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Software-Defined Networking Market will reach to $32.7 billion by 2025

08-17-2021 09:03 AM CET | IT, New Media & Software

Press release from: MarketsandMarkets™

Software-Defined Networking Market

Software-Defined Networking Market

According to a new market research report "Software-Defined Networking Market by Component (SDN Infrastructure, Software, and Services), SDN Type (Open SDN, SDN via Overlay, and SDN via API), End User, Organization Size, Enterprise Vertical, and Region - Global Forecast to 2025" published by MarketsandMarkets™, the sdn market size expected to grow from USD 13.7 billion in 2020 to USD 32.7 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 19.0% during the forecast period.

The major growth drivers for the market includes investment of CSPs in SDN technology to automate network infrastructure, significant reduction in CAPEX and OPEX, increasing demand for cloud services, data center consolidation, and server virtualization, increase in demand for enterprise mobility to enhance productivity for field-based services

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The SDN via API is expected to show the highest growth rate during the forecast period

SDN enables the programming of network behavior in a centrally controlled manner through software applications using open APIs. By opening up traditionally closed network platforms and implementing a common SDN control layer, operators can manage the entire network and its devices consistently, regardless of the complexity of the underlying network technology. The open APIs support a wide range of applications, including cloud orchestration, Operation Support System (OSS)/Business Support System (BSS), Software-as-a-Service (SaaS), and business-critical networked apps.

APIs are core components in the SDN architecture. There are two types of APIs: northbound APIs and southbound APIs. The former is used by controllers to push configuration and state to network devices, such as switches and routers, while the latter is used to push information between the controller and other applications. Several service providers, such as AT&T and Orange, are working with Metro Ethernet Forum (MEF), a nonprofit international industry consortium dedicated to the adoption of carrier Ethernet networks and services, and TM Forum, a nonprofit industry association for service providers and their suppliers in the telecommunications industry, to accelerate efforts to develop a set of standardized APIs for industry-wide use.

The consulting professional services segment is estimated to have a larger market share during the forecast period

Consulting services deal with complex inquiries and have numerous clients that demand constant changes in product and service offerings. These services focus more on offering superior customer services. The demand for consulting services is increasing across the globe due to the rising pressure on organizations to stay competitive in their respective markets. Consulting service providers offer services irrespective of the location and time to help clients streamline their business processes with innovative practices to sustain the market competition and efficiently manage employees.

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North America is expected to hold the largest market size during the forecast period

North America is a market with high growth potential in SDN, which is aided by the region’s early and fast adoption of technologies, such as cloud computing, network functions virtualization, mobility services, and Bring Your Own Device (BYOD). High industrialization in countries, such as the US and Canada, has always been a positive factor for aiding fast growth in various business verticals. Countries in North America have favorable standards and networking regulations that help in boosting the SDN market. North America houses several global leaders in networking industries and is a market for investment, opening up new opportunities for the adoption of the SDN infrastructure.

5G deployment is relatively slower in North America than in other regions due to the complexities involved in managing SDN with the backhaul infrastructure. In SDN, the control of the whole network is with the controller; hence, the deployment requires various organizational, functional, and cultural changes within organizations.
Despite the challenges for the SDN market in North America, it continues to be the most technologically advanced region with the latest business applications and use cases in all industry verticals. Major players in the SDN market, such as Cisco, Ciena, and Juniper Networks, continue to leverage their majority revenue from this region.

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Key players in the global SDN market Cisco (US), Dell EMC (US), HPE (US), VMware (US), Huawei (China), Juniper Networks (US), Nokia (Finland), Oracle (US), Citrix (US), Extreme Networks (US), Infovista (US), NEC (Japan), Pluribus Networks (US), Arista Networks (US), Cloud Genix (US), Cumulus Networks (US), DataCore Software (US), Fortinet (US), Fujitsu (Japan), HiveIO (US), Lenovo (HongKong), NetApp (US), Pica8 (US), Pivot3 (US), and Scale Computing (US)

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