Network Slicing Market Poised for USD 4.2 Billion by 2035 as 5G Technology Reshapes Telecom Sector

According to the report, the global network slicing market is likely to grow from USD 1.2 Billion in 2025 to USD 4.2 Billion in 2035 at a highest CAGR of 13.6% during the time period. The network slicing market is seeing rapid growth in the demand for customized, low-latency connectivity for various 5G use cases in markets such as automotive, healthcare, and smart manufacturing. Digital transformation momentum drives enterprises to embrace network slicing to allocate bandwidth efficiently, improve security, and gain precise performance levels across critical operations and edge locations.

To simplify the process of slice management and ensure low latency and real-time service provisioning, technology providers are utilizing AI, cloudnative architecture, and orchestration platforms. For example, Nokia's solution launched in July 2025 provided a fully automated network slicing solution with multi-domain orchestration and intelligent traffic steering to meet the challenges of their telecom and industrial customers. Another deployment of a new dynamic slicing framework came from Ericsson in May 2025 that was designed for ultra-reliable low-latency communication (URLLC) for public safety and autonomous vehicle networks.

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Key Driver, Restraint, and Growth Opportunity Shaping the Global Network Slicing Market

The need for advanced network slicing capabilities is driven by the increasing need for network connectivity that is agile, reliable, and supports higher data rates for diverse applications and use cases that utilize new technologies such as 5G, IoT, and enterprise solutions. Since many industries have begun their journey towards digital ecosystems, the focus is shifting towards intelligent, end-to-end network slices that can accommodate varying performance requirements with respect to latency, bandwidth, and security. For example, in February 2025, Huawei Technologies launched an AI-based cutting framework with intelligent orchestration and real-time resource optimization for smart city and industrial IoT applications.

Although network slicing has great potential, there are still constraints to consider around the seamless integration of slicing with legacy systems, high implementation costs, and ensuring interoperability in multi-vendor settings. For example, in March 2025, Ericsson reported that slice deployment had been delayed due to complexities around multi-domain coordination and strict SLAs associated with a cross-industry use cases, especially in the public sector.

The inclusion of AI and machine learning in and around network slicing thwarted integration and automation that enable predictive maintenance and service delivery assurance in real-time. For example, in April 2025, Nokia launched a next-gen slicing platform that leverages AI for predictive traffic hauling and automated slice lifecycle management to reduce operational costs and improve service delivery across both telecom and automotive networks.

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Regional Analysis of Global Network Slicing Market

North America have the largest market for global network slicing which can be attributed to the widespread 5G adoption, advanced telco infrastructure, and the increased spending from enterprises. In August 2025, Verizon teamed up with Nokia to implement AI-enabled dynamic slicing capabilities over its 5G standalone core with the intent of augmenting connectivity for healthcare and smart city use cases. Ongoing establishment of clear regulations, paired with continually high levels of R&D investment, continues to support North America's leadership in this region.

The Asia Pacific region is seeing rapid growth for network slicing due to aggressive 5G network rollouts, smart city projects, and a rising demand for customized connectivity. In July 2025, China Mobile and Huawei introduced slicing pilots for smart manufacturing in Guangdong, illustrating real-time automation in an industrial setting. Furthermore, government support, along with industry collaboration, has induced growth in this region.
The European region continues to build slow momentum for network slicing, supported by stringent regulatory standards and mandates associated with investment that is driven by the digital transformation goals of various sectors. In June 2025, Ericsson and Deutsche Telekom launched slicing solutions for autonomous vehicle trials in Germany, stimulating investment towards the EU's goals of mobility transformation.

Prominent players operating in the global network slicing market include prominent companies such as AT&T Inc., China Mobile Communications Corporation, Cisco Systems, Inc., Deutsche Telekom AG, Ericsson, Hewlett Packard Enterprise (HPE), Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Juniper Networks, Inc., NEC Corporation, Nokia Corporation, NTT DOCOMO, Inc., Orange S.A., Qualcomm Technologies, Inc., Samsung Electronics, SK Telecom, Telefónica S.A., Verizon Communications, VMware, Inc., Vodafone Group Plc, ZTE Corporation, along with several other key players.

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North America Leads the Network Slicing Market amid Advanced 5G Infrastructure and Early Enterprise Adoption

The North America region is maintaining a strong leading position in the global network slicing market, due to advanced 5G infrastructure installation, strong investment in telco and IT testing, and enterprise adoption in high tech industries (e.g., automotive, aerospace and telecommunications) looking for reliable performance in high speed, low-latency networks.

Additionally, the region has strong R&D capabilities, extensive and mature digital infrastructure, and a strong technology labor market which provides an opportunity for organizations to quickly and seamlessly adopt emulation platforms as part of their cloud, edge, and IoT ecosystem to conduct real-time testing and simulating complex networks under different load conditions.

For instance, in March 2025, the U.S.-based company Juniper Networks introduced a software-defined network slicing solution to improve 5G and edge computing performance, specifically in the smart city space, further illustrating North America's continued leadership related to innovations, performance, and scaling operations in connected environments.

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Key Trend: Integration of AI, Automation, and Cloud-Native Technologies in Network Slicing

The market for network slicing is rapidly advancing, with initial deployments already integrating AI enabled orchestration, automation and cloud-native architectures providing improvements of existing technology with less human effort for creation, management and scaling of slices while maintaining the performance and management functions of existing services. As a result, operators will be able to improve network efficiency and support real-time network adaptability if required.

In order to illustrate, in 2025, a leading vendor/partner deployed an AI enabled orchestration platform that predicts traffic patterns, and automate slice resource to improve performance for applications such as remote health care and industrial IoT.

Telecom operators are beginning to embrace intelligent, self-optimizing networks as opportunity to reduce OPEX, improving user experience and accelerating service innovation will be some of the reasons driving growth in the market.

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