5G Segment Routing Market - Forecasts from 2023 to 2028

The 5G segment routing market is projected to grow strongly during the forecast period.

GROWTH DRIVERS

Segment routing is a key technology for the 5G segment routing market, which aims to provide high-performance, high-reliability, and high-scalability data transport for 5G services. Segment routing supports network slicing, which is a feature that enables the creation and orchestration of separate network partitions with unique characteristics to serve different use cases or enterprises. 5G segment routing market is driven by the growing demand for efficient, flexible, and scalable network solutions that can support diverse and dynamic service requirements. It also leverages SDN and NFV technologies to provide programmable and adaptable network services. Moreover, 5G segment routing supports higher router interface speeds and lower cost per bit, as well as new enterprise use cases that need customized and SLA-based network services.

For instance, as per the insights by European Standards Organization, the percentage of worldwide IPv6 users were 15.06% in 2018, 16.54% in 2019, and 24.33% in 2021. The increase in the percentage indicates a positive trend in IPv6 adoption. The percentage of IPv6 users serves as a significant growth driver for the 5G segment routing market. As the percentage of IPv6 users increases, it indicates a larger user base that relies on IPv6 for their connectivity needs. This growth is beneficial for segment routing in 5G networks as it fosters compatibility and interoperability, enabling efficient routing and optimization of network resources. With a higher percentage of IPv6 users, the demand for advanced routing technologies like segment routing is likely to grow, driving the expansion and adoption of segment routing in the 5G market.

EMERGING OPPORTUNITIES FOR 5G SEGMENT ROUTING MARKET

NETWORK SLICING AND MEC

The 5G segment routing market is driven by the need for fast and flexible data transport for 5G services. Segment routing is a simple and scalable protocol that supports network slicing and traffic engineering using MPLS or IPv6. Segment routing also integrates with cloud and SDN for network automation and optimization. The market will grow as service providers use SRv6 networks and new features like SRv6 Flex-Algo and SRv6 MUP for dynamic network slicing and MEC applications.

By application, the 5g segment routing market is segmented into network slicing and MEC. The developments and initiatives in the government and commercial segments are playing a crucial role in driving advancements and improving the 5G segment routing market.

For instance,

• In April 2019, the Cisco announced that, it has partnered with Iliad to facilitate the implementation of an advanced national IP Network in Italy. This cutting-edge network will be powered by Segment Routing IPv6 (SRv6) technology and will serve as the foundation for Iliad's innovative mobile services. The collaboration underscores Cisco's commitment to supporting the growth of 5G networks by enabling efficient routing and optimized performance through the utilization of SRv6 in Iliad's network infrastructure.
• In February 2019, Cisco announced its partnership with SoftBank for the world's first deployment of Segment Routing IPv6 (SRv6). In preparation for the 5G era, Cisco is collaborating with SoftBank to implement advanced SRv6 networks across the country, enabling a highly scalable and reliable network architecture that offers enhanced flexibility and agility, while also reducing capital and operational expenses.

GEOGRAPHICAL PRESENCE

The global 5G segment routing market consists of some major countries that have been undertaking various measures to secure their 5G network across their respective nations. Japan is expected to have a higher CAGR during the forecasted period. In addition to it, a few of the major countries include the USA, China, South Korea, United Kingdom, and Germany. The nations have undertaken various measures, which have complemented the overall market growth. For instance,

• In June 2023, in Germany, Ericsson announced, it has entered into partnership with Deutsche Telekom for a significant advancement in 5G network slicing. Their partnership involves combining 5G slicing with technologies like SD-WAN and local traffic breakout, enabling the establishment and control of flexible connectivity. This breakthrough development allows for enhanced customization and management of network slices, contributing to the evolution and optimization of 5G segment routing capabilities.
• In March 2022, in Japan, NTT Network Service System Laboratories and NTT Network Innovation Center have announced in a press release, that it is in collaboration with NTT Communications Corporation and NTT DOCOMO to conduct tests on end-to-end orchestration (E2EO) technology based on ETSI's Zero Touch Network and Service Management (ZSM) standard.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Jupiter Networks, ZTE Corporation, and SoftBank Corp among others. The product offerings of the major corporation include the following:

• Juniper Networks MX2020 Universal Routing Platform which long-term subscriber and service expansion. It is a device that offers 80 Tbps of system capacity and supports up to 800 100GbE connections or 160 400GbE interfaces in a single chassis. It is a multiservice edge platform for carriers that supports SDN and has strong automation capabilities to assist cloud operators and service providers in addressing long-term subscriber and service expansion.
• ZTE Corporation product ZXR10 M6000-S Intelligent Full-Service Router which provides intelligent networks, and high accuracy clocks. It offers crucial features including network slicing, SDN, FlexE, intelligent networks, and high accuracy clocks. Additionally, stateless intermediary nodes and segment routing for centralized control by SDN controller are supported.
• SoftBank Corp product SRv6 MUP is a network slicing solution. It is a network slicing solution that allows for end-to-end network slicing from a 5G smartphone user to a MEC application. Without purchasing additional 5G hardware, it employs SRv6 Flex-Algo to expand 5G network slices to MEC applications.

SEGMENTATION

The 5G segment routing market has been analyzed through the following segments:

By Technology

• Compressed
• Uncompressed

By Application

• Network Slicing
• MEC

By Geography

• Americas
• USA
• Others
• EMEA
• Germany
• UK
• Others
• APAC
• China
• Japan
• South Korea
• Others