5G Network Slicing Market Report

The incorporation of 5G network slicing into healthcare systems offers considerable advancements and possibilities for enhancing patient care, operational efficiency and overall healthcare provision. 5G's ultra-reliable low-latency communication allows for real-time observation of patients through the use of connected medical devices. This ability enables healthcare professionals to monitor vital signs consistently promoting interventions and decreasing hospital readmissions. High-definition video consultations can be performed effortlessly due to the extensive bandwidth offered by 5G. This technology improves the quality of remote consultations enabling healthcare professionals to diagnose and treat patients efficiently without requiring in-person visits.

Emergency services can utilize dedicated network slices that prioritize critical communications and data transfer during emergencies. For example, live video streams from ambulances can be sent to hospitals, allowing medical teams to get ready for arriving patients and make knowledgeable choices even prior to the patient's arrival. In October 2023, Chunghwa Telecom has developed ambulances connected to 5G utilizing Ericsson's network slicing technology. This program enables the communication of essential signs and live data, such as high-definition 4K video, from emergency vehicles to medical facilities. Such abilities allow for remote assessment and promote faster decision-making by medical professionals prior to the patient's arrival at the hospital.

The growing need for security and dependability in 5G network slicing offers considerable prospects for telecommunications operators and service providers. As network slicing enables numerous virtual networks to function on a common physical infrastructure, every slice can be configured with particular security needs customized to its application. This generates opportunities for creating sophisticated security solutions, in which vendors offer thorough security measures for each slice. This method not only tackles the specific vulnerabilities related to various applications but also improves general network security by employing techniques such as micro-segmentation and zero-trust architecture. Businesses are becoming more worried about the security consequences of implementing new technologies such as network slicing. By actively tackling these issues through clear communication and strong security measures, telecom operators can foster trust with enterprise clients.

With the increased emphasis on regulations regarding data privacy and security, especially in industries such as finance and healthcare, 5G network slicing can assist organizations in meeting these requirements by offering separate environments for the processing of sensitive data. Operators can promote their slicing abilities as compliant solutions that fulfill industry-specific regulatory standards, thereby appealing to more enterprise clients in search of secure networking alternatives. The need for secure private networks is increasing, particularly among companies aiming to improve their operational efficiency while retaining control over their data. Network slicing allows for the development of exclusive slices for individual networks, permitting organizations to take advantage of 5G technology while providing elevated security and reliability customized to their particular requirements.

Interoperability challenges pose considerable obstacles to the 5G network slicing market, mainly because of the difficulty in merging different network elements and solutions from various suppliers. The lack of uniform practices for 5G standalone network slicing makes it difficult to merge various technologies. Various vendors are creating exclusive slicing technologies, resulting in compatibility challenges that may obstruct smooth functioning across diverse network settings. This absence of a cohesive framework establishes obstacles in handling and combining network slices, which is crucial for providing efficient and high-quality services. Achieving interoperability necessitates thorough testing and validation across different devices, networking equipment, and software platforms. The existing environment, ruled by exclusive solutions, poses challenges for network operators to guarantee that all elements cooperate seamlessly. As the quantity of network slices rises, the intricacy of configurations required to accommodate different industries and use cases also increases.

The complex nature of handling resources across various slices introduces an additional level of challenge. Each segment might possess distinct needs concerning bandwidth, latency, and reliability, requiring advanced orchestration mechanisms. Without efficient resource management approaches that can adjust to these differing requirements, operators might find it difficult to uphold service quality and efficiency. Interoperability difficulties also reach into security. While network slicing by nature seeks to separate traffic within distinct slices, guaranteeing strong security measures across diverse environments is challenging. In summary, interoperability obstacles present considerable difficulties for the effective implementation and marketing of 5G network slicing.
 

Recent progress in the 5G network slicing market underscores various important collaborations between major industry participants focused on promoting this technology. For instance, in September 2023, KDDI and Samsung entered into a Memorandum of Understanding to create a 5G Global Network Slicing Alliance. This collaboration seeks to launch commercial 5G network slicing services and investigate innovative business models. Both organizations stress their dedication to improving 5G experiences for both consumers and enterprises, with KDDI's expertise in innovative network slicing and Samsung's technical skills being crucial to this effort.

These collaborations illustrate an increasing pattern in the telecommunications industry where businesses are coming together to leverage the capabilities of 5G network slicing with the ultimate goal of developing creative services that respond to varied market needs. For instance, BT Group collaborated with Ericsson and Qualcomm Technologies in February 2024 to showcase the capabilities of 5G standalone network slicing. The trial demonstrated how network slicing can improve mobile gaming and video conferencing experiences by enabling devices to connect to several slices at the same time guaranteeing optimal performance in high-demand situations. This partnership represents an important advancement in providing distinct services for both individual consumers and business users.

The North American area presently leads the 5G network slicing market, a pattern anticipated to persist during the forecast timeframe. North America has taken the lead in the development of 5G infrastructure, with substantial investments made by leading telecommunications companies. This initial uptake has established a strong ecosystem for network-slicing applications, allowing for a diverse array of services from improved mobile broadband to essential IoT solutions. The diverse industrial sectors in the region, such as manufacturing, healthcare, and automotive, are actively utilizing 5G network slicing to enhance connectivity and operational efficiency. This varied demand boosts the market's growth potential as various industries look for customized solutions.

While North America dominates the market, the Asia Pacific area is also rising as a notable contender, propelled by widespread 5G infrastructure installations and swift digitization in nations such as China, Japan, and South Korea. This expansion is fueled by the growing need for mobile network availability, adherence to public safety laws, and the emergence of digital transformation efforts in multiple industries. These countries are making significant investments in 5G infrastructure and have created technological ecosystems that facilitate the deployment of network-slicing solutions across various industry sectors, such as healthcare and manufacturing.