Published: Nov, 2016
The global software defined networking (SDN) market is highly fragmented in nature with an intense competitive scenario, states a research report by Transparency Market Research (TMR). The market is led by several category players that are present across the value chain. As the market is at a nascent stage, the players operating in the market at present do not offer end-to-end solutions.
The prominent players in the global software defined networking market, namely HP, Cisco, NEC, IBM, Alcatel-Lucent, Juniper Networks, and VMware, are focusing on product development and the introduction of new technologies. The rising number of mergers and acquisition is expected to work in favor of the development of the overall market in the coming years. In addition, players are emphasizing on offering end-to-end solutions to provide complete integration and attain a leading position in the market.
According to the research report by TMR, in 2015, the global market for software defined networking was valued at US$1.0 bn and is projected to reach a value of US$3.5 bn by the end of 2018.
With Increasing Opportunities, Asia Pacific to Register Exponential Growth Rate
From a geographical viewpoint, North America is anticipated to lead the global software defined networking market throughout the forecast period. This region is estimated to account for a share of 56.6% share in the global market by the end of 2018. The rising penetration of mobility resulting in the growing need for efficient networking infrastructure is one of the key factors expected to fuel the growth of the market in North America. On the other hand, Asia Pacific is likely to register a remarkable growth rate in the coming years, owing to the robust growth in the telecom sector in China and India.
On the basis of end use, the telecommunications and service providers segment is predicted to lead the global software defined networking market in the forecast period. This segment is anticipated to account for a share of 40.60% by the end of 2018. The rising adoption of software defined networks in the telecommunications industry owing to the reduction in cost it offers is the primary factor driving the segment.
Growing Popularity of Cloud Services to Boost Demand
The growing use of mobile data is pushing mobile network operators to upgrade their existing systems and adopt effective software defined networks to simplify network operations and reduce costs. These factors are expected to augment the growth of the overall market in the coming years. In addition, the increasing popularity of and demand for cloud services is another factor estimated to drive the demand for software defined networking systems across the globe.
As IT organizations worldwide are facing a high demand for virtualization, consolidation, and convergence, the growing need for effective network infrastructure is expected to rise substantially throughout the forecast period. This is likely to encourage the growth of the global software defined networking market in the near future as this technology is projected to enable customization and optimization and reduce overall operational costs.
Growing Adoption of BYOD to Offer Promising Opportunities
The lack of awareness among buyers related to the availability of software defined networking systems is one of the key factors curtailing the growth of the global market. In addition, issues concerning interoperability and the lack of standardization are expected to restrict the growth of the market in the coming years. Nevertheless, the rising adoption of bring your own device (BYOD) is anticipated to generate promising opportunities for market players and contribute substantially towards the growth of the market.
This information is based on the findings of a research report published by Transparency Market Research (TMR), titled “Software Defined Networking (SDN) Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2012–2018.”
The global software defined networking market has been segmented as below:
Global Software Defined Networking Market, by End Users
- Cloud Service Providers
- Telecommunications Service Providers
Global Software Defined Networking Market, by Solutions
- SDN Switching
- SDN Controllers
- Cloud Provisioning and Orchestration
- Others (Security and Services)
Global Software Defined Networking Market, by Geography
- North America
- Asia Pacific
- Rest of the World
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