Global Software Defined Networking Market Size, Share, and COVID-19 Impact Analysis, By Component (Solutions (SDN Controller, Physical Network Infrastructure, SDN Application, Network Virtualization & Others), Services (Professional & Managed)), By End-Use (Cloud Service Providers, Enterprises & Telecommunications Service Providers), By Vertical (Banking, Financial Services and Insurance (BFSI), IT & Telecommunications, Retail and Consumer Goods, Manufacturing, Automotive, Government and Public Sector, Healthcare & Others) and by Region Analysis and Forecast 2022-2028

KEY MARKET INSIGHTS

The global Software Defined Networking Market was valued at USD 13.7 Bn in 2021. The market is projected to grow USD 32.7 Bn in 2028, at a CAGR of 19.4%. SDN stands for software-defined networking, which is a networking architecture that separates network administration from fundamental network infrastructure. SDN enables administrators to alter network traffic flow in response to technical developments. The software-defined network reduces the complexity of statically specified networks while increasing the speed with which applications and services are installed. It also makes the setup and upgrading of network resources easier. To improve networking capabilities, SDN architecture is widely used in 5G infrastructure.

To provide a programmable network platform, software defined networking separates the control plane and regulates network traffic routing from the data plane, which delivers traffic to the intended destination. Software defined networking improves agility and robustness, network congestion ease, cost and time efficiency, network infrastructure flexibility, and quick innovation for communication service providers. Enterprises are being forced to rethink their traditional network topologies as the number of mobile devices and server visualization grows, as well as the introduction of cloud computing services. The majority of traditional network topologies are hierarchical, consisting of tiers of Ethernet switches. In today's enterprise networks, the design of this type of networking framework is ill-suited to deal with dynamic compute and storage needs. Companies have been pushed to embrace new and advanced networking technologies such as SDN as a result of this. SDN solutions have a dynamic and flexible network design that can adapt to changing business and end-use demands.

LATEST TREND

Integrating AI-Enabled Solutions Providing Exceptional Customer Experience

Deploying AI-enabled software defined networking solutions enabling personalize customer experience, reduce operational cost, increase agent efficiency, and provide more actionable analysis. Coupling with artificial intelligence in contact center solution provides more intelligent routing to improve the customer experience. Also, using AI powered analysis, businesses can analyze identifying risk of churning, customer behavior, reach out to customer with a personalized offer. To stay competitive in the data-driven digital economy, which is increasingly dominated by Over-the-Top (OTT) competitors, CSPs are required to invest in SDN technology in order to reduce total CAPEX and OPEX expense.

DRIVING FACTORS

Advent of 5G Infrastructure is Driving the growth of SDN Market

The introduction of 5G wireless connections allowed for the creation and utilisation of vast capacity and connectivity of powerful and sophisticated heterogeneous infrastructure. As a result, there has been a spike in network enhancements to prepare for future 5G needs, such as making 5G networks more capable of handling complex operational contexts and supporting a varied collection of new services and applications.  Increased investments in 5G infrastructure by major telecom service providers will help to improve connectivity and expand the use of SDN technologies. Additionally, the development of 5G infrastructure networks will aid in the growth of the SDN market. China's telecom service providers, such as China Telecom, China Mobile, and China Unicom, for example, expect to invest approximately US$ 180 billion by 2023. This investment was made to support the construction of 5G infrastructure, which is projected to boost the growth of the SDN market.

Rising Usage of Software Defined Networking Solutions Among Organizations

The rapid growth in size and intricacy of telecommunication networks over the last decade has led to development of solutions to streamline and control the entire network. SDN solutions immediately address these issues by giving the operator more freedom in terms of traffic control, allowing the network to run more efficiently. As a result, the majority of Communication Service Providers (CSPs) throughout the world are investing in SDN technology to manage and control end-to-end networks and services leading to fuel the market growth of software defined networking market. Furthermore, a number of communication service providers are investing in these technologies in order to modernise their network design and reduce networking costs. For example, a virtualized radio access network (vRAN) does not require a baseband unit (BBU) at the site, resulting in cheaper operating costs due to lower power consumption and lower cell site fees, resulting in a lower total cost of ownership.

RESTRAINTS

Concerns Pertaining due to IVR frauds and Cyber-Attacks

Rising fraud attacks and fake calls in banking and financial sectors has substantially increased during COVID-19 pandemic. This is rising due to the large-scale remote working models and rising customers using non-branch banking channels which is limiting the market growth of software defined networking market. Moreover, cybercriminals have turned their attention to businesses that store sensitive data. According to Thales Research, 40% of organizations have experienced a enterprises data breach. Despite these incidents, the enormous majority (83%) of businesses still fail to secure half of the sensitive data they store in the cloud.

