Software Defined Networking (SDN) Market to 2025 - Global Analysis and Forecasts by Solutions (Physical Network Infrastructure, Virtualization/Control Software, SDN Application and Professional Services), End-user (Enterprises, Telecommunication services Providers, Cloud Service Providers) and Industry Vertical (Banking & Financial Services and Insurance, Telecommunication & IT, Consumer Goods and Retail, Government & Defense, Manufacturing, Research & Academia and Others)

The global Software Defined Networking market accounted for US$ 2.12 Bn in 2015 and is expected to grow at a CAGR of 30.3% during the forecast period 2016 – 2025, to account for US$ 40.00 Bn in 2025.

One of the major factors impacting the significant adoption of the software defined networking solutions is that it provide end-users the ease of deployment along with flexibility for high scalability. SDN also provide its users with optimal Capital Expenditure (CAPEX) and improved energy efficiency, which in turn helps in achieving low Operational Expenditure (OPEX). With developing digital ecosystem, and high data growth, the developing economies provide abundant opportunities for the organizations operating in the global SDN market.

Exhibit: Lucrative Regional Markets

Market Insights
Unprecedented growth in cloud computing services driving the overall market
IT organizations are rapidly shifting towards cloud technology, and thus adoption of cloud services have fiercely risen globally, fueling the growth of software defined networking systems. The growth of software defined networking is anticipated to spur as the IT and business entity leaders explore benefits associated to application level roles and events for functional efficiency and resiliency. This comprises of cloud integration, network services automation, hybrid automation services and quick time-to- service. Presently there are several enterprises that are generating network service application for software defined networks in order to add value of virtualization to an entirely new standard, by allowing those services to impact the infrastructure unswervingly and vigorously on behalf of the presented applications and their usability.

Solution Insights
The solution segment of software defined networking solution includes physical infrastructure; virtualization/control software; software defined networking applications including network & security services; and professional services. The vendors in this market provide various facilities to the companies to choose for the appropriate software defined networking solution required. The software defined networking has witnessed a healthy adoption rate at the very initial stage of its launch, thus the market for software defined networking solutions is expected to foresee high adoption rate.

End-User Insight
The software Defined Network (SDN) market by end-user is segmented into three categories namely enterprises, cloud service providers (CSPs) and telecommunication service providers (TSPs).  Globally enterprise are also adopting SDN solutions as these solutions helps them to increase their business value from the virtual machines to their data centers and also offers additional benefits such as reduced network provisioning time, reduced service costs through improved network management efficiency and also simplifies network creation process in a self-service environment..

Geography Insights
The software defined networking has become a massive focus for networking companies globally. The technology has promptly gained significant popularity across the globe, owing to the rapid adoption of software defined technologies by the market giants like Google, Amazon, Microsoft and numerous Telco. Magnificent software defined networking vendors like IBM, CISCO, North America led the software defined networking market in 2015 and is expected to continue its dominance during the forecast period. However, South America, Europe and Middle East & Africa are projected to grow with the highest CAGR.

Exhibit: Global Software Defined Networking Market by Solution

Strategic Insights
Merger 7 acquisition and new developments were observed as the most adopted strategies in global software defined networking industry. Few of the developments are listed below;

2017: Fortinet rolled out a new version of its FortiOS operating system that gives customers the ability to manage security capabilities across their cloud assets and software-defined wide area networking (SD-WAN) environments.

2017: Cisco partnered with IBM Network Services to facilitate their customers benefit from IBM’s complete life-cycle services for SDN coupled with Cisco ACI technology, which was expected to empower customers to experience the full benefits of SDN, including software-based programming, automated control of networks, network function virtualization and network virtualization.

2016: Huawei launched the Agile Controller 3.0. The Agile Controller is based on the open source ONOS controller managed by the Linux Foundation, but it is also compatible with the OpenDaylight Project (ODL) controller via APIs. Huawei launched this product in order to strengthen its product portfolio in SD-WAN and IoT market.

GLOBAL SOFTWARE DEFINED NETWORKING – MARKET SEGMENTATION

By Solution

• Physical Infrastructure
• Virtualization/Control Software
• SDN Applications (including network & security services)
• Professional Services

By End User

• Cloud Service Providers (CSPs)
• Technology Service Providers (TSPs)
• Enterprises

By Vertical

• Banking, Financial Services and Insurance (BFSI)
• Telecom & Information Technology (IT)
• Consumer Goods & Retail
• Manufacturing
• Government & Defense
• Academia & Research
• Others

By Geography

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific (APAC)
  • Australia
  • China
  • India
  • Japan
  • Rest of APAC
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America (SAM)
  • Brazil
  • Rest of SAM

Company Profiles

• Cisco Systems, Inc
• IBM Corporation
• Hewlett Packard Enterprise (HPE)
• VMware
• Juniper Networks
• Huawei Technologies Co.Ltd.
• Cumulus Networks
• NEC Corporation
• Brocade Communications Systems
• Broadcom Ltd