Software-Defined Networking Market analysis report by Future Market Insights shows that global sales of the Software-Defined Networking Market in 2021 were held at US$ 16 Billion. With the projected market growth of 17.2% from 2022 to 2032, the market is projected to reach a valuation of US$ 95 Billion by 2032. SDN via Overlay is expected to be the highest revenue-generating segment, projected to grow at a CAGR of around 17.8% from 2022 to 2032.

Attributes	Details
Global Software-Defined Networking Market Size (2022)	US$ 19 Billion
Global Software-Defined Networking Market Size (2032)	US$ 95 Billion
Global Software-Defined Networking Market CAGR (2022 to 2032)	17.2%
USA Software-Defined Networking Market Size (2032)	US$ 34 Billion
Key Companies Covered	Cisco Dell EMC HP Enterprises VMware Huawei Broadcom Inc. Arista Networks Intel Corporation IBM Corporation AT&T Inc.

In 2023, the global software-defined networking (SDN) market brought in a revenue of over 24 billion U.S. dollars. By 2028, the SDN market is forecast to grow over 60 billion U.S. dollars with a compound annual growth rate of over 19 percent from 2023 to 2028.

The Software Defined Networking (SDN) Companies and the Market is Segmented by Organization Size (SMEs, Large Enterprises), by End-User (BFSI, Healthcare, Retail, Telecom and Cloud Service Provider, Manufacturing, Education), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The Market Size and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

The global software defined networking market size reached USD 28.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 125.1 Billion by 2033, exhibiting a growth rate (CAGR) of 17.08% during 2025-2033. The increasing demand for network automation and programmability, rapid adoption of cloud services, and accelerating digital transformation are primarily driving the market growth. Further, the increasing advancement in the 5G network is opportunistic for the market demand.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 28.3 Billion
Market Forecast in 2033	USD 125.1 Billion
Market Growth Rate (2025-2033)	17.08%

IMARC Group provides an analysis of the key trends in each segment of the global software defined networking market research report, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on component, organization size, application, and end use industry.

Software Defined Networking Market size was valued at USD 18.54 Billion in 2024 and is projected to reach USD 70.17 Billion by 2032, growing at a CAGR of 18.10% from 2026 to 2032.

Key Market Drivers: Growing Demand for Network Virtualization: The Software-Defined Networking (SDN) market is being driven by an increasing demand for network virtualization in order to improve flexibility, scalability, and resource optimization. SDN allows network resources to be abstracted from the underlying hardware, making virtualized infrastructure more efficient to use and administer. Rising Adoption of Cloud Computing: The extensive use of cloud computing services needs agile and programmable networks, which drives demand for SDN solutions. SDN's capacity to dynamically assign resources, automate activities, and optimize traffic flow matches the needs of cloud environments, promoting its adoption across a wide range of sectors.

The software-defined networking market size was valued at USD 30.93 billion in 2024 and is expected to reach USD 271.9 billion by 2037, expanding at around 18.2% CAGR during the forecast period i.e., between 2025-2037. North America industry is likely to dominate majority revenue share of 30% by 2037, impelled by rise in the adoption of cloud computing & mobility solutions and the increasing need to manage networks owing to growing network traffic.

Global Software Defined Networking - SDN market size 2025 was XX Million. Software Defined Networking - SDN Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

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Software-Defined Networking (SDN) Market Size 2024-2028

The software-defined networking (SDN) market size is forecast to increase by USD 67.38 billion at a CAGR of 29.04% between 2023 and 2028. The market is experiencing remarkable growth due to several key drivers. First, the increasing adoption of cloud solutions by various industries, including banking, financial services, and insurance (BFSI), is fueling the demand for SDN technology. Second, the proliferation of the Internet of Things (IoT) and edge computing is creating complex network design challenges that SDN is well-positioned to address. Network policies and security configurations can be centrally managed and applied consistently across the organization, ensuring optimal application performance. The BFSI segment, in particular, stands to benefit from SDN's ability to improve network agility and security while reducing operational costs. This trend is expected to continue, making SDN an essential technology for businesses looking to streamline their IT infrastructure and enhance their customer experience. In summary, the SDN market is witnessing substantial growth due to the adoption of cloud solutions, the emergence of 5G technology, and the need for advanced security technologies.

