Software Defined Networking Market Summary

The global software defined networking (SDN) market size was estimated at USD 34.29 billion in 2023 and is projected to reach USD 101.33 billion by 2030, growing at a CAGR of 17.9% from 2024 to 2030. The market growth is primarily driven by the increasing demand for simplified network management solutions, the focus of small and medium-sized enterprises (SMEs) on cost reduction and process automation, and the evolving business requirements across the information and technology industry.

Over the past decade, businesses associated with the IT sector and advanced computing technologies have undergone significant digital transformation. The rise of complex network infrastructures has become prevalent across multiple industries that heavily depend on automation and computing technologies for daily operations. The need for enhanced centralized network control and simplified network management has grown significantly in this context. To enhance network performance, regulate data traffic, and achieve greater agility, flexibility, cost-efficiency, and transparency, organizations across industries are increasingly adopting software defined networking solutions and services that offer scalability and improved operational control.

Key Market Trends & Insights

  • North America dominated the global SDN market, accounting for a revenue share of 36.0% in 2023, mainly due to the strong presence of major technology companies, early adoption of advanced network technologies, and high investments in data center modernization.
  • The U.S. led the regional SDN market in 2023, supported by growing demand for cloud services, large-scale enterprise adoption, and increased use of virtualization technologies.
  • By component, the solutions segment held the dominant position in the SDN market, representing a revenue share of 70.3% in 2023, owing to the growing implementation of SDN solutions to enhance network control and reduce operational costs.
  • By type, the open SDN segment accounted for the largest revenue share of the global market in 2023, attributed to its flexibility, interoperability, and ability to reduce vendor dependency.
  • Based on end-use, telecommunication service providers led the global SDN industry in 2023, driven by rising data traffic, network automation, and the transition toward 5G network infrastructure.

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Market Size & Forecast

  • 2023 Market Size: USD 34.29 Billion
  • 2030 Projected Market Size: USD 101.33 Billion
  • CAGR (2024-2030): 17.9%
  • North America: Largest market in 2023
  • Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Some of the key companies in the market are Arista Networks, Inc., Cisco Systems, Inc., Dell Inc., IBM, Extreme Networks., Juniper Networks, Inc., Nokia, and others. To address the growing competition and need for enhanced portfolios regarding networking capabilities, the key market participants in this industry are adopting strategies such as mergers & acquisitions, portfolio expansions, enhanced research & developments, and innovation.

  • IBM, one of the major market participants in the technology and computing services industry, offers multiple solutions related to IT automation, DATA & AI, customized end to end industry solutions, infrastructure, security, sustainability, and consulting services as well. It assists customers in over 175 nations in leveraging insights from data, optimizing business operations, cutting expenses, and obtaining a competitive advantage in their respective fields.
  • Cisco Systems, Inc., a prominent organization in the technology and innovation market, offers IT and networking services related to enterprise network security, software development, data collaboration, cloud computing, and other related areas. It focuses on technology sectors such as the Internet of Things (IoT), domain security, video conferencing, and energy management. It offers top products such as Webex, OpenDNS, Jabber, Duo Security, Silicon One, and Jasper.

Key Players

  • Arista Networks, Inc.
  • Cisco Systems, Inc.
  • Ciena Corporation
  • Dell Inc.
  • LM Ericsson
  • Extreme Networks
  • Fortinet, Inc.
  • Hewlett Packard Enterprise Development LP
  • Huawei Technologies Co., Ltd.
  • IBM
  • Juniper Networks, Inc.
  • Nokia
  • Palo Alto Networks
  • Broadcom

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Conclusion

The software defined networking market is expected to witness substantial growth over the coming years, fueled by digital transformation, the rapid expansion of data centers, and the increasing need for flexible, scalable, and automated networking solutions. As enterprises and telecom operators continue to embrace cloud technologies and 5G deployment accelerates, SDN will play a crucial role in improving network efficiency, reducing costs, and enabling innovation across industries. This trend positions SDN as a key technology driving the evolution of next-generation network infrastructure globally.