Global Software-Defined Networking (SDN) Market Outlook
The global software-defined networking (SDN) market size was valued at USD 25.28 billion in 2023. The market is further projected to grow at a CAGR of 19.0% between 2024 and 2032, reaching a value of USD 120.50 billion by 2032.
Key Takeaways
- According to software-defined networking (SDN) market statistics, the SDN market is expected to reach over USD 60 billion by 2028.
- With a market share of 31.19 percent in November 2023, Google Drive was the market leader for file sharing software. Dropbox, based in San Francisco, came in second with a share of 18.61 percent.
- With over 300 locations, California has the highest concentration of data centres in the United States.
Software-defined networking (SDN) is in the process of redefining networking with an innovative strategy for dividing the data plane from the control plane. The software-defined networking technology is a network management strategy that allows dynamic and programmatically effective network setup to enhance network performance and tracking, making it more like cloud computing than traditional network management.
The incumbent IT substructure is under pressure to configure systems while complying with standards and norms robustly. SDN is rising as one of the most promising and lucrative networking technologies capable of enabling virtualisation and innovation of the network, addressing most of the ongoing networking issues, which in turn has resulted in favourable software-defined networking (SDN) market outlook.
Moreover, the increasing demand for cloud services, data center consolidation, network virtualisation, and mobility are factors driving software-defined networking (SDN) market growth. The adoption of SDN can help enterprises reduce operational and capital expenditures, improve network agility and flexibility, and support emerging technologies such as Internet of Things (IoT), artificial intelligence (AI), and 5G.
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Key Trends and Developments
Increasing adoption of 5G technologies, growing need for network automation, and emergence of SD-WAN solutions are boosting the demand for software-defined networking (SDN) solutions
| Date | Company | Partner | Development | Goal |
| February 2024 | Cisco | DISH Wireless | 5G hybrid cloud network slicing solution | Optimise Wireless 5G network and speed up enterprise services |
| February 2024 | MTN South Africa | Huawei | 800G optical network | Meet demand for cloud-based services, enhanced broadband, and wireless networks |
| January 2024 | National Chi Nan University | Juniper Networks | AI-driven wireless solutions | Empower digital-led campus experience, reliable and cost-effective wireless networking, enhance student experiences |
| April 2023 | Arista Networks | --- | CloudVision Guardian for Network Identity (CV-AGNI) | Help with network access control, use telemetry and AI to implement security policies, authenticate users, and troubleshoot problems |
| Trends | Impact |
| Rising demand for cloud-based services and applications | Cloud computing requires responsive and scalable network infrastructure that can support dynamic workloads and high data traffic. SDN enables cloud service providers to optimise network performance, reduce operational costs, and enhance data security. |
| Increasing adoption of 5G and Internet of Things (IoT) technologies | 5G and IoT are expected to generate massive amounts of data and increase network complexity and heterogeneity. SDN can facilitate the management of diverse network resources and devices and enable faster service delivery. |
| Growing need for network automation and programmability | Network automation and programmability can improve network efficiency, reduce human errors, and manual interventions. SDN allows network operators to configure, monitor, and control network behaviour through software applications. |
| Emergence of software-defined wide area network (SD-WAN) solutions | SD-WAN is a subset of SDN that applies SDN principles to wide area networks (WANs), which connect geographically dispersed locations and enterprises. SD-WAN can offer cost-effective, secure, and high-performance connectivity across multiple WAN links and service providers. |
| Increasing cybersecurity threats and challenges | Cybersecurity is a major concern for network operators and users, as cyberattacks can cause data breaches, service disruptions, and financial losses. SDN can enhance network security by enabling centralised visibility, control, and enforcement of network policies. |
Global Software-Defined Networking (SDN) Market Trends
One of the significant reasons of software-defined networking (SDN) market development is the use of SDN by data centres due to the enhanced SDN acceptance in the changing software-defined data centre (SDDC). Furthermore, the increasing deployment of private computers such as smartphones, notebooks, and tablets to access corporate networks due to the increasing need for corporate mobility have resulted in increased demand for software-defined networking (SDN).
