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

The Global Software Defined Networking Market is segmented by organization size ( SMEs, Large Enterprises), By End-User (BFSI, Healthcare, Retail, Telecom and Cloud Service Provider, Manufacturing, Education) and By Geography

Software Defined Networking Industry Overview

Software Defined Networking Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 30.5 %

Major Players

Software Defined Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order


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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.

By Organization size
Large Enterprises
By End User
Telecom and Cloud Service Providers
By Geography
North America
Latin America
Middle East & Africa

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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.
Software Defined Networking Market: Current And Planned Usage Of Public Cloud Platform Services Running Applications, In %, Global, As of 2020

North America to Hold the Highest Market Share

  • Inclining toward implementation and acceptance of advanced technology, development in network automation, the surge in the number of cloud-based services, and other factors are driving the software-defined Network Service market in the country. Over the next five-plus years, most IT teams will increasingly adopt NaaS as suppliers deliver hybrid offerings that include software, cloud intelligence, and the option for management of on-premises hardware.
  • Substantial growth in connected and mobile devices is spiking the increase in demand for enhanced network services. Since the United States has always remained at the forefront of technology adoption, the region witnessed the maximum adoption of connected devices. For instance, according to CTA, in 2016, connected device shipments amounted to 621 million units in the United States and are expected to reach 791 million shipments in 2021. Storing and managing this huge flow of data through the connected device without operating costs spiraling out of control will be a substantial challenge. This is where cloud-native technologies come to the rescue.
  • Cloud-native is essential to 5G, not just because of standardization but also because effective end-to-end slicing forces networks to be built in the cloud to enable dynamic configuration based on use case needs. The concept of local 5G network deployments, also known as 5G micro-operators, has emerged to allow different stakeholders to deploy their networks apart from the existing Mobile Network Operator (MNO) networks.
  • Further, building high-capacity fiber to the edge and powering the network edge with future-proof infrastructure remains critical for 5G. ExteNet's Fiber-First unlocks the intrinsic value of 5G for its customers. The company is looking forward to showcasing its fiber-connected infrastructure in key markets during the Metro Connect 2021 virtual event. ExteNet has an integrated Network-as-a-Service (NaaS) offering backed by the 24x7 network operations center (NOC).
Software Defined Networking Market - Growth Rate by Region (2022 - 2027)

Software Defined Networking Market Competitor Analysis

The Global Software Defined Networking market is highly competitive and consists of major players. In terms of market share, few major players currently dominate the market. However, extensive adoption of cloud computing and blockchain is increasing the market's demand. Many companies are increasing their market presence by securing new contracts and tapping new markets.

  • February 2021 - Macquarie Telecom has launched an SD-LAN service and announced investing USD 3.9 million in operations, personnel, research, and development over the coming five years to build the service.

Software Defined Networking Market Top Players

  1. Cisco Systems​

  2. VMware​

  3. Dell EMC​

  4. HPE

  5. Juniper Networks​

*Disclaimer: Major Players sorted in no particular order

Software Defined Networking Market Concentration

Software Defined Networking Market Recent Developments

  • July 2022 - Samsung Electronics announced it is expanding its portfolio of Software-Defined Networking (SDN) solutions with new capabilities designed to help mobile operators and enterprises manage networks more efficiently. With expanded capabilities, Samsung’s new SDN solutions will power enterprises in various sectors, including education, retail, and energy.
  • March 2022 - Vodafone and Nokia are working together on the evolution of software-defined network manager and controller (SDN-M&C) services for the mobile network operator’s multi-access fixed network technology.

Software Defined Networking Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of COVID-19 Impact on the market

    4. 4.4 Industry Ecosystem Analysis

    5. 4.5 Key Usecases

    6. 4.6 Technology Analysis

      1. 4.6.1 IoT and Edge Computing

      2. 4.6.2 Security

      3. 4.6.3 Cloud Computing

    7. 4.7 Market Drivers

      1. 4.7.1 Rising investment toward automation of network infrastructure

      2. 4.7.2 Increasing adoption of IoT and cloud services

    8. 4.8 Market Challenges

      1. 4.8.1 Lack of skilled workforce

      2. 4.8.2 Security risks and attack threats

    9. 4.9 Adjacent Market Analysis

      1. 4.9.1 SD-WAN

        1. Market estimation and forecast

        2. Growth opportunities and challenges

        3. Key vendor developments

      2. 4.9.2 Secure Access Service Edge (SASE)

        1. Market estimation and forecast

        2. Growth opportunities and challenges

        3. Key vendor developments


    1. 5.1 By Organization size

      1. 5.1.1 SMEs

      2. 5.1.2 Large Enterprises

    2. 5.2 By End User

      1. 5.2.1 BFSI

      2. 5.2.2 Healthcare

      3. 5.2.3 Retail

      4. 5.2.4 Telecom and Cloud Service Providers

      5. 5.2.5 Manufacturing

      6. 5.2.6 Education

      7. 5.2.7 Others

    3. 5.3 By Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa


    1. 6.1 Company Profiles

      1. 6.1.1 Cisco Systems

      2. 6.1.2 VMware

      3. 6.1.3 Dell EMC

      4. 6.1.4 HPE

      5. 6.1.5 Juniper Networks

      6. 6.1.6 Fortinet

      7. 6.1.7 Huawei Technologies

      8. 6.1.8 Barracuda Networks

      9. 6.1.9 Versa Networks

      10. 6.1.10 Arista Networks

    2. *List Not Exhaustive

**Subject to Availability
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Software Defined Networking Market Research FAQs

The Global Software Defined Networking Market is studied from 2018 - 2028.

The Global Software Defined Networking Market is growing at a CAGR of 30.5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Cisco Systems​, VMware​, Dell EMC​, HPE, Juniper Networks​ are the major companies operating in Global Software Defined Networking Market.

Global Software Defined Networking Industry Reports

In-depth industry statistics and market share insights of the Global Software Defined Networking sector for 2020, 2021, and 2022. The Global Software Defined Networking research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Global Software Defined Networking report PDF.

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