USD 49.50 Billion
Software Defined Networking Market Size, Share, Growth Analysis, By Offering(SDN infrastructure (Applications, Controllers, Networking Devices), Software), By SDN type(Open SDN, SDN Via API, SDN Via Overlay, Hybrid SDN), By Application(Sd-WAN, Sd -LAN, Security Applications, Other Applications), By End-use(Enterprise, Telecommunication Service Providers, Cloud Service Providers), By Vertical(BFSI, Healthcare, Retail & E-commerce, Manufacturing), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2149 |
Region:
Global |
Published Date: September, 2024
Pages:
197
|Tables:
115
|Figures:
77
Software Defined Networking Market Insights
Global Software defined networking Market size was valued at USD 49.50 Billion in 2022 and is poised to grow from USD 58.91 Billion in 2023 to USD 236.88 Billion by 2031, at a CAGR of 19% during the forecast period (2024-2031).
The driving factors behind the growth of the SDN market is the increasing demand for cloud services and data center virtualization. As organizations adopt cloud computing and virtualization technologies, the need for dynamic and scalable networking solutions becomes paramount. SDN provides the ability to provision and manage network resources in a more efficient and flexible manner, aligning with the requirements of modern IT infrastructure. The SDN market includes the complexity of implementation and integration with existing network infrastructure. Organizations may face technical hurdles and require expertise to effectively deploy SDN solutions. Moreover, the lack of standardized protocols and industry-wide best practices can make interoperability and compatibility a challenge, leading to vendor lock-in. The global software-defined networking market aims to revolutionize traditional networking approaches by offering virtualization, automation, and centralized control. While driving factors such as cloud services and data center virtualization propel market growth, challenges including legacy infrastructure and security concerns hinder its wide-scale adoption. However, the market presents opportunities in areas such as SD-WAN and the convergence of 5G and IoT, opening avenues for the advancement and expansion of software-defined networking technologies.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Enterprise
Fastest Growth
Cloud Services Provides
Growth Rate
19% CAGR
Global Software Defined Networking Market ($ Bn)
Country Share for North America Region (%)
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Software Defined Networking Market Segmental Analysis
The global software defined networking market is segmented based on offering, SDN Type, end-use, application, and region. Based on offering, the market is segmented into SDN infrastructure, Software, and Services. Based on SDN type, the market is segmented into Open SDN, SDN Via API, SDN Via Overlay, and Hybrid SDN. Based on application, the market is segmented into Sd-WAN, Sd -LAN, Security Applications, and Other Applications. Based on vertical the market is segmented into BFSI, Healthcare, Retail & E-commerce, Manufacturing, Government & Defense, Telecom, Education, Information Technology-enabled Services, and Others. In terms of end-use, the market is segmented into Enterprise, Telecommunication Service Providers, and Cloud Service Providers. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by End-use
The enterprise sector dominates the SDN market due to the increasing adoption of SDN solutions by organizations across various industries. Enterprises are leveraging SDN technology to transform their network infrastructure, enhance operational efficiency, and improve overall business agility. SDN offers enterprises the ability to dynamically provision and manage network resources, ensuring optimal performance, scalability, and cost-effectiveness. As a result, the enterprise segment commands a significant market share and continues to witness steady growth.
The cloud service providers segment is emerging as the fastest-growing segment in the SDN market. With the rapid expansion of cloud computing and the increasing demand for scalable and flexible networking solutions, cloud service providers are embracing SDN to optimize their network infrastructure. SDN enables them to efficiently manage their vast network resources, enhance service delivery, and meet the evolving needs of their customers. As cloud services continue to gain popularity and witness substantial growth, the demand for SDN solutions from cloud service providers is experiencing a remarkable surge.
Analysis by SDI type
Open SDN: Now retire your imagination to an SDN environment that has been put in the market standard. This is the philosophy of Open SDN. It utilizes standard based such as Open Flow that creates a link between one central SDN controller and the other network devices. This open approach makes the vendor independent allowing the integration of the equipments of other different networks.. Open SDN allows the manipulations directly by the network administrators in a flexible and rather effective manner. Such a privilege gives them the leverage of programming the networks behavior or even the operation of the network depending on the system they desire in order to have the best results. However, they added that the flip side of this control is the need for enhanced technical knowledge to facilitate the accomplishment of organizational goals. In the case of Open SDN environment establishment and management, one should have adequate knowledge of the SDN and networking programming languages. This can be a challenge especially to organizations with restricted technical capital.