This is because software-defined networking (SDN) offers centralised network control and promotes efficient network traffic decision-making for network operators. It also promotes network customisation and enables customer metered use. These factors will boost the software-defined networking (SDN) market size.
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Market Segmentation
Global Software-Defined Networking (SDN) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:
| Market Breakup | Categories |
| Type | Open SDN, SDN via API, SDN via Overlay |
| End-Use | Data Centres, Service Providers, Enterprises, Banking, Financial Services, and Insurance, Manufacturing, Retail, Healthcare, Education, Government and Defence |
| Region | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
Open SDN segment bolsters the market growth as it offers more flexibility for network operators
Software-defined networking (SDN) is a technology that enables network administrators to dynamically manage network resources and traffic flows through a centralised software controller. The software-defined networking (SDN) market value is rising due to the availability of different types of solutions, such as open SDN, SDN via API, and SDN via overlay. Open SDN refers to SDN solutions that use open-source software and protocols, such as OpenFlow, to implement the SDN architecture. Open SDN solutions offer more flexibility and interoperability.
SDN via API refers to SDN solutions that use proprietary or vendor-specific application programming interfaces (APIs) to communicate with the network devices and controllers. SDN via API solutions offer more stability and security. The rising demand for data security across industries leads to software-defined networking (SDN) market growth. Whereas SDN via overlay refers to SDN solutions that create a virtual network layer on top of the existing physical network infrastructure, using technologies such as VXLAN or NVGRE. SDN via overlay solutions offer more scalability and agility and is highly demanded in various industries.
Data centres hold a significant market share due to their extensive use of cloud computing, big data analytics, and artificial intelligence
The data centre segment accounted for the largest software-defined networking (SDN) market share in the historical period and is expected to maintain its dominance over the forecast period. Data centres are one of the major end-users of SDN, as they require efficient network management, scalability, flexibility, and security. SDN enables data centre operators to optimise their network resources, automate network provisioning and configuration, reduce operational costs, and enhance performance. The growing adoption of cloud computing, big data analytics, and artificial intelligence (AI) in various industries is driving the demand for SDN in data centres.
The BFSI sector is another key end-user in the SDN market, as it requires high-speed, reliable, and secure network connectivity to support its operations. SDN helps BFSI institutions to improve their network security, comply with regulatory standards, and fulfil customer expectations. SDN also enables BFSI institutions to offer innovative services and products, such as mobile banking, online banking, digital payments, and fintech solutions. As per the software-defined networking (SDN) market estimates, the BFSI segment will register a high CAGR in the future due to the increasing digitisation and transformation of the banking industry.
The manufacturing sector is also adopting SDN solutions to enhance its network performance, productivity, and competitiveness. SDN enables manufacturers to integrate their network infrastructure with their industrial systems, such as production lines, machines, sensors, and robots. SDN also facilitates the implementation of Industry 4.0 concepts, such as smart factories, internet of things (IoT), and edge computing, which require dynamic and scalable network connectivity. According to software-defined networking (SDN) market analysis, the manufacturing segment will witness a significant growth in the forecast period as more manufacturers leverage SDN to optimise their operations and innovation.
The retail sector is using SDN to improve its network efficiency, customer experience, and business intelligence. SDN allows retailers to manage their network traffic, bandwidth, and security across multiple locations, devices, and applications. SDN also enables retailers to offer personalised and interactive services to their customers, such as online shopping, digital signage, loyalty programs, and augmented reality (AR). The software-defined networking (SDN) market forecasts that the retail segment will grow at a promising CAGR as more retailers adopt SDN to enhance their customer engagement and satisfaction.
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Competitive Landscape
Market leaders are actively engaged in partnerships across industries to enable faster networking and strengthen their presence
| Company Name | Year Founded | Headquarters | Products/Services |
| Arista Networks, Inc. | 2004 | California, United States | Cloud networking solutions, switches, routers, software |
| Cisco Systems, Inc. | 1984 | California, United States | Networking hardware, software, telecommunications, cloud computing, IoT |
| HUAWEI Technologies Co., Ltd. | 1987 | Guangdong, China | Telecommunications equipment, consumer electronics, cloud computing, artificial intelligence |
| Juniper Networks, Inc. | 1996 | California, United States | Networking products, switches, routers, security, software-defined networking |
Other key players in the global software-defined networking (SDN) market include VMware, Inc., and Extreme Networks, Inc., among others.
