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Emerging Trends Influencing The Growth Of The Software Defined Networking Market: Innovative Technologies Shaping The Software Defined Networking Market
Software Defined Networking
How Big Is the Software Defined Networking Market Size Expected to Be by 2034?
Over recent years, there has been a rapid expansion in the market size of software defined networking. The forecast indicates an increase from $32.51 billion in 2024, shooting up to $39.39 billion in 2025, reflecting a compound annual growth rate (CAGR) of 21.2%. This noteworthy growth throughout the previous period can be tied back to factors such as the burgeoning demand for unified network management, the escalating necessity to streamline network management, advancements in network virtualization technologies, growing adoptions of such virtualization technologies, and an increase in security threats and risk of attacks.
Anticipations suggest a significant surge in the software defined networking market in the upcoming years, reaching a valuation of $84.86 billion by 2029 with a compound annual growth rate (CAGR) of 21.2%. The projected expansion during this period can be credited to a higher demand for network automation, efficient network security solutions, network programming, increase in cloud computing, and an amplified focus on network analytics. Major expected trends within this timeframe include the incorporation of artificial intelligence (AI) within networking, broadening of network automation abilities, strategic partnerships, technological enhancements, and increased deployment of software-defined networking within the telecommunication industry.
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What Are the Emerging Segments Within 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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What Long-Term Drivers Are Shaping Software Defined Networking Market Trends?
The anticipated growth of the software defined networking market is primarily attributed to the surge in demand for cloud services. Ranging from computing resources to applications, cloud services are accessible via the Internet promptly when needed. The rising demand stems from organizations' desire for scalable, economical, and accessible computing resources, which allow for efficient data management, applications, and IT infrastructure. Within software-defined networking, cloud services work to boost network flexibility and scalability, facilitating dynamic resource allocation, centralized control, and effective service delivery. In an example from December 2023, Eurostat, a government organization based in Luxembourg, reported that 45.2% of enterprises in the European Union utilized cloud computing services in 2023 which is a 4.2% increase from 2021. Importantly, large enterprises showed a particularly high adoption rate with 77.6% making purchases, representing a 6% rise from 2021. Consequently, the growth in the demand for cloud services is propelling the market growth of software defined networking.
Who Are the Top Competitors in Key Software Defined Networking Market Segments?
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.
What Are the Major Trends Shaping the Software Defined Networking Market?
Leading businesses in the software defined networking market are concentrating on the invention of cutting-edge technologies such as cloud-native SDN controllers, to establish an upper hand in the market. A cloud-native SDN controller is a network control aspect that is specifically constructed and honed to function within cloud-native settings. For instance, in February 2023, France's standardization institute, the European Telecommunications Standards Institute, unveiled the second version of TeraFlowSDN, a revolutionary comprehensive software-defined, cloud-native SDN orchestration tool and controller, specifically tailored for transport networks. It is an open-source, micro-service-based, carrier-grade, cloud-native SDN controller. TeraFlowSDN is integrated with a variety of network components and offers innovative features for network management and orchestration, marking a significant advancement in the SDN field.
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Which Regions Are Becoming Hubs for Software Defined Networking Market Innovation?
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.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Software Defined Networking Market?
2. What is the CAGR expected in the Software Defined Networking Market?
3. What Are the Key Innovations Transforming the Software Defined Networking Industry?
4. Which Region Is Leading the Software Defined Networking Market?
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