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Software Defined Networking Market in Asia Pacific to grow extensively with 40% CAGR by 2025

Author : Ronak Bora | Published Date : 2019-06-06 

The Asia Pacific software defined networking market is anticipated to grow at a CAGR of over 40% during the projected timespan. This is attributed to the increasing adoption of cloud computing and network virtualization technologies. The high investments by telecom service providers will enhance the connectivity infrastructure in the region, augmenting the use of SDN solutions.

For instance, China’s telecom companies, such as China Mobile China Unicom, and China Telecom, are set to invest over USD 180 billion by 2023 in the development of the 5G infrastructure, which is expected to supplement market growth. Furthermore, increasing penetration of smartphones and the internet is also adding to software defined networking market growth.

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The organizations across the globe are under increasing pressure to minimize the capital expenditure and operational costs and become more agile and efficient. This rising pressure has resulted in the widespread adoption of server virtualization and SDN technologies. The has brought a fundamental shift in the way companies are deploying their computing infrastructure. The SDN technology supports dynamic network movement, replication & allocation of virtual resources to better utilize company resources and reduce the capital & operating expenses of organizations.

The software defined networking market has witnessed exponential growth due to the widespread adoption of new networking technologies. The use of different types of networking architectures has increased the complexity of managing & controlling networks. The network operators are looking for new ways to integrate different types of networks while meeting the challenges of increasing data traffic. The traditional networking solutions are rigid and are unable to accommodate various networking topologies within the network infrastructures. This is encouraging companies to adopt SDN solutions as it enables heterogeneous network scenarios by simultaneously accommodating multiple solutions without affecting the performance of networks.

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The SDN controller market is estimated to grow at a CAGR of over 40% over the projected time period. The exponential surge in the generation of digital data has given rise to data congestion issues in various heterogenous network environments. The SDN controller reduces the complexity of managing such networks by improving service delivery and reducing operating expenses. It redirects packet-based network requirements, modifies the traffic flows, and notifies network operators regarding congested links. Managed service providers in software defined networking market are predicted to grow at a CAGR of over 45% over the forecast timeframe. The rising budgetary constraints are encouraging companies to adopt managed services. The managed services reduce capital expenditure by 30 to 40% and increase operational efficiency by approximately 50 to 60%.

Cloud service providers held over 35% share in the software defined networking market. Cloud service providers are leveraging on the abilities of SDN to build a cloud inter-network for augmenting the flexibility and scalability of cloud-based platforms. SDN offers a dynamic network framework that can amend the traditional network infrastructure into an efficient service distribution platform. Moreover, SDN adoption in cloud computing solutions can improve the safety and network manageability in data centers. 

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The key vendors operating in the software defined networking market are HP, AT&T, IBM, Intel, Juniper, Huawei, Pics8, Big Switch Network Plexxi. Extreme Networks Arista Network, Pluribus, Pics8, NEC Corporation, and Cisco. The major players are strategically acquiring various SDN-based start-ups to enhance product capabilities and gain technical expertise. For instance, in November 2017, the VMware acquired Velocloud to expand its presence in the software defined networking industry. VMware intends to integrate Velocloud’s SDN technology into its existing product portfolio.

About Author

Ronak Bora

Ronak Bora

A graduate in Electronics Engineering, Ronak writes for Fractovia.org and carries a rich experience in digital marketing, exploring how the online world works from a technical and marketing perspective. His other areas of interest include reading, music, and sport. He can be contacted at- [email protected] | https://twitter.com/RonakBora26

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