Software-defined Networking & Network Function Virtualization Market to reach $189.6 Billion by 2030; Rapid adoption of 5G technology, growing demand for network agility and scalability, cost efficiency, proliferation of IoT devices and smart applica

The Software-defined Networking & Network Function Virtualization Market size is estimated to reach $189.6 Billion by 2030, growing at a CAGR of 28.2% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Software-defined Networking & Network Function Virtualization Market – By Product (Software, Services, Physical Appliances), By SDN Type (Open SDN, SDN by APIs, SDN Overlay Model, Hybrid SDN), By Application (Power and Energy, Government, ITeS, BFSI, Education, Manufacturing, Retail, Transportation and Logistics, Defense, Healthcare, Others), By End User (Cloud Service Providers, Technology Service Providers, Enterprises), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Emerging 5G technology is being rapidly adopted leading to the demand for enhanced network capabilities, which promotes the integration of SDN and NFV. Demand for agility and scalability is driving organisations to implement flexible networking solutions. Enterprises are encouraged to replace expensive hardware with virtualized network functions due to cost efficiency. The proliferation of IoT devices and applications require new network management tools. This demand for virtualized and software defined networks is fueled by the shift to cloud based solutions. 

North America accounted for the largest share of 35% of the Software-defined Networking & Network Function Virtualization Market in 2023. Because of the robust investment in IT infrastructure in North America, coupled with the widespread adoption of cloud across industries, North America is the leading region in cloud computing. The reported FY24 IT/CA budget is large, $58.5 billion for 3,639 IT investments according to the U.S. Department of Defense. $52.1 billion (89%) are for non-major initiatives and $6.4 billion (11%) are for major investments. Furthermore, the region's reliance on advanced private sector solutions is evidenced by the fact that 97% of the cloud budget is managed by commercial service providers. However, these factors, mixed with strong government support and private sector innovation, make North America the leading region.

The rising adoption of 5G is a key driver in the Software-defined Networking (SDN) and Network Function Virtualization (NFV) market, as these technologies enable the agility and scalability needed to support 5G networks. As per GSMA, India was ranked 14th globally in 5G median download speeds in Q4 2023 with 301.86 Mbps, mainly thanks to the speedy 5G deployments of Reliance Jio and Bharti Airtel. The availability of 5G in India increased quite substantially (from 28.1% in Q1 to 52.0% in Q4) and is being adopted quickly. This shows that 5G performs better than 4G LTE, with smaller latency when playing mobile games through data-capable video streaming applications, and makes it superior. 5G Net Promoter Scores (NPS) were seen in positive territory as highlighted by the operators like Reliance Jio and Airtel. The demand for SDN and NFV are fuelled globally to manage the complex, high performance requirements of 5G networks. 

Rapid proliferation of IoT devices and smart applications is a key driver for the Software defined Networking (SDN) and Network Function Virtualization (NFV) market due to the ability of these technologies to offer the flexibility and scalability to manage the rapidly growing network demands. Broadband IoT now makes up over 50% of all cellular IoT connections, and, as Ericsson says, total cellular IoT connections will reach 4 billion in 2024. NB-IoT and Cat-M, massive IoT technologies that support cost efficient, low complexity devices with long battery life, are being widely deployed, with 133 service providers adopting NB-IoT and 61 launching Cat-M. Then, it grows further with the use of IoT devices in conjunction with advanced 4G and 5G networks. SDN and NFV solutions will be critical to optimizing next generation IoT ecosystems as legacy 2G/3G IoT devices decline at a rate of 20% per year through 2029. 

Key companies profiled in the Software-defined Networking & Network Function Virtualization Market are Cisco Systems, Inc., Hewlett Packard Enterprise Co., Intel Corporation, Pluribus Networks Inc., IBM, Juniper Networks, Verizon, Microsoft, Qualcomm, AT&T and others.

Virtualization Security Market - The Virtualization Security Market is expected to grow at a CAGR of 16.2%, the market value projected to increase is from US $1,708.3 Million in 2023 to US $5,678.2 Million by 2030. The growth of this market is driven by the rising adoption of cloud computing, increasing concerns about data security in virtualized environments, and advancements in virtualization technologies.

Industrial Network Solutions Market - Industrial Networking Solutions Market is expected to reach $55.4 billion by 2030 at a CAGR of 10.5% during the forecast period 2024-2030. The market growth is driven by the increasing demand for seamless connectivity in industrial settings, adoption of IoT and smart manufacturing practices, and advancements in industrial Ethernet technologies.

SDN Orchestration Market - The market for SDN Orchestration is analysed to reach $52.6 billion in 2025, and is estimated to grow at a CAGR of 68.76% during the forecast period 2020 to 2025. The market growth is driven by the growing adoption of software-defined networking (SDN) to improve network efficiency, increasing demand for automation in network management, and advancements in orchestration solutions for complex network infrastructures.