ID: MRFR/ICT/1076-CR | February 2019 | Region: Global | 124 pages
Moreover, growing demand for data center consolidation, cloud services and server virtualization are key factors driving the software-defined networking market growth. The amount of data generated by Internet browsing requires data centers and cloud services. This need is responsible for the development of the sector.
North America to foster the global market
North American is set to lead the global market. The presence of advanced connectivity infrastructure and a high level of proliferation of different mobility solutions are supporting the market. Telecom companies in the region are investing in advanced networking technologies to improve infrastructure capabilities. The high level of internet penetration and extensive adoption of 4G technologies have also led to the software-defined networking market's growth.
In March 2020, Cisco's transformation to a converged SDN transport network simplifies the network, increases capacity and enhances scalability while ensuring consistent and superior customer experience.
The study provides insights into the leading market players and offers an overview of their current market position. Information on revenues, market share, regional income, SWOT, growth strategies, new product launches, M&A activities and the recent R&D initiatives is also available in the study.
Frequently Asked Questions (FAQ) :
The software-defined networking market is set to hit USD 59 billion by 2023, with CAGR of 42.41% over the review period.
The software-defined networking market segmentation is conducted based on organization size, component, application, solution, and end-user.
North American region is set to dominate the market over the assessment period.
Software defined networking is an emerging technology that helps service providers to execute complex networks with high programmability and support automation principles. The global software define networking market is expected to surpass a valuation of USD 59,000 Mn by 2023 up from USD 7,211.5 Mn in 2017, reflecting a stellar growth rate. The uptake in software defined networking has spurred at an exponential. Implementation rate has continued to grow in industrial verticals such as BFSI, telecommunication, information technology, and manufacturing among others. In term of security, software defined networking has different aspects such as software-defined wide area network, software-defined storage, and software-defined everything. The security models are simple and cost-effective as compared to conventional systems.
Rise of big data and advances in networking infrastructure is necessitating robust networking software. In addition, adoption of software-defined data centers in BFSI, retail, telecom, and IT. Increased focus towards automation in IT is partly supporting the adoption of software defined networking. In the years to come, demand for application-centric networking services is likely to increase.
The segmental analysis of the global software defined networking market has been conducted on the basis of organization size, component, application, solution, end-user and region.
Based on organization size, the market has been segmented into SMEs and large enterprise. The large enterprise segment currently accounts for the largest market share and is likely to retain its dominant position over the assessment period. By the year 2023, the segment is expected to reach a valuation of over USD 35,000 Mn.
Based on component, the market has been segmented into hardware component (router, switches and others), services (professional service, support & maintenance service, consulting service and managed service) and software (software controller and application software). The service segment is expected to post a CAGR of 45.70% during the assessment period and surpass a market valuation of USD 28,000 Mn by 2023-end.
Based on application, the market has been segmented into SD-WAN, SD-LAN, security applications and others. The SD-WAN segment is expected to remain highly profitable over the next several years. Meanwhile, the SD-LAN segment is set to exhibit the fastest CAGR during the forecast period.
Based on solution, the market has been segmented into physical network infrastructure solution, network virtualization & automation solution. The physical network infrastructure segment holds the dominant share of the market. In 2017, the segment stood at a valuation of USD 3,529.8 Mn. The network virtualization & automation segment is also expected to emerge as a highly attractive segment and capture a CAGR of 45.18% during the forecast period.
Based on end-user, the market has been segmented into retail, IT & telecommunication, healthcare, BFSI, industrial, government and others. Of these, the IT and telecommunication segment currently accounts for the majority of the market share in terms of revenue.
On the basis of region, the global software defined networking market is segmented into North America, Latin America, Asia Pacific, the Middle East & Africa (MEA) and Europe. North America leads the global software defined networking market. Countries such as the US and Canada are home to some of the prominent technology companies, which gives the market in North America an edge. Moreover, the existence of an advanced networking infrastructure allows a seamless implementation of cutting-edge networking technologies. Other factors such as rampant investment in R&D and presence of a vast IT and communication sector are supporting the growth of the market in North America. By 2023, the market in the region is anticipated to touch a valuation of 24,800 Mn.
