What’s driving the SDN Market growth?| By Top Players: Cisco, Intel, AT&T, Pluribus, Pluribus, Huawei, Pics8, Extreme Networks, Juniper
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Enterprises are facing rising pressures to reduce their capital expenditures and operating costs while remaining agile and efficient to cater to the varying market & customer needs. Due to this, there is extensive adoption of next-generation technologies, including cloud computing, server virtualization, and SDN, resulting in fundamental changes such as enterprises developing network infrastructures. Advanced networking solutions are flexible & dynamic and have the ability to address volatile market requirements.
The physical infrastructure market accounted for a share of over 50% in 2018 due to its capability to control and orchestrate data flow between numerous network elements. The SDN controller market is anticipated to register a growth rate of over 41% owing to technological advancements in the orchestration & management layer and northbound & southbound interfaces. The professional services market is expected to dominate the SDN market with a revenue share of over 70% due to the ease of deployment and integration of solutions among telecom operators, cloud service providers, and enterprises.
The cloud service provider market is estimated to grow at a fast pace between 2019 and 2025 due to the widespread deployment of cloud-based frameworks, particularly in the telecom sector. Cloud service providers are using SDN technology to build highly scalable and flexible networking infrastructures without incurring any additional capital expenditures. The end-user market is dominated by enterprises with a market share of over 45% in 2018 due to the benefits presented by the SDN technology that include increased network reliability, centralized management, and enhanced user experience.
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The manufacturing industry is anticipated to attain a growth rate of over 40% over the forecast timespan. This is attributed to the increasing use of technologies such as the IoT and Machine to Machine (M2M) communications. Manufacturers are adopting SDN solutions to reduce their capital expenditure and to avoid manual configurations. The IT-enabled services market is growing due to an increased need to develop heterogeneous networking environments, which can accommodate solutions from various third-party providers.
Chapter 3.SDN Industry Insights
3.3.Industry landscape, 2014 - 2025
3.4.Industry ecosystem analysis
3.7.1. Data Center Bridging (DCB)
3.7.2. Fibre Channel Over Ethernet (FCOE)
3.7.3. Network virtualization using generic routing encapsulation (NVGRE)
3.7.4. Transparent Interconnection of Lots of Links (TRILL)
3.7.5. Virtual Edge Port Aggregator (VEPA)
3.7.6. Virtual Extensible Local Area Network (VXLAN)
3.8.Technology & innovation landscape
3.8.2. ONOS Distributed Architecture
3.8.3. Micro Segmentation
3.9.Industry impact forces
3.9.1. Growth drivers
188.8.131.52.Growing adoption of cloud services and IT convergence
184.108.40.206.Aggressive carrier efforts
220.127.116.11.Increasing venture capital investment in SDN market space
18.104.22.168.Benefits offered by SDN
3.9.2. Industry pitfalls & challenges
22.214.171.124.Complexity of SDN architecture
126.96.36.199.Lack of skilled professionals
188.8.131.52.Absence of standards for full device control
3.10.Growth potential analysis
SDN Market is anticipated to exceed 100 billion by 2025. A surge in the number of connected endpoint devices and extensive use of server virtualization technologies is driving the SDN market. Most conventional network architectures are unable to keep up with the dynamic processing needs of advanced networking technologies. This has forced enterprises across the globe to incorporate SDN solutions in their company networks without affecting the performance and efficiency of company networks.
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The companies operating in the SDN market include Cisco, Intel, AT&T, Pluribus, Pluribus, Huawei, Pics8, Extreme Networks, Juniper, Arista Networks, NEC Corporation, Plexxi, Big Switch Networks, HP, IBM, and Intel. Market players are acquiring start-ups working on SDN technologies to extend their product lines and develop new product offerings. For instance, in May 2017, Cisco acquired Viptela to enhance its SDN functionality. Cisco aims to incorporate Viptela?s cloud-based approach in its existing product portfolio.
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