The interest in software-defined networking (SDN) will translate into a
global market worth $3.52 billion by 2018, says Transparency Market Research. The
market research firm’s new "Software Defined Networking (SDN) Market - Global
Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 - 2018"
report predicts SDN spending worldwide will grow at a compound annual growth
rate of 61.5% from 2012 to 2018.
The increasing need for efficient infrastructure and mobility, as well
as the popularity of cloud services, will drive this growth, according to the
Transparency Research cites three main markets for SDN: enterprises, cloud
services providers, and telecommunications services providers. Enterprises
represented 35% of the SDN market in 2012. However, cloud service providers are
expected to be the fastest growing market segment throughout the years the
report covers. Transparency Research says that SDN’s ability to reduce opex and
capex while enabling the delivery of new services will spearhead its use by
cloud service providers.
Cloud provisioning and orchestration products currently dominate the
global SDN market, the report states. SDN switching held the second largest
revenue share of the SDN market in 2012. SDN products and applications also
will be used to design, optimize, secure, and monitor the network, the market
research firm predicts.
North America currently is the largest
market for SDN technology, thanks to a high degree of standardization and
favorable regulatory initiatives. Not surprisingly, Asia Pacific is expected to
be the fastest growing region during forecast period, fueled by the increasing
adoption of BYOD practices in China,
India, and Australia.
In this early stage, the SDN industry is fragmented, the report asserts.
Multiple players have moved to address different categories including hardware
providers, software developers, and service providers. Transparency Research
names Cisco, IBM, NEC, Juniper Networks, Alcatel-Lucent, VMware, HP, Google, Big
Switch Networks, Arista Networks, Brocade Communications Systems, Verizon
Communications, and Intel among the primary players.
Software Defined Networking (SDN) Market has big gross margin, so ALU
and other players will benefit from this $3.52 billion pie.