Multi-Cloud SDN Market size was valued at USD 5 Billion in 2023 and is anticipated to exceed USD 19.5 Billion by the end of 2036, registering over 12% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of multi-cloud SDN is estimated at USD 5.6 Billion.
The primary drivers of the multi-cloud SDN market development are the growing adoption of hybrid cloud and multi-cloud strategies by companies across a range of industry verticals, the pressing need for higher-level policy and governance administration, and the substantial shift in the workforce toward remote work brought on by the pandemic outbreak. It was further observed by Eurostat statistics that in 2023, 42.5% of EU businesses purchased cloud computing services, primarily for office software, file storage, and email.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12% |
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Base Year Market Size (2023) |
USD 5 Billion |
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Forecast Year Market Size (2036) |
USD 19.5 Billion |
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Regional Scope |
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Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud)
In multi-cloud SDN market, hybrid cloud segment is estimated to reach USD 98 Billion by 2036 and amounting to 42% of the global market. The segment’s growth can be attributed to the increasing adoption rate of hybrid cloud provides growth opportunities rising need for more computational power and rapidly for the market. Enterprises are leveraging the hybrid cloud model to eliminate business challenge that are difficult to address with traditional IT infrastructure.
The hybrid cloud approach was used by 56% of companies with more than USD 500 million in revenues. Hybrid cloud is bridging the gap between IT and businesses by improving agility and efficiency as well as by rapidly delivering IT resources at a low cost. It empowers enterprises to extend their applications and infrastructure as required, and offers users high-seed performance and high availability.
Hybrid cloud provides economies of scale while simultaneously delivering security to the sensitive information of businesses. As the availability of secure, scalable, and cost-effective resources can provide organizations with more opportunities to explore different operational avenues, it would drive the adoption of the hybrid cloud environment among organizations.
Enterprise Size (Small-Mid-Sized Enterprises (SMEs), Large Enterprises)
The Small-mid sized enterprises segment is likely to capture multi-cloud SDN market share of over 56% by 2036. SMEs are focused on lowering overall costs and implementing improved infrastructure. For their company operation to become more cost-effective, they need a flexible payment approach. SMEs are embracing cloud infrastructure services at a quick pace due to their simplicity of use and flexibility; demand is anticipated to increase throughout the forecast period. Over the next three to five years, cloud computing technology will be widely embraced due to SMEs' cost-consciousness. As observed, SMEs were spending 47% of their technology budgets on cloud services by 2022.
End-User (Manufacturing, BFSI, Energy & Utilities, Retail, Defense and Government, IT and Telecommunications, Healthcare, transportation, and Logistics)
The retail segment is slated to garner significant multi-cloud SDN market share over the forecast period. Retailers are embracing more cutting-edge technology like cloud computing, big data analytics, digital storefronts, and social networks in response to the growth of online marketplaces. For vendors in a given industry to provide their corresponding products and services, a full cloud infrastructure is required portfolios to the clients.
Due to intense rivalry, the retail and eCommerce sectors must manage demand fluctuations and volatility for a variety of products. Digital enterprises can only thrive if they promptly address the demands of their clientele and implement appropriate pricing strategies. The availability of retail locations and the adoption of omni-commerce are anticipated to contribute to the potential expansion of the retail and eCommerce verticals shortly. In light of this, the market is estimated to witness significant growth in this segment.
Our in-depth analysis of the market includes the following segments:
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Deployment Model |
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Enterprise Size |
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End-User |
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North America Market Statistics
North American region in multi-cloud SDN market is predicted to capture around 36% revenue share by the end of 2036. The market growth in the region is also expected on account of the rising adoption of cloud services owing to its cost-efficiency and agility. The region robustly identifies several leading use cases and capabilities that are more often than not required in building a global private multi-cloud network that connects on-premises environments to single or multiple public clouds with distributed cloud, Internet, and SaaS connectivity. Further, 96% of businesses use one or more public clouds. Half of the workloads of businesses are hosted on public clouds. Businesses use 2.2 public clouds on average. 48 percent of data is kept by organizations on public clouds.
Furthermore, the United States has a mature industry regarding the adoption of cloud computing adoption, propelling multi-cloud SDN services. Also, the U.S. is home to multiple multi-cloud SDN solution vendors, such as Cisco, Oracle, /Juniper Networks, F5, and Dell among others.
The high internet penetration, coupled with initiatives from government agencies moving partially to the cloud to improve information services would also drive the growth of multi-could SDN technologies in Canada.
APAC Market Analysis
APAC region in multi-cloud SDN market size is expected to cross USD 1.8 Billion by 2036, growing at a CAGR of 31% owing to organizations in the region adopting multi and hybrid-cloud strategies to leverage the benefits of multiple cloud platforms. This trend is driven by the need for flexibility, scalability, and cost optimization. Businesses are looking for strategies to effectively manage cloud resources and minimize their cloud expenses.
With the help of features like workload optimization, resource monitoring, and cost analytics, multi-cloud management solutions help businesses make the most out of their cloud investments. It is projected that these elements will fuel the need for multi-cloud management solutions. For instance, in March 2022, the Ministry of Electronics and Information Technology introduced the India Enterprise Architecture (IndEA) framework, which focuses on adopting multi-cloud and cloud and hybrid cloud architecture for government organizations
The integration of cloud computing services for industrial transformation is one of the most prominent trends, in China. It is estimated that in China, the cloud computing industry has been growing around 25-35% each year, for the last five years, and the trend will likely continue shortly.
South Korea aims to attract more people to its growing cloud computing sector. Despite American dominance, South Korean businesses are contributing to the global cloud sector. A survey of South Korean Software as a Service (SaaS) cloud enterprises in 2022 revealed that approximately 69% of those using multi-cloud services combined numerous international clouds with one domestic cloud.
The cutting-edge facility, known as OS3, allows businesses in Japan to utilize Platform Equinix to create future-proof hybrid multi-cloud architecture and embrace digitalization in the new era with an initial expenditure of US$55 million. Major cloud service providers (CSPs) have been using Osaka as a new regional hub to enhance their offerings and bolster their influence in Asia-Pacific multi-cloud SDN market in recent years.
These businesses have used a variety of strategic techniques to increase their market shares in both domestic and international markets. to collaborate with the suppliers to provide cutting-edge solutions that efficiently manage corporate operations.
Author Credits: Abhishek Verma
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