Network Slicing Market

Market Definition

The market comprises technologies that create dedicated virtual networks over a shared physical infrastructure, each tailored to specific performance and service requirements. It includes software-defined networking, network function virtualization, orchestration platforms, and management systems. 

The market supports deployment across telecommunications, automotive, healthcare, manufacturing, and energy sectors. The report examines industry trends, regional developments, and regulatory frameworks impacting market growth through the projection period.

Network Slicing Market Overview

The global network slicing market size was valued at USD 1,931.3 million in 2024 and is projected to grow from USD 2,662.1 million in 2025 to USD 32,590.1 million by 2032, exhibiting a CAGR of 43.02% during the forecast period. Market growth is fueled by rapid deployment of 5G and the adoption of software-defined networking (SDN) and network functions virtualization (NFV) technologies, which support flexible, scalable, and virtualized network architectures.

Major companies operating in the network slicing industry are Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Nokia, Cisco Systems, Inc., Nanjing ZTE software Co. Ltd., Ciena Corporation., Amdocs, Samsung, Hewlett Packard Enterprise Development LP, Broadcom., Juniper Networks, Inc., Mavenir, Tambora Systems Ltd, Druid Software, and SliceFinity Limited. 

Market expansion is driven by expanding healthcare applications that require ultra-reliable and low-latency communication for real-time diagnostics, remote surgeries, and telemedicine services. 

These advanced use cases demand dedicated network resources to ensure consistent performance and data security. As digital transformation accelerates in healthcare, tailored network slices are becoming essential to support uninterrupted and high-quality service delivery.

Key Highlights:

1. The network slicing industry size was recorded at USD 1,931.3 million in 2024.
2. The market is projected to grow at a CAGR of 43.02% from 2025 to 2032.
3. North America held a market share of 36.22% in 2024, with a valuation of USD 699.5 million.
4. The solutions segment garnered USD 1,126.5 million in revenue in 2024.
5. The manufacturing segment is expected to reach USD 11,362.1 million by 2032.
6. Asia Pacific is anticipated to grow at a CAGR of 44.60% over the forecast period.

Market Driver

Rapid 5G Rollout Accelerating Market Growth

The progress of the network slicing market is driven by the rapid deployment of 5G, which enables dynamic allocation of virtualized network resources. This supports diverse industry needs, including enhanced mobile broadband, mission-critical services, and massive IoT connectivity. 

By allowing customized performance parameters within a single physical infrastructure, network slicing ensures efficient service delivery across sectors, accelerating market penetration and adoption.

• According to 5Gamericas.org , the global wireless telecommunications industry reached 2.25 billion 5G connections in 2024 worldwide. This milestone underscores the rapid adoption of 5G technology, surpassing previous wireless generations.

Market Challenge

Security Challenges in Managing Network Slices

The network slicing market faces challenges related to ensuring end-to-end security across multiple network slices, as each slice may have distinct security requirements and vulnerabilities. Managing these complexities increases operational risks and costs. 

To address this, providers are implementing advanced security frameworks and isolation techniques tailored to individual slices. Continuous monitoring and real-time threat detection systems are also being deployed to safeguard network integrity and maintain service reliability.

Market Trend

Advancements in Virtualization Technologies

The network slicing market is marked by advancements in virtualization technologies such as software-defined networking (SDN) and network functions virtualization (NFV). These technologies enable dynamic, flexible partitioning of network resources to create customized slices tailored for specific applications. 

This trend reflects increasing adoption of scalable and programmable network architectures to meet diverse industry requirements in next-generation communication networks.

• In April 2025, ETSI introduced a new Network Functions Virtualization (NFV) architecture designed to support Telco Cloud networks for 6G. This architecture advances the existing Management and Orchestration (MANO) framework by adopting an innovative approach centered on the Telco Cloud concept.

