The global software defined networking (SDN) market size is projected to grow from USD 13.7 Bn in 2020 to USD 32.7 Bn by 2025 at a CAGR of 19.0% between 2021 and 2028. Software defined networking or SDN offers a recently developed, advanced, swift solution to day-to-day networking problems in an organisation.
Additionally, it also allows the enterprise to use software and hardware from numerous sellers to have customized networking services as per the needs of the organisation. Primarily, it is software that utilizes software base controllers or application programming interface to communicate information to hardware infrastructure and direct traffic on a network.
SDN is unlike existing software, as traditional software uses hardware devices such as routers and switches to manage network traffic whereas SDN creates an online network to control hardware. This model provides a new and improved way of controlling the routing of data packets with the help of a centralized server.
Market Trends, Drivers, Restraints, and Opportunities
- Rising trends of network infrastructure automation as well as global usage of cloud computing services and demand for data analytics in multiple industries are projected to drive the market.
- Demand for software defined networking is driven by various elements that are growth in usage of cloud computing and increasing number of investments in SDN.
- Hacking and security threats are the major restraints for SDN market.
- Lack of skilled workforce and complexity of SDN structure, transitioning to SDN from traditional network poses a hindrance to the market growth.
- Expansions and new innovative product launches are estimated to provide profitable opportunities for the market players.
Scope of Software Defined Networking (SDN) Market Report
The report on software defined networking market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Software Defined Networking (SDN) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Solutions and Services), Organisation Size (Large Enterprises and SMEs), End-user (Service Providers, Enterprises and Government), Industry Vertical (BFSI, IT & Telecommunication, Education, Retail, Manufacturing, Government & Defence, Healthcare, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Cisco(US), Dell EMC(US), HPE(US), VMware (US), Huawei(China), Juniper Networks(US), Nokia (Finland), Oracle(US), Citrix(US), Extreme Networks(US), Infovista(US), NEC(Japan), Pluribus Networks(US), Arista Networks(US), CloudGenix (US), Cumulus Networks(US), DataCore Software(US), Fortinet(US), Fujitsu(Japan), HiveIO(US), Lenovo(Hong Kong), NetApp(US), Pica8(US), Pivot3(US), and Scale Computing(US)
Software Defined Networking Market Segment Insights
Based on components, the SDN market is divided into solutions and services. The solutions segment is further segmented into physical network infrastructure, virtualization & control software, and software-defined networking applications. The services segment is segregated into professional and managed services.
The physical network infrastructure segment is projected to hold major market share. The market for this component is projected to account for more than 50% of the total share. This is due to its abilities to manage and direct the flow control in various elements and applications. It provides centralized and holistic enterprise network management and is cost-effective in nature.
Based on size of organisation, the market is fragmented into large enterprises and SMEs (Small and Medium Enterprises). The large enterprise segment is projected to expand at a rapid pace.
A large organization is an enterprise that consists of at least 5,000 employees and has an annual turnover more than 1.5 billion euros. These organizations have a large well-skilled workforce to manage high level specific operations and IT infrastructure. These organisations utilise industry solutions that aids them in increasing efficiency.
On the basis of end-user, the market can be segregated into service providers, enterprise, retail, IT & telecommunication, healthcare, BFSI, industrial, government, and others. The enterprise segment is projected to hold major market. In 2012, 35% of the global software defined networking market was held by enterprises segment alone.
This success is owing to the fact that enterprises and organisations generate a large amount of data which guides them to improve network efficiency with the help of centralized management, amplified IT agility, and trouble-free network customization by speedy and dependable application services, to direct data and application securely.
In terms of industry vertical, the SDN market is fragmented into BFSI, IT & telecom, education, retail, manufacturing, government & defence, healthcare, and others (energy & utilities, transportation & logistics and travel & hospitality.
The IT & telecom segment is estimated to expand at a rapid pace due to its ability to transform the telecom industry by enhancing the quality of carriers (wired as well as wireless) to easily deliver bandwidth whenever it is demanded. Carriers improve the network flexibility and minimise the excess operational charges.
In terms of region, the global software defined networking market can be split into North America, Latin America, Asia Pacific, Europe and the Middle East & Africa. North America accounts for the major market share. The rapid rise of internet, increasing occupants and technological advancements are some of the factors driving the market. Moreover, as companies are looking forward to move their IT operations to the internet a boost in SDN is observed.
- Physical Network Infrastructure
- Virtualization & Control Software
- Software-defined Networking Applications
- Professional Services
- Managed Services
- Service Providers
- IT & Telecommunication
- Government & Defence
- Energy & Utilities
- Transportation & Logistics
- Travel & Hospitality
- North America
- Asia Pacific
- Latin America
- Middle & East Africa
- Dell EMC(US)
- VMware (US)
- Juniper Networks(US)
- Nokia (Finland)
- Extreme Networks(US)
- Pluribus Networks(US)
- Arista Networks(US)
- CloudGenix (US)
- Cumulus Networks(US)
- DataCore Software(US)
- Lenovo(Hong Kong)
- Pica8(US)Pivot3(US), and Scale Computing(US)
Key players in the software defined networking market include, Cisco(US), Dell EMC(US), HPE(US), VMware (US), Huawei(China), Juniper Networks(US), Nokia (Finland), Oracle(US), Citrix(US), Extreme Networks(US), Infovista(US), NEC(Japan), Pluribus Networks(US), Arista Networks(US), CloudGenix (US), Cumulus Networks(US), DataCore Software(US), Fortinet(US), Fujitsu(Japan), HiveIO(US), Lenovo(Hong Kong), NetApp(US), Pica8(US), Pivot3(US), and Scale Computing(US). These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.