Software defined networking market to grow at 54% CAGR from 2017-2024
The software defined networking (SDN) market is set to grow from its current market value of more than $2.2 billion to over US$88 billion by 2024; according to a new research report by Global Market Insights.
SDN is an emerging network technology where the network control plane is isolated from the data plane and is directly programmable. It modifies the individual network devices into the accessible computing devices enabling the underlying infrastructure to be abstracted for network services and applications, which allow the network to be treated as a virtual entity. SDN enables the network to be a competitive differentiator for enterprises and carriers, not just an inevitable cost centre. It offers several benefits, such as high bandwidth, capabilities to cope with the dynamic nature of the advanced application and reduction in operational and management complexity.
The increasing adoption of the cloud services and IT convergence is one of the primary factor that is driving the growth of the market. Over the past five years, a rapid surge in the adoption of cloud services has been witnessed. It is driven by its capabilities to provide enterprise wide array of resources they can utilise to scale, orchestrate and support their operations. Cloud computing untethers the underlying infrastructure and applications, offering a level of dynamism that did not exist in traditional infrastructure. Furthermore, as the demand of cloud computing increases, it will increase the pressure on the network to cope with the flexibility, scalability and programmability of this virtualised model.
In addition, increasing adoption of the SDN solution among communications service providers (CSPs) is also fuelling market growth. The mobile traffic is increasing rapidly, and end-user needs are also evolving. This encourages CSPs to pursue new network technologies to support the surge in the data traffic and connected nodes. To address these challenges of the traditional network infrastructure, SDN architecture is proposed. It can provide an efficient multi-tier network platform that decouples the data plane and network control and provides centralised control meeting the requirements of both evolving and future mobile networks.
Cloud service providers are one of the major end-users of the SDN market solutions. They are leveraging the capabilities of SDN to develop a cloud inter-network for increasing the scalability and flexibility of the cloud computing platforms. It provides a dynamic network infrastructure that can modify the traditional network into an excellent service delivery platform.
The manufacturing industry is estimated to witness substantial growth during the forecast timeline. The growth of the market is attributed to the increasing digitalisation in the manufacturing industry and need to improve operational efficiency and reduce capital expenditure. SDN increases the operational flexibility of the manufacturing industry by allowing them to accelerate the application deployment and reduce the organisation’s IT cost by workflow automation.
The Asia Pacific SDN market is estimated to be the fastest growing region owing to the adoption of the cloud services. The investment by the telecom service providers in the region for enhancing the network infrastructure is also one of the primary factor driving the growth of the market. For instance, China’s telecom giants – China Unicom, China Mobile, and China Telecom are set to invest more than US$180 billion by the year 2023 on 5G infrastructure, which is estimated to augment the growth of the market. In addition, improved internet penetration, mobile subscription and adoption of smartphones are also estimated to back the growth of the SDN market.