoT applications (smart cities and smart factories).

The evolution of 5G technology is projected to accelerate in order to meet these needs for growing IoT applications, which are classified as huge machine-type communication and mission-critical applications.

Surging mobile data traffic volumes

The network slicing market is expanding rapidly, owing to an increase in the use of network slicing to address the issues posed by mobile data traffic. The network slicing market will be driven by rising mobile data traffic, internet subscribers, and government backing. According to the Ericsson Mobility Report from 2017, mobile data traffic in North America is predicted to climb by 7.1GB per month to 48GB by the end of 2023. Furthermore, according to the Ericsson Mobility Report released in June 2018, India’s mobile data traffic would increase fivefold by 2023.

Rising Need for Ultra-low Latency

The use of cutting-edge technology like the Internet of Things, artificial intelligence, and augmented and virtual reality is fast growing. However, because to severe latency difficulties, numerous businesses are still unable to fully exploit the potential of these technologies. 5G network slicing, on the other hand, provides ultra-low latency for an upgraded user experience with its fast data transmission features, raising its demand across mission-critical applications. Low-latency telemedicine apps that can access real-time data without delays during life-critical scenarios and remote robotic surgery are increasingly a priority for hospitals and healthcare professionals.

For such applications, network slicing will be quite advantageous. In the same way, network slicing can aid manufacturers in scaling up their linked robotic workforce. All of these elements are likely to make industrial IoT devices and connected machinery more efficient.

With real-time data warnings, network slicing is projected to improve assisted driving and transportation services, especially traffic. It will increase the safety of aided driving and decrease the time it takes to make key judgments while driving. In dense urban regions and high-speed applications, 5G network slicing provides for ultra-reliable connectivity with minimal latency for vehicle-to-vehicle communication. Low latency is also becoming a game-changer in virtual and augmented reality applications, fueling the demand for network slicing technology.

Market Restraints

Vulnerability to Cyberattacks

The network slicing flaw has an impact on virtualized network functions and may allow for data theft and denial of service attacks. A significant vulnerability between different network slices on an operator’s 5G network may expose enterprise customers to malicious cyberattacks. The identified network issue is very likely to pose significant security risks to enterprises that rely on network slicing and to undermine operator efforts to open new 5G revenue streams.

Higher Initial Costs

Although Bell Labs Consulting estimates that running a completely virtualized and automated network will lower network operation expenses by 32%, operators may face higher costs at first. According to Bell Labs Consulting, operators might face up to a 30% cost increase as they change their networks and lessen their reliance on physical network elements.

The Higher Initial costs is mostly determined by its physical network. Most mobile operators, for example, have backbone routing and switching systems that are difficult to modify to accommodate some of the characteristics required for network slicing.

Lack of Allocation of Network Resources

One of the major challenges of 5G network providers is how to best distribute network resources in order to maximize their benefits. The management of network slicing is a serious challenge in this regard. To aid in the creation of network slices, 5G network providers are working on building virtual network functions and allocating appropriate network resources fast.

During the predicted period, the impact of this limitation is expected to be mild. Due to a shortage of network resource allocation, network slicing adoption is projected to be limited over the world.

Industry Challenges

The Primary Challenges in the 5G Network Slicing Market include

Spectrum granularity limitations and radio-level resource sharing

Fixed network slices can be grown up by adding more hardware resources, however RAN slicing is difficult to scale up since it quickly runs into a physical constraint owing to spectrum scarcity. Individual slices can be assigned dedicated carriers to bypass this issue. The allotment of some carriers, on the other hand, would limit the network’s ability to reap multiplexing advantages through the scaled-up slice.

Lack of awareness

Companies are not using Network Slicing owing to a lack of awareness, which is the main difficulty faced by business operators. Furthermore, Network Slicing is used in conjunction with 5G technology, and because 5G networks offer wireless connectivity, RANs must be redesigned to support Network Slicing, which is a tough task.

