Software Defined Networking Market-Fastest growing region during the forecast period

Software Defined Networking (SDN) is an approach to building a more scalable and flexible network. This approach enables network administrators to establish data flow control across the entire network instead of individual devices. It also helps in creating secure paths for data flow with relative ease. With SDN technology, the network can be programmed and managed at a higher dynamic scale with more agility and flexibility. In order to implement cloud computing services effectively within an organization and to optimize its benefit in the networking environment, a clear understanding of SDN technology is very important.

The global SDN market is primarily driven by the growing demand for cloud services and increasing need for mobility. The increasing need for efficient infrastructure is also supporting the growth of this market. Some of the factors inhibiting the growth of this market are lack of awareness and standardization. BYOD (Bring Your own Device) policy in organizations and rapid technological advancements in network serve as an opportunity for this market.

Driven by impact of all the aforementioned factors, the global market for SDN is expected to record a CAGR of 61.5% during the period 2012 – 2018.

Among the different end users, enterprises constituted the largest segment in 2012. To address the increasing need for virtualization, agility, and security in today’s network, SDN technology is gaining high attention as a viable solution. With the help of SDN technology, telecommunication service providers can balance networks at a more dynamic scale and can take advantage of new revenue generating possibilities.

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Out of the four major solutions, namely – SDN switching, SDN controllers, cloud provisioning and orchestration and others (security and services), the cloud provisioning and orchestration holds majority of the market share followed by SDN switching and SDN controllers. This solution helps in balancing the traffic between the servers and maintain resiliency within the network. Due to the growing need for efficient network infrastructure, consumers are moving towards the SDN technology.

North America held majority of the market share in 2012, followed by Europe and Asia Pacific. The North America SDN market is largely driven by advancements in cloud computing services and higher smartphone penetration. Asia Pacific is expected to be the fastest growing region during the forecast period owing to emerging trend of BYOD in various countries namely China and India, which serve as an opportunity for SDN market. It is estimated that 70% of all smartphone owning professionals in Asia Pacific are using their own devices to access corporate data in office premises and this activity needs to be managed with security concerns. There is a need for innovative solution which provides security to the network without losing the corporate data from personal devices, thus, driving demand for SDN technology in this region.

Large multinational players dominate the global SDN market. Key global players active in the SDN market are IBM, Cisco, Juniper Networks, NEC, Alcatel-Lucent, VMware, HP, Google, Big Switch Networks, Arista Networks, Brocade Communications Systems, Verizon Communications, Intel Corporation among others.

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