The “Global Software Defined Networking Market, 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)), and by Geography (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) - Global Forecast to 2027”, was valued at US$ 5,690.1 million in 2019, witnessing a CAGR of 61.5% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.


Software defined networking (SDN) is a network architecture approach that allows the network to be intelligently and centrally programmed using software application. It helps the operator to handle the entire network consistently and holistically irrespective of the underlying network technology. This also helps in creating secure paths for data flow with relative ease. Major market players such as IBM implement SDN through the OpenFlow protocol, which provides a software-based access to flow tables. OpenFlow is controlled by the Open Network Foundation (ONF), which is led by Deutsche Telekom, Facebook, Google, Microsoft, NTT, Verizon, and Yahoo.

The global Software Defined Networking market is estimated to account for US$ 5,690.1 Mn in terms of value by the end of 2019.

Market Driver

Rising need for efficient network infrastructure is expected to accelerate growth of the global software defined networking (SDN) market during the forecast period

Currently, many IT organizations are facing high demand for virtualization, consolidation, and convergence. Many of these organizations are experiencing that the performance, scalability, and resiliency of their network infrastructures are no longer sufficient to meet their current and future business requirements. This leads to need for effective network infrastructure. SDN technology is changing the conventional method of networking for improved business agility by making the network more programmable, along with helping in improving efficiency through centralized management. Furthermore, it provides better service control across entire network fabric for any user or device to achieve a high and consistent experience, besides ensuring efficient network infrastructure. The technology gives network operators and owners more control of their infrastructure, allowing optimization and customization and reducing the overall capital and operational costs. Therefore, these factors are expected to propel the global software defined networking (SDN) market growth over the forecast period.

Market Opportunities

Growing adoption of IoT can present major business opportunities

Internet of Things (IoT) is one of the emerging technologies and is being integrated with software defined networking (SDN). The IoT aims to connect objects over the internet, while SDN provides orchestration for network management by decoupling the control plane and data plane. SDN can help expand IoT-enabled devices and enhance efficiency network sources. Key players in the market can capitalize on these opportunities by providing novel products and gain a competitive edge in the market.  

Market Restraint

Lack of skilled personnel is expected to hinder the global software defined networking (SDN) market growth over the forecast period

Software-defined networking (SDN) requires skilled personnel to operate and manage. Adequate training is required to be given to untrained workers, which is time consuming and expensive. Besides, there is a lack of such skilled workers in emerging regions such as the Middle East & Africa and Latin America. Hence, these factors are expected to hinder the global software defined networking (SDN) market growth over the forecast period.

Market Trends

  1. North America Trends

Among regions, North America is expected to witness significant growth in the global software defined networking (SDN) market during the forecast period. This is owing to large presence of key market players such as IBM Corporation, Cisco Systems Inc., Verizon Wireless Inc., and Google Inc. across the region. Furthermore, rising investments in the field of research and development for SDN is expected to regional market growth over the forecast period.

  1. Asia Pacific Trends

Asia Pacific is expected to register a robust growth rate in the global software defined networking (SDN) market during the forecast period. This is owing to high growth of the information technology sector across emerging economies such as China, Japan, and India. Moreover, increasing investment by major market players such as Huawei Technologies is expected to boost the regional market growth over the forecast period.

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

Major companies are focused on product launches, in order to expand the product portfolio. For instance, in August 2019, VMware Inc. introduced a complete SDN and security stack for multi-cloud era.


Market Taxonomy:

  1. By End User
  • Enterprises
  • Cloud Service Providers
  • Telecommunication Service Providers
  1. By Geography
  • North America
  • Europe
  • Asia Pacific
  • RoW
  1. By Solution
  • SDN switching
  • SDN controllers
  • Cloud provisioning and orchestration
  • Others (services and security)


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