The report provides an in-depth analysis of the software-defined networking market in five major geographies and emphasizes on the current market trends, market sizes, market shares, recent developments, and forecasts to 2031.
The software-defined networking market is projected to reach $17.5 billion by 2031, at a CAGR of 22.8% during the forecast period 2024-2031. The growth of the software-defined networking market is driven by the proliferation of data centers, the increasing utilization of smart devices in industrial and infrastructure applications, and the growth in network infrastructure automation in Asia-Pacific. However, interoperability issues due to uneven SDN standards restrain the growth of this market.
Furthermore, the increasing deployment of 5G networks and enterprises’ growing preference for network slicing are expected to generate growth opportunities for the stakeholders in this market. However, the shortage of skilled networking professionals is a major challenge impacting the growth of the software-defined networking market.
The software-defined networking market is segmented by offering (software and services), model (open SDN, API SDN, overlay SDN, and hybrid SDN), application (control flow, open flow switch, packet forwarding, security flow, data migration, and other applications), and end user (data centers, enterprises, cloud service providers, telecommunication service providers, and other end users). The study also evaluates industry competitors and analyzes the market at the regional and country levels.
Based on offering, the software-defined networking market is segmented into software and services. In 2024, the software segment is expected to account for the larger share of the software-defined networking market. The large market share of this segment is attributed to the benefits of SDN software such as enabling dynamic and centralized control of network resources, allowing administrators to adjust network behavior via software rather than relying on manual configuration of individual devices. Also, SDN software allows for the automation of network provisioning, configuration, and management, leading to the quicker deployment of services, improved resource utilization, and reduced human errors.
However, the services segment is projected to register the higher CAGR during the forecast period due to the benefits offered by SDN services, such as facilitating the scaling of network infrastructure to accommodate varying workloads. This scalability is essential for businesses experiencing growth or fluctuations in demand. Also, SDN services centralize network management, allowing administrators to define and enforce policies across the entire network.
Based on model, the software-defined networking market is segmented into open SDN, API SDN, overlay SDN, and hybrid SDN. In 2024, the overlay SDN segment is expected to account for the largest share of the software-defined networking market. The large market share of this segment is attributed to the benefits of overlay SDN, such as enabling the creation of virtual networks over existing physical infrastructure and providing flexibility in network design and deployment, allowing for quick adaptation to changing business requirements. Additionally, overlay SDN facilitates the creation of isolated virtual networks, which is crucial for supporting multiple tenants or applications with different requirements on a shared physical infrastructure.
However, the hybrid SDN segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the benefits of hybrid SDN, such as providing a balance between the centralized control and programmability of SDN and the distributed nature of traditional networking. This flexibility is essential for organizations that need to support a variety of workloads, applications, and network architectures.
Based on application, the software-defined networking market is segmented into control flow, open flow switch, packet forwarding, security flow, data migration, and other applications. In 2024, the control flow segment is expected to account for the largest share of the software-defined networking market. In control flow applications, SDN helps optimize network resources and reduce costs, implement more granular security policies, and improve overall network security posture. These benefits drive the adoption of SDN in control flow applications, contributing to the segment’s large share.
However, the security flow segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the benefits of SDN in security flow applications, such as allowing for faster deployment of security policies and updates and automating security responses, which can help reduce the time and effort required to mitigate threats.
Based on end user, the software-defined networking market is segmented into data centers, enterprises, cloud service providers, telecommunication service providers, and other end users. In 2024, the enterprises segment is expected to account for the largest share of the software-defined networking market. The segment’s large share is attributed to the benefits of SDN for enterprises, such as facilitating the automation of network management tasks and reducing manual configuration efforts. SDN also simplifies the process of scaling network infrastructure to accommodate growing business needs.
However, the telecommunication service providers segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the flexibility, agility, and efficiency offered by SDN, which enable telecommunication service providers to meet the ever-growing demands of their customers.
Based on geography, the software-defined networking market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the software-defined networking market. North America’s large share is attributed to the region’s large and established sales force for network automation solutions, service providers’ initiatives toward network automation, and the increasing demand for data center and IT infrastructure automation.