SDN via API: This provides a less integrated, or vendor agnostic way into achieving proper SDN functionality. It leverages the Application Programming Interfaces that are offered by several network vendors to accomplish the degree of programmability as well as automation control within the ecosystem. It is still not as open or standard as OpenFlow but the former enables organizations to implement some SDN concept in order to carry out some common networking activities. In the case of the implementation process via the API to SDN, the overall process is relatively easier and executable than the Open SDN. This makes it possible for organizations with limited knowledge in matters SDN to implement simple concepts of SDN and at the same time feel the difference. However, there's a trade-off. The possibility of controlling SDN through API is often limited to the vendor’s solution capabilities of the existing functions. This may reduce easy adaptability to customarily utilize the network and complicates the compatibility with multi-vendor networks.
Analysis by Application
SD-WAN (Software-Defined Wide Area Network): Consider a WAN that is developed based on Matrix’s needs in a way that it is capable of responding appropriately to the needs of the company. SD-WAN is implemented above the existing WAN connections and brings them more flexibility and improved efficiency. It can forward traffic through many links, traditional such as MPLS, Novel broadband internet connection, or even cellular data depending on the actual availability and application need. This means increased efficiency of a network, decreased costs that are generally incurred for bandwidth consumption and overall better experience for cloud-based applications.
SD-LAN (Software-Defined Local Area Network): The implementation of a large LAN can be a real headache. SD-LAN makes your life easy through automation of the LAN activities. For configuration, policy, and dynamic network resources such as physical or virtual, network devices are consolidated and automated. This flexibility also brings benefits like, quick response, better security, and easy network management and the network team can then concentrate on other more important projects.
Security Applications: If you are in need of a way to revolutionise your existing network security, then SDN is what you need. Thus, the principles of SDN can be used to establish more flexible and automated security solutions. This puts you in a position to allow microsegmentation which enables one to lock important network areas and also to limit the effects of compromise. Moreover, actual time security threat analysis and resolution become possible, it means you have an ability to eliminate threats faster. Also, the enforcement is possible across the entire network, which enables maintaining a uniform security level at all the levels of an organization infrastructure.
Global Software Defined Networking Market Size By End use
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Software Defined Networking Market Regional Insights
North America holds a prominent position in the global SDN market due to several factors. The region has a strong presence of key market players, including software and networking technology providers, which contribute to the extensive adoption of SDN solutions. Moreover, North American enterprises and service providers are quick to embrace technological advancements, seeking ways to enhance their network infrastructure and address the evolving demands of digital transformation. The region's mature IT ecosystem, robust connectivity infrastructure, and favorable regulatory environment further support the growth of the SDN market in North America.
Asia Pacific emerges as the fastest-growing region in the global SDN market. The region is witnessing rapid digitalization, economic growth, and significant investments in infrastructure development. Countries like China, Japan, South Korea, and India are at the forefront of technological advancements and have a growing appetite for innovative networking solutions. Factors such as the proliferation of mobile devices, increasing internet penetration, and the adoption of cloud computing are driving the demand for SDN in the region. Furthermore, initiatives and government policies aimed at promoting digital transformation and smart city projects are contributing to the accelerated growth of the SDN market in Asia Pacific.
Global Software Defined Networking Market Size By Region
- Largest
- Fastest
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Software Defined Networking Market Dynamics
Drivers
- Increasing Demand for Cloud Services
The growing demand for cloud services acted as a major driver for the SDN market in 2023. As organizations continued to adopt cloud-based infrastructure and applications, the need for agile and scalable networking solutions became crucial. SDN offers the ability to dynamically provision and manage network resources, providing the flexibility and efficiency required in cloud environments. For example, major cloud service providers like Amazon Web Services (AWS) and Microsoft Azure implemented SDN solutions to optimize their network infrastructure and deliver seamless cloud services to customers.
- Rising Adoption of IoT and Edge Computing
The increasing adoption of Internet of Things (IoT) devices and edge computing applications acted as another driver for the SDN market in 2023. With the proliferation of connected devices and the need for real-time data processing at the network edge, SDN provided the necessary network agility and security to support these technologies. For instance, industries such as manufacturing, healthcare, and transportation implemented SDN solutions to manage and secure their IoT devices and enable efficient data transfer between edge devices and central systems.
Restraints
- Legacy Infrastructure and Interoperability Challenges
The SDN market in 2023 was the presence of legacy network infrastructure and interoperability challenges. Many organizations had existing networking equipment and investments that were not easily compatible with SDN solutions. Migrating from traditional networking to SDN required careful planning, integration, and potential hardware upgrades. Ensuring interoperability between different vendor solutions was also a challenge, leading to complexities in implementation and potential vendor lock-in situations.
- Security and Privacy Concerns
the centralization of network control in SDN architectures, there were potential risks of unauthorized access and security breaches. Organizations were cautious about ensuring robust security measures to protect their networks and sensitive data. Additionally, privacy regulations and compliance requirements added complexity to SDN implementations, as organizations needed to address data protection and privacy concerns.
