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Market Overview

Software defined networking (SDN) is an approach to network management that allows dynamic and programmatically efficient network configuration to enhance network performance and monitoring making it more similar to cloud computing than conventional network management. This helps operators to manage the entire network consistently irrespective of underlying network technology. This paradigm enables network administrators to establish data flow control across the entire network instead of individual devices. This also helps in creating secure paths for data flow with relative ease.

The global Software Defined Networking market is estimated to account for US$ 5690.1 Mn in terms of value by the end of 2019.

Market Dynamics- Drivers

  1. Increasing need for mobility is expected to drive growth of the global software defined networking (SDN) market during the forecast period

Rising use of mobile data has supported mobile network operators to upgrade their existing systems, in order to manage to expand consumer base and applications & devices. Customers use mobile phones for conducting financial transactions, which in turn, is driving the need for low latency and high-speed switches. Telecommunication service providers employ Operations Support Systems (OSS) to manage and support their business through provisioning services. However, re-architecting the entire network to accommodate OSS solutions is a cumbersome task. Companies such as Deutsche Telekom are aiming to establish an SDN model to simplify network operations while reducing costs. Thus, these factors are expected to drive growth of the global software defined network (SDN) market during the forecast period.

  1. Growing cloud service is expected to propel the global software defined networking (SDN) market growth over the forecast period

Many organizations have started storing, computing, and networking through cloud-based infrastructure. This is owing to the fact that cloud infrastructure is flexible, agile, and cost-efficient. A clear understanding of SDN technology is necessary to implement cloud computing services effectively within an organization. SDN technology can address the concurrent needs for virtualization, mobility, agility, and management in modern network environments and tackle the reliable delivery of new services and applications in the cloud. Currently, the majority of enterprises have infrastructure-based solutions such as infrastructure-as-a-service (IAAS). Thus, these factors are expected to propel the global software defined networking (SDN) market growth over the forecast period.

Statistics:

North America region held dominant position in the global software defined networking market in 2019, accounting for 36.6% share in terms of value, followed by Asia pacific, Europe, Latin America, and Middle East & Africa (MEA) respectively.

Figure 1: Global Software Defined Networking Market Share (%), in terms of Value, By Region, 2019

Software Defined Networking  | Coherent Market Insights

Market Dynamics- Restraints

  1. Lack of standardization in SDN technology is expected to restrain growth of the global software defined networking (SDN) market during the forecast period

Currently, there are no particular standards for SDN controllers, which is a major problem in finding the best and the most adaptable standard for the environment. Administrators are focused on creating customized solutions and investing more time in trying to find and adopt the best SDN solution. The conventional networking requires separate networks and management applications for wireless connectivity. Moreover, many SDN offerings are still incomplete and require extensive customization. Thus, many IT organizations are building and creating their own standards for SDN technology. Thus, such factors are expected to restrain growth of the global software defined networking (SDN) market during the forecast period.

  1. Challenges associated with interoperability are expected to hamper the global software defined network (SDN) market growth over the forecast period

Emerging service needs to perform well in the existing network, in order to achieve widespread implementation. Although vision SDN technology is lucrative, many vendors and service providers find it challenging to move from their legacy systems. This is due to the fact that SDN technology requires a new and different hardware and software setup. Moreover, it requires standard protocols and APIs. Besides, SDN network cannot perform on legacy network infrastructure. Interoperability is a key challenge in success of SDN technology at present. Therefore, these factors are expected to hamper the market growth over the forecast period.

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Software Defined Networking Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 5,690.1 Mn
Historical Data for: 2017 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 61.5% 2027 Value Projection: USD 26,3331.2 Mn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By End-users: (Enterprises, Cloud Service Providers, and Telecommunications Service Providers)
  • By Solutions: (SDN Switching, SDN Controllers, Cloud Provisioning and Orchestration, and Others (Security and Services))
Companies covered:

Alcatel-Lucent, Huawei Technologies, Cisco Systems, Inc., Juniper Networks, NEC Corporation, IBM Corporation, Google Inc., VMware, and Hewlett Packard Company.