Notable companies operating in the global software defined networking market include Huawei Technologies Co. Ltd., Hewlett Packard Enterprise Company, Cisco Systems, Inc., NEC Corporation, Juniper Networks Inc., IBM Corporation, Intel Corporation, Ciena Corporation, Pluribus Networks Inc., Pica8 Inc., Big Switch Networks Inc., Brocade Communications Systems Inc., Ulak Communications.
Competitive Landscape Overview
The global software defined networking market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in government policies are the key factors that limit market growth. The vendors compete based on quality of service, pricing, and reliability. It is crucial for the vendors to provide advanced technology and value-added services for software defined networking vendors to survive and succeed in an intensely competitive market environment.
The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on geographic expansion and advancement in digital services. Cisco Systems Inc., Juniper Networks Inc., NEC Corporation, Brocade Communications Systems Inc., Intel Corporation, Big Switch Networks, Hewlett Packard Enterprise Company, Huawei Technologies Co. Ltd, Pica8 Inc., Ciena Corporation, Pluribus Networks Inc., and IBM Corporation, Ulak Communications are the major companies in the market that compete in terms of services offered, pricing of IPN devices, and availability of components from suppliers. These companies primarily focus on the development of switches, network infrastructure, and controllers. Although the global players are dominating the market, regional players with small market shares also have a strong presence. The global players are expected to strengthen their presence worldwide through organic and inorganic growth during the forecast period.
The vendors with better technical and financial resources can develop innovative products that render the ones by their competitors obsolete and non-competitive even before they are launched, or costs are recovered. Therefore, vendors must develop new technologies and stay in touch with emerging technologies that could affect the continuing competitiveness of their product lines in the market.
Cisco systems Inc. designs, manufactures, and sells internet protocol-based networking services and products to the IT and telecommunication organizations. The company serves various industries such as energy, education, healthcare, retail, and hospitality. In their software-defined networking portfolio the company provides various solutions such as Application-Centric Infrastructure (ACI), DNA Center, SD-Access, SD-WAN, and SD-Branch. The company operates in the Americas, EMEA, and APAC regions.
Big Switch Networks is a provider of an open software-defined networking (SDN) technology. The company has strategic partnerships with HPE, Edgecore, and Dell EMC. It provides products, services, solutions, and various technologies related to SDN to the end-users. Big Switch Networks partnered with Microsoft Azure to provide integrated solution for its new Azure Virtual Network Terminal Access Point (TAP). Big Monitoring Fabric- public cloud are integrated with Azure to provide secure, scalable, and simple solutions to monitor workload. The company mainly focuses on product management, product marketing, technical marketing, a technological partnership, and acquisitions.
Brocade Communication Systems Inc. specializes in network solution. On 17 November 2017, Broadcom acquired Brocade Communications systems Inc. In software defined networking, the company provides various products such as Brocade SDN controller, Brocade flow optimizer, Brocade flow manager, and Brocade VNF manager. The company’s acquisition and investment strategy focus on expansion and evolution of shared storage network-based analytics, security, data management, and IP networking.
NEC Corporation (NEC) is a global provider of information technology services and products. It offers IT and network solutions to business enterprises, communications services providers, and government agencies and is one of the biggest PC vendors in Japan. It also provides services for IT, network systems, electronic devices and others. NEC is focused on R&D to drive technological development. The company aims to become a complete solution provider of integrated communications and advance hardware components.
Juniper Networks, Inc. engages in the sale of products and services, design, and development, for high-performance networks. The company operates in various business segments including switching, routing, and security products which are designed to provide high performance, flexibility, and low total ownership cost. Juniper Network focuses on delivering highly reliable, scalable, cost-effective, and secure network for increasing network’s speed, efficiency, and value through automation.