SDN: Key market research findings
- The Americas to dominate the market geographically
- SDN applications segment to be the key revenue generating segment
- Key vendors – Brocade Communications, Cisco, HP, Huawei, Juniper Networks, and VMWare
Technavio’s market research analysts predict the global SDN market to surpass $16 billion by 2020. The growth in this market can be accredited to the increasing need for the simplification of data center management. Software-defined networking (SDN) is a hyper-converged infrastructure that eliminates the use of multiple tools and provides a single platform for scaling the networking of resources, along with updating and monitoring. SDN uses a unified process to automate the delivery of resources. During 2015, the Americas dominated the global SDN market by occupying around 52% of the overall market revenue. The growing demand for networking owing to IoT is prompting enterprises in the region to adopt SDN to allocate resources dynamically in data centers; thus, contributing to the growth of the SDN market in the Americas.
The new market research report from Technavio presents a breakdown and analysis of the SDN segments based on the architectural components.
“The emergence of software-defined WAN (SD-WAN) is the latest trend in the global SDN market. SD-WAN improves WAN operations for routing traffic across enterprise remote offices. There are many new SD-WAN products in the market that provide cost-effective and efficient management of WAN operations. SD-WAN addresses configuration challenges through the automation of WAN edge router configurations. Some key benefits of SD-WAN include cost reduction, lowered complexity, and increased flexibility by enabling WAN to react to changing requirements,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
The SDN applications segment will exhibit the fastest growth in the global SDN market during the forecast period with a CAGR of around 55%. Some of the applications for SDN include network virtualization, intrusion detection systems, network monitoring, and flow balancer. These services optimize and secure the network while depending on network elements such as firewalls, intrusion detection and prevention systems, load balancers, WAN optimization appliances, and secure sockets layer (SSL) virtual private networks (VPNs).
The key vendors in the global SDN market include Brocade Communications, Cisco, HP, Huawei, Juniper Networks, and VMWare. Competition among providers in this market is very intense with the large vendors acquiring smaller companies to improve their product portfolios. Since networking is becoming sophisticated in related enterprise environments, companies are adopting advanced technologies to gain a competitive edge over their peers.
A more detailed analysis is available in the Technavio report, Global SDN Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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