Software-Defined Networking Market size was valued at USD 30.93 billion in 2024 and is expected to reach USD 271.9 billion by 2037, expanding at around 18.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of software-defined networking is assessed at USD 35.43 billion. The increasing need to optimize network resources and quickly adapt networks to changing business needs, applications, and traffic is leading to the adoption of the software-defined networking (SDN) approach in network virtualization and containerization.
Software-defined networking (SDN) promotes efficient network traffic decision-making for network operators and offers centralized network control. Software-defined networking function virtualization investments help in the reduction of CAPEX and OPEX expenditures. This helps in reducing the reliance that enterprises had on hardware platforms. For instance, a virtualized radio access network (vRAN) helps to lower operating expenses due to the limited power consumption and with an estimated total cost of ownership savings.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
18.2% |
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Base Year Market Size (2024) |
USD 30.93 billion |
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Forecast Year Market Size (2037) |
USD 271.9 billion |
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Regional Scope |
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End Users (Data Centers, Service Providers, Enterprises)
The data centers segment is slated to hold 45% share of the SDN market by 2037. The increasing number of data centers is driving the segment growth. There were over 8,000 data centers across the globe in 2022. SDN helps data center service providers to simplify and automate the provisioning of their networks for end-to-end network and service management and control. SDN controllers are a critical part of a data center software-defined network as they manage the flow control to network switches and routers. Moreover, as in a software-defined data center, all elements of the infrastructure viz, networking, storage, CPU, and security are virtualized and delivered as a service, the entire provisioning and operation of the infrastructure are driven by software.
Model (Open SDN, SDN Via APIs, SDN Overlay Models, Hybrid SDN)
The SDN overlay model segment is expected to garner the highest share of the overall segment is accredited to the increasing security threat and the need to improve cyber security. SDN overlay networks enhance security by segmenting traffic and restricting access. While using SDN as an overlay an attacker's traffic can be detected and stopped more easily in case of a network compromise.
Our in-depth analysis of the market includes the following segments:
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Model |
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End Users |
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North America Market Forecast
The software-defined networking market in North America holds a significant share of about 30% by 2037. The rise in the adoption of cloud computing & mobility solutions and the increasing need to manage networks owing to growing network traffic is expected to boost the regional market growth. SDN supports moving workloads around a network quickly, hence enterprises & service providers can use a virtual network infrastructure to shift workloads from private to public cloud infrastructures when necessary and make new customer services available instantly.
APAC Market Analysis
The Asia Pacific software-defined networking market is set to register a share of about 25% by 2037. The rising technological advancements and surge in implementation of new & advanced technologies such as mobility solutions & virtualization services among businesses and communication service providers are anticipated to positively impact the growth of the SDN market in the region. The benefits of software-defined networking, which include scalability, service quality, visibility, and cost-effective security is boosting their adoption in cloud-ready industries in Asian countries such as India.
Author Credits: Abhishek Verma
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