Software defined networking (SDN) is a technology that enables network operators to manage and control complex networks through a centralized, intelligence-based system. SDN separates the network control plane, which decides how to route traffic, from the data plane, which forwards traffic to the destination. This allows for more flexibility, scalability, efficiency, and innovation in network design and operation.
What is driving the growth of SDN market?
The global SDN market size was valued at $9,995 million in 2019, and is projected to reach $72,630 million by 2027, growing at a compound annual growth rate (CAGR) of 28.2% from 2020 to 2027, according to a recent report by Allied Market Research. The main factors that are fueling the growth of the SDN market are:
- The increasing adoption of cloud computing and virtualization: Cloud computing and virtualization enable the delivery of applications and services over the internet, without requiring physical infrastructure or hardware. SDN helps cloud service providers to optimize the network performance, security, and scalability, as well as to reduce the operational costs and complexity. SDN also enables the integration of multiple cloud platforms and services, such as hybrid cloud, multi-cloud, and edge computing.
- The rising demand for mobility and bandwidth-intensive applications: The proliferation of mobile devices and applications, such as video streaming, online gaming, social media, and e-commerce, has led to a surge in network traffic and data consumption. SDN helps network operators to cope with the increasing network demand and complexity, by providing dynamic and flexible network management and configuration. SDN also enables the delivery of high-quality and personalized services to end users, such as network slicing, network function virtualization, and software-defined wide area network (SD-WAN).
- The growing need for network automation and innovation: Network automation is the process of automating the network functions and tasks, such as provisioning, configuration, monitoring, and troubleshooting, using software tools and algorithms. SDN facilitates network automation, by allowing network operators to program and orchestrate the network resources and policies through a centralized controller. SDN also fosters network innovation, by enabling the development and deployment of new network applications and services, such as artificial intelligence, internet of things, and 5G.
What are the challenges and opportunities for SDN market?
Despite the promising growth prospects, the SDN market also faces some challenges and limitations, such as:
- The compatibility issues with legacy network equipment: Legacy network equipment, such as switches, routers, and firewalls, are not designed to support SDN architecture and protocols. This creates interoperability and integration challenges for network operators who want to adopt SDN, as they have to either replace or upgrade their existing network infrastructure, which can be costly and time-consuming.
- The security risks due to centralized nature of data plane: SDN relies on a centralized controller to manage and control the network data plane, which makes it a single point of failure and attack. If the controller is compromised or malfunctioning, it can affect the entire network performance and security, as well as expose the network data and traffic to unauthorized access and manipulation.
However, these challenges also create opportunities for the SDN market, such as:
- The development of open and standardized SDN solutions: Open and standardized SDN solutions, such as OpenFlow, OpenDaylight, and Open Network Operating System, aim to provide interoperability and compatibility among different network vendors and devices, as well as to promote innovation and collaboration in the SDN ecosystem. These solutions can help network operators to overcome the legacy network equipment issues, as well as to leverage the benefits of SDN, such as flexibility, scalability, efficiency, and innovation.
- The adoption of advanced security measures and solutions: Advanced security measures and solutions, such as encryption, authentication, authorization, and auditing, can help network operators to protect the SDN controller and data plane from cyberattacks and breaches, as well as to ensure the confidentiality, integrity, and availability of the network data and traffic. These solutions can also help network operators to comply with the regulatory and ethical standards and requirements, such as General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA).
What are the key segments and players in the SDN market?
The SDN market can be segmented by component, organization size, end user, and industry vertical. The component segment includes solutions and services. The solutions segment comprises physical network infrastructure, virtualization and control software, and SDN applications. The services segment consists of professional services and managed services. The organization size segment includes large enterprises and small- and medium-sized enterprises. The end user segment covers telecommunication service providers, cloud service providers, and enterprises. The industry vertical segment encompasses information technology, consumer goods and retail, banking, financial services and insurance, defense, telecom, healthcare, and others.
The key players in the SDN market include Cisco Systems, Inc., Dell Technologies, Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Juniper Networks, Inc., NEC Corporation, Extreme Networks, Inc., VMware, Inc., Huawei Technologies Co., Ltd., and Big Switch Networks, Inc.