However, the Asia-Pacific region is projected to record the highest CAGR during the forecast period. The growth of this regional market is attributed to the increasing deployment of SDN by enterprises in the region, the rising demand for a broad range of value-added network services, the need for more agile and flexible networks, and the growing demand for network automation.
The key players operating in the software-defined networking market are Cisco Systems, Inc. (U.S.), Broadcom Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Juniper Networks, Inc. (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Ciena Corporation (U.S.), Hewlett Packard Enterprise Company (U.S.), Nokia Corporation (Finland), Oracle Corporation (U.S.), NEC Corporation (Japan), Dell Technologies Inc. (U.S.), IBM Corporation (U.S.), Pica8 Software Inc. (U.S.), Riverbed Technology LLC (U.S.), and flexiWAN Ltd. (Israel).
The software-defined networking market is projected to reach $17.5 billion by 2031, at a CAGR of 22.8% during the forecast period 2024-2031. The growth of the software-defined networking market is driven by the proliferation of data centers, the increasing utilization of smart devices in industrial and infrastructure applications, and the growth in network infrastructure automation in Asia-Pacific. However, interoperability issues due to uneven SDN standards restrain the growth of this market.
Furthermore, the increasing deployment of 5G networks and enterprises’ growing preference for network slicing are expected to generate growth opportunities for the stakeholders in this market. However, the shortage of skilled networking professionals is a major challenge impacting the growth of the software-defined networking market.
The software-defined networking market is segmented by offering (software and services), model (open SDN, API SDN, overlay SDN, and hybrid SDN), application (control flow, open flow switch, packet forwarding, security flow, data migration, and other applications), and end user (data centers, enterprises, cloud service providers, telecommunication service providers, and other end users). The study also evaluates industry competitors and analyzes the market at the regional and country levels.
Based on offering, the software-defined networking market is segmented into software and services. In 2024, the software segment is expected to account for the larger share of the software-defined networking market. The large market share of this segment is attributed to the benefits of SDN software such as enabling dynamic and centralized control of network resources, allowing administrators to adjust network behavior via software rather than relying on manual configuration of individual devices. Also, SDN software allows for the automation of network provisioning, configuration, and management, leading to the quicker deployment of services, improved resource utilization, and reduced human errors.
However, the services segment is projected to register the higher CAGR during the forecast period due to the benefits offered by SDN services, such as facilitating the scaling of network infrastructure to accommodate varying workloads. This scalability is essential for businesses experiencing growth or fluctuations in demand. Also, SDN services centralize network management, allowing administrators to define and enforce policies across the entire network.
Based on model, the software-defined networking market is segmented into open SDN, API SDN, overlay SDN, and hybrid SDN. In 2024, the overlay SDN segment is expected to account for the largest share of the software-defined networking market. The large market share of this segment is attributed to the benefits of overlay SDN, such as enabling the creation of virtual networks over existing physical infrastructure and providing flexibility in network design and deployment, allowing for quick adaptation to changing business requirements. Additionally, overlay SDN facilitates the creation of isolated virtual networks, which is crucial for supporting multiple tenants or applications with different requirements on a shared physical infrastructure.
However, the hybrid SDN segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the benefits of hybrid SDN, such as providing a balance between the centralized control and programmability of SDN and the distributed nature of traditional networking. This flexibility is essential for organizations that need to support a variety of workloads, applications, and network architectures.
Based on application, the software-defined networking market is segmented into control flow, open flow switch, packet forwarding, security flow, data migration, and other applications. In 2024, the control flow segment is expected to account for the largest share of the software-defined networking market. In control flow applications, SDN helps optimize network resources and reduce costs, implement more granular security policies, and improve overall network security posture. These benefits drive the adoption of SDN in control flow applications, contributing to the segment’s large share.
However, the security flow segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the benefits of SDN in security flow applications, such as allowing for faster deployment of security policies and updates and automating security responses, which can help reduce the time and effort required to mitigate threats.
