Authored By: Sarah
11 Jul 2024

 Software-Defined Networking (SDN) Market Size to grow by USD 67378.74 million between 2024-2028

According to a research report “ Software-Defined Networking (SDN) Market” by End-user (BFSI, Healthcare, Retail, Education, Others) Component (Physical network infrastructure, SDN applications, Controller software) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 67378.74 million, at a CAGR of  29.04% during the forecast period. The global Software-Defined Networking (SDN) market is experiencing significant growth due to enterprises' increasing adoption of cloud solutions. This trend is driven by the advantages of reduced operational expenses and the flexibility to scale resources based on business needs. In recent years, there has been a surge in demand for hybrid cloud solutions and multi-cloud environments from enterprises. Hybrid cloud solutions allow businesses to utilize the benefits of both private and public clouds, enabling them to scale resources effectively. Meanwhile, multi-cloud solutions help enterprises avoid vendor lock-in and ensure business continuity. The rapid expansion of cloud data centers is a response to this increasing demand from enterprises.

Browse market data tables, figures, and in-depth TOC on “Software-Defined Networking (SDN) Market” by End-user (BFSI, Healthcare, Retail, Education, Others) Component (Physical network infrastructure, SDN applications, Controller software) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample


By End-user, the BFSI segment is projected to dominate the market size in 2024

In the realm of business communications, Software-Defined Networking (SDN) represents a significant advancement in network infrastructure management. SDN applications encompass essential functions such as network load balancing, intrusion prevention systems, antivirus capabilities, and firewall security policies, all of which can be seamlessly integrated into the network infrastructure. The SDN applications segment offers common networking capabilities like traffic engineering, routing, switching, monitoring, and load balancing, enabling enterprises to request services and obtain pertinent information from the network infrastructure via an SDN controller. Subsequently, the SDN layer forwards the application requirements to the network infrastructure, providing a comprehensive view of the network infrastructure to the application layer. This empowers businesses to develop sophisticated applications, thereby enhancing network infrastructure control and flexibility. In essence, SDN automates network infrastructure management, making it adaptable to the evolving demands of applications.

By Component, Physical network infrastructure  segment is expected to hold the largest market size for the year 2024

The global Software-Defined Networking (SDN) market, particularly in the banking, finance, services, and insurance (BFSI) sector, is projected to experience substantial growth during the forecast period. SDN serves as a crucial intelligence tool for the financial services industry, enhancing network agility and security, regardless of data location - on-premises or in the cloud. Centralized management of network resources ensures all systems adhere to compliance regulations and maintains the integrity of sensitive financial data. Implementing stringent security rules from a centralized management system further fortifies data protection. Key benefits for financial institutions include streamlined provisioning and management, enhanced security controls, improved application performance, and reduced operational costs.

North America is forecasted to hold the largest market size by region in 2024

The North American SDN market is poised for significant expansion over the forecast period, driven by the escalating demand for 5G-enabled IoT solutions. With the increasing adoption of IoT technologies, enterprises are generating massive amounts of data that necessitate high-bandwidth capabilities. To effectively utilize networking resources in data centers and manage the resulting complexities, organizations are turning to SDN solutions. The surging investments in IoT and the widespread adoption of 5G are expected to continue fueling the demand for SDN in North America. Additionally, industries such as content and digital media, banking, financial services, and insurance (BFSI), which require high connectivity with minimal latency, are expected to significantly contribute to the growth of the SDN market in the region.

The Software-Defined Networking (SDN) Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Arista Networks Inc.
  • AT and T Inc.
  • Broadcom Inc.
  • Ciena Corp.
  • Cisco Systems Inc.
  • Dell Technologies Inc.
  • Extreme Networks Inc.
  • Hamburgnet eK
  • Hewlett Packard Enterprise Co.
  • Huawei Technologies Co. Ltd.
  • International Business Machines Corp.
  • Juniper Networks Inc.
  • Kyndryl Inc.
  • Nokia Corp.
  • NVIDIA Corp.
  • Oracle Corp.
  • Schweitzer Engineering Laboratories Inc.
  • Telefonaktiebolaget LM Ericsson
  • VMware Inc.
  • Wipro Ltd.

For insights on company offerings- Request a sample report!

Research Analysis Overview

Software-Defined Networking (SDN) is revolutionizing the way enterprises manage their agile networks by enabling centralized control and collaboration between network elements. With SDN, network administrators can respond quickly to changing business needs, optimize network performance, and ensure reliability. However, as the Enterprises segment adopts SDN, there are concerns around network redundancy, latency, and network bandwidth, especially in the context of the 5G ecosystem. Intelligent network architecture and SDN for 5G are key areas of focus, as they offer advanced security technologies to mitigate emerging threats. SDN security includes continuous monitoring, encryption protocols, and authentication mechanisms to protect network resources from disruptions caused by malicious activities, system failures, and targeted attacks. Control plane failures and unauthorized access are significant concerns, and SDN architectures provide control functions to mitigate these risks. As the SDN market continues to grow, organizations must prioritize network management and ensure that their SDN implementations are secure and reliable. The future of SDN lies in its ability to adapt to the evolving threat landscape and provide advanced security technologies to protect against new and emerging threats.

Market Research Overview

The digital landscape is rapidly evolving, and so are the networking solutions that underpin it. Software-Defined Networking (SDN) is a key component of this evolution, offering telecom operators, service providers, and businesses the ability to build autonomous networks that can adapt to changing business requirements. SDN infrastructure enables the automation and elasticity needed in cloud-native architectures and cloud environments, as well as the security and reliability required in diverse systems. Use cases for SDN include optimizing traffic flows, dynamically allocating resources, and enhancing security in various industries, from financial services and insurance to IoT ecosystems and 5G networks. SDN can help businesses and organizations enhance security through proactive measures like threat detection mechanisms, advanced encryption protocols, and Zero Trust architectures. However, the adoption of SDN also presents challenges, such as interoperability concerns, security risks, and the need for reliable networks that can handle high-performance demands. SDN security is a critical consideration, with advanced security technologies like continuous monitoring, encryption protocols, and authentication mechanisms necessary to protect against disruptions and malicious activities. Key players in the SDN market include Symantec, financial institutions, and the BFSI segment, which require secure networks for application performance and business continuity. SDN is also being adopted in the Enterprises segment to ensure reliable, responsive, and agile networks that can support collaboration and changing business requirements. As SDN continues to grow, it will play a crucial role in the 5G ecosystem and the development of intelligent network architectures for the future.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

Read News Read Less
Interested in this report?
Get your sample now!