Software-defined Networking Market by Offering, Model (API SDN, Overlay SDN, Open SDN), Application (Control Flow, Packet Forwarding, Security Flow Open Flow Switch), End User (Data Centers, Enterprises), and Geography - Global Forecast to 2031

Software-defined Networking Market Size & Forecast

The Software-defined Networking Market is projected to reach $73.5 billion by 2031, at a CAGR of 22.8% from 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.

Increasing Utilization of Smart Devices in Industrial and Infrastructure Applications Boosting the Demand for SDN Solutions

With the proliferation of smart devices that connect to the internet, the demand for software-defined networking is also increasing due to the advantages it offers over traditional networking. Software-defined networking is predominantly used in smart devices, including smartphones, tablets, smart home devices, and wearables, to manage and control network traffic. The implementation of SDN in smart devices can dynamically adapt their network configurations and optimize their performance based on changing conditions and user requirements. Also, software-defined networking delivers visibility into the entire network, providing a better view of security threats. Operators can create separate zones for devices that require different levels of security or immediately separate the compromised devices so that they do not affect the rest of the network.

The demand for software-defined networking is rising with the increasing adoption of smart devices across various applications such as smart homes, smart cities, industrial IoT, healthcare, and transportation. In the healthcare sector, SDN supports the integration and management of medical devices, patient monitoring systems, and healthcare IT infrastructure. It enables secure and reliable communication between medical devices and systems and enables healthcare providers to deliver better patient care through improved data accessibility and interoperability. The market size for smart cities, smart homes, and industrial IoT are as follows:

TABLE 1 : KEY MARKETS: MARKET SIZES (2023) AND GROWTH RATES (2023–2030)

Source: Meticulous Research^® Analysis

The applications of SDN across these markets include:

• Smart Cities: In smart cities, SDN plays a crucial role in integrating IoT devices and services across urban infrastructure such as transportation, public safety, utilities, and environment monitoring. SDN enables the centralized management of smart city applications, enhances data analytics and decision-making processes, and improves the overall urban environment.
• Smart Homes: In smart homes, SDN is used to manage and control network traffic for an array of interconnected devices, including smart thermostats, security cameras, lighting systems, and entertainment systems. SDN offers centralized control and automation of device connectivity, enabling users to optimize energy consumption, enhance security, and streamline device management.
• Industrial IoT (IIoT): In the industrial sector, SDN is implemented in the IoT devices used in manufacturing, logistics, and supply chain management. SDN enables real-time monitoring, provides control over industrial processes, improves network reliability and scalability, and enhances overall operational efficiency.

These benefits of software-defined networking and the increasing adoption of smart devices across industrial and infrastructure applications drive the growth of the software-defined networking market.

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Key Findings in the Global Software-defined Networking Market Study:

The Services Segment to Register the Higher CAGR

Based on offering, the global software-defined networking market is segmented into software and services. The services segment is projected to register the highest CAGR during the forecast period. This growth can be attributed to the benefits provided by SDN services, particularly in enabling the scaling of network infrastructure to accommodate fluctuating workloads. Such scalability is crucial for businesses experiencing growth or variations in demand. Moreover, SDN centralizes network management, enabling administrators to define and enforce policies across the entire network efficiently.

The Hybrid SDN Segment to Register the Higher CAGR

Based on model, the global software-defined networking market is segmented into open SDN, API SDN, overlay SDN, and hybrid SDN. The hybrid SDN segment is projected to register the highest CAGR during the forecast period. Hybrid SDN provides 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. These benefits are expected to increase the adoption of hybrid SDN and drive the growth of this segment during the forecast period.

The Security Flow Segment to Register the Higher CAGR

Based on application, the global software-defined networking market is segmented into control flow, open flow switch, packet forwarding, security flow, data migration, and other applications. The security flow segment is projected to register the highest CAGR during the forecast period. SDN enables the rapid deployment of security policies and updates. Additionally, SDN enables the automation of security responses, leading to reduced time and effort needed to mitigate threats. These advantages are expected to drive the growth of this segment during the forecast period.

The Telecommunication Service Providers Segment to Register the Higher CAGR

Based on end user, the global software-defined networking market is segmented into data centers, enterprises, cloud service providers, telecommunication service providers, and other end users. The telecommunication service providers segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the benefits provided by SDN, which offers a new level of flexibility, agility, and efficiency. These advantages enable telecommunication service providers to effectively address the constantly increasing demands of their customers.

Asia-Pacific to be the Fastest-growing Regional Market

Based on geography, the software-defined networking market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific 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.

Software-defined Networking Market: Competitive Analysis

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading players over the past three to four years. The key players operating in the global 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).

Software-defined Networking Market Report Summary:

Key questions answered in the report: