Status : Published Published On : Apr, 2024 Report Code : VRICT5117 Industry : ICT & Media Available Format : Page : 210

Global Software Defined Networking (SDN) Market – Analysis and Forecast (2025-2030)

Industry Insight by Component (SDN Infrastructure, Software, and Services (Managed Services and Professional Services)), by Organization Size (Large Enterprises and Small and Medium Enterprises), by SDN Types (Open SDN, SDN Via Overlay, and SDN Via API), by End User (Retail, Telecom and IT, Education, Manufacturing, BFSI, Government & Defense, Healthcare, and Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The Global Software Defined Networking Market size is anticipated to reach USD 36.5 billion by 2030 from USD 14.5 billion in 2023, thereby witnessing a CAGR of 20% during the forecast period 2025-2030.

SDN or Software Defined Networking refers to a specific architecture where network management and forwarding are isolated. This means the data plane and control plane are separated. This specific architecture allows setting up a network that is more programmatically effective. This offers a much-improved performance.

In simple words, SDN refers to a centralized networking system that is intelligence-based and offers better control. It helps regulate the flow of data traffic between networks by creating software with the help of an open interface offered by it.

This specific practice is followed extensively across several industries, such as education, healthcare, banking, and others offering them, more flexibility and scalability. It is a robust, cost-efficient, time-saving, agile, and innovative network infrastructure that eases network congestion.

The SDN market comprises the adoption, deployment, and development of the technology. It is promising and significant growth is expected during the forecast period.

Software Defined Networking (SDN) Market Highlights

Industry Trends

The most significant factors that influence the growth of the SDN market are an increase in the number of mobile devices, higher server virtualization, and a growing need to consolidate data centers.

Moreover, major players and vendors in this industry will invest more in software-defined networking and network function virtualization. This will help manage the growing internet traffic. This, along with the rising demand for enterprise mobility will drive the growth further.

All these features help businesses to adjust to the changing network requirements and traffic patterns quickly using their Software Defined Networking. This is essential for the work-from-home scenario of today and helps businesses to continue their operation effectively and stay profitable.

Market Segmentation

Insight by Component

The global Software Defined Networking market is divided into three major categories according to its components, such as SDN infrastructure, software, and two types of services namely, professional and managed services.

Among these three segments, it is the SDN Infrastructure component that is likely to contribute more towards the growth and share of the global Software Defined Networking market during the analysis period. This is mainly due to its ability to organize and manage flow control among several network fragments and applications.

However, the professional services component is also expected to grow at a faster rate during the forecast period due to higher integrated solutions and deployment across different organizations, such as telecom and cloud service providers. Moreover, the growth of this segment is attributed to its low cost and higher efficiency, which allows businesses to curb their operational cost.

Insight by Organization Size

The global Software Defined Networking market is divided into large enterprises and Small and Medium Enterprises (SMEs) according to the size parameter.

Among these two segments, the large enterprises category will contribute more towards the market share during the analysis period. This is because more enterprises will continue deploying and using newer apps and virtual machines to complete processing requests faster so that they can meet the growing demand for accommodating Big Data. SDN will allow them to make changes in the network configurations without unsettling the network.

Insight by SDN Types

According to the types, the global Software Defined Networking market is divided into Open SDN, SDN Via API, and SDN Via Overlay.

Out of all these, the SDN Via Overlay segment is expected to grow at a much faster rate than others during the projected period. This is because overlaying will allow the creation of a practically autonomous network on the existing infrastructure. This will help in optimizing the available network resources because it will allow splitting the bandwidth into channels and dedicating each of them to a particular service or device.

Insight by End User

The global Software Defined Networking market is also divided according to end users into different segments namely, Retail, Telecom, IT, Education, BFSI, Manufacturing, healthcare, Government & Defense, and more.

Out of these, the telecom service providers will excel during the forecast period due to the string of opportunities created due to the continual development of Open Source SDN. Their active efforts to overcome the obstacles common to traditional networks by using innovative technologies will also help them surpass others in terms of contribution towards the global Software Defined Networking market. This is also facilitated by the open-source community and the industry.

For example, they have been testing newer technologies and implementing them in their efforts, such as Open Platform for NFV (OPNFV), Open Network Operating System (ONOS), OpenStack/KFV ecosystem, and Open Daylight technologies. This helps in promoting the use of next-gen networking technologies that will improve the performance, efficiency, programmability, flexibility, and scalability of telecom networks.

Global Software Defined Networking (SDN) Market Report Coverage

Report Metric


Historical Period

2018 - 2023

Base Year Considered


Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  14.5 Billion

Revenue Forecast in 2030

U.S.D.  36.5 Billion

Growth Rate


Segments Covered in the Report

By Component, By Organisation Size, By SDN Types, and By End User

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Growth Drivers

The growth of the SDN market is mainly attributed to the growing demand for enterprise mobility. Due to its greater flexibility and higher scalability, organizations can allocate their resources more effectively and dynamically. This will make it easier for organizations to adapt and scale according to the changing needs by managing and configuring their network infrastructure.

Cost efficiency is another factor that drives the growth of the SDN market. This particular network infrastructure allows for decoupling control and data plane from the underlying hardware. This reduces cost and dependence on costly proprietary networking equipment by using virtualized resources and commodity hardware.

In addition to better resource allocation, this infrastructure also simplifies network management, monitoring, troubleshooting, and streamlining operations. It also reduces the chances of human errors.

The ability of this architecture to simplify network management, monitoring, configuring, higher security and access control, ability to complement cloud computing needs for efficient workload placement and management, higher investment in automating network infrastructure by CSPs, and a notable reduction of OPEX and CAPEX are some other growth drivers of the SDN market.


The growth of the SDN market may be affected due to the absence of proper standards regarding complete device control which restricts device configuration and interoperability. Also, lack of professional expertise, reliability concerns, complexities in the architecture, and hindrances to the transition to SDN architecture from conventional network infrastructure will hinder the market growth. However, things are expected to change during the forecast period and create more opportunities for the growth of the SDN market. 


The initiation of cloud computing platforms is higher today and this creates significant opportunities for the SDN market to expand since it encourages organizations to use it more than traditional network architecture that does not meet the dynamic storage and computation requirements.

Other major factors, such as growing demand for network virtualization and network complexity that calls for more agility and improved network performance will also create a lot of opportunities for the SDN market to grow during the forecast period.

Geographic Overview

North America is the largest contributor to the SDN market. This is mainly due to the higher adoption of internet-based services, higher technological developments, and the growing population in this region. Moreover, rising industrialization, favorable regulations and standards, and early adoption of advanced technologies like cloud computing, BYOD, and mobility services also boost the growth of the SDN market growth in this region.

Asia-Pacific, on the other hand, will also grow at a rapid rate during the forecast period mainly due to the supportive initiatives of the governments in countries like China, India, and Southeast Asia for digitalization. The growing demand for data center consolidation, cloud services, server virtualization, higher adoption of new and sophisticated technologies such as mobility solutions and virtualization, and a rise in the number of startups will also facilitate the growth of the SDN industry in the region.

Competitive Insight

The industry players are capitalising on market expansion by developing novel solutions and launching new products in the global SDN market. Users can get advanced technology for better and faster data processing and storage from providers who specialise in software defined networking technology. the prominent industry players are working on  the research and development process, which aids them in making the system more efficient and accessible.Thus, key companies in the SDN market are developing cutting-edge technologies and pursuing mergers and acquisitions, which are assisting them in gaining a competitive advantage. Local firms, on the other hand, have been shown to rely on new technology to generate cost savings, hence strengthening market competition to some level.

Ericsson Cloud SDN is a software-defined networking solution for virtual and physical workloads in a telecom cloud that delivers seamless intra-datacenter communication.  It's a one-of-a-kind combination for industrialized multi-protocol and customizable OpenDaylight platform along with advanced routing capabilities. As part of NFVI solution, it delivers network automation services to VNF workloads.

Software-defined networking (SDN) is being used by Intel IT to provide on-demand deployment of networks and network services. Intel can better support internal customers—Intel application developers—who work in a fast-paced agile development environment by virtualizing the network through a programmable interface. These clients must be able to use network resources without having to deal with a delay caused by network configuration and provisioning.  SDN can help get more business value out of virtual machines (VMs) in their data centres, as well as provide the following advantages:

  • Decrease in network provisioning time
  • Improved network management efficiency in a self-service environment.
  • Decrease in Service Costs via network management efficiency

Recent Development by Key Players

Nokia stated that it has been chosen as the only provider of software defined network manager and controller (SDN-M&C) services for Vodafone's multi-access fixed network technology. Both companies are performing proof-of-concept trials in Europe as part of the collaboration. Vodafone and Nokia plan to roll out the technology more widely later this year, based on the positive results of these testing.

With 143 million marketable Next Generation Network (NGN) broadband homes, Vodafone is one of Europe's leading fixed access providers. The SDN management and control functionalities will be used to simplify, automate, visualize, optimize, and enhance Vodafone's broadband networks, as well as support the company's network-as-a-platform (NaaP) and other customisable services plan.

Ericsson and Telefónica Germany / O2 have attained a significant milestone to deploy and control software defined networking (SDN) for microwave networks.   In the O2 network, Ericsson enabled its MINI-LINK microwave product line, allowing the communication service provider (CSP) to establish a vendor-agnostic SDN interface.

Key Players Covered in the Report

Telefonaktiebolaget LM Ericsson, Nokia Corporation, Intel Corporation, Cisco Systems, Inc., Huawei Technologies Co. Ltd., Dell Inc., PICA8, Inc., Hewlett-Packard, NEC Corporation, and Big Switch Networks, Inc. are some of the major competitors in the SDN market.

Recent Development by Key Players

The US chip giant has implemented software-defined networking in its semiconductor manufacturing plants, moving the tech beyond the data center and into a vertical seeking to benefit from zero-downtime machine connectivity. Software-defined networking (SDN) technologies have been limited to use in data centers and not manufacturing floors until now.

Pertamina NRE And Huawei collaborated to advance renewable energy and smart grid in Indonesia. This partnership focuses on advancing innovation and technology in smart grid, distributed generation, and digitalization.

The Software Defined Networking Market research includes a comprehensive market segmentation analysis as well as projections for the analysis period 2025-2030.

Segments Covered in the Report

  • By Component
    • SDN Infrastructure
    • Software
    • Services
      • Managed Services
      • Professional Services
  • By Organization Size
    • Large Enterprises
    • Small and Medium Enterprises
  • By SDN Types
    • Open SDN
    • SDN Via Overlay
    • SDN Via API
  • By End-User
    • Retail
    • Telecom And IT
    • Education
    • Manufacturing
    • BFSI
    • Government & Defense
    • Healthcare
    • Others

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Software Defined Networking Market Size

Source: VynZ Research

Software Defined Networking Market Analysis

Source: VynZ Research

Frequently Asked Questions

Globally industry players are leveraging market growth through the development of innovative solutions in SDN market across the globe and by launching new products.
The increasing demand for better technologies and the increasing deployment of data centers are the key factors that attribute towards the growth of the SDN market across the globe.
Some of the major players in the global Software Developed Networking industry include Telefonaktiebolaget LM Ericsson, Nokia Corporation, Intel Corporation, Cisco Systems, Inc., Huawei Technologies Co. Ltd., Dell Inc., PICA8, Inc., Hewlett-Packard, NEC Corporation, and Big Switch Networks, Inc.
The SDN market on the basis of components is categorized into hardware, software and services.
Based upon organization size, the SDN market across the globe is segmented into large, and small and medium enterprises.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle


Key Takeaways