Software-Defined Networking (SDN) Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The global software-defined networking (SDN) market size attained a value of USD 25.28 Billion in 2024. The industry is expected to grow at a CAGR of 19.00% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 143.96 Billion.

The software-defined networking technology is a network management strategy that allows dynamic and programmatically effective network setup to enhance network performance and tracking, making it more like cloud computing than traditional network management.

The incumbent IT substructure is under pressure to configure systems while complying with standards and norms robustly. SDN is rising as one of the most promising and lucrative networking technologies capable of enabling virtualisation and innovation of the network, addressing most of the ongoing networking issues, which in turn has resulted in favourable software-defined networking (SDN) market outlook.

Moreover, the increasing demand for cloud services, data center consolidation, network virtualisation, and mobility are factors driving software-defined networking (SDN) market growth. The adoption of SDN can help enterprises reduce operational and capital expenditures, improve network agility and flexibility, and support emerging technologies such as Internet of Things (IoT), artificial intelligence (AI), and 5G.

Key Trends and Recent Developments

February 2024

Cisco and DISH Wireless announced a proof-of-concept test for a first-of-its kind network slicing solution in a hybrid cloud environment based on Cisco hardware and software. Network slicing will help DISH Wireless separate and efficiently manage network traffic by use case and application, determining the appropriate performance requirements for each type.

February 2024

MTN South Africa and Huawei completed Africa's first scale deployment of an 800G optical network, marking a significant step towards green and reliable networks that boost digital and sustainable development of Africa. The 800G links were set up, with single fiber capacity of 48Tbps, to connect data centers in Johannesburg, Durban and Cape Town. This domestic backbone will meet MTN’s growing capacity requirements for its cloud-based business services, enhanced home broadband, and wireless networks.

January 2024

Juniper Networks announced that National Chi Nan University (NCNU) had implemented Juniper’s AI-driven wireless solutions. With Juniper’s Access Points driven by Mist AI™, NCNU is able to provide a seamless wireless network experience for its students and staff while delivering on its vision of becoming an AI-integrated university.

April 2023

Arista Networks announced a cloud-delivered, AI-driven network identity service for enterprise security and IT operations. Based on Arista’s flagship CloudVisionⓇ platform, Arista Guardian for Network Identity (CV AGNI™) expands Arista’s zero trust networking approach to enterprise security. CV AGNI helps to secure IT operations with simplified deployment and cloud scale for all enterprise network users, their associated endpoints, and Internet of Things (IoT) devices.

Rising demand for cloud-based services and applications

Cloud computing requires responsive and scalable network infrastructure that can support dynamic workloads and high data traffic. SDN enables cloud service providers to optimise network performance, reduce operational costs, and enhance data security. Amazon Web Services is investing billions in Asia-Pacific cloud regions (Australia, Taiwan), aiming to support growing AI workloads. This expansion underscores the need for responsive SDN systems to manage dynamic network traffic, thus boosting the demand of the software-defined networking (SDN) market.

Increasing adoption of 5G and Internet of Things (IoT) technologies

5G and IoT are expected to generate massive amounts of data and increase network complexity and heterogeneity. SDN can facilitate the management of diverse network resources and devices and enable faster service delivery. As modern networks become more heterogeneous and data-intensive, traditional networking approaches struggle to keep pace with the complexity and scale. SDN, by separating the control and data planes, offers centralized network management, programmability, and flexibility - making it a critical solution for managing next-generation network demands.

Growing need for network automation and programmability

Network automation and programmability can improve network efficiency, reduce human errors, and manual interventions. software-defined networking (SDN) market allows network operators to configure, monitor, and control network behaviour through software applications. Across the enterprise and cloud sectors, AI and ML integration continues to transform SDN, automating tasks like traffic analysis, anomaly detection, and predictive optimization - enabling networks to self-adjust for improved performance and reduced manual intervention. Meanwhile, 5G and edge computing deployments are amplifying SDN’s importance.

