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Strategic Partnerships and the Necessary Investment in 5G Network Slicing will Drive 5G Enterprise Segment Growth
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In Asia-Pacific (APAC), 5G network slicing is still at an early stage because of limited 5G commercial launches. The standards for 5G end-to-end network slicing have only recently been completed in June 2021 and have been a bottleneck for the more promising use cases. The majority of mobile operators are planning to implement 5G network slicing by 2022, with commercialization from 2023. Slice-as-a-service (SlaaS), slated as a top revenue generator for mobile operators, is expected by 2025, if not earlier. 5G network slicing revenue in APAC is expected to grow from $2.88 billion in 2021 to $9.99 billion in 2025, at a CAGR of 36.4%. Factors such as increasing demand for mobile network coverage, complying with public safety regulations, growing digital transformations, and rising smart Internet of Things (IoT) platforms are expected to contribute to 5G network slicing market growth. By industry vertical, the healthcare industry, followed by the manufacturing industry, is the top vertical for 5G network slicing. Growth in the healthcare sector has been expedited because of the COVID-19 pandemic. The healthcare sector was spotlighted in 2020 and will continue to grow on the back of rapid telehealth developments in APAC. The top 3 countries in APAC that are expected to have significant growth in 5G network slicing over the next 5 years include China, South Korea, and Japan.With 5G network slicing, mobile operators can improve the service delivery for existing applications and can create new markets, especially in the follwing 4 most viable vertical industries for 5G: manufacturing, healthcare, automotive, and transportation. The contribution from these verticals will grow from 27% in 2021 to 54% in 2025. In business solutions, 5G network slicing is expected to play a critical role in transforming the enterprise networking solutions market, with the biggest impact expected in unified communications-as-a-service (UCaaS) and SD-WAN, and outcomes are expected to be more prevalent within the next 5 to 10 years. A big part of the 5G monetization potential lies with the current ability to create the necessary enterprise applications. Strategic partnerships and the necessary investments will be required to ensure the success of 5G network slicing.This study covers the APAC market, focusing on developing geographies, including China, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, and developed geographies, including Australia, Japan, New Zealand, Singapore, and South Korea. The target audience for this report includes telecommunications, media and entertainment, manufacturing, healthcare, government and the public sector, and transportation and logistics, all of which want to understand how to plan to incorporate 5G network slicing strategically.Author: Mei Lee Quah
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