Technology Trends

5G is expected to improve connectivity and data transfer speeds across communication networks. As a result, it has the potential to open up a variety of businesses and cause disruption across applications that are currently driven by traditional networks.

Some of the significant 5G Network Slicing technology trends across the various domains include:

Manufacturing

Smart factories that leverage automation, artificial intelligence, augmented reality, and IoT.
Augmented Reality-enabled tethered and untethered robots that can be controlled, monitored, and customized remotely using a 5G mobile network
Support for training and simulation of production processes

Retail

Low-latency 5G networks enable VR dressing rooms and mobile AR experiences in retail and at home.
Face recognition technologies and the Internet of Things are used to alert in-store sales management about customer loyalty and evaluate them.

Media & Entertainment

On-demand video/games for rich mobile user experience over low-latency 5G networks
Immersive Experience through Augmented Reality & Virtual Reality

Supply chain & logistics

Logistics digitized through 5G IoT sensors to counter manual inefficiency or misplaced containers.
5G signals to build warehouses with centrally-controlled networks to reduce the complexity and cost of their connectivity
Enhanced vehicle-to-vehicle communications (V2V to improve road safety in for driverless vehicles.

Healthcare & medicines

Remote patient monitoring and operation in real time.
Artificial Intelligence solutions can provide personalized and preventive care.
5G-enabled telemedicine appointments provide high-quality real-time video.

Tourism

Mobile AR/VR for heritage locations.
5G Smart tourism

Smart Cities

Smart traffic management
Smart energy grids
Intelligent transportation and public safety

Regulatory Trends

The Major Regulatory Trends on the 5G Network Slicing Market in Major economies across the world are

Regulatory Trends in USA

The FCC does not have any 5G-specific rules and is unlikely to adopt any. Its technical standards regulate power levels, interference, and other difficulties, but they don’t mandate the use of any specific protocol or standard on any commercially available frequency band.

Regulatory Trends in Europe

The Open Internet Regulation adheres to the notion of technological neutrality, and it appears to leave opportunity for 5G technologies like network slicing, 5QI, and Mobile Edge Computing to be implemented.

Because the Open Internet Regulation and the BEREC Guidelines are technologically neutral, they do not represent a prohibition on the use of any 5G technology. NRAs must consider the specific usage of 5G technologies, like any other network technology, on a case-by-case basis.

Regulatory Trends in China

China’s regulatory systems include the MII (Ministry of Information Industry), the Ministry of Science and Technology, the Beijing Municipal Government’s Science and Technology Commission, SARFT (State Administration of Radio, Film, and Television), and SASAC (State Administration of Radio, Film, and Television) (State-owned Assets Supervision and Administration Commission of the state council). When it comes to the fundamental interests of telecommunication infrastructure, the government intervenes in the free market in many countries. This is the only reason why the Chinese government has a robust system in place to monitor and manipulate the industry in all areas, including intellectual property protection, innovation, and asset value management. However, during the 5G launch phase, there was a power shift away from the government as the government has become liberal and supportive of the innovations in the 5G technology implementation in China.

Regulatory Trends in India

While there are no 5G network-specific standards, the Department of Transportation issued spectrum sharing guidelines in 2015 that apply to all bands. The following are the key features of the guidelines:

Only access service providers with CMTS, UASL, or UL with permission of Access Service in a service area, where both licensees have spectrum in the same band, are permitted to share spectrum.
When two TSPs use spectrum in the same band, spectrum sharing is allowed; however, it is not allowed when both licensees own spectrum in different bands. Spectrum leasing is not permitted.

Post COVID-19 Recovery

Increasing demand for broadband services with the help of mobile networking and rising remote access services in several industries such as IT, telecom, retail, and healthcare are likely to drive the worldwide network slicing market during the COVID-19 pandemic. Furthermore, in the years 2020 and 2021, the adoption of wireless networking services will have a beneficial impact on the network slicing market. Due to the limited availability of staff, organizations are largely reliant on networks to manage the strain of client inquiries. These critical aspects demonstrate that network slicing is expected to be in high demand during the COVID-19 health emergency.