Based on end user, the software-defined networking market is segmented into data centers, enterprises, cloud service providers, telecommunication service providers, and other end users. In 2024, the enterprises segment is expected to account for the largest share of the software-defined networking market. The segment’s large share is attributed to the benefits of SDN for enterprises, such as facilitating the automation of network management tasks and reducing manual configuration efforts. SDN also simplifies the process of scaling network infrastructure to accommodate growing business needs.
However, the telecommunication service providers segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the flexibility, agility, and efficiency offered by SDN, which enable telecommunication service providers to meet the ever-growing demands of their customers.
Based on geography, the software-defined networking market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the software-defined networking market. North America’s large share is attributed to the region’s large and established sales force for network automation solutions, service providers’ initiatives toward network automation, and the increasing demand for data center and IT infrastructure automation.
However, the Asia-Pacific region is projected to record the highest CAGR during the forecast period. The growth of this regional market is attributed to the increasing deployment of SDN by enterprises in the region, the rising demand for a broad range of value-added network services, the need for more agile and flexible networks, and the growing demand for network automation.
The key players operating in the software-defined networking market are Cisco Systems, Inc. (U.S.), Broadcom Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Juniper Networks, Inc. (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Ciena Corporation (U.S.), Hewlett Packard Enterprise Company (U.S.), Nokia Corporation (Finland), Oracle Corporation (U.S.), NEC Corporation (Japan), Dell Technologies Inc. (U.S.), IBM Corporation (U.S.), Pica8 Software Inc. (U.S.), Riverbed Technology LLC (U.S.), and flexiWAN Ltd. (Israel).
Key Questions Answered in the Report
- Which are the high-growth market segments in terms of offering, model, application, and end user?
- What is the historical market size for the global software-defined networking market?
- What are the market forecasts and estimates for 2024-2031?
- What are the major drivers, restraints, opportunities, challenges, and trends in the global software-defined networking market?
- Who are the major players in the global software-defined networking market, and what are their market shares?
- What is the competitive landscape like?
- What are the recent developments in the global software-defined networking market?
- What are the geographic trends and high-growth countries?
- Who are the local emerging players in the global software-defined networking market, and how do they compete with the other players?
Scope of the Report
Software-defined Networking Market Assessment - by Offering
- Software
- Services
Software-defined Networking Market Assessment - by Model
- Open SDN
- API SDN
- Overlay SDN
- Hybrid SDN
Software-defined Networking Market Assessment - by Application
- Control Flow
- Open Flow Switch
- Packet Forwarding
- Security Flow
- Data Migration
- Other Applications
Software-defined Networking Market Assessment - by End User
- Data Centers
- Enterprises
- Cloud Service Providers
- Telecommunication Service Providers
- Other End Users
Software-defined Networking Market Assessment - by Geography
- North America
- U.S.
- Canada
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Thailand
- Indonesia
- Australia & New Zealand
- Taiwan
- Rest of Asia-Pacific
- Europe
- U.K.
- Germany
- Italy
- France
- Spain
- Rest of Europe
- Latin America
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- Rest of the Middle East & Africa
Table of Contents
1. Market Definition & Scope
2. Research Methodology
3. Executive Summary
4. Market Insights
5. Software-defined Networking Market Assessment - by Offering
6. Software-defined Networking Market Assessment - by Model
7. Software-defined Networking Market Assessment - by Application
8. Software-defined Networking Market Assessment - by End User
9. Software-defined Networking Market Assessment - by Geography
10. Competition Analysis
11. Company Profiles
12. Appendix
List of Tables
List of Figures
Companies Mentioned
- Cisco Systems, Inc. (U.S.)
- Broadcom Inc. (U.S.)
- Huawei Technologies Co., Ltd. (China)
- Juniper Networks, Inc. (U.S.)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Ciena Corporation (U.S.)
- Hewlett Packard Enterprise Company (U.S.)
- Nokia Corporation (Finland)
- Oracle Corporation (U.S.)
- NEC Corporation (Japan)
- Dell Technologies Inc. (U.S.)
- IBM Corporation (U.S.)
- Pica8 Software Inc. (U.S.)
- Riverbed Technology LLC (U.S.)
- flexiWAN Ltd. (Israel)
