Software-Defined Networking Market Trends

Growth Drivers

• Rising demand for network automation: The shift toward cloud-native and virtualized environments is expected to accelerate the demand for automated network configuration and management. Software-defined networking is vital for enabling automation through programmable network control. As per NIST’s Automation and Control Systems framework analysis, the automation mitigates configuration time by over 30.5% and improves network availability. Moreover, the technological advancements coupled with the automation trend are likely to double the revenues of SDN manufacturers in the years ahead.
• Military modernization initiatives: The military upgradation needs are set to promote the adoption of advanced SDN solutions in the coming years. Defense networks increasingly demand secure, agile communication layers, and software-defined networking addresses this need with programmable segmentation and threat isolation. According to the NIST’s Cyber Resilient Systems report, SDN solutions are essential for resilient command-and-control networks. NATO and EU defense modernization efforts are also focusing on SDN-based architectures.

Technological Innovations in the Software-Defined Networking Market

The integration of AI/ML, 5G, and edge computing is expected to boost the efficiency of software-defined networking solutions. The digital shift in the telecom, finance, healthcare, and manufacturing sectors is estimated to propel the demand for software-defined networking systems. The continuous investments in technological innovations are further set to open high ROI opportunities for key players. The table below reveals the current technological trends and their outcomes.

Sustainability Trends in the Market

The regulatory pressure and green strategies are set to boost the adoption of software-defined networking solutions in the coming years. The renewable energy sourcing and circular economy principles are pushing the trade of advanced software-defined networking technologies. The sustainability trend in both the public and private sectors is also accelerating the sales of software-defined networking solutions. The table below reveals the current sustainability strategies and their business impacts.

Challenges

• Infrastructure inefficiencies and legacy system compatibility: The inaccessibility to proper infrastructure is poised to hinder the installation of software-defined networking solutions in developing economies. For instance, Latin America and Southeast Asia suffer from legacy hardware dependence that is incompatible with SDN systems. Moreover, the International Trade Union states that around 42.2% of enterprise routers in emerging markets are more than 6 years old, limiting their SDN controller compatibility. The cost and downtime associated with retrofitting or replacing legacy infrastructure also lower the sales of SDN technologies.

• Lack of skilled workforce for programmable networking: The unavailability of a skilled workforce is expected to hamper the sales of software-defined networking solutions to some extent. Software-defined networking installation requires specialized technicians with skills such as managing software-driven infrastructure and network scripting. But this is difficult to find in many parts of the world, owing to the unavailability of technological institutions to upgrade the latest skills related to ICT solutions. Less than 35.3% of network engineers globally are proficient in SDN technologies, per the OECD ICT Skills Outlook 2023. This gap slows down implementation and increases the cost of integration services.