Several network slicing service providers, including Affirmed Networks and Telefonaktiebolaget LM Ericsson, are taking proactive steps to assist clients during the COVID-19 scenario. For example, Telefonaktiebolaget LM Ericsson declared in April 2020 that their personnel will work during the pandemic to provide the greatest network service possible because people are completely reliant on the network for jobs, access to important services, and staying socially connected. These major characteristics may have a beneficial impact on the network slicing market under pandemic conditions and provide lucrative chances in the worldwide marketplace for the network slicing business.

Market Size and Forecast

The Global 5G Network Slicing market is expected to grow at a CAGR of 37.7 % between 2020 and 2025, from USD 650 million to USD 4,310 million.

By 2026, the global market for 5G network slicing will be worth $4.3 billion.
The global market for 5G slicing professional services will be worth $245.8 million. By 2026
North America will be the market leader in 5G slicing, followed by Asia Pacific and Europe.
In North America, network slicing management will reach $20.5 million by 2026.
Enterprise will dominate the market, but smaller organizations will grow at a rate that is 50 % faster than corporations.
System integrators, vendors, and carriers must work together to ensure the long-term success of 5G network slicing.
Leading carriers will work hard to build trust and relationships with vertical partners in order to optimize 5G solutions.

The solution sub-segment dominates the market

The services sub-segment will experience rapid market growth, with revenue expected to reach USD 1,581.5 million by 2026, up from USD 240.5 million in 2020. This sub-growth segments in the global network slicing market is primarily attributed to its support for network resources in maintaining quality of service (QoS) and its role in 5G networks. Furthermore, certain market leaders are focusing primarily on technological innovations to meet the needs of the organization.

During the forecast period, the solution sub-segment is expected to have a dominant market share in the global market and generate USD 2,905 million in revenue. Because of its applications in all sectors, societies, and industries. Furthermore, technological advancements, as well as rising customer demand for quality of service (QoS), data security, energy efficiency, and massive connectivity, are driving up demand for network slicing. Throughout the forecast period, these initiatives have the potential to create massive opportunities for the sub-segment.

The global professional services sub segment will have the fastest market growth

The professional services sub-segment of the network slicing market will be the fastest growing sub-segment, with a CAGR of 50.5 %, surpassing USD 2,469 million by 2025, up from USD 65 million in 2020; this is primarily due to its adoption of network slicing platform features such as Quality of service (QoS), data security, energy efficiency, and massive connectivity. Furthermore, these platforms aid in improving operational efficiency and the delivery of 5G network services.

During the Forecast period, the managed services sub-segment is expected to have a dominant market share in the global market and to generate USD 2,014.2 million in revenue in 2026. Managed service solutions reduce expenses and capital outlay. Furthermore, network slicing aids in the creation and management of networks capable of meeting the needs of businesses. In order to expand globally, many key players in the network slicing market are employing notable strategies such as product innovation and strategic alliances.

The network function virtualization application will have the highest growth

The network function virtualization sub-segment is expected to have a dominant market share and generate USD 1,922.4 million in revenue by 2026, up from USD 150.9 million in 2020. This sub-growth segments in the global network slicing market are primarily attributed to technologies that provide real-time control to autonomous vehicles, wireless broadband connectivity, and media streaming. For market growth and development, the key players in the network slicing market are pursuing various strategic collaborations and innovations. During the forecast period, the aforementioned factors are expected to drive demand for the network slicing market.

The real-time surveillance sub-segment will have the fastest growing market share in the global market and is expected to generate USD 2,561 million in revenue by 2026. The growing number of internet subscribers and mobile data traffic for seamless connectivity is driving the network slicing market. Furthermore, many market participants are innovating modern development technology in network slicing. For Instance, Huawei Technologies Co., Ltd. announced in February 2018 that they will be exhibiting various end-to-end product solutions for 5G network technology. Furthermore, network slicing market participants are constantly integrating and deploying new technologies for the development of virtual networks. All of these factors will have a positive impact on sub-segment growth in the coming years.

