Software Defined Networking Market - By Component (Solution [Physical Network Infrastructure, SDN Controller, SDN Application], Service [Professional, Managed]), By End Use (Enterprise, Cloud Service Provider, Telecom Service Provider) & Forecast, 2024 – 2032

Software Defined Networking Market Size

Software Defined Networking Market was valued at USD 28.2 billion in 2023 and is estimated to register a CAGR of over 17% between 2024 & 2032. The market growth is attributed to the need for heightened security and agility in network management. With cyber threats evolving rapidly and the demand for real-time response increasing, organizations seek SDN solutions that offer centralized control and granular security policies. By enabling dynamic adjustments and efficient threat detection, SDN enhances network agility while ensuring robust security measures, thus driving the market's growth. For instance, in November 2023, VMware collaborated with Microsoft and Symantec to promote the adoption of software-defined edge technologies for network infrastructure enhancement.
 

The burgeoning adoption of IoT devices is a major catalyst for the expansion of the software defined networking industry. As IoT ecosystems continue to proliferate across industries, the demand for agile and scalable networking solutions rises. SDN's ability to dynamically allocate resources, optimize traffic flows, and enhance security aligns perfectly with the complex requirements of IoT deployments, driving increased adoption and market growth. For instance, in October 2023, Versa Networks introduced Versa Secure SD-LAN, the pioneering software-defined branch and campus LAN solution, offering native Zero Trust and IoT Security at the LAN Edge. This approach enhances agility and integration in campus and branch networks while bolstering security with Zero Trust principles.
 

However, interoperability challenges and security concerns pose barriers to the growth of the software defined networking industry. Addressing these obstacles prompts the development of more robust and seamless integration solutions, fostering collaboration between diverse systems. Moreover, a heightened focus on cybersecurity drives the implementation of advanced encryption protocols and threat detection mechanisms, ensuring the integrity and resilience of networks. Such proactive measures propel the evolution of SDN technologies towards greater efficiency and reliability.
 

Software Defined Networking Market Trends

The emergence of cloud native SDN solutions is a pivotal trend propelling the software defined networking industry forward. Offering unparalleled scalability and agility, these solutions enable seamless integration with cloud environments, empowering organizations to efficiently manage and optimize their networks. By leveraging the inherent advantages of cloud-native architectures, such as elasticity and automation, businesses can rapidly deploy and scale SDN infrastructure, driving increased adoption and fueling the market's growth trajectory.
 

For instance, in May 2022, ETSI introduced TeraFlowSDN, an open-source, cloud-native SDN controller tailored for high-capacity IP and optical networks. It supports various use cases, including autonomous networks and cybersecurity, aiding service providers and telecom operators in navigating future network challenges.
 

Software Defined Networking Market Analysis

Based on component, the market is divided into solution and service. In 2023, the solution segment accounted for over USD 20 billion owing to its versatile array of offerings catering to diverse business needs. From Software-Defined Wide Area Network (SD-WAN) solutions revolutionizing remote connectivity to Software-Defined Data Center (SDDC) solutions optimizing resource management, this segment addresses critical challenges across industries. With an emphasis on flexibility, scalability, and cost-effectiveness, solution providers dominate the software defined networking industry, driving innovation and shaping the digital landscape.
 

Based on the end use, the market is categorized into enterprises, telecommunication service providers and cloud service providers. In 2023, the enterprises segment accounted for a market share of 43% and is projected to grow significantly till 2032. The growth is driven by the evolving needs of modern businesses. Recognizing the imperative for agile, scalable network solutions, enterprises across diverse sectors have embraced SDN to streamline operations and enhance efficiency. With a focus on optimizing performance and reducing costs, SDN empowers enterprises to adapt to dynamic market conditions swiftly. This widespread adoption underscores the segment's dominance and its pivotal role in driving market growth.
 

North America dominated the global software defined networking market with a major share of over 35% in 2023. North America software defined networking industry is flourishing, fueled by its dynamic ecosystem, fostering innovation and collaboration. With a rich tapestry of tech giants, startups, and research institutions, the region swiftly embraced SDN, leveraging its expertise in cloud computing and telecommunications. This proactive approach, coupled with significant investments in infrastructure, propelled North America to the forefront of the SDN landscape, establishing it as a pivotal contributor to the industry's growth.
 

Software Defined Networking Market Share

Cisco Systems Inc. and Huawei hold a significant market share of over 10% in the software defined networking industry. These key companies bolstered their market presence through strategic partnerships and acquisitions, leveraging synergies to expand their offerings and reach. By forging alliances with complementary technology providers and acquiring niche players, they diversified their product portfolios, catering to a broader range of customer needs. Additionally, these companies invested heavily in research and development, innovating new SDN solutions to stay ahead in the competitive landscape. This proactive approach solidified their positions as industry leaders and fueled the overall growth of the SDN market.
 

Furthermore, companies capitalized on the growing demand for SDN solutions by enhancing their marketing and sales efforts and effectively communicating the benefits of SDN adoption to potential customers. Through targeted campaigns, industry events, and educational initiatives, they raised awareness about the transformative potential of SDN in modernizing network infrastructure. This concerted outreach effort enabled them to penetrate new markets and engage with diverse customer segments, further consolidating their market presence and driving the widespread adoption of SDN technologies.
 

Software Defined Networking Market Companies

Major players operating in the software defined networking industry are:

• Arista Networks, Inc.
• Cisco Systems Inc.
• Dell Technologies Inc.
• Hewlett Packard Enterprise Company (HPE)
• Huawei Technologies Co., Ltd.
• International Business Machines Corporation (IBM)
• Intel Corporation
• Oracle Corporation
• VMware, Inc.
• ZTE Corporation
   

Software Defined Networking Industry News

• In November 2023, VMware, Inc. unveiled fresh solutions and extended collaborations aimed at facilitating customers' acceleration of digital transformation at the edge. Expanding upon the newly introduced VMware Software-Defined Edge, these advancements and additional integrations are poised to assist customers in streamlining, enhancing security, and updating their edge environments for greater efficiency.
   
• In February 2023, ETSI unveiled the second iteration of TeraFlowSDN, its open-source cloud-native SDN orchestrator and controller designed for transport networks. TeraFlowSDN Release 2 offers expanded and verified assistance for end-to-end transport network slicing across numerous network domains.
   

The software defined networking market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

• Solutions
  • Physical network infrastructure
  • SDN controller
  • SDN application
• Service
  • Professional service
  • Managed service

Market, By End Use

• Enterprise
  • BFSI
  • Consumer goods & retail
  • Government & defense
  • Healthcare
  • Manufacturing
  • IT enabled services
  • Others
• Telecom service provider
• Cloud service provider

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA