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Top Factor Driving Software Defined Networking Market Growth in 2025: Cloud Services Fueling Growth In The Software Defined Networking Market
"How Big Is the Software Defined Networking Market Expected to Be, and What Will Its Growth Rate Be?The software-defined networking market has grown significantly in recent years. It will increase from $32.51 billion in 2024 to $39.39 billion in 2025, at a CAGR of 21.2%. This growth is attributed to the need for centralized network management, growing demand to simplify network management, advancements in network virtualization technologies, and increased adoption of virtualization technologies, as well as rising security risks and attack threats.
The software-defined networking (SDN) market is forecast to grow exponentially, reaching $84.86 billion by 2029 at a CAGR of 21.2%. This growth is driven by the demand for network automation, security solutions, and cloud computing. Major trends include AI adoption, network automation expansion, and growth in the telecommunications sector.
What Are the Primary Growth Drivers for the Software Defined Networking Market?
The rising demand for cloud services is fueling the expansion of the software-defined networking market. Cloud services provide a broad spectrum of computing resources and applications over the internet, offering scalability, cost-effectiveness, and accessibility. Cloud-based software-defined networking enhances network flexibility, enabling dynamic resource allocation, centralized management, and efficient service delivery. For instance, in December 2023, Eurostat, a Luxembourg-based governmental organization, reported that cloud computing adoption among European Union enterprises reached 45.2% in 2023, reflecting a 4.2% increase from 2021. Among large enterprises, adoption stood at 77.6%, a 6% rise since 2021. As a result, the increasing demand for cloud services is accelerating the growth of the software-defined networking market.
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Who Are the Dominant Companies Influencing Software Defined Networking Market Trends?
Major companies operating in the software defined networking market are Dell Technologies Inc., Huawei Technologies Co. Ltd., Cisco Systems Inc., Broadcom Inc., Hewlett Packard Enterprise (HPE), Nokia Corporation, VMware Inc., Palo Alto Networks Inc., Juniper Networks Inc., Arista Networks Inc., Fortinet Inc., Ciena Corporation, Citrix Systems Inc., Avaya Inc., F5 Networks Inc., Check Point Software Technologies Ltd., Nutanix Inc., Riverbed Holdings Inc., Extreme Networks Inc., Zscaler Inc., Silver Peak Systems Inc., Versa Networks Inc., Aryaka Networks Inc., Gigamon Inc., Masergy Communications Inc.
How Is the Software Defined Networking Market Evolving?
Leading firms in the software-defined networking market are focusing on developing cutting-edge innovations such as cloud-native SDN controllers to maintain a competitive advantage. A cloud-native SDN controller functions as a network control plane designed specifically for cloud-based environments. In February 2023, the European Telecommunications Standards Institute (ETSI), a France-based standardization body, announced the second release of TeraFlowSDN, a robust, full-featured, software-defined cloud-native SDN controller tailored for transport networks. TeraFlowSDN is an open-source, microservices-based, carrier-grade controller that seamlessly integrates with various network components. It introduces advanced network management and orchestration capabilities, positioning itself as a pivotal advancement in the field of SDN.
What Are the Different Segmentations in the Software Defined Networking Market?
The software defined networking market covered in this report is segmented -
1) By Type: Open Software Defined Networking, Software Defined Networking Via Application Programming Interfaces (API), Software Defined Networking Via Overlay
2) By Component: Solution, Service
3) By Organization Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Application: Banking, Financial Services And Insurance (BFSI), Information Technology Enabled Services (ITeS), Education, Retail, Manufacturing, Government And Defense, Healthcare, Other Applications
Subsegments:
1) By Open Software Defined Networking: OpenFlow-based SDN, Open-source SDN Solutions
2) By Software Defined Networking Via Application Programming Interfaces (API): API-based Network Controllers, Network Management and Automation Tools via API
3) By Software Defined Networking Via Overlay: Network Function Virtualization (NFV) Overlays, Virtual LAN (VLAN) and Virtual Private Networks (VPN) Overlays
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Which Region Is at the Forefront of the Software Defined Networking Market?
North America was the largest region in the software defined networking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined networking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Software Defined Networking Global Market Report?
- Market Size Analysis: Analyze the Software Defined Networking Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Software Defined Networking Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Software Defined Networking Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Software Defined Networking Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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