Software-Defined Networking and Network Function Virtualization Market: Global Industry Analysis and Forecast (2023-2029)

Software-Defined Networking and Network Function Virtualization Market size was valued at US$ 41.34 Billion in 2022 and the total Software-Defined Networking and Network Function Virtualization revenue is expected to grow at 23.75% through 2023 to 2029, reaching nearly US$ 183.76 Billion.
Software-Defined Networking and Network Function Virtualization Market Overview:
Software-Defined Networking technology is an approach to networking that allows dynamic, program efficient network configuration to improve network performance, making it seem like cloud computing than traditional network management. SDN is supposed to address the fact that the static architecture of normal networks is decentralized and complex on the other hand current networks need more flexibility and easy troubleshooting systems.To know about the Research Methodology :- Request Free Sample Report

Network functions virtualization is a network architecture that uses IT-based virtualization techniques to virtualize entire divisions of network node functions into blocks that connect to create and deliver communication services. NFV was a popular standard even when it was newly introduced to the market. Its applications are various, such as virtualization of mobile stations, content delivery networking, etc. The potential advantages of NFV are projected to be significant. Virtualization of network functions applied on general-purpose hardware, which is thoroughly standardized, is projected to reduce operational capital and expenditure and the time required for service and product introduction.

However, to utilize the projected advantages of virtualization, network product vendors are improving virtualization technology to include carrier-grade attributes needed to achieve higher availability, performance, and effective network management capacity. To minimize the cost of ownership, top-notch features must be implemented as efficiently as possible. This demands that NFV solutions effectively use resources to achieve five-nine availability i.e., 99.999%, and compute resources without compromising performance parameters.
Market Dynamics:
One of the main drivers of the market is an investment of customer service providers in software-defined networks to automate network infrastructure. The increase in the size and complexity of network infrastructure in recent years has created a requirement for solutions to simplify and efficiently manage entire networks. SDN solutions refer directly to these problems by providing more flexibility with the help of traffic management to improve network efficiency. Hence, most communication service providers around the globe are investing in the SDN for end-to-end network and service control. The automation of networking leads to enhanced servicing.

Customer service providers are preparing their networks to increase the advantages of using a virtual network architecture, increasing agility, visibility, and cost-effectiveness. Customer Service Providers are bound to invest in SDN to reduce the total capital expenditure and operating expense to stay competitive in the data-driven electronic economy, which is mostly dominated by OTT platforms.

The crucial restraint of the market is SDN control to be the ideal attack ground giving a total hacker control of the network. SDN controls various network devices, which operate through a unique centralized control point. This leaves the entire system vulnerable to potential cyber-attacks, which are bound to give the whole system control to the attackers.

SDN and NFV service providers claim that proper protocols can increase the security of networks; but, several other users of SDN and NFV are concerned about the safety of networks. This is because a network reconfiguration can occur when implementing the solution as an app, installed on the control system. Attackers can trick network and IT engineers into installing compromised apps and are bound to make the web do something malicious and unexpected.

The growing endorsement of the IoT is expected to be a significant opportunity for the market. The widespread use of IoT drives the requirement for networking devices. The network infrastructure is needed to support these devices needs to provide proper connectivity and ensure the delivery of app-based service. The infrastructure sharing among different service providers has grown to reduce high investment costs related to infrastructure development. Like SDN and NFV, new architectures are endorsed by enterprises for networking, handling data from IoT devices, and reducing management tasks. For this, multiple service providers use common network infrastructure, which needs isolation of resources and strict confidential managing, which can be given through SDN and NFV solutions.
Segment Analysis:
Based on the Product, The software sub-segment is projected to grow the highest CAGR of 8.9%, followed by the services segment with a CAGR of 5.8% in the forecast period (2023-2029). This can be attributed to steep growth in cloud services, big data management. Software and Services sub-segments are expected to continue their growth because of Software as a Service (SaaS) emergence.