Emergence of software-defined wide area network (SD-WAN) solutions

SD-WAN is a subset of SDN that applies SDN principles to wide area networks (WANs), which connect geographically dispersed locations and enterprises. SD-WAN can offer cost-effective, secure, and high-performance connectivity across multiple WAN links and service providers. This has become increasingly critical as organizations adopt cloud-native applications and support remote workforces. Asia-Pacific is witnessing some of the fastest adoption rates in the software-defined networking (SDN) market, driven by expanding IT infrastructure, the rollout of 5G, and widespread digital transformation across enterprises.

Increasing cybersecurity threats and challenges

SDN environments often involve integration with various virtualized and cloud-based systems, which increases complexity and potential exposure to threats such as Distributed Denial of Service (DDoS) attacks, man-in-the-middle attacks, and unauthorized access. As networks become more programmable and automated, the risk of misconfigurations and insider threats also rises. These challenges are compelling organizations to invest in advanced security solutions tailored for SDN, such as dynamic threat detection, real-time analytics, and AI-driven policy enforcement.

Global Software-Defined Networking (SDN) Industry Segmentation

The report titled “Global Software-Defined Networking (SDN) Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Open SDN
• SDN Via API
• SDN Via Overlay

Key Insight: Open SDN, driven by open-source controllers like OpenDaylight and ONOS, is gaining traction for its ability to offer high customizability and vendor-neutral frameworks. It is especially relevant to organizations looking to reduce costs and avoid vendor lock-in. Adoption is strong in academic, research, and government sectors, as well as enterprises seeking greater control over network infrastructure and more rapid innovation through open standards.

Market Breakup by End Use

• Data Centres
• Service Providers
• Enterprises
• Banking, Financial Services, and Insurance
• Manufacturing
• Retail
• Healthcare
• Education
• Government and Defence

Key Insight: The data centre segment accounted for the largest software-defined networking (SDN) market share in the historical period and is expected to maintain its dominance over the forecast period. Data centres are one of the major end-users of SDN, as they require efficient network management, scalability, flexibility, and security. SDN enables data centre operators to optimise their network resources, automate network provisioning and configuration, reduce operational costs, and enhance performance. The growing adoption of cloud computing, big data analytics, and artificial intelligence (AI) in various industries is driving the demand for SDN in data centres.

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Key Insight: North American region accounts for a significant software-defined networking (SDN) market share due to the presence of major players such as Cisco, VMware, IBM, and Juniper Networks, along with the high adoption of cloud computing, big data analytics, and Internet of Things (IoT) among various industries. The U.S. Department of Defense alone invested more than USD 1.3 billion in software-centric networking projects, forging demand for secure, programmable fabrics in classified environments. Start-up density around Silicon Valley, Austin, and Toronto accelerates controller innovation, while open-source stewardship by the Linux Foundation fosters multivendor interoperability.

Global Software-Defined Networking (SDN) Market Share

SDN via API and Overlay Occupy a Large Share in the Market

SDN via API is widely adopted by enterprises leveraging existing hardware while integrating programmable features. This model allows for gradual SDN implementation without overhauling the entire network architecture. It is particularly useful for telecom providers and large-scale enterprises that require centralized control while maintaining interoperability with legacy systems. Its relevance is growing due to the need for flexible, scalable networks supporting IoT and cloud computing, thereby supporting the growth of the software-defined networking (SDN) market.

SDN via overlay is popular in data centers and cloud environments, where virtual networks are layered over physical infrastructure. This approach enables rapid provisioning, multi-tenancy, and network abstraction, making it ideal for service providers and cloud-native businesses. Its growth is being fueled by demand for agile networking solutions in virtualized environments, especially where physical network changes are cost-prohibitive or complex.

Rising Adoption of SDN in BFSI and Manufacturing Sectors Driving Market Growth

The BFSI sector is another key end-user in the SDN market, as it requires high-speed, reliable, and secure network connectivity to support its operations. SDN helps BFSI institutions to improve their network security, comply with regulatory standards, and fulfil customer expectations. SDN also enables BFSI institutions to offer innovative services and products, such as mobile banking, online banking, digital payments, and fintech solutions. As per the software-defined networking (SDN) market report, the BFSI segment will register a high CAGR in the future due to the increasing digitisation and transformation of the banking industry.

