Global Software Defined Networking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Software Defined Networking Market Analysis

The Software Defined Networking Market is expected to grow at a CAGR of 30.5% during the forecast period.

• The increasing digital transformation through data and networking technologies, such as IoT, blockchain, cognitive, and advanced analytics, intensifies the adoption of connectivity advances in various industries.
• Software Defined Networking offers companies greater flexibility and even performance gains in their network infrastructure. Companies can be more cost-conscious with on-demand purchasing and pay only for the necessary networking services. It further helps companies that want greater flexibility in provisioning without having to rearchitect networks or redo contracts from the ground up.
• The enterprise's propensity toward digitalization further drives the demand for robust network services. Many companies are looking to enhance their network capabilities, which is where Software Defined Network is gaining traction. According to a study by Accenture and Cisco of 300 senior IT and business executives whose company revenues exceeded USD 1 billion, less than 40% mentioned that they were satisfied with the overall capabilities of their network and its performance.
• The study also found that "very satisfied" customers were from North American companies (56%), followed by European countries (44%). In addition, some factors that led to dissatisfactory outcomes were related to bandwidth, performance, and reliability, which is where the vendors are expected to focus over the forecasted period.
• Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues during the 2020. With the growing remote working model, companies are increasing investments in cloud-based analytics and assurance, edge computing, and AI-powered networking technologies, which are expected to boost the studied market.

Software Defined Networking Industry Segments

The software-defined network services are considered a game changer in the market, considering the incremental volume of data being transferred and the number of users in the market, as technologies like the internet of things and smart industry become the new norm. The market is further segmented by organization size such as SMEs, Large Enterprises, By End-User including BFSI, Healthcare, Retail, Telecom, and Cloud Service providers, Manufacturing, Education, and By Geography. It also captures the impact of covid-19 on the market studied.

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Software Defined Networking Market Trends

This section covers the major market trends shaping the Software Defined Networking Market according to our research experts:

Telecom and Cloud-Based Service Provider is expected to witness a significant growth.

• Enterprises striving to run their IT infrastructure efficiently find ways to operate and manage their networks efficiently. Enterprises are modernizing traditional IT techniques on commodity hardware, such as computing, storage, and networking, to incorporate cloud technologies that enable rapid development and deployment of new network services.
• With a growing number of cloud-based applications across enterprises, cloud-based services are becoming increasingly popular. Over the past decade, cloud computing adoption has been rising due to increasing investments from small and medium enterprises. According to Cisco Systems, the global cloud data center IP traffic is expected to reach 19,509 exabytes by 2021.
• Cloud computing continues to evolve as a robust computing platform for sharing various resources, including infrastructure, software, business processes, and applications. According to the Global Cloud Index by Cisco for 2016-2021, 78% of all cloud workflows are expected to be delivered as SaaS by the end of 2021. It is also anticipated that the infrastructure as a service will drop to 21% in 2021 compared to an overwhelming 44% in 2013, while the platform as a service is likely to account for 9% of the global cloud market.
• Furthermore, VMWare's Telco Automation Cloud was launched to model, onboard, orchestrate, and manage virtual network functions (VNFs), cloud network functions (CNFs), and network services. As part of its "Ready for NFV program," TAC made NFVs and VNFs more manageable by taking a cloud-first approach to reduce multi-cloud complexities.
• Further, in February 2021, NuRANWireless Inc. entered a contract with Orange DRC SA in the Democratic Republic of the Congo ("DRC") for its NaaSmodel, which is estimated to generate gross revenue for the company of up to CAD 500 million during the term of the agreement commencing February 2021.

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