The Government sub-segment will have the highest growth

The Government sub-segment will have the largest market share and is expected to generate USD 758 million in revenue by 2026, up from USD 168 million in 2020. The government’s support for the development of 5G infrastructure in telecom is primarily responsible for the growth of this sub-segment in the global network slicing market. For example, in February 2019, the Federal Communication Commission (FCC) adopted a strategy to facilitate the deployment of 5G technology in the United States. This strategy entailed upgrading existing telecom network infrastructure, updating outdated laws and regulations, and releasing more spectrum into the market.

During the forecast timeline, the healthcare subsegment is expected to grow rapidly in the global market and generate USD 562 million in revenue. Network slicing enables the creation of a custom network with services such as low-latency, security, and low-latency, all of which can run on dedicated or shared networks. Because of the increasing prevalence of viral diseases, the healthcare sector in network slicing is rapidly expanding. Furthermore, a lack of medical professionals to handle patients is a key factor driving market growth during the forecast period. All of these factors are expected to benefit the network slicing market.

Asia-Pacific network slicing market is the fastest growing

The North American network slicing market was worth USD 325 million in 2020 and is expected to be worth USD 1,262 million by 2026. The rapid adoption of new technologies, as well as acceptance of industrial IoT, agile networks, and smart connected devices in order to deploy 5G networks platforms for business processes, are driving the extensive growth of the North America network slicing market. Furthermore, one of the key factors driving the growth of the North American network slicing market is the strong presence of leading network slicing solution providers.

Europe held a Market Share of 16% and is poised to grow at a CAGR of 42% to reach a Market Size of USD 852.6 Million in 2026 from a Market Size of US$ 104 Million in 2020.

The Asia-Pacific network slicing market is the fastest growing, with revenue expected to reach USD 1,145.3 million by 2026 at a CAGR of 42.8 %. The region’s rapidly increasing acceptance of cloud-based solutions and emerging technologies such as telecommunications, IoT, big data analytics, and mobility will drive market growth in the Asia-Pacific region. APAC is also one of the largest markets for connected devices. For example, in 2018, ZTE and China Mobile announced a collaboration on their 5G network architecture design concept and network slice system.

The Middle East & Africa registered a Market Share of 6% and is poised to grow at a CAGR of 38.4% to reach a Market Size of US$ 374 Million in 2026 from a valuation of US$ 39 Million in 2020.

Latin America generated revenues to the tune of USD 28.8 million in 2020 and is expected to grow at a CAGR of 34% to reach a Market Size of UD 151 million in 2026.

Market Outlook

The global network slicing market is expected to grow at a Compound Annual Growth Rate (CAGR) of 51.5 % during the forecast period, from USD 161 million in 2020 to USD 1,284 million by 2025. The network slicing market is gaining traction as mobile network technology evolves, providing higher data speeds and lower latency. The rapid increase in the volume of data carried by mobile networks has been driven primarily by consumer demand for video and a shift in business practices toward the use of cloud services.

Network Slicing vendors have a lot of room for expansion. The commercialization of 5G services, as well as the availability of unlicensed and shared spectrum throughout the world, are expected to shape the future of the Network Slicing market.

The COVID-19 pandemic has had an impact on all aspects of society, including individuals and businesses. During the COVID-19 pandemic, the telecom sector is playing a critical role in supporting countries’ digital infrastructure around the world. Manufacturing, automotive, textile, transportation and logistics, travel and hospitality, and consumer goods have all been shut down as a result of country-level lockdowns around the world. In terms of GDP decline, this would have a significant impact on the global economy. Small and medium-sized enterprises (SMEs) have long served as the economy’s backbone. Due to the COVID-19 pandemic, SMEs are currently the most affected.

Technology Roadmap

Network slicing is designed to provide service differentiation by definition.

In the 5G era, mobile services can be highly tailored to the level of specific applications and even industrial processes. These may necessitate critical levels of dependability and low latency. Regulations defining best effort mobile broadband may not have anticipated such applications. Operators must be able to define network slices to meet market demands and offer new services without fear of violating regulations.

