SOFTWARE DEFINED NETWORKING MARKET ANALYSIS

The global software defined networking market size was valued at USD 1,573.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 19.40% from 2023 to 2030. Software defined networking (SDN) is an approach to network management that allows dynamic and programmatically efficient network configuration to enhance network performance and monitoring making it more similar to cloud computing than conventional network management. This helps operators to manage the entire network consistently irrespective of underlying network technology. This paradigm enables network administrators to establish data flow control across the entire network instead of individual devices. This also helps in creating secure paths for data flow with relative ease.

Global Software Defined Networking Market: Regional Insights

North America region held a dominant position in the global software defined networking market in 2022, accounting for 36.6% share in terms of value, followed by Asia Pacific, Europe, Latin America, and Middle East & Africa (MEA) respectively.

Figure 1. Global Software Defined Networking Market Share (%), By Region, 2022

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Global Software Defined Networking Market Drivers:

Increasing need for mobility is expected to drive the growth of the global software defined networking (SDN) market

Renewable energy resources have very little impact on the environment and are present in the rising use of mobile data has supported mobile network operators to upgrade their existing systems, and to manage to expand their consumer base and applications & devices. Customers use mobile phones for conducting financial transactions, which in turn, is driving the need for low-latency and high-speed switches. Telecommunication service providers employ Operations Support Systems (OSS) to manage and support their business through provisioning services. However, re-architecting the entire network to accommodate OSS solutions is a cumbersome task. Companies such as Deutsche Telekom are aiming to establish an SDN model to simplify network operations while reducing costs. Thus, these factors are expected to drive the growth of the global software defined network (SDN) market during the forecast period.

Growing cloud service is expected to propel the global software defined networking (SDN) market growth over the forecast period

Many organizations have started storing, computing, and networking through cloud-based infrastructure. This is because cloud infrastructure is flexible, agile, and cost-efficient. A clear understanding of SDN technology is necessary to implement cloud computing services effectively within an organization. SDN technology can address the concurrent needs for virtualization, mobility, agility, and management in modern network environments and tackle the reliable delivery of new services and applications in the cloud. Currently, the majority of enterprises have infrastructure-based solutions such as infrastructure-as-a-service (IAAS). Thus, these factors are expected to propel the global software defined networking (SDN) market growth over the forecast period.

Global Software Defined Networking Market Opportunities:

Rising acceptance of BOYD culture can present lucrative growth opportunities

Bring your own device (BOYD) is a policy allowing employees to bring their devices to their workplace and use both devices to access company information and application. BOYD is an emerging trend in the SDN market that poses major opportunities. Many enterprises do not allow employees to bring their devices to the workplace due to the risk of the company’s confidential data and information leakage. However, with the security benefits of SDN technology, they are allowing BYOD policy in their organization. It is estimated that in coming years, the majority of the IT organization will allow BYOD policy to their employees as they would find it more familiar to use and thus, may become more productive.

Global Software Defined Networking Market Trends:

Development of open source SDN is another major trend

Key players in the market are focused on the development of open source SDN, in order to expand their consumer base and gain a significant advantage. For instance, Open Network Operating System (ONOS) is an open-source SDN controller used to build next-generation SDN/NFV solutions. It acts as an extensible, modular, distributed SDN controller.

SDN a vibrant market

Software-defined networks are a booming industry. Software companies that supply SDN tools are prospering. This comprises a variety of virtual networking security solutions, software-defined wide area networks (SD-WANs), and SaaS apps. According to Dell'Oro Group, the need for these software-defined services and tools is rapidly increasing. By 2026, the market for network security and services is expected to earn more than half of the US$ 33 billion overall revenue, according to its experts.

Global Software Defined Networking Market - Impact of Coronavirus (Covid-19) Pandemic

Due to the adoption of remote working models by businesses, the demand for cloud-based solutions has increased significantly since the COVID-19 outbreak; However, revenues in a number of sectors, including retail, manufacturing, BFSI, and others, have decreased significantly in 2020. Companies are investing more in cloud-based analytics and assurance, edge computing, and AI-powered networking technologies as the remote working model expands, which is anticipated to boost the studied market.

Global Software Defined Networking Market Restraints:

Lack of standardization in SDN technology is expected to restrain growth of the global software defined networking (SDN) market during the forecast period

Currently, there are no particular standards for SDN controllers, which is a major problem in finding the best and the most adaptable standard for the environment. Administrators are focused on creating customized solutions and investing more time in trying to find and adopt the best SDN solution. Conventional networking requires separate networks and management applications for wireless connectivity. Moreover, many SDN offerings are still incomplete and require extensive customization. Thus, many IT organizations are building and creating their own standards for SDN technology. Thus, such factors are expected to restrain the growth of the global software defined networking (SDN) market during the forecast period.

Challenges associated with interoperability are expected to hamper the global software defined network (SDN) market growth over the forecast period

Emerging service needs to perform well in the existing network, in order to achieve widespread implementation. Although vision SDN technology is lucrative, many vendors and service providers find it challenging to move from their legacy systems. This is due to the fact that SDN technology requires a new and different hardware and software setup. Moreover, it requires standard protocols and APIs. Besides, SDN networks cannot perform on legacy network infrastructure. Interoperability is a key challenge in the success of SDN technology at present. Therefore, these factors are expected to hamper the market growth over the forecast period.

Figure 2. Global Software Defined Networking Market, By end use

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Global Software Defined Networking Market Segmentation:

The Global Software Defined Networking Market report is segmented into By end use, By Solution.

By end use- Enterprises, Cloud service providers and Telecommunication service providers.

By Solution- SDN Switching, SDN Controllers, Cloud Provisioning and Orchestration, and Others (Security and Services)

Global Software Defined Networking Market: Key Companies Insights

The software defined networking market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on a regional as well as global basis.

Some of the key players in the software defined networking market are Alcatel-Lucent, Huawei Technologies, Cisco Systems, Inc., Juniper Networks, NEC Corporation, IBM Corporation, Google Inc., VMware, and Hewlett Packard Company.

Key Developments

1. In January 2022, Cisco acquired Opsani, a software startup for businesses that is privately owned. As a result of the acquisition, Cisco AppDynamics will be able to expand its product and engineering teams, enhance its platform's capabilities for effectively monitoring cloud-native, enterprise-scale ecosystems, and expedite the distribution and accessibility of the performance and enhancement that customers require.
2. In December 2021, Broadcom Inc. announced its intention to buy privately held AppNeta Inc. AppNeta is a well-known SaaS-based network monitoring and evaluation solution for distributed organizations. It gives IT professional’s precise, end-to-end insight into network management from the point of view of end users, regardless of the networking they use to connect applications.

*Definition:

In order to make networks more adaptable and flexible, software-defined networking (SDN) is an architecture that abstracts the many, easily distinct layers of a network. By enabling businesses and service providers to react swiftly to shifting business requirements, SDN aims to improve network control.