SEGMENTATION

By Component

Based on component, is categorized into solutions and services. The solution is further categorized into sdn controller, physical network infrastructure, sdn application, network virtualization & others. The physical network infrastructure segment is expected to dominate the market share of global software defined networking market owing to due to a surge in enterprise and communication service provider usage of software defined networking solutions to drastically reduce the time it takes to provide new software. The ability to manage and organize flow control among various network parts and applications is credited to it. Because of advancements in the southbound and northbound interfaces, as well as accompanying orchestration and administration layers, the SDN controller market is expected to increase at a CAGR of over 41% throughout the projected period. Furthermore, the growing use of SDN architectures to improve network security is expected to boost demand for SDN controllers.

By End-Use

Based on end-use, the market is categorized into cloud service providers, enterprises & telecommunications service providers. The enterprises are expected to dominate the market share of global software defined networking market owing to the SDN solutions are used by enterprises to improve the scalability and flexibility of their network infrastructure. Furthermore, SDN solutions provide benefits such as centralized management, improved automation, increased network resilience and security, and improved user experience, which are some of the key causes driving enterprise adoption of SDN solutions. Large enterprises are continually setting up new virtual machines and apps to fulfil processing requests. The adoption of software defined networking is also assisting large enterprise IT teams in changing network configurations without affecting the network.

By Vertical

Based on vertical, the market is categorized into Banking, Financial Services and Insurance (BFSI), IT & Telecommunications, Retail and Consumer Goods, Manufacturing, Automotive, Government and Public Sector, Healthcare & Others. IT & Telecommunications segment is expected to dominate the market share of global software defined networking market owing to the increasing adoption of solutions are being aggressively by organizations that have already established themselves in the sector to boost the efficiency of corporate operations. Furthermore, IT and telecom companies are striving for innovation and focusing on boosting revenues by installing proper solutions to ensure that their client service is always available and that they are efficiently exploiting massive volumes of customer data for actionable insights.

REGIONAL INSIGHTS

The global software defined networking market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America region is expected to dominate the market share owing to the adoption among organizations across various verticals in the region is growing and investing heavily in emerging technologies, such as IoT, big data, analytics, artificial intelligence, and cloud platforms. These technologies provide real-time analytics and streamlines the flow to software defined networking. Additionally, presence of major key players is also fueling the market growth of the global software defined networking market. Rapid industrialization in emerging economies like the United States and Canada has always been a beneficial component in facilitating rapid growth across a variety of business sectors. The region has advantageous networking standards and regulations, which aid in the growth of the software-defined networking market. For instance, AT&T has invested approximately USD 200 million in startups which is working on SDN technologies. However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global software defined networking market due to the increasing number of startups adopting software defined networking solutions and growing urbanization in the region. The adoption of SDN solutions will be fueled by the growing use of cloud-based applications and advanced networking technology across multiple industrial verticals. The increase in internet traffic, the introduction of 5G, and the growing usage of IoT-based technologies are all prompting organizations and service providers to adopt SDN architecture.

KEY INDUSTRY PLAYERS

• Cisco
• Dell Inc.
• Hewlett Packard Enterprise Development LP
• Intel Corporation
• AT&T Inc.
• Lenovo
• Oracle
• Extreme Networks
• Juniper Networks, Inc.
• Fortinet
• Fujitsu
• IBM Corporation
• Pluribus Network
• Plexxi Inc.
• Huawei Technologies Co. Ltd.
• NEC Corporation
• IBM Corporation
• Arista Network

KEY INDUSTRY DEVELOPMENTS:

April 2022- Fortinet launches new FortiOS with new converged networking and enhanced security platform.

November 2019- Arista Networks launched Arista CloudEOS which features a cloud-native networking architecture. On the Kubernetes cluster, OS can now be deployed and utilised as a container.

June 2019- Big Switch Network announced getting to partnership with Mavenir are working with numerous customers to realize NFV deployments globally.

SEGMENTATION:

By Component

• Solutions
• Services

By End-Use

• Cloud Service Providers
• Enterprises
• Telecommunications Service Providers

By Vertical

• Banking, Financial Services and Insurance (BFSI)
• IT & Telecommunications
• Retail and Consumer Goods
• Manufacturing
• Automotive
• Government and Public Sector
• Healthcare
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa