Software Defined Networking (SDN) Market Overview:
Software Defined Networking (SDN) Market is expected to garner $132.9 billion by 2022, registering a CAGR of 47% during the forecast period 2016-2022. Global software defined networking (SDN) market technology provides ease and control for maintenance of complex networks. It helps in overcoming the limitation associated with traditional network infrastructure. It segregates the control and data plane and implements a centralized and programmable control over the data networks. SDN plays a major role in managing the typical networking infrastructure in organizations by implementing customized, virtual, and automated network for data traffic management and efficiently managing big data and others. SDN is the most effective way to manage big data, which generate large volumes of highly distributed data related to marketing, operations, production, and customer support service, which are analyzed to enable better decision-making. Adaptive and intelligent networks can be made with the help of SDN to manage both structured and unstructured data in big data analytics. This technology has redefined the networking architecture by providing a flexible way to manage and control complex networks through efficient resources and data traffic management.
Industries, such as IT, BFSI, healthcare, telecom, defense, and manufacturing among others, to adopt this emerging technology for effective network utilization, improved efficiency, and automation of tasks. Complex network traffic patterns, increasing cloud computing services, need for mobility services, need for efficient infrastructure, and advent of big data analytics are the major factors driving the software defined networking market growth.
On the basis of geography, the software defined networking market can be segmented into four major segments namely, North America, Europe, Asia-Pacific, and LAMEA. North American SDN market share is expected to dominate the SDN industry in the forecast period. North American countries have adopted new technologies like cloud computing, mobility services, and network virtualization services at early stage. Technological advancements and high rate of industrialization are some of the key factors contributing to the rapid growth of the software-defined networking market in this region. Asia-Pacific is projected to be the fastest growing market Asia-Pacific is projected to be the fastest growing market.
The value chain of the software defined networking market comprises majorly three stakeholders namely, SDN providers, distributors, and end users. Each stakeholder adds a specific value at their point of operation to enhance the value of the final deliverable. SDN applications and SDN-enabled network devices are sold either directly by SDN vendors or through distribution channels. The end deliverables offered by each player is enhanced by R&D activities, innovations, and services.
The solution segment includes physical network infrastructure, virtualization & control software, professional services, and SDN applications & network services. The vertical segment includes key industrial sectors such as IT, consumer goods & retail, healthcare, defense, BFSI, telecom, and others. The IT sector was the highest-revenue generating segment in the market. While, consumer goods and retailing sector is fastest growing vertical segment. In the end-user segment, enterprises are projected to be the highest revenue-generating segment. However, cloud service providers are expected to be the fastest growing segment.
Software defined networking technology is implemented by various enterprises which include retail, banking, insurance, manufacturing, telecommunication, academic institution and others. SDN provides various benefits to the organization such as management and automation of data traffic, reduction in the operational cost of network equipment, enabling new services such as BYOD, cloud computing, efficient use of time, and abstraction of network infrastructure by providing centralized virtual network that is easily manageable.
Top Factors Impacting Software Defined Networking Market
Complex Network Traffic Patterns
SDN assists in managing complex and rapidly changing network traffic patterns and provides flexible network traffic management solutions. SDN provides centralized control of complex networks and facilitates effective decision-making regarding network traffic for network operators. It facilitates customization of networks and allows metered usage for customers. Thus, it is one of the prominent factors boosting the growth of the software defined networking market size.
Upsurge in Cloud Computing Services
Upsurge in cloud computing services among IT organizations has fueled the growth of the software defined networking market. SDN allows network virtualization through a single controller over cloud-based networking. It eliminates configuration of individual switches, routers, and other network hardware. As cloud computing services has largely been adopted across all businesses and domestic sectors for a wide range of applications such as the need for latest version of applications, supporting mobility and BYOD services for virtualized computing resources, and others. Therefore, cloud computing services act as a positive factor influencing the growth of the software defined networking market.
Need for Mobility Services
The adoption of mobile devices has tremendously increased over the past few years, leading to increasing need for efficient data networks across private and public sectors. This, in turn is boosting growth of software defined networking industry. Businesses have widely adopted mobility services to boost their productivity, optimize mobile workforce performance, and others. The implementation of SDN technology in organizations would cater to the growing need for mobility. SDN controller provides a central access point to distribute security and policy information consistently throughout the enterprise and solve complex issues such as securing mobility services in BYOD devices, providing centrally manageable network, customized use of data by customers in the telecom sector, minimizing the use of network hardware devices, and others.
Need for Technological Advancement
The growing need for technological advancement among enterprises offer lucrative opportunities to market players to expand their market presence. SDN facilitates rapid growth of business and applications of organizations by modifying the physical networking environment into software, thereby reducing the overall capital expenses (CAPEX) and operational expenses (OPEX).
- This study comprises analytical depiction of the global software defined networking market with the trends of current and future scenario to depict the investment pockets in the market
- Determination of the overall market attractiveness and understanding of the profitable trends for gaining a stronger coverage in the market.
- The report throws light on information regarding key drivers, restraints, and opportunities with impact analysis
- The current market is quantitatively analyzed and projected for the years 2015-2022, which have been provided to highlight the financial appetency of the software defined networking market
- Porter’s Five Forces model analysis of the industry illustrates the potency of the buyers and suppliers participating in the market
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain
Software Defined Networking Market Key Segments
The market is segmented on the basis of solution, end-user, vertical, and geography.
- Physical Network Infrastructure
- Virtualization and Control Software
- Professional Services
- SDN Applications & Network Services
- Telecommunication Service Providers
- Cloud Service Providers
- Consumer Goods and Retail
- North America