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Software Defined Networking Market Competitive Landscape
The global software defined networking market exhibits a competitive landscape with the presence of several key players and intense competition among them. These companies strive to gain a competitive edge by offering innovative SDN solutions, expanding their product portfolios, and focusing on strategic partnerships and acquisitions. companies focus on product differentiation, partnerships, and strategic acquisitions to stay competitive and cater to the growing demand for SDN solutions. The global SDN market is highly competitive, with key players striving to differentiate themselves through innovative solutions, broad product portfolios, strategic partnerships, and customer-centric approaches. The continuous advancements in SDN technologies and the increasing adoption of SDN across various industries drive the competitive landscape, urging companies to stay at the forefront of the market with their offerings.
Software Defined Networking Market Top Player’s Company Profiles
- Cisco (US)
- Huawei (China)
- VMware (US)
- Dell EMC (US)
- Juniper Networks (US)
- IBM (US)
- Ericsson (Sweden)
- Ciena (US)
- HPE (Hewlett Packard Enterprise) (US)
- Nokia (Finland)
- Arista Networks (US)
- Extreme Networks (US)
- Comcast (US)
- Citrix (US)
- NEC (Japan)
- Oracle (US)
- Palo Alto Networks (US)
- NVIDIA (US)
- Fortinet (US)
- Fujitsu (Japan)
- HiveIO (US)
- Lenovo (China)
- Pica8 (US)
- Scale Computing (US)
- Canopus Networks (India)
- Zeetta Networks (UK)
- Trustgrid (US)
- Cosgrid Networks (India)
Software Defined Networking Market Recent Developments
- In March 2024, UltiSat, a global provider of advanced communications and networking to government, humanitarian-aid and critical infrastructure markets, announced the release of its Unified Multi-path Connectivity™ (UMC) solutions. UMC provides customers with high availability connectivity via its unique Sigma Gemini platform, which employs advanced Software Defined Networking (SDN) tailored for tactical applications.
- In February 2024, IBM announced expansion of their enterprise networking portfolio with new offerings for Cisco networking with limited regional availability, including IBM Support and Implementation Services for Software Defined Networking as well as IBM Network Health Check, to help clients build a more integrated networking environment designed for today’s IT challenges.
- In November 2023, Proxmox VE 8.1 released with new features. The update to the popular virtualization platform had many of the normal “under-the-hood” updates as well as several new features, the biggest one being the software-defined networking (SDN) capability.
- In June 2022, Juniper Networks introduced its Cloud-Grade Networking solutions, focusing on delivering automated and scalable SDN solutions for cloud service providers. The offering aimed to enable efficient network operations, simplified management, and improved security for cloud environments.
- In March 2022, VMware unveiled its new version of VMware NSX-T, a software-defined networking and security platform. The updated version introduced advanced networking and security features, including enhanced automation, increased scalability, and improved integration with cloud-native environments.
Software Defined Networking Key Market Trends
- Intent-Based Networking (IBN): IBN focuses on translating business intent into network policies and automating network operations accordingly. It enables network administrators to define high-level business objectives, and the network infrastructure automatically configures itself to meet those objectives. IBN simplifies network management, enhances network agility, and reduces human error. Major players in the SDN market, such as Cisco, launched IBN solutions to cater to the evolving demands of organizations seeking more intelligent and automated networking capabilities.
- SD-WAN Adoption: Software-defined Wide Area Networking (SD-WAN) gained significant traction as a key trend in the SDN market in 2022. Organizations adopted SD-WAN solutions to optimize their wide area networks, improve network performance, and enhance connectivity across geographically distributed locations. SD-WAN offers benefits such as increased network visibility, centralized management, and the ability to utilize multiple network connections, including MPLS, broadband, and cellular networks. Several SDN vendors, including VMware, Cisco, and Silver Peak, introduced SD-WAN solutions to address the growing demand for efficient and cost-effective wide area networking.
Software Defined Networking Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global software defined networking market analysis, as organizations seek more agile and efficient networking solutions, the market attracts more revenue. SDN refers to the virtualization of network infrastructure, allowing organizations to manage and control their networks through software applications rather than relying solely on physical hardware. The key factors driving the growth of the SDN market is the increasing demand for cloud services. As businesses embrace cloud computing and migrate their applications and data to the cloud, the need for flexible and scalable networking solutions becomes paramount. The SDN market presents significant opportunities. The need for network agility, scalability, and cost optimization drives organizations to adopt SDN solutions. The global SDN market is witnessing substantial growth and transformation due to the increasing demand for cloud services, the emergence of IoT and edge computing, and the need for network agility and scalability. While challenges exist, the benefits offered by SDN in terms of flexibility, efficiency, and cost optimization make it an attractive choice for organizations looking to modernize their network infrastructure and adapt to evolving technological trends.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 49.50 Billion |
| Market size value in 2031 | USD 236.88 Billion |
| Growth Rate | 19% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Software Defined Networking Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Software Defined Networking Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Software Defined Networking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Software Defined Networking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Software Defined Networking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Software Defined Networking Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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