Software-Defined Networking And Network Function Virtualization Market Global Report 2026

The software-defined networking and network function virtualization market size has grown exponentially in recent years. It will grow from $68.54 billion in 2025 to $82.67 billion in 2026 at a compound annual growth rate (CAGR) of 20.6%. The growth in the historic period can be attributed to growing demand for flexible network infrastructure, increasing adoption of virtualized network functions, rising need for centralized network management, expanding use of software-driven network administration, and increasing demand for optimized utilization of network resources.

The software-defined networking and network function virtualization market size is expected to see exponential growth in the next few years. It will grow to $172.49 billion in 2030 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to rising demand for automated network orchestration, increasing adoption of programmable networking infrastructure, growing need for scalable network architectures, expanding deployment of virtualized network services, and increasing demand for cost-effective network operations. Major trends in the forecast period include growing adoption of intent-based networking, increasing use of network automation and orchestration technologies, rising demand for programmable network infrastructure, increasing deployment of virtualized network services, and growing demand for network slicing and service chaining capabilities.

The increasing adoption of cloud computing across enterprises is expected to propel the growth of the software-defined networking and network function virtualization market going forward. Cloud computing across enterprises refers to the utilization of shared, scalable, and on-demand computing resources such as storage, applications, and processing power delivered through the internet to support business operations across multiple organizations. The increasing adoption of cloud computing across enterprises is driven by its ability to reduce information technology costs by eliminating the requirement for large upfront investments in physical infrastructure and reducing ongoing expenses associated with maintenance, upgrades, and in-house information technology management. The adoption of cloud computing across enterprises drives demand for software-defined networking and network function virtualization by supporting flexible, scalable, and automated network infrastructures that facilitate efficient resource management, dynamic workload allocation, and seamless connectivity across cloud environments. For instance, in January 2026, according to Eurostat, a Luxembourg-based official European Union statistical office, in 2025, 52.74% of EU enterprises used paid cloud computing services, primarily for e-mail, office software, and file storage, demonstrating an increase compared with 2023. Therefore, the increasing adoption of cloud computing across enterprises is driving the growth of the software-defined networking and network function virtualization market.

Key companies operating in the software-defined networking and network function virtualization market are focusing on developing advanced solutions, such as software-defined enterprise networking platforms, to enhance network agility, centralized management, scalability, security, and application performance across distributed enterprise environments. A software-defined enterprise networking platform is a centralized networking solution that uses software-based control and automation to manage, monitor, and optimize enterprise network infrastructure across branch offices, data centers, cloud environments, and remote locations. For example, in October 2024, Orange S.A., a France-based telecommunications and digital services company, launched SD-WAN Essentials based on Ekinops technology to enhance secure, scalable, and centrally managed enterprise networking across distributed business locations and cloud environments. The solution is designed to provide a simplified and cost-effective SD-WAN offering for small and medium-sized businesses, enabling secure and centralized network management, improved application performance, and scalable connectivity across distributed enterprise locations through software-defined and virtualized networking capabilities.

In July 2025, Hewlett Packard Enterprise Company, a US-based technology company, acquired Juniper Networks for $14 billion. Through this acquisition, HPE aims to enhance its networking portfolio, drive growth in the artificial intelligence and hybrid cloud sectors, and strengthen its ability to provide an integrated cloud-native, AI-powered networking and IT infrastructure ecosystem. Juniper Networks Inc. is a US-based company that provides software-defined networking (SDN) and network functions virtualization (NFV) solutions.

Major companies operating in the software-defined networking and network function virtualization market are Microsoft Corporation, Verizon Communications Inc., Huawei Technologies Co. Ltd., AT&T Inc., Dell Technologies Inc., Broadcom Inc., International Business Machines Corporation, Oracle Corporation, Cisco Systems Inc., Intel Corporation, Hewlett Packard Enterprise Company, Fujitsu Limited, Telefonaktiebolaget LM Ericsson, Nokia Corporation, ZTE Corporation, Arista Networks Inc., Ciena Corporation, Amdocs Limited, NEC Corporation, Extreme Networks Inc., Ribbon Communications Inc., H3C Technologies Co. Limited, Pica8 Inc.

North America was the dominant region in the software-defined networking and network function virtualization market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the software-defined networking and network function virtualization market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the software-defined networking and network function virtualization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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