Global Software-Defined Networking (SDN) Market Analysis by Region
Asia Pacific to dominate the market in forecast period due to the increasing demand for bandwidth and cloud services in China, India, and Japan
North American region accounts for a significant software-defined networking (SDN) market share due to the presence of major players such as Cisco, VMware, IBM, and Juniper Networks, along with the high adoption of cloud computing, big data analytics, and Internet of Things (IoT) among various industries. The region is also expected to witness the highest CAGR during the forecast period, as more enterprises are shifting to SDN solutions to enhance their network security and efficiency.
Asia Pacific is expected to be the fastest-growing software-defined networking (SDN) market during the forecast period, due to the increasing demand for bandwidth, mobility, and cloud services among the emerging economies such as China, India, Japan, and South Korea. The region is also witnessing a rapid growth of data centres, telecom operators, and cloud service providers, which are driving the adoption of SDN solutions to optimise their network performance and reduce operational costs.
According to software-defined networking (SDN) market report, the demand for SDN in Middle East and Africa region is expected to show moderate growth. Even if the awareness and adoption of SDN solutions are low compared to other regions, the growing investments in digital transformation, smart cities, and e-commerce sectors are creating opportunities for the SDN vendors to expand their presence and offer customised solutions to meet the specific needs of the regional customers.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report | Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup byType |
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| Breakup byEnd Use |
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| Breakup by Region | |
| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Snapshot
6.1 Global
6.2 Regional
7 Opportunities and Challenges in the Market
8 Global Software-Defined Networking (SDN) Market Analysis
8.1 Key Industry Highlights
8.2 Global Software-Defined Networking (SDN) Historical Market (2018-2023)
8.3 Global Software-Defined Networking (SDN) Market Forecast (2024-2032)
8.4 Global Software-Defined Networking (SDN) Market by Type
8.4.1 Open SDN
8.4.1.1 Historical Trend (2018-2023)
8.4.1.2 Forecast Trend (2024-2032)
8.4.2 SDN Via API
8.4.2.1 Historical Trend (2018-2023)
8.4.2.2 Forecast Trend (2024-2032)
8.4.3 SDN Via Overlay
8.4.3.1 Historical Trend (2018-2023)
8.4.3.2 Forecast Trend (2024-2032)
8.5 Global Software-Defined Networking (SDN) Market by End Use
8.5.1 Data Centres
8.5.1.1 Historical Trend (2018-2023)
8.5.1.2 Forecast Trend (2024-2032)
8.5.2 Service Providers
8.5.2.1 Historical Trend (2018-2023)
8.5.2.2 Forecast Trend (2024-2032)
8.5.3 Enterprises
8.5.3.1 Historical Trend (2018-2023)
8.5.3.2 Forecast Trend (2024-2032)
8.5.4 Banking, Financial Services, and Insurance
8.5.4.1 Historical Trend (2018-2023)
8.5.4.2 Forecast Trend (2024-2032)
8.5.5 Manufacturing
8.5.5.1 Historical Trend (2018-2023)
8.5.5.2 Forecast Trend (2024-2032)
8.5.6 Retail
8.5.6.1 Historical Trend (2018-2023)
8.5.6.2 Forecast Trend (2024-2032)
8.5.7 Healthcare
8.5.7.1 Historical Trend (2018-2023)
8.5.7.2 Forecast Trend (2024-2032)
8.5.8 Education
8.5.8.1 Historical Trend (2018-2023)
8.5.8.2 Forecast Trend (2024-2032)
8.5.9 Government and Defence
8.5.9.1 Historical Trend (2018-2023)
8.5.9.2 Forecast Trend (2024-2032)
8.6 Global Software-Defined Networking (SDN) Market by Region
8.6.1 North America
8.6.1.1 Historical Trend (2018-2023)
8.6.1.2 Forecast Trend (2024-2032)
8.6.2 Europe
8.6.2.1 Historical Trend (2018-2023)
8.6.2.2 Forecast Trend (2024-2032)
8.6.3 Asia Pacific
8.6.3.1 Historical Trend (2018-2023)
8.6.3.2 Forecast Trend (2024-2032)