Market Analysis

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Software-Defined Networking (SDN) is a revolutionary network architecture that separates the control plane from the data plane, enabling network managers to centrally manage network resources and traffic flows in real-time. This approach offers numerous benefits, including increased network agility, improved network performance, and enhanced security. However, the adoption of SDN also presents certain challenges and emerging threats that require continuous monitoring and advanced security technologies. SDN architectures offer control functions that enable network administrators to make quick decisions and respond to disruptions, unauthorized access, malicious activities, and system failures.

Moreover, these functions include authentication mechanisms, encryption protocols, and continuous monitoring. However, the centralized controller used in SDN can be a potential target for targeted attacks, making security a top priority. The SDN market is witnessing significant growth due to the increasing demand for intelligent network architectures in the 5G ecosystem. The 5G ecosystem requires high network bandwidth, low latency, and network redundancy to support the massive data flows generated by IoT devices and other connected devices. SDN provides the flexibility and agility required to meet these demands and address reliability concerns. Despite the benefits, SDN adoption faces challenges related to network outages and collaboration between enterprises segment.

Network outages can lead to significant downtime and revenue loss, making network reliability a critical concern. Collaboration between enterprises is also essential to ensure seamless communication and data exchange in SDN environments. Advanced security technologies, such as machine learning and artificial intelligence, are being integrated into SDN to address emerging threats. These technologies enable real-time threat detection and response, ensuring the security and integrity of network resources. In conclusion, the SDN market is experiencing significant growth due to the increasing demand for agile networks and intelligent network architectures in the 5G ecosystem. While SDN offers numerous benefits, it also presents certain challenges related to security and network reliability. Continuous monitoring, advanced security technologies, and collaboration between enterprises are essential to ensure the successful adoption and implementation of SDN.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  BFSI
  Healthcare
  Retail
  Education
  Others


Component

  Physical network infrastructure
  SDN applications
  Controller software


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    UK


  South America



  Middle East and Africa

By End-user Insights

The BFSI segment is estimated to witness significant growth during the forecast period. Software-Defined Networking (SDN) is a cutting-edge technology that offers significant benefits to secure networks in various industries, particularly in high-performance sectors like financial services. In the US market, the Banking, Finance, Services, and Insurance (BFSI) segment is poised for substantial growth in the SDN domain. This technology enables financial institutions to manage their networks more effectively, ensuring compliance and optimizing traffic flows. SDN's centralized management s

Software Defined Networking Market Outlook 2032

The global software defined networking market size was USD 24.5 billion in 2023 and is likely to reach USD 136.49 billion by 2032, expanding at a CAGR of 19.7% during 2024–2032. The market growth is attributed to the high demand for efficient and flexible network infrastructure across the globe.



Increasing demand for flexible and efficient network infrastructure across various industries is expected to boost the software defined networking (SDN) market. SDN is a revolutionary approach to network management that separates the control plane from the data plane, enabling centralized control and programmability of network resources. This innovative technology has gained significant traction in recent years, driven by the need for greater agility, scalability, and cost-effectiveness in managing complex networks.

Impact of Artificial Intelligence (AI) in Software Defined Networking Market

The use of artificial intelligence is likely to provide substantial propulsion to the software defined networking market. The integration of AI technologies with SDN solutions brings forth a new era of intelligent network management. AI-powered algorithms and machine learning techniques enable networks to dynamically adapt and optimize their performance based on real-time data and changing conditions. This transformative capability allows organizations to achieve higher levels of efficiency, reliability, and scalability in their network operations.



AI analyzes vast amounts of network data, identifies patterns, and makes intelligent decisions to optimize network traffic, allocate resources, and detect and mitigate security threats. Organizations unlock new levels of network intelligence and automation, leading to improved network performance, enhanced user experiences, and reduced operational costs, by leveraging AI in SDN.

Software Defined Networking Market Dynamics

Major Drivers

Increasing complexity of modern networks is expected to boost the software defined networking market. Traditional network architectures struggle to keep up with the demands of these advanced technologies, with the proliferation of cloud computing, Internet of Things (IoT) devices, and big data analytics. SDN provides a solution by abstracting the network infrastructure and allowing administrat

The Scalable Software Defined Networking Market report segments the industry into End User (Cloud Service Providers, Enterprises, Telecommunications Service Providers), Industry Vertical (Academia and Research, BFSI, Consumer Goods and Retail, Government and Defense, Manufacturing, Telecom and IT, Other Industry Verticals), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa).

Software Defined Networking Market valued at USD 2,848.6 Mn in 2025, is anticipated to reaching USD 11,387 Mn by 2032, with steady annual growth rate of 21.89%.

