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Global Software-Defined Networking Market Surges to US$ 95 Billion by 2032

According to a research estimate by Future industry Insights, the software-defined networking market will generate global sales of US$ 16 billion in 2021. Between 2022 and 2032, the market is projected to grow at a CAGR of 17.2%, reaching a value of US$ 95 billion. SDN via Overlay is predicted to increase at the highest rates among income-producing segments, with a CAGR of about 17.8% between 2022 and 2032.

In our fast-paced technological world, there is a perceptible rise in the number of things that are connected on a regular basis via public or private networks. Conventional networking solutions are unable to keep up with the demand generated by networked things.

Software-defined networking (SDN) is useful in this situation. Through the use of a centralized panel, a network administrator can quickly regulate data flow without having to touch switches or routers thanks to software-defined networking, which isolates a network’s management layer from its infrastructure and application layers.

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Network engineers and operators can respond instantly to shifting business demand thanks to SDN. Instead of using specialized appliances like firewalls and load balancers, which are often used in traditional networks, SDN employs a software program that uses the controller to govern the data plane.

The whole network and its physical devices are controlled by software under SDN. For networking gear to decide where to send data packets, software must be embedded into the hardware. SDN is now a next-generation networking solution as a result. In Software Defined Networking, the control layer and application layer are integrated using northbound APIs, and the decision to send data is made programmatically using southbound APIs.

Global Software Defined Networking Market: Drivers and Challenges

Technological advancements in cloud computing and data center are contributing immensely to the growth of the global Software Defined Networking market. Some of the big players in the market such as VMware and Cisco are offering separate Software Defined Networking solutions for the data centers.

Software Defined Networking deployment in the data center is reducing downtime and increasing the productivity of business organizations. In addition to this, increasing data consumption via mobile devices and growth in OTT services are putting enormous pressure on telecom service providers to digitalize their existing 3G and 4G networks.

To meet the increasing demand for data consumption, telecommunication service providers are transforming their networks with the help of Software Defined Networking technology.

Though Software Defined Networking facilitates network operators to control switches and routers through software it doesn’t virtualize functions and commands. In other words, Software Defined Networking doesn’t allow running the central network in software hardware.

Moreover, enterprises are still reluctant to adopt Software Defined Networking technology to some extent. They fear that services running on their existing network will get hampered.

Global Software Defined Networking (SDN) Market: Segmentation

Software-defined networking (SDN) Market can be segmented based on component, application, end-user, and region. The component categories include software and different types of services such as professional services and managed services. Based on application, the market can be segmented into SDN for data centers and SD-WAN.

Different types of end-user that are deploying SDN are cloud service providers, telecommunication service providers, and enterprises. Region-wise, the global software-defined networking (SDN) Market can be segmented into North America, Latin America, Asia Pacific, Japan, Eastern Europe, Western Europe, and Middle East & Africa.

Cisco System Inc. Hewlett Packard Enterprise, IBM Corporation, Juniper Networks, Pica8, Inc., Intel Corporation, and Big Switch Networks, Inc. are some of the big players in the global software-defined networking (SDN) market.

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Regional Overview

North America is the largest Software Defined Networking market as most of the Software Defined Networking providers such as Cisco, IBM, and Hewlett Packard Enterprise are based in the North American region and are making huge investments there. Also, due to the ongoing advancements in 4G and 5G technologies in the US, telecommunication service providers are deploying SDN at every layer of their network.

In the Europe region, technology service providers have already understood the value proportion of SDN and have already started deploying Software Defined Networking in their networks but the enterprise market still remains gloomy in terms of the adoption of Software Defined Networking.

In the Asia Pacific region, growth in countries such as China, India, and Japan are immensely contributing to the market. In India, the telecommunication services industry is going through a transformation, and service providers have started to deploy Software Defined Networking technology at a massive scale.

Software-Defined Networking Market Segmentation

By SDN Type:

  • Open SDN
  • SDN via API
  • SDN via Overlay

By End-User:

  • Service Providers
  • Enterprises

By Organization Size:

  • Small & Medium Enterprises
  • Large Enterprises

By Application:

  • BFSI
  • ITeS
  • Education
  • Retail
  • Manufacturing
  • Government & defence
  • Healthcare
  • Others

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America