Software-Defined Networking Market Size, Share, Opportunities, And Trends By Type (Open SDN, API SDN, Cloud SDN, Hybrid Model SDN), By Component (Network Device, Controllers, Application Program Interface, Northbound API, Southbound API), By Enterprise Size (Small, Medium, Large), By End User (BFSI, Government, IT & Telecommunications, Media & Entertainment, Retail, Others), And By Geography - Forecasts From 2025 To 2030

Software-Defined Networking Market Size:

Software-Defined Networking Market is expected to grow at a 21.21% CAGR, achieving USD 80.524 billion by 2030 from USD 30.773 billion in 2025.

Software-Defined Networking Market Key Highlights:

• Increasing network complexity and user demand is driving adoption of software-defined networking solutions.
• Data centers are rapidly integrating SDN to boost scalability, flexibility, and operational efficiency.
• Industry leaders are launching SDN innovations, expanding market reach and technological capabilities.
• Governments and enterprises are investing heavily in SDN infrastructure to enhance digital transformation.

Software-Defined Networking Market Trends:

Software-defined networking is a strategy for network management that allows for dynamic and programmatically efficient network configuration. This approach aims to enhance network performance and monitoring, employing methods more similar to those used in cloud computing, as opposed to conventional network management techniques. The escalating network complexity and traffic volumes, a significant surge in data centers, and the proactive initiatives undertaken by industry giants are propelling the software-defined networking market growth.

Software-Defined Networking Market Segmentation Analysis:

• Increasing network complexity and traffic drives the software-defined networking market

 The significant surge in the number of internet users and the escalating complexity of network architecture necessitates more flexible, efficient, and scalable network solutions for businesses and service providers. Software-defined networking (SDN) serves as an effective solution to this challenge, enabling administrators to streamline network services through the abstraction of lower-level operations. In effect, this simplifies the management of complex networking environments, accommodating the dynamic demands of the contemporary digital landscape. According to the Cisco Annual Internet Report, the number of internet users worldwide saw a significant increase from 4.7 billion in 2021 to a remarkable 5.3 billion in 2023.

• Rise in data centers boost the software-defined networking market growth.

Software Defined Networking (SDN) is increasingly utilized in data centers due to its ability to enhance network flexibility, scalability, and programmability. It enables data center operators to manage complex networking tasks efficiently, streamline operations, and reduce both capital and operational expenditures by abstracting away lower-level hardware functions. The governmental initiatives and investments worldwide to boost data center establishments are expected to positively impact the overall market demand for software-defined networking. For instance, in May 2023, STT Global Data Centres, based in Singapore, invested approximately Rs 2,000 crore to construct two additional data centers within its current premises in the Dighi area of Pune. With this expansion, the total capacity of the hub is set to exceed 80 MW of IT load, strengthening its position in the market.

• Initiatives taken by company giants drive software-defined networking market growth.

Major corporations are playing a pivotal role in driving software-defined networking (SDN) industry growth through their innovative initiatives. These companies understand the need for efficient, scalable, and flexible networking solutions in an era marked by growing internet usage and increasingly complex network architectures. Their investments in SDN technology reflect the recognition of its value in managing these complexities. Additionally, these initiatives boost market competition, spurring further technological advancement and wider adoption of SDN. For instance, in October 2022, Nokia launched its Altiplano Open Access solution, an SDN-based virtualization technology, for the enhancement of fiber broadband deployment. This solution has been implemented for American Tower's fiber-to-the-home (FTTH) infrastructure in Argentina.

Software-Defined Networking Market Geographical Outlook:

• North America is anticipated to dominate the software-defined networking market.

North America will account for significant software-defined networking (SDN) market share primarily due to the strategic acquisitions, partnerships, and investment activities unfolding in its leading economies. For instance, in August 2022, Arista acquired Pluribus, a pioneer in software-defined networking, aiming to enhance the capabilities of the Unified Cloud Fabric. Additionally, the software-defined networking market growth is also being driven by increased investments in data centers for instance, in 2020, Equinix completed the acquisition of three data centers in Mexico, with a total investment of US$175 million. As part of its strategic plan, Equinix intends to extend the availability of Equinix Cloud Exchange Fabric (ECX Fabric) to all three data centers. ECX Fabric is an SDN-enabled interconnection service.

Software-Defined Networking Market Growth Drivers:

• Interoperability issues may restrain the software-defined networking market.

Software-defined networking (SDN) represents an exciting frontier in the realm of networking technology, offering the potential for increased flexibility, control, and efficiency. However, its relatively recent emergence on the technological scene, coupled with a disparate range of solutions from various vendors, each offering its unique take on standards and protocols, has given rise to significant interoperability issues. Organizations seeking to leverage the advantages of SDN often find themselves navigating a complex landscape of diverse, non-standardized solutions that can be challenging to integrate smoothly into their existing network infrastructures. These concerns can prove to be a considerable restraint on the software-defined networking market growth.

List of Top Software-Defined Networking Companies:

 

• Cisco
• VMWare Inc.
• Juniper Networks, Inc
• Arista Network Inc.
• Extreme Network Inc.

Software-Defined Networking Market Scope:

 

Report Metric	Details
Software-Defined Networking Market Size in 2025	USD 30.773 billion
Software-Defined Networking Market Size in 2030	USD 80.524 billion
Growth Rate	CAGR of 21.21%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Type Component Enterprise Size End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Software-Defined Networking Market	Cisco VMWare Inc. Juniper Networks, Inc Arista Network Inc. Extreme Network Inc.
Customization Scope	Free report customization with purchase

 

Segmentation

• By Type
  • Open SDN
  • API SDN
  • Cloud SDN
  • Hybrid Model SDN
• By Component
  • Network Device
  • Controllers
  • Application Program Interface
    • Northbound API
    • Southbound API
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End User
  • BFSI
  • Government
  • IT & Telecommunications
  • Media & Entertainment
  • Retail
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Market Opportunities

4.4. Porter’s Five Force Analysis

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Power of Buyers

4.4.3. Threat of New Entrants

4.4.4. Threat of Substitutes

4.4.5. Competitive Rivalry in the Industry

4.5. Industry Value Chain Analysis

5. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY TYPE

5.1. Introduction

5.2. Open SDN

5.3. API SDN

5.4. Cloud SDN

5.5. Hybrid Model SDN

6. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY COMPONENT

6.1. Introduction

6.2. Network Devices

6.3. Controllers

6.4. Applications Program Interface

6.4.1. Northbound API

6.4.2. Southbound API

7. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY ENTERPRISE SIZE

7.1. Introduction

7.2. Small

7.3. Medium

7.4. Large

8. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY END-USER

8.1. Introduction

8.2. BFSI

8.3. Government

8.4. IT & Telecommunication

8.5. Media & Entertainment

8.6. Retail

8.7. Others

9. SOFTWARE-DEFINED NETWORKING MARKET ANALYSIS, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1.  Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. UK

9.4.3. France

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. South Korea

9.6.4. India

9.6.5. Australia

9.6.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.1. Cisco

11.2. VMWare Inc.

11.3. Juniper Networks, Inc

11.4. Arista Network Inc.

11.5. Extreme Network Inc.

11.6. Dell Inc.

11.7. Hewlett Packard Enterprise (HP)

11.8. NEC Corporation

Cisco

VMWare Inc.

Juniper Networks, Inc

Arista Network Inc.

Extreme Network Inc.

Dell Inc.

Hewlett Packard Enterprise (HP)

NEC Corporation