By Application, The Information Technology Services Enabled sector held the highest share in the SDN and NFV market in 2022, and this sub-segment is also projected to grow at the highest CAGR of 7 % in the forecast period (2023-2029) out of all other sub-segments. The government and Defense and Banking and Financial sector, i.e., BFSI, are also projected to grow at high CAGRs of xx% and xx%, respectively. This growth correlates to network security needs for government systems and effective customer data management in the BFSI sector. The Consumer Goods and Retail sector is also projected to be at a CAGR of 5.8% in the forecast period (2023-2029) due to the data virtualization in the retail analytics sector.
Software-Defined Networking and Network Function Virtualization Market Regional Insights:
North America is projected to witness the largest SDN and NFV market growth during the forecast period (2023-2029). This growth is aided by the region’s quick endorsement of cloud computing, NFV utilization, etc. Growing industrialization in countries like the US and Canada has always contributed to aiding fast growth in various market sectors of SDN and NFV. Countries in North America have sustainable standards and network regulations protected by legislation that helps in the growth of software-defined networking markets and NFVs. North America has several global players in networking industries and is a market for investment that has new opportunities to adopt the SDN and NFV infrastructure.

The Asia-Pacific region follows North America in the SDN and NFV market growth forecast (2023-2029). This is due to the high demand for application delivery controllers in developing countries like India and China. The Asia Pacific region was responsible for 4 billion dollars’ worth of share in the global SDN and NFV market in 2022. The Digital India initiative by the government of India is also expected to drive the SDN and NFV market growth in the country in the forecast period (2023-2029)

The objective of the report is to present a comprehensive analysis of the Global Software-Defined Networking and Network Function Virtualization market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Global Software-Defined Networking and Network Function Virtualization market dynamics, structure by analyzing the market segments and projecting the Global Software-Defined Networking and Network Function Virtualization market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Global Software-Defined Networking and Network Function Virtualization market make the report investor’s guide.
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Software-Defined Networking and Network Function Virtualization Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 41.34 Bn.


Forecast Period 2023 to 2029 CAGR:
23.75%
Market Size in 2029:
US $ 183.76 Bn.


 Segments Covered:
by Product
Software
Physical Appliances
Services


by Application
Healthcare
BFSI
Consumer Goods and Retail
Government and Defense
Manufacturing
ITES
Others



Software-Defined Networking and Network Function Virtualization Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Software-Defined Networking and Network Function Virtualization Market Key Players
1. Cisco Systems, Inc.
2. Hewlett Packard Enterprise Co.
3. Juniper Networks, Inc.
4. Intel Corporation
5. Pluribus Networks Inc.
6. Big Switch Networks, Inc.
7. Huawei Technologies Co., Ltd.
8. NEC Corporation
9. Pica8, Inc.
10.Brocade Communications Systems, Inc.
11.Ciena Corporation
12.IBM
13.HPE
14.Nuage Networks
15.Nokia
16.Metaswitch
17.Affirmed Networks
18.Mellanox Technologies
19.Zetta Network
FAQs:
1. Which is the potential market for SDN and NFV in terms of the region?
Ans. North America is projected to witness the largest growth in the SDN and NFV market during the forecast period.

2. What are the opportunities for new market entrants?
Ans. The growing endorsement of the IoT is expected to be a major opportunity for the market. The widespread use of IoT drives the requirement for networking devices.

3. What is expected to drive the growth of the SDN and NFV market in the forecast period?
Ans. One of the main drivers of the market is an investment of customer service providers in software-defined networks to automate network infrastructure.

4. What is the projected market size & growth rate of the SDN and NFV market?
Ans. Global Software-Defined Networking and Network Function Virtualization Market size was valued at US$ 27 Billion in 2021 and the total Software-Defined Networking and Network Function Virtualization revenue is expected to grow at 23.75% through 2023 to 2029, reaching nearly US$ 183.76 Billion.

5. What segments are covered in the SDN and NFV market report?
Ans. The segments covered are Product, Application and, Region.