Distribution Chain Analysis

There are five parts to the total value chain:

Devices
Network deployment and provisioning
Network management and operations
Application platform provisioning
Applications and monetization

With their function as network developers, CSPs generally occupy network sections 2 and 3 above. Reselling devices, provisioning platforms, providing security, and data monetization – a function we term the “service creator” has the potential to generate 43 % more revenue from the other elements.

Competitive Landscape

The market is fragmented, with several businesses combining to provide the requisite availability, latency, data rate, and security. Carriers can use network slice management technologies to implement network slice lifecycle management in preparation for 5G.

Key Market Developments include

In September 2020, Dish Network Corporation partnered with Blue Planet to enable network slices through automation using Blue Planet’s cloud-native inventory and service order management system.

In September 2020, Telefonica Deutschland will launch an automated network with Blue Planet. Blue Planet will enable service providers to reduce their operating expenses (OPEX) while optimizing its network to support services such as 5G, video streaming, and online gaming.

Competitive Factors

The global 5G network slicing industry is very competitive due to the existence of a large number of companies. To increase their presence, market players have taken many strategic actions in recent years, including mergers and acquisitions, alliances, and product launches.

For Instance,

In January 2021, Ericsson released a 5G RAN Slicing software solution, allowing communication service providers to deploy 5G use cases to consumers and businesses. The 5G RAN slicing solution is intended to improve end-to-end network slicing capabilities, which may be required to deliver multiple services over a single infrastructure and enable tailored business models and growth requirements for advanced use cases.

In May 2019, China Media Group, China Mobile, and Huawei Technologies accomplished the first end-to-end 5G network slice certification of UHD live streaming. The slice is committed to offering ultra-high bandwidth and ultra-low latency CCTV 4k live streaming services.

in February 2018, ZTE introduced the world’s first 5G end-to-end network slicing solution to advance the technical maturity of 5G commercial systems. Through its intelligent operation and orchestration system, the ZTE 5G E2E network slicing solution also supports the life-cycle management of end-to-end network slices.

Key Market Players

Some of the key players operating in the 5G network slicing market are Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd., Nokia Corporation, Intel Corporation, ZTE Corporation, Cisco Systems Inc., Samsung Electronics Co. Ltd., SK Telecom Co. Ltd., NTT DOCOMO Inc., Deutsche Telekom AG, and Telefonica SA.

Telefonaktiebolaget LM Ericsson (Ericsson) is a company that provides infrastructure, services, and software to the telecommunications and other industries. Networks, IT & Cloud, and Media are the business segments of the company. Networks is divided into two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of radio access and transport network hardware and software. The IT & Cloud business is divided into two divisions: IT & Cloud Products and IT & Cloud Services.

Huawei Technologies is a telecommunications solutions provider that provides infrastructure application software and devices based on wireline, wireless, and IP technologies. Products and solutions from the company have been deployed in over 100 countries, serving 45 of the world’s top 50 telecom operators as well as one-third of the world’s population. In the United States, Huawei Technologies is divided into three divisions: enterprise (IP networking and routers, wireless, storage, and data center security), carrier, and consumer devices (smartphones and tablets).

Nokia Oyj is a Finnish company that specializes in network and Internet protocol (IP) infrastructure, software, and related services. Nokia Networks and Nokia Technologies are two of the company’s businesses. Ultra-Broadband Networks, IP Networks and Applications, and Nokia Technologies are the company’s segments. The Ultra Broadband Networks segment includes the operating segments Mobile Networks and Fixed Networks. The IP Networks and Applications segment includes the operating segments IP/Optical Networks and Applications & Analytics.

