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Software Defined Networking Market Size (2024 - 2029)

The Software Defined Networking market is experiencing significant growth driven by the increasing adoption of cloud computing and the need for enhanced network services across various industries. This expansion is further supported by investments in software-defined networking function virtualization and the development of 5G infrastructure, which improve connectivity and network manageability. The digital transformation and the enterprise shift towards robust network capabilities are also contributing to the market's expansion. However, challenges such as a shortage of skilled network engineers and rising security threats may hinder growth prospects.

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Market Size of Software Defined Networking Industry

Software Defined Networking Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 22.80 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Software Defined Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Software Defined Infrastructure Market Analysis

The Software Defined Networking Market is expected to register a CAGR of 22.80% during the forecast period.

The rising digital transformation through data as well as networking technologies, such as blockchain, IoT, cognitive, and advanced analytics, strengthens the overall adoption of connectivity advances in various industries, which in turn is driving the market significantly.

  • The development of the global software-defined networking market is fuelled by key factors like a surge in the adoption of cloud computing, an increase in investments in software-defined networking function virtualization, especially to minimize the capital expenditure & operating expenses, and a rise in the need for various mobility services. The surge in the acceptance of cloud computing solutions in the SDN network plays a crucial role in improving the overall operability, security, and network manageability in advanced data centers.
  • Moreover, the rising investments by various telecom service providers in 5G infrastructure would help to improve connectivity and maximize the deployment of SDN solutions. Also, the evolution of the 5G infrastructure network would help boost the SDN market's growth. According to 5G Americas, as of 2023, there are around 1.9 billion 5G subscriptions worldwide. It is anticipated to increase to about 2.8 billion by the end of the year 2024 and 5.9 billion by 2027, which in turn is expected to drive the market considerably.
  • Also, the enterprise's propensity toward digitalization further propels the demand for robust network services. Many companies are looking to enhance their overall network capabilities, which is where Software Defined Network is gaining traction. For instance, in February 2023, ETSI Open Source Group TeraFlowSDN declared the 2nd launch of TeraFlowSDN controller, a robust and innovative SDN controller and orchestrator. TeraFlowSDN Release 2 delivers validated and extended support for slicing end-to-end transport networks over various domains.
  • However, the lack of experienced and skilled network engineers and the rise in security risks and attack threats can restrict market growth throughout the forecast period.

Software Defined Infrastructure Industry Segmentation

Software-defined networking is a networking approach that mainly utilizes software-based controllers or application programming interfaces (APIs), especially to communicate with the underlying hardware infrastructure and route traffic over the network.

The software defined networking market is segmented by organization size (SMEs, large enterprises), end-user (BFSI, healthcare, retail, telecom and cloud service provider, manufacturing, education), and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Organization size
SMEs
Large Enterprises
By End User
BFSI
Healthcare
Retail
Telecom and Cloud Service Providers
Manufacturing
Education
Other End Users
By Geography***
North America
Europe
Asia
Latin America
Middle East and Africa
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Software Defined Networking Market Size Summary

The Software Defined Networking (SDN) market is experiencing significant growth, driven by the increasing digital transformation across industries through advanced technologies like IoT, blockchain, and analytics. The adoption of cloud computing and investments in SDN function virtualization are key factors propelling the market, as they help reduce capital and operating expenses while enhancing network operability and security. The telecom sector's investment in 5G infrastructure further boosts the market, as it improves connectivity and facilitates the deployment of SDN solutions. Enterprises are increasingly digitalizing their operations, seeking robust network services to enhance their capabilities, which is contributing to the market's expansion. However, challenges such as a shortage of skilled network engineers and rising security threats may hinder growth.

In the telecommunications and IT sectors, SDN is gaining traction due to its advantages in managing large networks and controlling data traffic. The rise in cloud-based applications and services, driven by increased investments from small and medium enterprises, is further fueling market demand. North America plays a crucial role in the market's growth, with significant adoption of connected devices and advanced technologies. Collaborations and partnerships among major companies, such as Kyndryl and Cisco, are enhancing market competitiveness by developing new SDN solutions and services. The market is moderately competitive, with key players like Cisco Systems, VMware, and Dell EMC leading the way. Recent developments, such as CoreSite's enhanced network services and Vodafone's SDN upgrades, highlight the ongoing innovation and expansion within the market.

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Software Defined Networking Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of COVID-19 Impact on the market

    4. 1.4 Industry Ecosystem Analysis

    5. 1.5 Key Usecases

    6. 1.6 Technology Analysis

      1. 1.6.1 IoT and Edge Computing

      2. 1.6.2 Security

      3. 1.6.3 Cloud Computing

    7. 1.7 Market Drivers

      1. 1.7.1 Rising investment toward automation of network infrastructure

      2. 1.7.2 Increasing adoption of IoT and cloud services

    8. 1.8 Market Challenges

      1. 1.8.1 Lack of skilled workforce

      2. 1.8.2 Security risks and attack threats

    9. 1.9 Adjacent Market Analysis

      1. 1.9.1 SD-WAN

        1. 1.9.1.1 Market estimation and forecast

        2. 1.9.1.2 Growth opportunities and challenges

        3. 1.9.1.3 Key vendor developments

      2. 1.9.2 Secure Access Service Edge (SASE)

        1. 1.9.2.1 Market estimation and forecast

        2. 1.9.2.2 Growth opportunities and challenges

        3. 1.9.2.3 Key vendor developments

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Organization size

      1. 2.1.1 SMEs

      2. 2.1.2 Large Enterprises

    2. 2.2 By End User

      1. 2.2.1 BFSI

      2. 2.2.2 Healthcare

      3. 2.2.3 Retail

      4. 2.2.4 Telecom and Cloud Service Providers

      5. 2.2.5 Manufacturing

      6. 2.2.6 Education

      7. 2.2.7 Other End Users

    3. 2.3 By Geography***

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

Software Defined Networking Market Size FAQs

The Global Software Defined Networking Market is projected to register a CAGR of 22.80% during the forecast period (2024-2029)

Cisco Systems​, VMware​, Dell EMC​, HPE and Juniper Networks​ are the major companies operating in the Global Software Defined Networking Market.

Software-Defined Infrastructure Market Report Snapshots

Software Defined Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)