Software-Defined Networking (SDN) Market Size & Share, by Model (Open SDN, SDN Via APIs, SDN Overlay Models, Hybrid SDN); End-user (Data Centers, Service Providers, Enterprises) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4980
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Software-Defined Networking Market size is expected to reach USD 221.79 Billion by the end of 2035, growing at a CAGR of 22% from 2023 to 2035. In the year 2022, the industry size of software-defined networking was USD 20.4 Billion. The increasing need to optimize network resources and quickly adapt networks to changing business needs, applications, and traffic is leading to the adoption of the software-defined networking (SDN) approach in network virtualization and containerization.

Software-defined networking (SDN) promotes efficient network traffic decision-making for network operators and offers centralized network control. Software-defined networking function virtualization investments help in the reduction of CAPEX and OPEX expenditures. This helps in reducing the reliance that enterprises had on hardware platforms. For instance, a virtualized radio access network (vRAN) helps to lower operating expenses due to the limited power consumption and with an estimated total cost of ownership savings.

Software-Defined Networking Market-min
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Global Software-Defined Networking Sector: Growth Drivers and Challenges

Growth Drivers

  • Cloud Services and Increasing Uses – it is important for cloud applications to get the SDN. This allows data movement between various distributed locations at a faster pace. Hence, most services and applications, specifically when they involve the cloud, need SDN to function.
  • Rising Investment by Communication Services Providers in Advance Networking Technologies –technologies such as SDN transform the network architecture of these service providers and minimize the cost of networking operations, which is why SDN attracts investment.
  • Growing Emergence of 5G Technology – which enabled the development of massive connectivity and capacity of powerful & complex heterogeneous infrastructure. There is a rising need to enhance the 5G networks for future 5G needs and hence, SDN and network function virtualization is being adopted to upgrade network architecture to support the requirements of a new 5G eco-system in the coming future, which is expected propel numerous opportunities for the software-defined networking market growth.


  • Security Issues –The lack of a comprehensive controller mechanism is considered a major factor restraining market growth.
  • Complex SDN Architecture
  • Reluctancy in Transitioning from Traditional Networks

Software-Defined Networking Market: Key Insights

Base Year


Forecast Year



~ 22%

Base Year Market Size (2022)

~ USD 20.4 Billion

Forecast Year Market Size (2035)

~ USD 221.79 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Software-Defined Networking Segmentation

End Users (Data Centers, Service Providers, Enterprises)

The data centers segment is slated to hold 45% share of the SDN market by 2035. The increasing number of data centers is driving the segment growth. There were over 8,000 data centers across the globe in 2022. SDN helps data center service providers to simplify and automate the provisioning of their networks for end-to-end network and service management and control. SDN controllers are a critical part of a data center software-defined network as they manage the flow control to network switches and routers. Moreover, as in a software-defined data center, all elements of the infrastructure viz, networking, storage, CPU, and security are virtualized and delivered as a service, the entire provisioning and operation of the infrastructure are driven by software.

Model (Open SDN, SDN Via APIs, SDN Overlay Models, Hybrid SDN)

The SDN overlay model segment is expected to garner the highest share of the overall segment is accredited to the increasing security threat and the need to improve cyber security. SDN overlay networks enhance security by segmenting traffic and restricting access. While using SDN as an overlay an attacker's traffic can be detected and stopped more easily in case of a network compromise.

Our in-depth analysis of the market includes the following segments:


  • Open SDN
  • SDN Via APIs
  • SDN Overlay Models
  • Hybrid SDN

     End Users

  • Data Centers
  • Service Providers
  • Enterprises
  • Others

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Global Software-Defined Networking Industry - Regional Synopsis

North America Market Forecast

The software-defined networking market in North America holds a significant share of about 30% by 2035. The rise in the adoption of cloud computing & mobility solutions and the increasing need to manage networks owing to growing network traffic is expected to boost the regional market growth. SDN supports moving workloads around a network quickly, hence enterprises & service providers can use a virtual network infrastructure to shift workloads from private to public cloud infrastructures when necessary and make new customer services available instantly.

APAC Market Analysis

The Asia Pacific software-defined networking market is set to register a share of about 25% by 2035. The rising technological advancements and surge in implementation of new & advanced technologies such as mobility solutions & virtualization services among businesses and communication service providers are anticipated to positively impact the growth of the SDN market in the region. The benefits of software-defined networking, which include scalability, service quality, visibility, and cost-effective security is boosting their adoption in cloud-ready industries in Asian countries such as India.

Research Nester
Software-Defined Networking Market Size-min
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Companies Dominating the Software-Defined Networking (SDN) Market

    • Broadcom Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Arista Networks, Inc.
    • Cisco Systems, Inc.
    • Huawei Technologies Co., Ltd.
    • Juniper Networks, Inc.
    • VMware, Inc.
    • Extreme Networks, Inc.
    • Fujitsu Limited
    • Oracle Corporation
    • Dell Inc.


In The News

  • Broadcom Inc., a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, announced an agreement with VMware, Inc., a leading innovator in enterprise software. As per the agreement, Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at nearly USD 61 billion, based on the closing price of Broadcom’s common stock on May 25, 2022.
  • Arista Networks, Inc., a leader in cloud networking, acquired Big Switch Networks, a network monitoring and SDN (Software Defined Networking) pioneer.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 4980
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing investment in the development of the latest network technologies and the growing network traffic are the major factors driving the growth of the software-defined networking market.

The market size of software-defined networking is anticipated to attain a CAGR of 22.00% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Broadcom Inc., Arista Networks, Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd., Juniper Networks, Inc., and VMware, Inc.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by model, end-users, and by region.

The data center segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Rising security concerns due to complex SDN architecture and reluctance in transitioning from traditional networks are estimated to be the growth hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Software-Defined Networking Market Report Scope

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