Press release
2025-2034 Software Defined Networking Market Evolution: Disruptions, Innovations, and Untapped Opportunities
Use code ONLINE20 to get 20% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Software Defined Networking Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The scale of the software defined networking market has significantly increased recently. It's projected to expand from a valuation of $32.51 billion in 2024 to a staggering $39.1 billion in 2025, suggesting a compound annual growth rate (CAGR) of 20.3%. The remarkable growth achieved during past years can be linked to factors such as the demand for centralized network administration, the rising necessity to streamline network management, advancements in network virtualization technologies, the increasing incorporation of virtualization technologies, and the heightened threat of security risks and attacks.
Software Defined Networking Market Size Forecast: What's the Projected Valuation by 2029?
Anticipated to expand exponentially over the next couple of years, the software defined networking market size is projected to reach a valuation of $83.7 billion by 2029, registering a compound annual growth rate (CAGR) of 21.0%. Several factors contributing to this increased growth during the forecast period include a rising demand for network automation, enhanced network security solutions, network programming, the proliferation of cloud computing, and a heightened emphasis on network analytics. The future trends to watch for during this projection period are the integration of artificial intelligence (AI) within networking, escalated network automation capabilities, strategic partnerships, technological advancements, and the extending influence of software-defined networking in the telecommunications industry.
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What Are the Drivers Transforming the Software Defined Networking Market?
The anticipated surge in the demand for cloud services is predicted to fuel the expansion of the software-defined networking market in the future. Cloud services cover a multitude of readily accessible applications and computing resources over the Internet when required. This growing demand for cloud services is motivated by the requirement for accessible, economical, and scalable computing resources, allowing firms to effectively handle data, applications, and IT infrastructure. In software-defined networking, cloud services strengthen network adaptability and scalability, thus facilitating composite resource distribution, centralized command, and effective service delivery. For example, as per Eurostat, a government agency based in Luxembourg, in December 2023, 45.2% of companies in the European Union incorporated cloud computing services in 2023, showing a 4.2% rise from 2021. Remarkably, the uptake of these services was unusually high among substantial enterprises, with 77.6% reporting acquisitions, denoting a 6% increment compared to 2021. Consequently, the rising demand for cloud services is catalyzing the expansion of the software-defined networking market.
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What Long-Term Trends Will Define the Future of the Software Defined Networking Market?
Pioneer corporations in the Software Defined Networking market are shifting their attention to the creation of groundbreaking technologies, including cloud-native SDN (Software-Defined Networking) controllers, to maintain their competitiveness. A cloud-native SDN controller is essentially a network control plane constructed and fine-tuned to function seamlessly in cloud-native settings. For instance, in February 2023, the France-based standard-setting entity, the European Telecommunications Standards Institute, unveiled the second version of TeraFlowSDN, a revolutionary software-defined network orchestrator and controller for transport networks, fully equipped with cloud-native SDN capabilities. As an open-source, micro-service-based controller, it's designed with carrier-grade quality. TeraFlowSDN's integration with diverse network components and its advanced features for network oversight and orchestration make it a major advancement in the SDN sector.
Which Segments in the Software Defined Networking Market Offer the Most Profit Potential?
The software defined networkingmarket 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 Firms Dominate the Software Defined Networking Market by Market Share and Revenue in 2025?
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 Regions Offer the Highest Growth Potential in 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.
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