Software Defined Networking (SDN) Market Size Booms with CAGR 19.3% and Projected to Reach $100.5 Billion by 2031 | Exclusive Report by The Insight Partners

NEW YORK, April 23, 2025 /PRNewswire/ -- According to a comprehensive new report from The Insight Partners, the global software-defined networking (SDN) market is observing significant growth owing to the growing adoption of IoT devices and integration with advanced technologies.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the software-defined networking (SDN) market comprises a vast array of component, deployment, connectivity, application, and geography, which are expected to register strength during the coming years.

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Overview of Report Findings

1. Market Growth: The Software Defined Networking (SDN) Market was valued at US$ 29.2 billion in 2024 and is projected to reach US$ 100.5 billion by 2031; it is expected to register a CAGR of 19.3% during 2025–2031. 
2. Market Dynamics: Software-defined networking (SDN), particularly when combined with network functions virtualization (NFV) as exemplified by Worldstream's Elastic Network offering, forms the foundation of next-generation network architectures for 5G deployments worldwide. As network programmability becomes a defining feature of 5G, SDN's inherent ability to enable dynamic, software-based control over network resources positions it as a critical enabler of flexible and scalable 5G infrastructure. This technological synergy not only supports rapid innovation and service deployment but also fuels the expanding SDN market as industries increasingly adopt programmable network solutions to meet the evolving demands of high-performance, adaptive connectivity.
3. Market Insights: Multiple Toshiba Quantum Key Distribution (QKD) systems have been deployed within the Madrid "MadQCI" network, which stands as Europe's largest and most sophisticated quantum network, achieving the highest key rates among currently operational systems. This metro-scale infrastructure facilitates quantum-safe communications across nine active production sites using real-world telecom infrastructure, demonstrating significant advancements in secure data transmission. A critical enabling of this achievement is the integration of the modern software-defined networking (SDN) paradigm, which enhances the network's flexibility, scalability, and vendor-agnostic operation. This alignment with SDN principles not only ensures seamless orchestration of diverse hardware but also reflects broader trends in the SDN market, where growing demand for dynamic, programmable networks is driving innovation across sectors, including secure quantum communications, thereby contributing to the global growth of the software-defined networking (SDN) market.
4. Geographical Insights: North America is expected to hold a significant share in the software-defined networking (SDN) market in 2024.

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Market Segmentation

• Based on the solution, the software-defined networking (SDN) market is divided into hardware, software, and services.
• In terms of application, the market is segmented into data center networking, network security, traffic engineering, and others.
• Based on the end-use industry, the software-defined networking (SDN) market is divided into telecommunications, cloud service providers, enterprises, government and public sector, and others.
• The software-defined networking (SDN) market is segmented into five major regions: North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

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Competitive Strategy and Development

• Key Players: A few major companies operating in the software-defined networking (SDN) market include IBM Corporation, Cisco, Broadcom, Hewlett Packard Enterprise, Juniper Networks, Huawei Technologies Co., Ltd., among others
• Trending Topics: Integration with Artificial Intelligence, Secure Access Service Edge (SASE), Expansion of 6G Networks, among others

Global Headlines on the Software-Defined Networking (SDN) Market

• " Veracity Industrial Networks, a cybersecurity developer of OT network control solutions for industrial control system (ICS) networks, released the Veracity OT Network Security Appliance. This first-of-its-kind device combines software-defined networking (SDN) benefits with a virtual switch on a hardened security appliance."
• "Samsung Electronics announced it is expanding its portfolio of Software-Defined Networking (SDN) solutions with new capabilities designed to help mobile operators and enterprises manage networks more easily. Samsung's SDN portfolio already supports data center operations. With expanded capabilities, Samsung's new SDN solutions will power enterprises in various sectors, including education, retail, and energy. This full lineup of SDN will also support mobile access (xHaul), which refers to fronthaul, midhaul, and backhaul transport networks."

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Conclusion

Software-defined networking (SDN) is an innovative approach to network management that decouples the control plane (network management) from the data plane (traffic forwarding), allowing for more flexible, centralized, and automated control of the network. In SDN, a software-based controller provides a centralized point of control to direct how data traffic flows through the network rather than relying on traditional hardware-based routing and switching. This architecture enables easier network provisioning, greater network agility, improved automation, and more effective resource utilization. By using open standards and programmability, SDN facilitates dynamic and efficient network management, supporting cloud computing, data centers, and virtualized environments.

The Software-Defined Networking (SDN) market is driven by several key factors, including the increasing complexity of traditional network infrastructures, the rapid adoption of cloud computing, and the rise of 5G and Internet of Things (IoT) technologies. As businesses scale and diversify their operations, SDN provides a more flexible and scalable solution to manage their networks with ease. SDN also helps reduce operational costs by minimizing the need for expensive hardware and enabling automation and centralized control.

The report from The Insight Partners, therefore, provides several stakeholders—including Network Equipment Manufacturers, SDN Solution Providers, Telecommunications Service Providers, End-User Industry, among others—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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