8.6.4 Latin America
8.6.4.1 Historical Trend (2018-2023)
8.6.4.2 Forecast Trend (2024-2032)
8.6.5 Middle East and Africa
8.6.5.1 Historical Trend (2018-2023)
8.6.5.2 Forecast Trend (2024-2032)
9 North America Software-Defined Networking (SDN) Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Software-Defined Networking (SDN) Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Software-Defined Networking (SDN) Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Australia
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Others
12 Latin America Software-Defined Networking (SDN) Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Middle East and Africa Software-Defined Networking (SDN) Market Analysis
13.1 Saudi Arabia
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 United Arab Emirates
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Nigeria
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
13.4 South Africa
13.4.1 Historical Trend (2018-2023)
13.4.2 Forecast Trend (2024-2032)
13.5 Others
14 Market Dynamics
14.1 SWOT Analysis
14.1.1 Strengths
14.1.2 Weaknesses
14.1.3 Opportunities
14.1.4 Threats
14.2 Porter’s Five Forces Analysis
14.2.1 Supplier’s Power
14.2.2 Buyer’s Power
14.2.3 Threat of New Entrants
14.2.4 Degree of Rivalry
14.2.5 Threat of Substitutes
14.3 Key Indicators for Demand
14.4 Key Indicators for Price
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1 Arista Networks, Inc. (NYSE: ANET)
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 Cisco Systems, Inc. (NASDAQ: CSCO)
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 HUAWEI Technologies Co., Ltd.
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 Juniper Networks, Inc. (NYSE: JNPR)
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 VMware, Inc. (NYSE: VMW)
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 Extreme Networks, Inc.
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 Others
16 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Global Software-Defined Networking (SDN) Market: Key Industry Highlights, 2018 and 2032
2. Global Software-Defined Networking (SDN) Historical Market: Breakup by Type (USD Billion), 2018-2023
3. Global Software-Defined Networking (SDN) Market Forecast: Breakup by Type (USD Billion), 2024-2032
4. Global Software-Defined Networking (SDN) Historical Market: Breakup by End Use (USD Billion), 2018-2023
5. Global Software-Defined Networking (SDN) Market Forecast: Breakup by End Use (USD Billion), 2024-2032
6. Global Software-Defined Networking (SDN) Historical Market: Breakup by Region (USD Billion), 2018-2023
7. Global Software-Defined Networking (SDN) Market Forecast: Breakup by Region (USD Billion), 2024-2032
8. North America Software-Defined Networking (SDN) Historical Market: Breakup by Country (USD Billion), 2018-2023
9. North America Software-Defined Networking (SDN) Market Forecast: Breakup by Country (USD Billion), 2024-2032
10. Europe Software-Defined Networking (SDN) Historical Market: Breakup by Country (USD Billion), 2018-2023
11. Europe Software-Defined Networking (SDN) Market Forecast: Breakup by Country (USD Billion), 2024-2032
12. Asia Pacific Software-Defined Networking (SDN) Historical Market: Breakup by Country (USD Billion), 2018-2023
13. Asia Pacific Software-Defined Networking (SDN) Market Forecast: Breakup by Country (USD Billion), 2024-2032
14. Latin America Software-Defined Networking (SDN) Historical Market: Breakup by Country (USD Billion), 2018-2023
15. Latin America Software-Defined Networking (SDN) Market Forecast: Breakup by Country (USD Billion), 2024-2032
16. Middle East and Africa Software-Defined Networking (SDN) Historical Market: Breakup by Country (USD Billion), 2018-2023
17. Middle East and Africa Software-Defined Networking (SDN) Market Forecast: Breakup by Country (USD Billion), 2024-2032
18. Global Software-Defined Networking (SDN) Market Structure
