The global Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) market is expected to grow from $3.68 billion in 2017 to $54.41 billion by 2022, at a compound annual growth rate (CAGR) of 71.4 percent.
Main technology companies in the SDN and NFV space are Big Switch Networks, Brocade, Ciena, Cisco Systems, HPE, Huawei Technologies, Intel, Juniper Networks, NEC, among others.
The SDN and NFV market report said the main driving factors for the Software Defined Networking Market are the increasing evolution and demand in mobility, the increased network complexity and varied traffic pattern, and the surge in demand for cloud service, data center consolidation, and server virtualization.
Growing technological advancements in networking and data center consolidation are creating demand for SDN and NFV solutions.
US-based telecom operators such as AT&T, Verizon, among others, are actively in SDN networking architecture that will revolutionize the existing networking and data center infrastructure to meet the growing number of network users consuming a high bandwidth.
London-based BT Group and Dell EMC on Wednesday announced its decision to explore virtualization as part of BT Group’s strategy to make investment in SDN infrastructure to improve data network efficiency and customer experience.
“With a decoupled control plane that can be complimented with various Artificial Intelligence (AI)-based software tools, a lucid improvisation to the traditionally distributed control plane is feasible, enabling an intelligent and efficient network,” the report said.
The controllers provide a centralized interface to manage the complete network, whereas the application software enables the service providers to perform various functions, such as Virtual Private Networks (VPNs), Network Address Translation (NAT), load balancing, and security, at the service edge itself. It acts as a bridge between the physical infrastructure and software solutions.
Opportunities include higher involvement of value-added resellers (VARS) and SDN infrastructure vendors, increased adoption of private Cloud, technological advancements and innovative service offering from telecom operators.
Growth factors include increasing evolution and demand in mobility, increased network complexity and varied traffic pattern and surge in demand for Cloud services, data center consolidation, and server virtualization.
Challenges in the SDN and NFV market are issues related to governance and security standards, lack of knowledge among the end-users and enterprises, difficulty in balancing between SDN and traditional technology.
