Network Slicing Market Size, Share, Growth, Trends, and Global Industry Analysis: By End User (Telecommunication, Healthcare, Manufacturing, Automotive, Media and Entertainment, Energies and utilities, and Government and public sector), Component (Solution and Service), Application (IoT, AR/VR, Autonomous Vehicles, and Industrial Automation), and Region Forecast 2020-2031

Network Slicing Market size was valued at US$ 2,108.5 million in 2024 and is expected to reach US$ 4,719.7 million by 2031, growing at a significant CAGR of 12.2% from 2025-2031.  Moreover, the U.S. Global market is projected to grow significantly, reaching an estimated value of $1,472.6 million by 2031. Network slicing is a technique that creates multiple virtual networks on top of a shared physical network, providing greater flexibility in the use and allocation of network resources. Each slice of a network can have its logical topology, security rules, and performance characteristics within the limits imposed by the underlying physical networks. The rise in cloud computing and data consumption, which is being driven by digital transformation, IoT, AI, and 5G deployment, is the main factor propelling the global network market. Massive investments in fibre optics, data centers, and edge networks, among other global connectivity infrastructure, are further influencing the market growth.

By enabling highly adaptive, self-optimizing, and self-healing systems, AI-driven networking is completely changing the way networks are managed. It makes use of real-time data to improve cybersecurity, balance loads, and forecast outages. Managing the increasing complexity of 5G, IoT, and edge computing environments requires this trend. The most revolutionary potential is the incorporation of AI into network slicing. AI makes it possible to manage network resources autonomously and in real time, which boosts security, efficiency, and latency. Further, the advancement of the 5G technology is anticipated to gain speed in assisting these specific requirements for emerging IoT applications, characterized as mission-critical applications and machine-type communication, boosting the need for such solutions during the forecast period.

Facts & Figures:

• 5G Network Deployment: The adoption of network slicing is greatly accelerated by the introduction of 5G technology, which provides massive device connectivity, low latency, and high bandwidth.
• IoT and M2M Communications: The rapid expansion of machine-to-machine (M2M) communications and Internet of Things (IoT) devices calls for networks that can manage a variety of connectivity needs, which network slicing successfully handles.
• Customized Network Services: Network slicing makes it possible for businesses in industries like healthcare, manufacturing, and entertainment to have networks that are specifically designed to meet their operational needs.
• DN and NFV Use: For 5G network slicing, cost-effective service delivery, and dynamic network orchestration to be possible, DN and NFV are essential. The next wave of telecom innovation and enterprise connectivity is being propelled by their integration. NFV virtualized network functions such as routing, load balancing, and firewalls. SDN allows network administrators to provide services across hardware components. NFV and SDN are necessary for network slicing and make it possible for networks to be quickly and easily configured to meet the needs of various applications and services.

Key Developments:

• In March 2025, Nokia and Proximus Global announced a collaboration to provide network APIs, including those for network slicing, to developers working on enterprise applications. By bridging the gap between different industry segments and the telecom ecosystem, this partnership hopes to support the creation of cutting-edge services.
• In February 2025, Nokia was chosen by Ooredoo Qatar to update its core network, allowing network slicing to deliver cutting-edge services. By enabling new business models and revenue streams across sectors like ports, mining, and natural gas, this modernization aids Ooredoo's network evolution.
• In February 2025, the first private 5G standalone (SA) network in a working hospital was introduced by Oulu University Hospital in Finland. The network improves patient care and operational efficiency by ensuring continuous data flow and connectivity, even during power outages, by utilizing Nokia's Modular Private Wireless solution.

Network Slicing Market Segmentation:

Based on the end user:

• Telecommunication
• Healthcare
• Manufacturing
• Automotive
• Media and entertainment
• Energies and utilities
• Government and public sector

Based on industry verticals, the healthcare sector holds the highest market share in the global market. This dominance is attributed to the increasing adoption of innovative 5G technologies and network slicing solutions in healthcare. The healthcare industry is undergoing a technological transformation with a growing number of use cases, such as robotic surgeries, IoT-enabled devices, and AI-driven diagnostics. Network slicing provides the necessary ultra-reliable low-latency communication (URLLC) required for these applications, ensuring real-time data transmission and enhanced patient care. The media and entertainment sector currently holds a comparatively lower market share in the market.

Based on the components:

• Solution
• Service

The solutions segment held the largest market share in 2023. The growing need for high-speed and broad network coverage, as well as the increasing smartphone usage and ultra-low latency communications, are all contributing to this market segment's greater share. The advantages of network slicing, such as mobility, versatility, adaptability, and limited distribution of real-time applications, are also driving this segment's growth. During the forecast period, the solutions segment is expected to develop at the fastest compound annual growth rate. Because the technology is still in its infancy, demand for network slicing solutions is likely to surge during the forecast period.

Based on the application:

• IoT
• AR/VR
• Autonomous Vehicle
• Industrial Automation

Based on application , the IoT (Internet of Things) segment held the largest market share in the global market. This dominance is attributed to the proliferation of connected devices across various industries such as healthcare, manufacturing, and transportation. The increasing demand for dedicated network slices ensures ultra-low latency, high reliability, and seamless connectivity for mission-critical IoT applications. For instance, smart factories and logistics companies are implementing network slicing to support real-time analytics and predictive maintenance, thereby improving operational efficiency and reducing downtime. the AR/VR (Augmented Reality/Virtual Reality) segment currently holds a comparatively lower market share in the market.