The manufacturing sector is also adopting SDN solutions to enhance its network performance, productivity, and competitiveness. SDN enables manufacturers to integrate their network infrastructure with their industrial systems, such as production lines, machines, sensors, and robots. SDN also facilitates the implementation of Industry 4.0 concepts, such as smart factories, internet of things (IoT), and edge computing, which require dynamic and scalable network connectivity.

Global Software-Defined Networking (SDN) Market Regional Analysis

Asia-Pacific Leads SDN Growth While MEA Shows Emerging Potential

Asia-Pacific is expected to be the fastest-growing software-defined networking (SDN) market during the forecast period, due to the increasing demand for bandwidth, mobility, and cloud services among the emerging economies such as China, India, Japan, and South Korea. The region is also witnessing a rapid growth of data centres, telecom operators, and cloud service providers, which are driving the adoption of SDN solutions to optimise their network performance and reduce operational costs.

The demand for SDN in Middle East and Africa region is expected to show moderate growth. Even if the awareness and adoption of SDN solutions are low compared to other regions, the growing investments in digital transformation, smart cities, and e-commerce sectors are creating opportunities for the SDN vendors to expand their presence and offer customised solutions to meet the specific needs of the regional customers.

Competitive Landscape

Major SDN vendors are aggressively integrating AI, automation, and open interfaces into their solutions, enabling more flexible, programmable networks. They are forming strategic alliances and acquiring niche players to accelerate innovation and expand their portfolios. These efforts aim to attract cloud operators, telcos, and large enterprises migrating toward software-defined architectures that demand agility, visibility, and centralized management.

Simultaneously, companies are enhancing hardware-software synergy by adopting open APIs, supporting hybrid deployments, and emphasizing interoperability. They are investing heavily in research and development to drive advanced use cases in AI workloads, edge computing, and SASE. This positions SDN providers as key enablers of digital transformation and future network infrastructures.

Arista Networks, Inc.

Arista focuses on high-performance data center and cloud networking, integrating SDN through its EOS operating system and open architecture. The company champions standards like VXLAN and NV GRE, collaborates across ecosystems, and positions Ethernet as essential for AI-ready infrastructure. Recognized for strong execution and AI-forward strategies, Arista continues expanding its reach in hyperscaler and enterprise segments.

Cisco Systems, Inc.

Cisco leads in programmable networking by offering SDN-enabled switches, routers, and controllers, strengthened by strategic partnerships and acquisitions. It emphasizes hybrid cloud, AI-ready fabrics, and SASE, serving enterprise and service provider clients globally. Cisco leverages deep expertise in networking, security, and collaboration to support customers navigating digital transformation and evolving network demands.

HUAWEI Technologies Co., Ltd.

Huawei holds a strong position in SD-WAN and SDN through its comprehensive networking portfolio and extensive global reach. Backed by a vision-centric strategy, Huawei focuses on edge-to-cloud SDN deployments, particularly in emerging markets. It continues investing in R&D to advance programmable networking solutions amid geopolitical challenges and shifting competitive dynamics.

Juniper Networks, Inc.

Juniper emphasizes AI-driven SD-WAN/SDN innovation, integrating Mist AI across wired, wireless, and SDN platforms. Its Contrail SDN offers orchestration and network automation, while strategic expansions through acquisitions and partnerships aim to bolster enterprise and service-provider offerings. Its vision-ready, AI-enhanced network architectures support scalability and operational intelligence.

Other key players in the global software-defined networking (SDN) market include VMware, Inc., and Extreme Networks, Inc., among others.

Key Features of the Report:

• In-depth analysis of global SDN market trends and growth projections.
• Comprehensive segmentation by type and end-use.
• Competitive landscape featuring profiles of key market players and strategies.
• Evaluation of market drivers, challenges, and future opportunities.
• Insights into technological innovations transforming network infrastructure.
• Regional analysis covering North America, Europe, Asia-Pacific, and more.

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• Industry-trusted data and insights tailored to strategic decision-making.
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