5G Slicing Mechanism Will Produce Nearly $20 Billion Market Valuation By 2024

5G Slicing Mechanism Will Produce Nearly $20 Billion Market Valuation By 2024

In the era of increased digitalization, 5G slicing is a prime facilitator of innovative business models as well as significant aspect to empower the potential of 5G network.

Given the current market scenario, communications service providers (CSPs) could segment their network assets through various criteria – such as mobility, security, and traffic types. With the help of network slicing, these CSPs can offer varied service levels of network availability, throughput, security level, latency, and many other performance indicators.

This forms the base for a more flexible, advanced, and controllable connection setting without altering the underlying properties of the existing infrastructure – which supply raw network capabilities.

Consequently, a complete slicing mechanism is anticipated by 2024, and at that point, 5G slicing will produce about $20 billion market revenue, reveals a recent study by ABI Research. Generally, there are different business drivers for 5G slicing, including –

  1. Network verticals can optimize network competency with potentially lower price
  2. Innovative technology solutions that could be deployed with little or almost no disruption to the existing services
  3. 5G slicing permits vertical partners to bring a broader range of business services based on the network slices into the market

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Amid the pandemic, the shared network infrastructure is being utilized across various 5G slices – promoting enhanced resource utilization. In addition, this can also reduce integration scope as well as network complexity.

Undeniably, service agility is a critical challenge with current network environment. As a result, these 5G-based business services are often customized in line with the compulsory service-level agreements (SLAs) as well as network key performance indications.

The widespread scope of hat 5G slice deployment demands the extensive maturity of the overall marketplace. In essence, networking vendors increasingly invest in propelling ecosystem cohesion while bulking up with their 5G slicing abilities.

For instance, some of the technology vendors are actively designing 5G slice-centric packages – which offer combined effect with existing systems and network connectivity.

Certainly, an entire 5G slicing mechanism will absorb inter-operations with numerous existing systems among multiple network vendors. Eventually, the global deployment of 5G slicing needs the industry to re-adjust traditional ways of doing business to include knowledge of the technology enterprise environment.

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According to the industry experts, 5G slicing is a drive for the complete industry, and the foundation for primary use cases has already been accepted. For instance, the same vendor 5G slicing and the campus/LAN deployments are likely to be commercialized in the next few years.

Given that, Don Alusha, Senior Analyst at ABI Research, explains – “Multi-vendor implementations and WAN type deployments are more challenging. These capabilities will potentially be brought to market starting in 2023 and beyond, with a proliferation of 5G standalone core deployments, investment in edge computing to develop low-latency use cases, and further industry consensus on how terminals can support network slicing.”

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