Global Software Defined Networking (SDN) Market is anticipated to experience remarkable expansion, with a projected Compound Annual Growth Rate (CAGR) of 18.11% from 2025 to 2033. According to the market analysis, the market size is forecasted to reach USD 205.11 Billion by the end of 2033, up from USD 45.86 Billion in 2024.

The Global Software Defined Networking (SDN) market size to cross USD 20

The SDN market offers a range of products, including:Hardware: SDN-enabled switches, routers, and controllers that provide the physical infrastructure for SDN networks.Software: SDN software platforms that implement the SDN control layer, enabling network programmability and automation.Services: Managed SDN services, consulting, and training to support the implementation and management of SDN solutions. Recent developments include: On Mar.29, 2023, OpenSync, a leading provider of sophisticated & intelligent smart home devices and services, introduced Linux SDN to extend the reach to newer smart home devices. The expansion of SDN capabilities includes support for the Linux network stack. According to the company, OpenSync is the only Cloud-controlled open-source software defined networking (SDN) solution., On Jul. 27, 2022, Information Services Group (ISG), a leading global technology research & advisory firm, published a software defined solutions and services report - The 2022 ISG Provider Lens Network. As per the report, enterprises in Singapore and Malaysia are increasingly adopting software defined networking (SDN) to improve network integration, automation, and orchestration & management., According to ISG, the COVID-19 pandemic's effect on supply chains, remote work, and customer experience requirements have intensified the demand for network agility. Resultantly, regional companies are adopting SDN to seamlessly add applications and network resources to efficiently & securely meet business and user goals. Further, ISG also states that it has found that the trend is expected to continue for several years., On Mar.10, 2023, BICS, a leading global provider of international communications platforms, announced that it is using New SDN Controller by Nokia to strengthen its network. The new intelligence module can improve the overall performance of consumers' networks, automating optimal traffic routing and laying the groundwork for 5G network slicing. The new SDN controller manages capacity and flows routing across its global network., On Feb.08, 2023, Nokia announced that it has expanded its suite of software defined networking (SDN) offerings for fixed access networks by launching its Altiplano Application Marketplace. It is a digital store that offers various applications that can be selected and deployed by fixed broadband operators to enrich their network capabilities. The Altiplano Application Marketplace will allow customers to customize their SDAN implementations to meet their network and market needs., July 2022 Samsung Electronics announced that it is expanding its software-defined networking (SDN) solutions portfolio with new features designed to help mobile operators and enterprises manage networks more efficiently. With expanded capabilities, Samsung's new SDN solution will support businesses in various fields, including education, retail and energy., March 2022 Vodafone and Nokia are collaborating to develop a software-defined network manager and controller (SDN-M&C) service for mobile network operators' multi-access fixed network technology..

The Software Defined Networking Market size was valued at USD 24.5 USD Billion in 2023 and is projected to reach USD 73.53 USD Billion by 2032, exhibiting a CAGR of 17 % during the forecast period. Software Defined Networking or SDN is a new frontier in the control of networking that breaks down the physical architecture from the controls, enables control of networks from a single point, and allows for programming of the network. It consists of three main types: OpenFlow which describes a standard for interaction between the control and forwarding layers; Network Function Virtualization (NFV) which virtualizes the network services; and Multi-Protocol Label Switching (MPLS) which optimizes the transfer of data. Some of the facets of SDN include; flexibility, modularity, and expandability. It has its use in different areas like cloud computing fixing resource assignments; enterprise networks fixing organizational issues; and data centers fixing traffic and networking issues. Key drivers for this market are: Burgeoning Demand for Big Data Analytics among Organizations to Aid Market Growth. Potential restraints include: Lack of Awareness about Cyber Security and Vulnerability to Hinder Growth.

The size and share of the market is categorized based on Type (Open SDN, SDN Via API, SDN Via Overlay) and Application (Enterprises, Cloud Service Providers, Telecommunications Service Providers, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Software Defined Networking market will be growing at a CAGR of 23.67% during 2025 to 2033.

Software-Defined Networking (SDN) Market Outlook

The global Software-Defined Networking (SDN) market size was valued at approximately USD 13.2 billion in 2023 and is projected to reach around USD 72.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 21.6% during the forecast period. This remarkable growth can be attributed to the rising demand for network automation and virtualization, which are critical for managing large-scale, complex networks effectively.

One of the primary growth factors driving the SDN market is the increasing need for agile and scalable network infrastructures. Traditional network architectures are often rigid and difficult to manage as they scale, making it challenging for organizations to respond quickly to changing business requirements. SDN addresses these issues by decoupling the control plane from the data plane, allowing for a more flexible and programmable network. This separation enables dynamic management of network resources, which is essential for supporting modern applications such as cloud computing, big data analytics, and Internet of Things (IoT) deployments.

