Example Concept: Code splitting is a technique used in React to divide the application into separate bundles that can be loaded asynchronously. By leveraging tools like Webpack or React.lazy, developers can ensure that only the essential parts of the application are loaded initially, while other parts are fetched as needed. This approach minimizes the initial payload, speeds up the loading time, and can significantly enhance the performance of large applications by preventing the browser from being overwhelmed with unnecessary code.