Intel Corporation is a company that creates and manufactures products and technologies. Data Center Group (DCG), Internet of Things Group (IOTG), Mobileye, Non-Volatile Memory Solutions Group (NSG), and Programmable Solutions Group are the company’s segments (PSG). Data Center Group (DCG), Internet of Things Group (IOTG), Mobileye, Non-Volatile Memory Solutions Group (NSG), and Programmable Solutions Group are the company’s segments (PSG). DCG is a division that creates workload-optimization platforms for compute, storage, and network functions. The IOTG segment creates high-performance computer platforms that address technology and business use cases that can scale across vertical industries and embedded market. Mobileye segment provides driving assistance and self-driving solutions.

ZTE Corp is a Chinese company that primarily designs, develops, manufactures, distributes, and instals a variety of Information and Communication Technology (ICT)-related systems, equipment, and terminals. The Company primarily conducts business in three segments. The Network segment of Carriers primarily offers wireless network, wired network, core network, and telecommunication software systems and services, as well as other technologies and product solutions.

Cisco Systems, Inc. develops and sells a wide range of networking, security, collaboration, applications, and cloud technologies. It operates in three regions: the Americas, Europe, the Middle East, and Africa, and Asia Pacific, Japan, and China. Infrastructure platforms, applications, security, and other products are among its products and technologies. Infrastructure Platforms are the core networking technologies of switching, routing, data center products, and wireless that work together to deliver networking capabilities and transport and store data. The application product category consists primarily of software-related offerings that perform their functions on core networking and data center platforms.

Samsung Electronics Co Ltd is a Korean company that primarily manufactures and distributes electronic products. The Company’s operations are divided into four segments. Computers, handheld phones (HHPs), network systems, digital cameras, and other products are manufactured by the Information Technology & Mobile Communications (IM) segment.

SK Telecom Co Ltd is a Korean company that primarily provides wireless communication services. The business is divided into five segments by the company. Mobile phones, wireless data, and information communication services are offered by the Wireless Communication Business segment. Telephones, high-speed Internet, data, and network rental services are all available through the Wireline Communication Business segment.

Deutsche Telekom AG is a German firm that offers information technology (IT) and telecommunications services. Germany, which consists of fixed-network and mobile activities in Germany; the United States, which consists of mobile activities in the United States market; and Europe, which consists of fixed-network and mobile operations of national companies in various European countries such as Greece, Romania, Hungary, Poland, the Czech Republic, Croatia, Slovakia, Austria, and Albania. Systems Solutions, which operates information and communication technology (ICT) systems for multinational corporations and public sector institutions; Group Development, which includes T-Mobile Netherlands and Deutsche Funkturm (DFMG), as well as its equity investment in Stroeer SE & Co. KGaA; and Group Headquarters & Group Services, which includes service headquarters.

Telefonica, S.A. is a multinational telecommunications company with operations in Europe and Latin America. Mobile business, Fixed-line telephony business, and Digital services are among the services and products provided by the company. It provides a variety of mobile and related services and products to both personal and business customers. It provides traditional fixed telecommunications services, as well as Internet and broadband multimedia services, as well as data and business-solutions services. It provides a variety of digital services, including Internet of Things (IoT).

Strategic Conclusion

As the world moves toward the next generation of communication networks, new technology solutions, architectures, and standards are in high demand. This evolution of communication networks is expected to enable many compelling business and consumer use cases while also accelerating massive investment in network infrastructure, applications, and devices.

5G networks, the most recent next generation of wireless technologies, promise an era of ubiquitous, secure, and high-capacity radio networks. With extremely low latency levels, high energy efficiency, and a massive Gbps capacity, 5G technology’s applications extend far beyond traditional telecommunications. Self-driving cars, VR/AR, smart manufacturing, telehealth services, smart cities, and many other exciting 5G applications are on the horizon. To summarize, 5G Network Slicing offers operators the potential to fully differentiate themselves and seize new opportunities.

References

Appendix

SDN – Software-Defined Networking
NFV – Network Functions Virtualization
OPEX – Operating Expenses
CAPEX – Capital Expenditures
QoS – Quality of Service
AR – Augmented Reality
VR – Virtual Reality
AI – Artificial Intelligence
FCC – Federal Communication Commission
VNO – Virtual Network Operators
IoT – Internet of Things