ABI Research: 5G slicing will generate $20 billion in revenue

5G slicing is a key enabler of new business models and a key concept to enhance the potential of 5G. Communications service providers can divide their network assets using different criteria such as mobility, security or traffic type.

Using network segmentation, communications service providers can offer different service levels, including network availability, throughput, latency, security levels, and other performance indicators. This lays the foundation for a more controlled and flexible connectivity environment without modifying the properties of the underlying infrastructure that provides the original network functions.

ABI Research, a global technology market consulting firm, found that full slicing mechanisms are expected to be implemented in 2024, by which time 5G slicing will generate $20 billion in revenue.

"There are three business drivers for 5G network slicing. First, new services can be deployed with little or no disruption to existing services. Service agility is a challenge for today's networks because the introduction of new services requires reconfiguration of the underlying network. Second, vertical networks can optimize network efficiency at potentially low cost. Shared network infrastructure is used across multiple 5G slices, facilitating better resource utilization and theoretically reducing integration scope and complexity. Third, 5G slicing enables vertical partners to customize network slices based on desired service level agreements and network key performance indicators, bringing a wider range of business services to the market," said Don Alusha, senior analyst at ABI Research.

With the proliferation of 5G standalone core deployments, investments in edge computing to develop low-latency use cases, and further industry consensus on how terminals can support network slicing, these capabilities are likely to come to market in 2023 and beyond.