SDN Orchestration Market Expected to Reach $117.27 Billion by 2030

According to a new report published by Allied Market Research, titled, “SDN orchestration market by component, organization size, application, and end use: global opportunity analysis and industry forecast, 2021–2030”, the SDN orchestration market size was valued at $1.45 billion in 2020, and is projected to reach $117.27 billion by 2030, registering a CAGR of 56.30%. The North America is expected to be the leading contributor to the global market during the forecast period, followed by Asia-Pacific and Europe.        

Software-Defined Networking (SDN) orchestration is a network architecture approach that enables network to be intelligently and centrally controlled or programmed, using software applications. This helps operators manage entire network consistently and holistically, regardless of underlying network technology. SDN centralizes and automates many routine network administration tasks that lead to freeing up network operator's time and reduces operational costs. By deploying SDN orchestration, administrators gain the ability to have greater control over their network infrastructure with SDN.

Increase in adoption of software-defined networking solutions by enterprises and communication service providers to significantly accelerate the time for delivering new applications and services is one of the major factors that drives growth of the SDN orchestration market. Rapid adoption of SDN orchestration solutions by enterprises to track health of their networks and maintain their network resources propels growth of the market.

Technological advancements in SDN orchestration is one of the major factors that contributes toward growth of the SDN orchestration market. According to the Institute of Electrical and Electronics Engineers (IEEE, United States), development of SDN Multi Domain Orchestration and control allows simpler orchestration and networking control. In addition, it provides accelerated pace of innovation, more agile development processes, and increased speed of deployment, improved configuration, and scalability automation as compared to conventional frameworks.  

In addition, development of automated SDN architecture and orchestration framework implements a resilient Next Generation Path Computation Element (NG-PCE) to deploy and compute resilient protection paths. Hence, rise in advancements in SDN orchestration drives growth of the SDN orchestration market.

Prominent factors that impact the SDN orchestration market growth include increase in demand for cloud services, technological advancements in SDN orchestration, and rise in network infrastructure. However, security related concerns restrict the market growth. On the contrary, emergence of 5G technology is expected to create lucrative opportunities for the market. Therefore, these factors are expected to definitely affect the global SDN orchestration industry during the forecast period.

Region wise, the SDN orchestration market trends are analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America is dominating the market, owing to surge in adoption of advanced technologies across various industry verticals, increase in adoption of cloud services & mobility solutions, and rise in need for network management for large network traffic. The overall SDN orchestration market analysis is determined to understand the profitable trends to gain a stronger foothold.

COVID-19 Impact Analysis

The COVID-19 outbreak has positive impact on the growth of the SDN orchestration market, as SDN technologies are helping enterprises to address extensive capacity demand of mobile traffic. Most networks are observing around 30–45% growth over a year in global internet traffic.  There is growth in need to ensure that internet infrastructures have enough ability and capacity to deliver services with high performance during the increased traffic demand. Hence, service providers such as mobile and fixed-line are making considerable investments in SDN and network function virtualization in a number of use cases.

Key Findings of The Study

• In 2020, the IT & telecom segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 57.00% during the forecast period.
• The Large Enterprises segment accounted for more than 75% of the global SDN orchestration market share in 2020.   
• The manufacturing segment witness highest growth rate during the forecast period.
• UK was the major shareholder in the Europe SDN orchestration market revenue, accounting for approximately 26% share in 2020.   

The key players profiled in the report include Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, Nokia Corporation, Huawei Technologies Co., Ltd, Juniper Networks, Inc., Netcracker (NEC Corp), Ciena Corporation, Anuta Networks International LL, Zymr, Inc. and Qualitest Group. These players have adopted various strategies, such as partnership, agreement, collaboration, and product launch, to expand their foothold in SDN orchestration industry.