SDN (Global Market)

2024: The global SDN market grew to $37.66 billion over the year

At the end of 2024, the costs in the global market for software-defined network solutions (SDN) reached $37.66 billion. More than a third of global spending was in the North American region. Such data are presented in a study by Grand View Research, the results of which TAdviser got acquainted with at the end of June 2025.

The SDN concept assumes that the network infrastructure is managed using software solutions separate from the physical layer. In traditional network infrastructures, data management and transfer are connected in a single process, which complicates configuration and scaling. In the case of SDN, a centralized software controller is used for control, which is abstracted from the hardware. This approach provides a number of advantages, including flexibility in management and scaling, the ability to create fault-tolerant infrastructures, improved security, and lower overall costs. Thanks to SDN, the network administrator gets a comprehensive view of its status and the ability to configure any device through a single system.

One of the drivers of the industry is the ongoing digitalization, which is accompanied by the active development of complex network infrastructures. Rapidly increasing the volume of transmitted data, changing the traffic structure, the need for prompt support of a huge number of users increase the requirements for network environments. To simplify the management of such systems, organizations around the world are increasingly implementing SDN. In addition, the SDN architecture allows the implementation of a commercially neutral system, since the principle of openness is embedded directly in the concept of software-defined networks.

Artificial intelligence has a positive impact on the market. In particular, AI algorithms make it possible to predict the load on SDN controllers, as well as analyze huge amounts of network data to identify patterns and anomalies that are extremely difficult or even impossible to detect by traditional methods. AI models can learn from historical data and predict resource use: this makes it possible to redistribute available power to prevent failures. In addition, AI helps improve safety and minimize downtime. AI-based systems are able to optimize configuration in real time, which allows you to handle traffic flows as efficiently as possible.

Enterprises in various industries are implementing SDN solutions to improve network infrastructure efficiency, improve traffic control, and provide flexibility, cost-effectiveness, and transparency of operations, the study authors say.

The market is segmented into solutions and services. The first of these areas provided the lion's share of revenue - about 70.3%. Geographically, North America is leading, accounting for 36% of global costs. At the same time, the Asia-Pacific region is showing the highest growth rates. Globally, significant players are named:

• Arista Networks;
• Cisco Systems;
• Ciena;
• Dell;
• LM Ericsson;
• Extreme Networks;
• Fortinet;
• Hewlett Packard Enterprise Development;
• Huawei Technologies;
• IBM;
• Juniper Networks;
• Nokia;
• Palo Alto Networks;
• Broadcom.

Analysts at Grand View Research believe that in the future, the CAGR in the market under consideration will be 17.9%. Thus, by 2030, the volume of the global industry of SDN solutions can reach $101.33 billion.^[1]

2015: Up 82%

In May 2016, IHS Technology analysts published the results of a study of the global Software Defined Networking (SDN) market used in companies and data centers.

According to experts, sales of SDN solutions (switches, controllers, SD-WAN equipment, control and control systems) reached $1.4 billion in 2015, an increase of 82% compared to 2014.

The global SD-WAN market will grow by 103% annually and reach $1.3 billion by 2020, IHS predicts

New uses for SDN are still emerging, and 2015 was no exception in this regard, since the SD-WAN market was then born. Although its volume remains small, many startups, manufacturers of traditional solutions for optimizing WAN channels and network vendors are rushing there, and we predict that SD-WAN revenue will reach $1.3 billion by 2020, said Cliff Grossner, senior director of data center, cloud computing and SDN markets research at IHS Technology.

In their study, analysts drew attention to the growing popularity of SDN-enabled switches and controllers, which are interested in novice players, pure SDN startups and traditional manufacturers of network equipment.

According to Cliff Grossner, in 2016, the launch of new SDN projects and an increase in the volume of existing ones will continue. Special attention is paid to solutions of the Open Source class.

Due to the SDN market's focus on open source software and open specification hardware, the number of deployed network solutions based on Open Source technologies will increase several times. The maturity of open source network software will spur companies to combine components into a single ecosystem, according to a study by IHS Technology.^[2]

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