Growth Drivers:
  • Increasing need for mobility
  • Growing cloud service
Restraints & Challenges:
  • Lack of skilled personnel

Market Opportunities

  1. Rising acceptance of BOYD culture can present lucrative growth opportunities

Bring your own device (BOYD) is a policy allowing employees to bring their personal devices to their workplace and use both devices to access company information and application. BOYD is an emerging trend in the SDN market that poses major opportunities. Many enterprises do not allow employees to bring their devices at workplace due to the risk of company’s confidential data and information leakage. However, with the security benefits of SDN technology, they are allowing BYOD policy in their organization. It is estimated that by coming years, majority of the IT organization will allow BYOD policy to their employees as they would find it more familiar to use and thus, may become more productive.

  1. Research and development activities among market players can provide major business opportunities

Key players operating in the market are focused on research and development activities, in order to introduce novel products and gain a competitive edge in the market. For instance, in 2013, IBM introduced a new software solution that provides scalable overlays via SDN technology based on IBM’s DOVE (Distributed Overlay Virtual Ethernet). This software is supposed to provide faster provisioning and more scalable virtual networks. Furthermore, in 2012, VMware introduced vFabric, a cloud application platform that includes application performance management from VMware’s Hyperic monitoring tool.

Figure 2: Global Software Defined Networking Market Value (US$ Mn), 2017 - 2027

Software Defined Networking  | Coherent Market Insights

The global software defined networking market was valued at US$ 5,690.1 Mn in 2019 and is estimated to reach US$ 26,3331.2 Mn by 2027 exhibiting a CAGR of 61.5% between 2020 and 2027.

Market Trends

  1. Mergers and acquisitions among market players is a major trend

Major market players are involved in merger and acquisition activities, in order to enhance the market presence. For instance, in 2012, Cisco acquired vCider, an expert in the development of virtual network overlay technology for secure data center infrastructure virtualization. Furthermore, in February 2012, Juniper Networks acquired Mykonos Software, a provider of Intrusion Deception Systems that protect Websites and Web applications.

  1. Development of open source SDN is another major trend

Key market players in the market are focused on the development of open source SDN, in order to expand their consumer base and gain a significant advantage. For instance, Open Network Operating System (ONOS) is an open-source SDN controller used to build next-generation SDN/NFV solutions. It acts as an extensible, modular, distributed SDN controller.

Value Chain Analysis

The important participants of SDN value chain include Network Equipment Providers (NEPs), service providers, enterprises and end users. NEPs include Alcatel-Lucent, Cisco, IBM, NEC, VMware and Juniper Networks among others. They develop controller’s functions, virtual switches and routers. They offer entire range of products and turnkey services, which will be the key to drive SDN into mainstream data center applications. SDN technology is becoming a long-term threat for traditional hardware based networking equipment suppliers as new SDN entrants are emerging and dominating the legacy networking system. In addition, intense competition in the market and escalating network complexity has been generating demand for network efficiency, network resiliency as well as for cloud services.

Software Defined Networking  | Coherent Market Insights

Competitive Section

Key players operating in the global software defined networking (SDN) market are Alcatel-Lucent, Huawei Technologies, Cisco Systems, Inc., Juniper Networks, NEC Corporation, IBM Corporation, Google Inc., VMware, and Hewlett Packard Company.

Key Developments

  1. Key companies are focused on business and capacity expansion, in order to enhance the market presence. For instance, in March 2018, Huawei Technologies inaugurated a software defined network innovation lab in IIIT Bangalore.
  2. Major market players are focused on product launches, in order to expand the product portfolio. For instance, in December 2019, Juniper Networks introduced SD-WAN Offering with LAN Functionality.

Software-defined networking is an ideal application for high bandwidth applications. SDN enables the network to be centrally controlled and programmed using software applications using open API. By using the SDN in a traditional closed network, an operator can manage the entire network and its associated devices consistently. Software-defined networking is majorly getting adopted across data centers, wide area network, and the access network. Furthermore, in the last few years, SDN has evolved into reputable networking technology offered by vendors such as Huawei Technologies, Juniper Networks, NEC Corporation, and IBM.

Market Dynamics

The growth of software-defined networking is driven by the increasing adoption of cloud computing, growing investment in the software-defined networks for capital expenditure and operating expenses, and the rising need for mobility services. For instance, according to Coherent Market Insights, in the year 2020, globally around 93% of enterprises were using cloud services, and it is expected to grow over the forecast period. 

Furthermore, the increasing usage of IoT in conjunction with software defines networking operations is further expected to boost the demand of the SDN Market. 

 In addition, a lack of standardization in the implementation and utilization of software-defined networking technology is expected to hamper the growth of the Software-Defined Networking market over the forecast period.