Another significant factor contributing to the market growth is the cost-efficiency offered by SDN solutions. By centralizing network control and providing automated management capabilities, SDN reduces the need for manual configuration, thereby minimizing operational costs. Additionally, SDN facilitates the efficient utilization of network resources, which reduces capital expenditures on hardware. This cost-effectiveness is particularly appealing to enterprises and service providers looking to optimize their network investments while maintaining high performance and reliability.

The growing adoption of cloud services and virtualization technologies is also propelling the SDN market forward. As more organizations migrate their workloads to the cloud, the demand for flexible, scalable, and secure network solutions becomes paramount. SDN enables seamless integration with cloud environments, providing enhanced visibility and control over network traffic. This capability is crucial for ensuring the performance and security of cloud-based applications and services, further driving the adoption of SDN technologies.

From a regional perspective, North America is expected to dominate the SDN market during the forecast period, thanks to the early adoption of advanced networking technologies and the presence of major industry players. The Asia Pacific region, however, is anticipated to exhibit the highest growth rate, driven by the rapid digital transformation initiatives and increasing investments in network infrastructure by emerging economies such as China and India. Europe, Latin America, and the Middle East & Africa are also expected to witness substantial growth, fueled by increasing awareness and adoption of SDN solutions across various industries.

Component Analysis

The SDN market can be segmented by component into solutions and services. The solutions segment encompasses various SDN controllers, network virtualization software, and SD-WAN solutions. These components are essential for the implementation and operation of SDN architectures. The services segment includes managed services, professional services, and support and maintenance services, all of which play a crucial role in the deployment and ongoing management of SDN solutions.

In the solutions segment, SDN controllers are the central piece of the architecture, responsible for managing and directing network traffic. The increasing complexity of modern networks necessitates the use of advanced controllers capable of handling large volumes of traffic while ensuring optimal performance and security. Network virtualization software, another critical component, allows for the creation of virtual networks that can be easily managed and reconfigured, providing the flexibility needed to support dynamic and scalable network environments. SD-WAN solutions, which leverage SDN principles, are gaining traction as they offer enhanced performance, security, and cost-efficiency for wide-area networks.

The services segment is equally important, as it ensures the successful implementation and operation of SDN solutions. Managed services providers offer end-to-end management of SDN deployments, allowing organizations to focus on their core business activities. Professional services include consulting, system integration, and network design, which are crucial for tailoring SDN solutions to meet specific business requirements. Support and maintenance services ensure the o

The North American software-defined networking (SDN) market should grow from $2.5 billion in 2018 to $21.1 billion by 2023 at a compound annual growth rate of 52.9% from 2018 to 2023.

The size and share of this market is categorized based on Solution (SDN Control Software, SDN Application, SDN Infrastructure) and Service (Consulting Service, Managed Service, Training and Support Service) and End-User (BFSI, IT and Telecom, Healthcare, Government, Manufacturing, Retail) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The global Scalable Software Defined Networking (SDN) market is poised for significant growth, with a projected CAGR of 16.15% over the forecast period from 2025 to 2033. This growth is attributed to various industry trends, including the increasing adoption of cloud and virtualization technologies, the growing need for network agility and flexibility, and the demand for improved network security. The market size is estimated to reach $674.52 million by 2033, reflecting the increasing demand for scalable and cost-effective SDN solutions. The SDN market is segmented based on technology, deployment mode, application, end-use industry, and region. The key technologies driving the market growth include virtualization, automation, orchestration, and cloud-based solutions. The on-premises deployment mode holds a significant market share due to the need for greater control and security. Data center management, network security, and cloud networking are among the major applications of SDN solutions. Telecommunications, IT and technology, and BFSI sectors are the primary end-use industries driving market demand. Geographically, North America and Asia Pacific dominate the market, with Europe and the Middle East & Africa expected to experience substantial growth in the coming years. The increasing adoption of SDN solutions by enterprises seeking to enhance network efficiency, agility, and security is a key factor contributing to the market expansion. Key drivers for this market are: Increased demand for network automation, Growth in cloud computing solutions; Rising need for enhanced security; Expansion of IoT applications; Adoption of 5G networks . Potential restraints include: increased demand for cloud solutions need for network agility, rise in IoT applications; growing cybersecurity concerns; cost-effective networking solutions .