Network operators can use software defined networking (SDN) to manage network services by abstracting low level functionalities. This abstraction is done by decoupling system, which helps in decision making about the traffic and other components. Increased flexibility and sharp performance enhancements are some of the major advantages of SDN technology. Growing demand and innovative applications of this service is considered to be the strongest driver for the global market. Within the next four to five years, the industry is expected to witness remarkable growth in terms of revenue and deployment across different parts of the world.
Segmentation in SDN Market
Global market is categorized based on the types of solutions, end users and their demand from different geographic regions. Basic solutions offered by SDN industry include switching, cloud virtualization applications, controllers, networking virtualization security and other solutions. End users segment is categorized into Telco providers, enterprise data centers and cloud providers. Geographically, the market is segmented into Europe, Middle East and Africa, Asia Pacific, North America and Latin America. Understanding about all these segments provide details about the latest market developments, trends, opportunities, challenges and competition between the existing established businesses.
Market Drivers and Forecasting Reports
As mentioned before, rising demand is the most prominent driver for the exponential growth in the SDN. Software defined networking market is one of a kind concept of networking and as a result, has gained attractive traction over the last one year. SDN helps communication and networking providers to redirect network traffic. This relieves network congestion and helps virtualization of the market. These services are relatively cost effective, which is another vital factor for growing revenue channels in the industry. Better adoption and concentrated messaging are some other factors driving the global industry. Need for mobility, reduction in carrier and data center operating expenditure (OPEX) and capital expenditure (CAPEX) along with the concepts like BYOD are also driving the industry.
According to the market research reports, from 2013 to 2018, the global SDN Market is expected to grow at a CAGR of over 60%. During the forecasting period, the market is set to grow from $198 million in 2012 and become worth more than $2.10 billion in 2017. Based on geographic regions, North America will continue to be the largest market in terms of adoption and innovations in SDN solutions. Developing regions like Asia Pacific and Middle East are also set to witness strong growth prospects.