Software Defined Networking (SDN) is an approach to building a more scalable and flexible network. This approach enables network administrators to establish data flow control across the entire network instead of individual devices. It also helps in creating secure paths for data flow with relative ease. With SDN technology, the network can be programmed and managed at a higher dynamic scale with more agility and flexibility. In order to implement cloud computing services effectively within an organization and to optimize its benefit in the networking environment, a clear understanding of SDN technology is very important.
The global SDN market is primarily driven by the growing demand for cloud services and increasing need for mobility. The increasing need for efficient infrastructure is also supporting the growth of this market. Some of the factors inhibiting the growth of this market are lack of awareness and standardization. BYOD (Bring Your own Device) policy in organizations and rapid technological advancements in network serve as an opportunity for this market.
Driven by impact of all the aforementioned factors, the global market for SDN is expected to record a CAGR of 61.5% during the period 2012 - 2018.
Among the different end users, enterprises constituted the largest segment in 2012. To address the increasing need for virtualization, agility, and security in today’s network, SDN technology is gaining high attention as a viable solution. With the help of SDN technology, telecommunication service providers can balance networks at a more dynamic scale and can take advantage of new revenue generating possibilities.
Out of the four major solutions, namely – SDN switching, SDN controllers, cloud provisioning and orchestration and others (security and services), the cloud provisioning and orchestration holds majority of the market share followed by SDN switching and SDN controllers. This solution helps in balancing the traffic between the servers and maintain resiliency within the network. Due to the growing need for efficient network infrastructure, consumers are moving towards the SDN technology.
North America held majority of the market share in 2012, followed by Europe and Asia Pacific. The North America SDN market is largely driven by advancements in cloud computing services and higher smartphone penetration. Asia Pacific is expected to be the fastest growing region during the forecast period owing to emerging trend of BYOD in various countries namely China and India, which serve as an opportunity for SDN market. It is estimated that 70% of all smartphone owning professionals in Asia Pacific are using their own devices to access corporate data in office premises and this activity needs to be managed with security concerns. There is a need for innovative solution which provides security to the network without losing the corporate data from personal devices, thus, driving demand for SDN technology in this region.
Large multinational players dominate the global SDN market. Key global players active in the SDN market are IBM, Cisco, Juniper Networks, NEC, Alcatel-Lucent, VMware, HP, Google, Big Switch Networks, Arista Networks, Brocade Communications Systems, Verizon Communications, Intel Corporation among others.
The global SDN market is primarily driven by the increasing need for mobility and efficient network infrastructure. The increasing demand for cloud services is also supporting the growth of the global SDN market. Some of the factors inhibiting the growth of this market are lack of standardization and awareness among buyer. Rapid technological advancements in network and the increasing BYOD (Bring Your Own Device) adoption serve as an opportunity, fuelling the growth of this market. This study provides in depth analysis, market estimates, market shares and forecast covering the period 2012 – 2018 for the SDN market across the globe.
The market is segmented on the basis of end users into enterprises, cloud service providers, and telecommunications service providers. Different solutions considered include SDN switching, SDN controllers, cloud provisioning and orchestration and others which include security and services. The market is also segmented by geography into North America, Europe, Asia Pacific, and Rest of the World regions. Market estimates and forecast are made after critical analysis of various trends and demographic and economic factors which affect the market growth. The report provides a strategic and competitive analysis of the global SDN market, and the growth forecast for the period 2012 to 2018.
This report studies and forecasts the global SDN market from 2012 to 2018 in terms of revenue (USD million). It also examines the drivers and restraints expected to affect industry growth along with their expected impact over the forecast period. In addition, it explores potential opportunities that are estimated to increase profitability of market participants such as Cisco, IBM, NEC, Juniper Networks among others.
The report includes value chain analysis, which provides insight into the various entities involved in the SDN ecosystem, and their role in the ecosystem. Porter’s five forces analysis determines the degree of competition in the market, by studying bargaining power of suppliers and buyers along with threat from substitutes as well as new entrants. The study also includes market attractiveness analysis, which takes into consideration the growth rate and market size of end user segment in order to identify their expected attractiveness. The scope of the report includes comparative analysis of various market segments and sub-segments based on the end users, solutions, and geography. Each regional segment is also analyzed by end user segment in terms of revenue (USD million) from 2012 to 2018.
To aid in strategic decision-making, the report includes the detailed profiling of major players in the SDN industry which includes the recent activities of them in terms of product launches, supply contracts, expansion plans, partnerships and collaborations of major players in the industry. In all, the report includes a holistic analysis of the global SDN market, and provides an estimate of growth for the period 2012 to 2018, keeping in mind the various factors affecting the market.
The report segments the global SDN market into three segments:
By End Users
- Cloud service providers
- Telecommunications service providers
- SDN Switching
- SDN Controllers
- Cloud Provisioning and Orchestration
- Others (Security and Services)
- North America
- Asia Pacific