Software-Defined Networking Market to Reach $3.52 Billion by 2018

By Casey Houser October 23, 2015

The latest report from Transparency Market Research shows that the SDN market could rise to as much as $3.52 billion by 2018.

A growth of that magnitude would require a compound annual growth rate of 61.5 percent in six years. The period between 2012 and 2018 would see such growth as businesses and consumers display an increasing need for mobile services and look to the cloud for more of their daily software and processing power. More than ever, software-based network will be necessary to keep pace with demand; only they, not physical networks, can scale and remain flexible enough to suit a growing number of users and devices.

Of the three main business-type groups that will utilize software defined networking – cloud service providers, enterprises, and telecommunications service providers – enterprises held the biggest share in 2012, at about 35 percent of the entire market. This trend is expected to continue as more enterprises begin using cloud computing – a segment of use that Transparency says will grow faster than all other parts of the whole.

Image via Shutterstock

Cloud provisioning and orchestration are those use types, leading SDN switching and SDN controllers, that have held the majority share in types of usable enterprise products and services. If this trend continues, businesses could be expected to send more of their operations into the cloud, where sophisticated programs could help managers, IT admins, and executive officers control everything from employee scheduling to inventory – much of it automated.

Of the global geographical regions that utilize SDN, North America has proven itself the leader, likely riding on the back of business-friendly regulation in the continent. However, a growing bring-your-own-device trend in the Asia-Pacific region could allow that part of the globe to take the lead before 2018. Europe and the Rest of the World may lag behind those two frontrunners, but readers should not entirely discount the role they will play in the global market.

Overall, SDN is poised to transform how all types of businesses complete their daily operations and how individuals receive their services. End users of all types can expect more software to move to the cloud and more adoption of the cloud among private entities, all while experiencing faster and more efficient computing.

Edited by Kyle Piscioniere

Contributing Writer

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