Network Slicing Market Report Snapshot

Segmentation	Details
By Component	Solutions (Network Slice Management Software, Orchestration and Automation Software, Hardware Platforms) Services (Consulting, Integration & Deployment, Network Planning & Optimization)
By Industry Vertical	Manufacturing, Healthcare & Life Sciences, Automotive, Transportation & Logistics, BFSI (Banking, Financial Services, and Insurance), Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Solutions and Services): The solutions segment earned USD 1,126.5 million in 2024 due to its capabilities in efficient management, orchestration, and customization of network slices to meet diverse industry service requirements.
• By Industry Vertical (Manufacturing, Healthcare & Life Sciences, Automotive, Transportation & Logistics, and BFSI (Banking, Financial Services, and Insurance)): The manufacturing segment held a share of 32.39%  in 2024, mainly attributed to its increasing adoption of Industry 4.0 technologies that require reliable, low-latency, and customized network slices for automation and smart factory operations.

Network Slicing Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America network slicing market share stood at around 36.22% in 2024, valued at USD 699.5 million. This dominance is attributed to the substantial investments in 5G infrastructure and advanced network technologies that enable customizable virtual networks. 

The regional market further benefits from early adoption of network slicing in telecom and enterprise sectors, facilitating enhanced bandwidth allocation, improved network efficiency, and support for diverse applications such as IoT and autonomous systems.

The Asia-Pacific network slicing industry is estimated to grow at an impressive CAGR of 44.60% over the forecast period. This growth is propelled by expanding telecom infrastructure modernization and rising adoption of cloud-native technologies by service providers. 

The region’s focus on enhancing network efficiency and reducing operational costs is creating a strong demand for customizable network solutions. Additionally, increasing collaboration between telecom operators and technology vendors to develop innovative use cases is establishing Asia Pacific as a major region for network slicing.

Regulatory Frameworks

• In the U.S., the Federal Communications Commission (FCC) regulates spectrum allocation, licensing, and 5G network operations, including network slicing. It ensures adherence to the Communications Act and associated regulations to enable secure, efficient, and interference free utilization of network resources.
• In China, the Ministry of Industry and Information Technology (MIIT) governs the deployment and management of 5G technologies, including network slicing. It establishes regulations for spectrum usage, network architecture, and cybersecurity to support secure, scalable, and efficient implementation of network slicing across various industries.

Competitive Landscape

Major players in the network slicing industry are focusing on product launches aimed at delivering customized network capabilities for diverse industry needs. They are introducing advanced slicing solutions that allow operators to allocate dedicated network resources tailored to specific use cases, including autonomous vehicles, smart manufacturing, and critical communications.  

These developments are intensifying competition, with innovation, flexibility, and service differentiation becoming key strategies to meet evolving connectivity demands.

• In April 2025, Verizon launched the Verizon Frontline Network Slice nationwide. This 5G Ultra Wideband (UW) virtual network slice is dedicated to public safety, enabling allocation of network resources within Verizon’s infrastructure to support emergency response and critical operations.

List of Key Companies in Network Slicing Market:

• Telefonaktiebolaget LM Ericsson
• Huawei Technologies Co., Ltd.
• Nokia 
• Cisco Systems, Inc.
• Nanjing ZTE software Co. Ltd. 
• Ciena Corporation.
• Amdocs
• Samsung
• Hewlett Packard Enterprise Development LP
• Broadcom.
• Juniper Networks, Inc.
• Mavenir
• Tambora Systems Ltd
• Druid Software
• SliceFinity Limited

Recent Developments (Partnerships/ Launches)

• In April 2025, Siemens and O₂ Telefónica partnered in Germany to develop 5G network slicing-based solutions aimed at enhancing connectivity in the water industry through customized 5G mobile network infrastructure.
• In February 2024, Ericsson and Telefónica conducted a world-first trial of on-demand processs using network slicing at the 5TONIC Lab in Madrid. The test enabled time-limited premium subscriptions via a dedicated network slice, allowing targeted, enhanced connectivity.
• In February 2024, Nokia announced a breakthrough in Multi-Access Edge Slicing, showcased with e& UAE on a live network at Mobile World Congress 2024 in Barcelona. This innovation supports premium slicing services across 4G/5G, Fixed Wireless Access (FWA), and Fixed Access (FA) for diverse simultaneous use cases.