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The software-defined networking (SDN) market size is estimated to grow at a CAGR of 29.04% between 2023 and 2028. The market size is forecast to increase by USD 67.37 Billion. The growth of the market depends on several factors, including high demand for cloud solutions adoption by enterprises, increasing demand from enterprises for data center modernization, and the increasing number of data center investments.
The software-defined network (SDN) offers centralized network management, dynamic provisioning, flexibility, and agility by separating the control plane from forwarding devices with a centralized, programmable control plane. Some of the benefits of SDN over the traditional network include a reduction in operational and capital expenditure, dynamic allocation of network resources, and directly programmable networks via automation tools such as OpenStack.
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The rapid pace of technology adoption has led to significant transformations in networking, particularly with the emergence of network virtualization and cloud computing. Ensuring robust network security measures is paramount in the face of evolving threats. Moreover, scalability is crucial to accommodate expanding network demands, driving the need for network automation. Embracing these advancements enables organizations to achieve substantial cost reduction while optimizing network architecture for enhanced performance. Technologies like SDN controllers and virtual switches play pivotal roles in facilitating agility and efficiency. Market analysts leverage market growth and forecasting to provide insights into future trends, guiding strategic decisions and investments based on accurate market forecasting and forecasts.
The high demand for cloud solutions adoption by enterprises is the key factor driving market growth. The global market is increasingly driven by enterprises' willingness to adopt cloud solutions due to benefits such as low operational expenditure and scale-up or scale-down workload facilities. Cloud data centers have been growing rapidly over the past few years to meet the rising demand from enterprises. Public cloud, private cloud, hybrid cloud, and multi-cloud solutions have been replacing traditional on-premise data centers owing to a variety of factors, such as better computation power and costs.
Furthermore, the software-defined networking market players are working on cloud SDN solutions to cater to the demand from enterprises. Thus, with the surge in cloud adoption, the necessity for the augmented efficiency of network infrastructure is imperative. Thus, SDN solutions that can offer enhanced utilization of network infrastructure will continue to witness significant demand, which in turn will drive the market during the forecast period.
The rise of IoT and edge computing is the primary trend shaping market growth. The demand to leverage networks by means of SDN is growing in view of the advent of the Internet of Things and edge computing. SDN controls the network via software and offers dynamic resource allocation, a centralized view of forwarding devices, and better network management. Therefore, with the surge in demand for IoT solutions, SDN is witnessing significant demand.
Furthermore, the increasing regulations on data protection, such as the General Data Protection Regulation (GDPR), have forced enterprises to construct local data centers for storing sensitive information. Therefore, the global market is expected to witness high demand. Also, with the increasing demand for edge solutions and low-latency services, the global market will continue to grow during the forecast period.
Network design challenges in SDN technology is a challenge that affects the market growth. SDN has witnessed a significant demand over the last few years because of the benefits such as effective resource utilization, compatibility with different software-defined networking market players forwarding devices, and low operating costs. However, there are some concerns for enterprises regarding the adoption of SDN.
Furthermore, fault tolerance is another constraint for SDN as a failure at the controller level will result in a total network failure; controllers provide centralized management and visibility. Thus, some enterprises have been taking calculated steps toward adopting SDN. This process has slowed down the growth of the software-defined networking market to an extent over the past few years, which in turn may impede the growth of the market during the forecast period.
In modern networking, designing an efficient network architecture is essential for accommodating diverse network applications and ensuring seamless connectivity. SDN controllers and virtual switches play pivotal roles in orchestrating network traffic and optimizing performance. Leveraging SDN protocols facilitates effective segmentation, enhancing security and resource allocation. SDN solutions enable scalability and agility, allowing networks to adapt to changing demands and technologies. Embracing network automation streamlines operations and drives substantial cost reduction. Market analysts conduct thorough market growth analysis and market research and growth, providing insights into industry trends and opportunities for expansion. By capitalizing on these insights, organizations can navigate the dynamic networking landscape and position themselves for sustainable growth and success.
The market share growth by the BFSI segment will be significant during the forecast period. In order to improve responsiveness and security, regardless of where data is stored, on-site or in the cloud, SDN is an intelligence tool specifically designed for the financial services industry. To guarantee the integrity and security of sensitive financial information, safety rules are being implemented and enforced from a centralized management system.
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The BFSI segment showed a gradual increase in the market share of USD 2.93 Billion in 2018. The benefits to financial institutions covered by SDN include centralized provisioning and management, more stringent security controls, application performance control, reduced costs of operating activities, etc. Therefore, the growing adoption of SDN technology in the BFSI segment is expected to fuel the growth of the global SDN market during the forecast period.
The physical network infrastructure includes a data plane, typically called a forwarding plane. The forwarding plane is an important component in the software-defined network as it is used for carrying user-generated data traffic in the network infrastructure. Some of the major market players in the hardware platform solutions for software-defined networks include Arista Networks, Juniper Networks, Huawei, and Extreme Networks. Even though the price of infrastructure in SDN is high, compared to the traditional network infrastructure, enterprises will continue to leverage the benefits of SDN infrastructure such as centralized network provisioning, enhanced security, and low operating costs. Thus, the physical network infrastructure segment of the global software-defined networking market will continue to witness growth during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the increasing demand for 5G-enabled Internet of Things (IoT) solutions, the SDN market in North America is set to witness significant growth. Furthermore, the demand for high connectivity with low latency from industries, such as content and digital media, banking, financial services, and insurance (BFSI), is set to drive the demand for SDN solutions in North America.
Besides, colocation data center providers are making significant data center investments to expand their footprint in the regions. The increasing demand for bandwidth requirements and cloud solutions and the launch of 5G-enabled IoT services are expected to fuel the growth of the SDN market in North America during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2017-2021 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.04% |
Market growth 2024-2028 |
USD 67,378.74 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
28.55 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Australia, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arista Networks Inc., AT and T Inc., Broadcom Inc., Ciena Corp., Cisco Systems Inc., Dell Technologies Inc., Extreme Networks Inc., Hamburgnet eK, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Kyndryl Inc., Nokia Corp., NVIDIA Corp., Oracle Corp., Schweitzer Engineering Laboratories Inc., Telefonaktiebolaget LM Ericsson, VMware Inc., and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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