5G Network Slicing Will Generate Revenue in Excess of US$20 Billion by 2026

New York, New York - January 28, 2021

With 5G deployments proliferating, the importance of network slicing for the enterprise domain is set to grow. According to new research by global tech market advisory firm ABI Research, the demand for 5G slicing will be propelled primarily by heavy industry verticals. Industrial manufacturing, C-V2X, and logistics alone will potentially generate cumulative revenues of US$12 billion by 2026, representing a significant portion of an overall 5G slicing market that will likely exceed the US$20 billion mark.  Much of the discussion at present focuses on how various industry verticals can alleviate the operational complexity of doing business with 5G Network Slicing.

“This research highlights the importance of 5G Slicing as an enabler for new value creation, particularly as Communications Service Providers (CSPs) bolster their capabilities to go beyond connectivity revenues,” says Don Alusha, 5G Core & Edge Networks Senior Analyst at ABI Research. The discourse in a post-COVID environment will be to accelerate edge computing deployments to further develop low-latency use cases, extend 5G coverage, and reach industry consensus on how handsets and devices can support 5G slicing. “Further, the industry at large now realizes that to extract the value at stake, there is a need to enhance the traditional way of doing business and clearly articulate business drivers and commercial utility of slicing to vertical partners,” Alusha adds.

There are three predominant business drivers for 5G slicing. One, new services can be deployed with little or no disruption to existing services. With today’s networks, service agility is a challenge because the introduction of new services necessitates reconfiguration of underlying networks. Two, verticals can optimize network efficiency with potentially lower costs. A shared network infrastructure used across multiple slices promotes better resource utilization and can, in theory, reduces integration scope and complexity. Three, 5G slicing enables vertical partners to bring to market a wider range of services based on customized service level agreements (SLAs).

It will take time for a mature, 5G slice-ready ecosystem to emerge. With the global economy rebounding from current climate with COVID-exit strategies, it is very likely that new investments advance existing proof of concepts (PoCs) and trials to commercial deployments. Ultimately, wholesale deployment of public networks (5G slicing) for private use requires more vertical engagement. To that end, the industry should realign existing commercial arrangements to include vertical partners. 5G slicing serves as an enabler towards that change, but first, the industry should aim to extend trust and build relationships with vertical partners. That will go a long way to better address end verticals’ pain points and identify mutually beneficial arrangements for both telecoms and industry partners.  

“Lastly, reaping full benefits from 5G network slicing is a long-haul endeavor that will need to start small with same-vendor, campus type deployments. Multi-vendor implementations will materialize with further industry alignments on terminal support, business model, and collaboration among system integrators, vendors, and CSPs,” Alusha concludes.

These findings are from ABI Research’s 5G Network Slicing and Industry Verticals market data report. This report is part of the company’s 5G Core & Edge Networks research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.

About ABI Research

ABI Research provides actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670