Cloud Services Fueling Growth In The Software Defined Networking Market Driving Market Acceleration in the Software Defined Networking Industry, 2025

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How Large Will the Software Defined Networking Market Size By 2025?
In recent times, the software-defined networking market scale has seen considerable expansion. The market is set to surge from a value of $32.51 billion in 2024 to $39.39 billion in 2025, with a compound annual growth rate (CAGR) hitting 21.2%. This growth in the preceding period is primarily due to the rising demand for centralized network management, the increasing necessity for straightforward network management, the emergence of network virtualization technologies, the escalating acceptance of virtualization technologies, and the surge in security risks and attack threats.

How Big Is the Software Defined Networking Market Size Expected to Grow by 2029?
The software defined networking market is projected to experience massive expansion in the upcoming years, escalating to a value of $84.86 billion by 2029, with a compound annual growth rate (CAGR) of 21.2%. The surge during the prediction period is primarily due to the escalating demand for network automation, desire for effective network security solutions, need for network programming, expansion of cloud computing, and heightened focus on network analytics. Anticipated trends within the forecast period encompass the incorporation of artificial intelligence (AI) in networking, development of network automation abilities, strategic partnerships, technological advancements, and the proliferation of software-defined networking within the telecommunications sector.

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Which Key Market Drivers Powering Software Defined Networking Market Expansion and Growth?
The surge in cloud services demand is slated to bolster the expansion of the software defined networking market in the future. Cloud services, offering a broad spectrum of accessible and on-demand computing resources and applications over the Internet, are propelling this demand. The necessity for adjustable, affordable, and accessible computing resources, facilitating efficient management of data, applications, and IT infrastructure, drives cloud services demand. The incorporation of cloud services in software-defined networking boosts network adaptability and scalability, permits dynamic resource allocation, centralized control, and effective service delivery. For example, Eurostat, a government organization based in Luxembourg, reported in December 2023 that cloud computing services were adopted by 45.2% of businesses in the European Union in 2023, an uptick of 4.2% from 2021. The adoption rate was significantly higher among large-scale enterprises, with 77.6% revealing acquisitions, marking a 6% escalation compared to 2021. Thus, the intensified demand for cloud services is fueling the expansion of the software defined networking market.

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Which Fast-Growing Trends Are Poised to Disrupt the Software Defined Networking Market?
The key players in the software defined networking market are focusing on the creation of innovative technologies like cloud-native SDN (Software-Defined Networking) controllers to secure a competitive advantage. A cloud-native SDN (Software-Defined Networking) controller, significantly designed to operate within cloud-native surroundings, is a networking control plane. For instance, the France-based standardization institute, the European Telecommunications Standards Institute, declared the second release of TeraFlowSDN, a ground-breaking full-featured software-defined cloud-native SDN robust orchestrator and controller specifically designed for transport networks, in February 2023. This open-source, micro-service-based, and carrier-grade cloud-native SDN controller integrates with different network components and adds advanced features for network management and orchestration. Thus, TeraFlowSDN becomes a significant addition to the SDN field.

What Are the Emerging Segments 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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Who Are the Global Leaders in the Software Defined Networking Market?
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.

Which are the Top Profitable Regional Markets for the Software Defined Networking Industry?
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.

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