The global Software Defined Networking (SDN) market size was valued at $9,995 million in 2019. It is projected to reach $72,630 Million by 2027, by growing at a CAGR of 28.2% from 2020 to 2027, according to a new market research report published on Valuates Reports.
The need for improved network architecture is prominent as a growing number of companies migrate to web-based applications and services. Low operating costs, comprehensive management of infrastructure, abstraction, and cloud integration are some of the major factors expected to drive the growth of SDN market size during the forecast period.
Organizations that introduced software-defined networking during the COVID-19 pandemic quickly adapted to the emerging traffic dynamics and network specifications that arose from work-from-home mandates, according to the study. SDN helped those organizations cope with the ongoing pandemic and sustain the economically positive operation.
Trends Influencing SDN Market Size
The exponential growth in network infrastructure’s size and complexity has created a need for solutions to simplify and maintain the entire network efficiently, according to the study. SDN solutions would resolve these concerns directly by providing the operator with greater flexibility in traffic control to increase network performance. This feature is expected to increase the SDN market size.
Due to the outbreak of the COVID-19 pandemic, a significant shift towards cloud computing by many organizations would increase the adoption of SDN solutions by cloud service providers. This, in turn, is expected to be the major driver for the growth of SDN Market size.
Implementing software-defined networking / NFV (Network functions virtualization) helps to minimize the burden faced by companies on capital expenditure and operational costs while addressing evolving demands by reducing dependency on hardware platforms. This cost efficiency feature is expected to fuel the growth of the SDN market size.
SDN Markets North America, Asia
North America is expected to hold the largest SDN market share during the forecast period, according to the study. This dominance of North America is attributed to the rise in the adoption of advanced technology across various vertical industries. Also, the increase in adoption of cloud computing & convergence solutions plays a role, as well as an increasing need for broad network traffic network management.
Asia Pacific is expected to witness the highest growth during the forecast period. This is due to a large number of cloud-ready industries in the Asian subcontinent. Also, advantages such as visibility, scalability, quality of service, and cost-effective security would be driving software-defined networking adoption, according to the study published on Valuates Reports.