Key features of the study:

  • This report provides in-depth analysis of the global Software Defined Networking market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2020–2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading  market players
  • It profiles leading players in the global Software Defined Networking market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as part of this study Alcatel-Lucent, Huawei Technologies, Cisco Systems, Inc., Juniper Networks, NEC Corporation, IBM Corporation, Google Inc., VMware, and Hewlett Packard Company.
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global Software Defined Networking market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global Software Defined Networking market

Detailed Segmentation

  • Global Software Defined Networking Market, By End-users:
      • Enterprises
      • Cloud Service Providers
      • Telecommunications Service Providers
  • Global Software Defined Networking Market, By Solutions:
      • SDN Switching
      • SDN Controllers
      • Cloud Provisioning and Orchestration
      • Others (Security and Services)
  • Global Software Defined Networking Market, By Region:
    • North America
      • By End-users:
        • Enterprises
        • Cloud Service Providers
        • Telecommunications Service Providers
      • By Solutions:
        • SDN Switching
        • SDN Controllers
        • Cloud Provisioning and Orchestration
        • Others (Security and Services)
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By End-users:
        • Enterprises
        • Cloud Service Providers
        • Telecommunications Service Providers
      • By Solutions:
        • SDN Switching
        • SDN Controllers
        • Cloud Provisioning and Orchestration
        • Others (Security and Services)
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By End-users:
        • Enterprises
        • Cloud Service Providers
        • Telecommunications Service Providers
      • By Solutions:
        • SDN Switching
        • SDN Controllers
        • Cloud Provisioning and Orchestration
        • Others (Security and Services)
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By End-users:
        • Enterprises
        • Cloud Service Providers
        • Telecommunications Service Providers
      • By Solutions:
        • SDN Switching
        • SDN Controllers
        • Cloud Provisioning and Orchestration
        • Others (Security and Services)
      • By Country:
        • Brazil
        • Mexico
        • Rest of Latin America
    • Middle East & Africa
      • By End-users:
        • Enterprises
        • Cloud Service Providers
        • Telecommunications Service Providers
      • By Solutions:
        • SDN Switching
        • SDN Controllers
        • Cloud Provisioning and Orchestration
        • Others (Security and Services)
      • By Country/Region:
        • GCC Countries
        • South Africa
        • Rest of Middle East and Africa
  • Company Profiles
    • Alcatel-Lucent*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • Huawei Technologies.
    • Cisco Systems, Inc
    • Juniper Networks
    • NEC Corporation
    • IBM Corporation
    • Google Inc
    • VMware
    • Hewlett Packard Company

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Segment
      • Market Snippet, By Gender
      • Market Snippet, By Age Group
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Component Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Software Defined Networking Market - Impact of Coronavirus (Covid-19) Pandemic
    • Short Term
    • Long term
  5. Global Software Defined Networking Market, By Segment, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Virtual Goods
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Advertising
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Lead Generation/Offers
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  6. Global Software Defined Networking Market, By Gender, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Male
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Female
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  7. Global Software Defined Networking Market, By Age Group, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • 13 – 18 years
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 19 – 25 years
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 26 – 35 years
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 36 – 45 years
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • 46+ years
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  8. Global Software Defined Networking Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Segment, 2020–2027(US$ Million)
      • Market Size and Forecast, By Gender, 2020–2027(US$ Million)
      • Market Size and Forecast, By Age Group, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Segment, 2020–2027(US$ Million)
      • Market Size and Forecast, By Gender, 2020–2027(US$ Million)
      • Market Size and Forecast, By Age Group, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Segment, 2020–2027(US$ Million)
      • Market Size and Forecast, By Gender, 2020–2027(US$ Million)
      • Market Size and Forecast, By Age Group, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Segment, 2020–2027(US$ Million)
      • Market Size and Forecast, By Gender, 2020–2027(US$ Million)
      • Market Size and Forecast, By Age Group, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Segment, 2020–2027(US$ Million)
      • Market Size and Forecast, By Gender, 2020–2027(US$ Million)
      • Market Size and Forecast, By Age Group, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  9. Competitive Landscape
    • Company Profiles
      • Zynga, Inc *
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/ Updates
      • Wooga GmbH
      • Playtika Ltd
      • King
      • Tencent Holdings Ltd
      • Electronic Arts, Inc
      • Renren Inc
      • CrowdStar
      • Booyah Inc
      • Social Point
  10. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global Software Defined Networking Market -forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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