The Growing SDN Market: $130 Billion by 2022

Experts predict a value of $130bn for the SDN market

SDNIt’s hard to overlook the sheer level of data we create on a regular basis. From mobile devices to social media and cloud computing, we’re collaborating to overwhelm the average traditional network. Today, we need stronger, more complex network infrastructures if we want any hope of managing the data we’re dealing with on a daily basis. The good news is that Software Defined Networking could be the answer.

Software Defined Networking (SDN) could easily revolutionize the average legacy data centre, providing a simpler, and more efficient way for us to manage our standard network operations. By giving us a more programmatic way to control, manage, and change network behaviour, software-defined networking technology could allow engineers and administrators to respond more proactively to the needs of evolving companies throughout the world.

The Growing Need for SDN

It’s no wonder that the market for SDN is growing, with such a significant potential to look forward to. Software Defined Networking is made up of various technologies, all intended to improve the flexibility of the average network and support the infrastructure of the modern data centre. With SDN, we can access a centralised network dynamically capable of changing to meet new business requirements, for limited CapEX, OpEX, and greater optimisation.

The sheer agility and flexibility of SDN mean that the global market is soaring, with an annual growth rate somewhere around 47% between the years of 2016, and 2022. With a speed like that, we should have a market size of around $130 billion by the end of 2022.

Of the SDN solutions analysed lately, physical network infrastructure is the key that accounts for the biggest share of the market growth, at over 45% in 2015. This dominance is expected to continue during the forecasted period, with growth attributed to the constant movement of businesses out of conventional networks, and into virtual solutions. The advanced digital networks we have today can give IT professionals the chance to reduce cost, improve adoption, and maximise productivity.

Additionally, it’s worth noting that Enterprises are generating the most revenue for SDN based on end-users, accounting for more than a 40% share. Communication technologies and networking solutions have quickly emerged as essential elements of modern business, and SDN offers centralised and virtual infrastructure options that help the market to grow and thrive. On top of that, trends like BYOD, mobile devices, cloud computing, and IoT, combined with Big Data should all drive the SDN market forward.

SDN and The Virtual Future

As we move further into the age of digital transformation, a greater number of companies are looking for a way to manage their resources and technology from a virtual perspective with their SDN services. A reduction in operational and CapEX costs with SDN technology is driving the market forward, and North America is currently the largest source of SDN profit, considering the fact that numerous North American industries are adopting SDN, including energy, healthcare, and telecom.

Perhaps one of the most significant reasons why we’ve seen such significant growth in SDN technology is the fact that it offers such a high level of standardisation. Mobility services, cloud computing, and network virtualisation are all accepted by big players in North America at an early stage, which helps to justify the high market share.

Some of the leading companies that are using the SDN solution globally include Dell, Hewlett Packard Enterprise, Cisco Systems, Brocade Communications, IBM Corp, VMware Inc, NEC corps, and Extreme Networks.

 

 

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Rebekah Carter

Written by Rebekah Carter

Hi I'm Rebekah, I have an unwavering passion for the technology sector, and I regularly stay up to date with the latest in UC and Cloud