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What’s driving the SDN Market growth?| By Top Players: Cisco, Intel, AT&T, Pluribus, Pluribus, Huawei, Pics8, Extreme Networks, Juniper

06-12-2019 07:41 PM CET | IT, New Media & Software

Press release from: Global Market Insights Inc.

What’s driving the SDN Market growth?| By Top Players: Cisco, Intel, AT&T, Pluribus, Pluribus, Huawei, Pics8, Extreme Networks, Juniper

North America is leading the SDN market with over 35% share in 2018 due to the proliferation of several mobility solutions and advancements in the connectivity infrastructure. Telecom providers, such as AT&T, Verizon, and Spirit, have invested heavily in next-generation networking solutions to augment their infrastructures capabilities. The Asia Pacific market is expected to grow at a CAGR of over 42% during the forecast timespan due to the widespread use of network virtualization and cloud computing solutions. The emergence of 5G technology and the extensive use of IoT devices across various industry sectors is further supplementing SDN market growth in the region.

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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
3.1.Introduction
3.2.Industry segmentation
3.3.Industry landscape, 2014 - 2025
3.4.Industry ecosystem analysis
3.5.SDN architecture
3.6.SDN evolution
3.7.SDN Standards
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
3.8.1. SD-WAN
3.8.2. ONOS Distributed Architecture
3.8.3. Micro Segmentation
3.9.Industry impact forces
3.9.1. Growth drivers
3.9.1.1.Growing adoption of cloud services and IT convergence
3.9.1.2.Aggressive carrier efforts
3.9.1.3.Increasing venture capital investment in SDN market space
3.9.1.4.Benefits offered by SDN
3.9.2. Industry pitfalls & challenges
3.9.2.1.Complexity of SDN architecture
3.9.2.2.Lack of skilled professionals
3.9.2.3.Absence of standards for full device control
3.10.Growth potential analysis
3.11.Porter's analysis
3.12.PESTEL 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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Arun Hegde
Corporate Sales, USA
Global Market Insights, Inc.
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About Global Market Insights:
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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