Software-Defined Networking Market Size, Share, Opportunities, And Trends By Type (Open SDN, API SDN, Cloud SDN, Hybrid Model SDN), By Component (Network Device, Controllers, Application Program Interface, Northbound API, Southbound API), By Enterprise Size (Small, Medium, Large), By End User (BFSI, Government, IT & Telecommunications, Media & Entertainment, Retail, Others), And By Geography - Forecasts From 2023 To 2028

The software-defined networking market is predicted to grow at a steady rate during the forecast period.

Software-defined networking is a strategy for network management that allows for dynamic and programmatically efficient network configuration. This approach aims to enhance network performance and monitoring, employing methods more similar to those used in cloud computing, as opposed to conventional network management techniques. The escalating network complexity and traffic volumes, a significant surge in data centers, and the proactive initiatives undertaken by industry giants are propelling the software-defined networking market growth.

Increasing network complexity and traffic drives the software-defined networking market

 The significant surge in the number of internet users and the escalating complexity of network architecture necessitates more flexible, efficient, and scalable network solutions for businesses and service providers. Software-defined networking (SDN) serves as an effective solution to this challenge, enabling administrators to streamline network services through the abstraction of lower-level operations. In effect, this simplifies the management of complex networking environments, accommodating the dynamic demands of the contemporary digital landscape. According to the Cisco Annual Internet Report, the number of internet users worldwide saw a significant increase from 4.7 billion in 2021 to a remarkable 5.3 billion in 2023.

Rise in data centers boost the software-defined networking market growth.

Software Defined Networking (SDN) is increasingly utilized in data centers due to its ability to enhance network flexibility, scalability, and programmability. It enables data center operators to manage complex networking tasks efficiently, streamline operations, and reduce both capital and operational expenditures by abstracting away lower-level hardware functions. The governmental initiatives and investments worldwide to boost data center establishments are expected to positively impact the overall market demand for software-defined networking. For instance, in May 2023, STT Global Data Centres, based in Singapore, invested approximately Rs 2,000 crore to construct two additional data centers within its current premises in the Dighi area of Pune. With this expansion, the total capacity of the hub is set to exceed 80 MW of IT load, strengthening its position in the market.

Initiatives taken by company giants drive software-defined networking market growth.

Major corporations are playing a pivotal role in driving software-defined networking (SDN) industry growth through their innovative initiatives. These companies understand the need for efficient, scalable, and flexible networking solutions in an era marked by growing internet usage and increasingly complex network architectures. Their investments in SDN technology reflect the recognition of its value in managing these complexities. Additionally, these initiatives boost market competition, spurring further technological advancement and wider adoption of SDN. For instance, in October 2022, Nokia launched its Altiplano Open Access solution, an SDN-based virtualization technology, for the enhancement of fiber broadband deployment. This solution has been implemented for American Tower's fiber-to-the-home (FTTH) infrastructure in Argentina.

North America is anticipated to dominate the software-defined networking market.

North America will account for significant software-defined networking (SDN) market share primarily due to the strategic acquisitions, partnerships, and investment activities unfolding in its leading economies. For instance, in August 2022, Arista acquired Pluribus, a pioneer in software-defined networking, aiming to enhance the capabilities of the Unified Cloud Fabric. Additionally, the software-defined networking market growth is also being driven by increased investments in data centers for instance, in 2020, Equinix completed the acquisition of three data centers in Mexico, with a total investment of US$175 million. As part of its strategic plan, Equinix intends to extend the availability of Equinix Cloud Exchange Fabric (ECX Fabric) to all three data centers. ECX Fabric is an SDN-enabled interconnection service.

Interoperability issues may restrain the software-defined networking market.

Software-defined networking (SDN) represents an exciting frontier in the realm of networking technology, offering the potential for increased flexibility, control, and efficiency. However, its relatively recent emergence on the technological scene, coupled with a disparate range of solutions from various vendors, each offering its unique take on standards and protocols, has given rise to significant interoperability issues. Organizations seeking to leverage the advantages of SDN often find themselves navigating a complex landscape of diverse, non-standardized solutions that can be challenging to integrate smoothly into their existing network infrastructures. These concerns can prove to be a considerable restraint on the software-defined networking market growth.

Key Developments

• December 2022: GDS entered into a strategic partnership with DCConnect to integrate advanced software-defined networking (SDN) solutions into GDS Data Centers. This collaboration is aimed at enhancing the technological capabilities of GDS Data Centers by leveraging DCConnect's expertise in interconnection and network automation technologies. The goal of this initiative is to provide GDS customers with more sophisticated and automated networking solutions, thereby elevating the overall customer experience through improved interconnectivity, flexibility, and operational efficiency in the data center environments.
• July 2021: Samsung Electronics Co., Ltd. revealed the expansion of its Software-Defined Networking (SDN) solutions portfolio, introducing new features intended to assist mobile operators and enterprises in managing their networks more effectively. Samsung's expanded SDN solutions, which already bolster data center operations, now come with enhanced capabilities designed to cater to a broader range of industries. This strategic move is expected to empower enterprises across diverse sectors, such as education, retail, and energy, facilitating more efficient and flexible network management, thereby driving digital transformation across these industries.

Top of Form

• April 2020: Adtran embarked on an innovative software-defined networking (SDN) project in collaboration with Orange, as an integral component of its Access Renewal and Evolution Strategy (ARES) programme. This strategic partnership aims to harness the power of SDN technology, particularly within the context of fixed fiber access networks. By applying SDN to these networks, the collaboration seeks to transform and enhance connectivity, demonstrating the practical implications of SDN application in real-world network environments. This joint venture also sets a precedent for SDN deployment in fixed fiber access networks industry-wide.

Segmentation

• By Type
  • Open SDN
  • API SDN
  • Cloud SDN
  • Hybrid Model SDN
• By Component
  • Network Device
  • Controllers
  • Application Program Interface
    • Northbound API
    • Southbound API
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End User
  • BFSI
  • Government
  • IT & Telecommunications
  • Media & Entertainment
  • Retail
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Market Opportunities

4.4. Porter’s Five Force Analysis

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Power of Buyers

4.4.3. Threat of New Entrants

4.4.4. Threat of Substitutes

4.4.5. Competitive Rivalry in the Industry

4.5. Industry Value Chain Analysis

5. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY TYPE

5.1. Introduction

5.2. Open SDN

5.3. API SDN

5.4. Cloud SDN

5.5. Hybrid Model SDN

6. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY COMPONENT

6.1. Introduction

6.2. Network Devices

6.3. Controllers

6.4. Applications Program Interface

6.4.1. Northbound API

6.4.2. Southbound API

7. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY ENTERPRISE SIZE

7.1. Introduction

7.2. Small

7.3. Medium

7.4. Large

8. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY END-USER

8.1. Introduction

8.2. BFSI

8.3. Government

8.4. IT & Telecommunication

8.5. Media & Entertainment

8.6. Retail

8.7. Others

9. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1.  Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. UK

9.4.3. France

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. South Korea

9.6.4. India

9.6.5. Australia

9.6.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.1. Cisco

11.2. VMWare Inc.

11.3. Juniper Networks, Inc

11.4. Arista Network Inc.

11.5. Extreme Network Inc.

11.6. Dell Inc.

11.7. Hewlett Packard Enterprise (HP)

11.8. NEC Corporation

Cisco

VMWare Inc.

Juniper Networks, Inc

Arista Network Inc.

Extreme Network Inc.

Dell Inc.

Hewlett Packard Enterprise (HP)

NEC Corporation