Global Software-Defined Networking Market to expand at a CAGR of 28.37% by 2030

Introduction

Software-defined networking is a strategy that enables networks to be intelligently and centrally controlled or programmed using software-based controllers or application programming interfaces to make networks more manageable and flexible. Network resources are optimized and rapidly adapted to accommodate new applications, commercial demands, and data traffic. In addition, it offers a variety of business benefits, such as the ability to respond more quickly to problems and outages for improved network availability, increased flexibility & accelerated time-to-market for new applications, and programmability for networking, which allows businesses to automate their network functions and reduce operating costs. Traditional networks rely on physical infrastructures like switches and routers for connection and operation. A software-based network, on the other hand, enables the user to control the resource distribution at the level of the virtual network via the control plane.

Market Dynamics

Growing Cloud Computing Adoption and Increased Investment to Drive the Global Software-Defined Networking Market

Diverse industries employ cloud computing services to enable software-driven cloud networking, which combines cloud computing, software-defined networking, and software-driven cloud networking technologies to build networks. Software-defined networking enables network administrators to centrally manage network services through virtualizing physical network connectivity. In addition, a centralized software-defined networking controller allows cloud service providers to host multiple virtual networks without the need for common isolation and separation techniques, such as VLAN. As the commercial and residential sectors increasingly adopt cloud computing services, the market for software-defined networking is consequently expanding.

The introduction of software-defined networking/NFV reduces the capital expenditures and operating expenses borne by businesses while simultaneously facilitating the handling of rapidly increasing demand by reducing their dependence on hardware platforms. For instance, a virtualized radio access network (vRAN) reduces operating costs by eliminating the need for a baseband unit (BBU) at the site and rents at cell sites due to reduced power consumption, resulting in an estimated reduction in the total cost of ownership. Moreover, many communication service providers are investing in these technologies to alter how their networks are constructed and reduce the cost of network operation. AT&T, a provider of telecommunications services, has set a goal to virtualize 75% of its network by 2020. AT&T has begun to realize substantial cost savings as a result of its NFV/software-defined networking projects.

The Emergence of 5G to Create Global Software-Defined Networking Market Opportunities.

The emergence of 5G wireless networks made possible the development of a robust and sophisticated heterogeneous infrastructure with vast connection and capacity. To make the 5G network more capable of handling complex operational contexts and supporting a vast array of new services and applications, there has been an increase in 5G network enhancement. Because network function virtualization and software-defined networking are being used to upgrade network design to meet the needs of a new eco-system in the future, these 5G network requirements present a vast array of expansion opportunities for the market.

Regional Insights

North America will likely command the regional market while expanding at a CAGR of 25.4%. North America is one of the first regions to adopt and develop software-defined networking technologies. Numerous industries, such as telecommunications, information and technology, healthcare, banking, financial services, insurance, and energy, as well as the public and private sectors of government, have extensively used these technologies. The region employs software-defined networking extensively, as evidenced by the rise in demand for high standards across several business verticals, including secure network infrastructure and interoperable devices.

The surge in the adoption of cutting-edge technologies across numerous industry verticals, the rise in the use of cloud computing & mobility solutions, and the increased demand for network management due to high network traffic are the primary factors driving the growth of the software-defined networking market in North America. As businesses in this region prioritize migrating their network and IT operations to the cloud, they rapidly adopt software-defined networking and network function virtualization technologies. These organizations use software-defined networking to streamline processes and facilitate transitions to a single or multiple cloud environment.

The Asia Pacific is envisioned to grow at a CAGR of 32.75% and hold USD 39,108 million. The Asia-Pacific software-defined networking market is expanding rapidly due to the region's diverse enterprises' steady but growing adoption of virtual solutions for managing data traffic. To boost corporate performance and productivity, the use of software-defined networking has increased in the region.

The primary drivers of the software-defined networking market in the Asia-Pacific region are:

• Rapid industrial development.
• A rise in startup activity.
• An increase in the use of cutting-edge technologies such as virtualization services and mobility solutions across operational business systems.

Software-defined networking enables enterprises in this region to reduce capital and to operate expenditures by streamlining and centralizing numerous network management functions. Moreover, the rapidly expanding data center infrastructure and rapidly growing mobile data traffic are driving businesses' implementation of software-centric network models to achieve flexibility and scalability, thereby boosting market growth.

Key Highlights

• The global software-defined networking market had a revenue holding of USD 16,237 million in 2021. It is expected to reach USD 153,700 million by 2030, growing at a CAGR of 28.37% during the forecast period (2022-2030). 
• Based on the component, the section of solutions is predicted to grow at a CAGR of 26.7% and hold the largest market share.
• Based on the organization size, the section of large enterprises is predicted to grow at a CAGR of 27.4% and hold the largest market share.
• Based on the end-user, the cloud service providers segment is predicted to advance at a CAGR of 31.88% and hold the largest market share.
• Based on the industry vertical, the IT & telecom sector is predicted to advance at a CAGR of 22.9% and hold the largest share.
• Based on regional analysis, North America is likely to command the regional market while expanding at a CAGR of 25.4%.

Competitive Players

Competitive Players in the Market

• Arista Networks Inc.
• Broadcom Inc.
• Cisco Systems, Inc.
• Citrix Systems, Inc.
• Dell Technologies, Inc.
• Extreme Networks, Inc.
• Hewlett Packard Enterprise Development LP
• International Business Machines Corporation
• Juniper Networks, Inc.

Recent Developments

Market News

• In 2022, IBM Corporation announced the development of a new 33-month work order according to its agreement with the Defense Microelectronics Activity (DMEA) to offer security services designed to improve the Department of Defense's (DoD) microelectronics supply chain for mission-critical platforms.
• In 2022, Cisco expanded its alliance with General Dynamics Information Technology to provide Cisco Private 5G services to a wide range of government agencies.

Segmentation

Global Software-Defined Networking Market: Segmentation

By component

• Solutions

  • Physical Network Infrastructure
  • Virtualization & Control Software
  • Software-defined Networking Applications

• Services

  • Professional Services
  • Managed Services

By organization size

• Large Enterprises
• Small- & Medium-sized Enterprises

By end-user

• Telecommunication Service Providers
• Cloud Service Providers
• Enterprises

By industry vertical

• IT
• Consumer Goods & Retail
• BFSI
• Defense
• Telecom
• Healthcare
• Others 

By region

• North America
• Europe
• Asia-Pacific
• LAMEA