Software Defined Network (SDN) allows to manage network services using a centralized software-based management tool and rapidly respond to requirements of a network. SDN provides greater agility to the network, reduced network downtime, provides the ability to create policy-driven network supervision at the same time, allows traffic programmability, and network automation capabilities. Global Software Defined Network (SDN) orchestration market comprises of methods and process that delivers abilities to program automated behaviors in a network, this coordinate with required networking hardware and software components.

Global SDN orchestration market is expected to grow at 74.17% CAGR during the forecast period to reach a revenue of $61.24 billion by 2027. The base year considered for the market study is 2018 and the estimated period is between 2019-2027. Several factors that are responsible for the advancement of the market are:

• Substantial growth in Internet users and data traffic
• Increasing demand for cloud services, server virtualization & data center consolidation
• The growing need for simplified network infrastructure
• Rising adoption of network automation with network virtualization
• Increasing development and deployment of analytics applications

However, the global SDN orchestration market is primarily driven by increasing demand for cloud services, data center consolidation and increased network infrastructure. As per Institute of Electrical and Electronics Engineers (IEEE), there has been increasing demand for cloud services across IT enterprises due to the lowered investment cost and fixed cost for businesses that are expected to increase the demand for networking orchestration services to manage data traffic across the cloud efficiently. Data center consolidation is expected to generate heavy data traffic across a single data center necessitating the demand of SDN orchestration to manage the increased data traffic and cost-saving efficiently. For instance, as per the United States Government Accountability Office report, XX out of 24 agencies had reported achieving about $XX billion in cost saving and avoidance from their data center consolidation and optimization effort for the fiscal year 2011 through 2015.

In terms of the end-user segment, telecom service provider lead the global SDN orchestration market by capturing the largest market share of approximately 47% in 2018 with an estimated revenue of approximately $XX million. The telecommunication industry is going under a radical change with the growing data consumption and limited bandwidth. The growth in telecom service provider market is driven by the increasing data traffic across the globe as a result of high Internet penetration. According to the International Telecommunication Union (ITU), there were XX billion Internet users in 2016 which increased to approximately XX billion in April 2017. Therefore, the increasing penetration of the Internet has led to the generation of growth in the mobile data traffic volume. SDN orchestration solutions are increasingly being adopted by telecom service providers that facilitate Internet connection as high traffic volume makes the network management process expensive and complex that can be easily automated through the deployment of SDN orchestration solution. Furthermore, advancements in network infrastructure such as 5G mobile networks are contributing to the adoption of SDN orchestration by telecom service providers.

Though the market is advancing at a promising pace, there are still several factors that are profoundly restraining market growth. Market growth is restricted mainly due to high concerns regarding security in SDN orchestration. Security risks in software-defined networking majorly arise due to the absence of integration with existing security technologies. Also, the improvement in the intelligence of controller software increases the vulnerability of the controller to hackers and attack surfaces. Further, software-defined networking also lacks standardization policies as it does not include standards for the understanding delay, topology, loss, etc. Furthermore, the market is still in a nascent stage with a low level of awareness among enterprises and end-users. Lack of awareness about SDN orchestration is another key factor hindering the growth of the global SDN orchestration market.

Global SDN orchestration market is segmented on the basis of component, organization size, & end-user:

Market by Component: 

• Solutions
• Services

Market by Organization Size: 

• Large Enterprises
• Small & Medium-Sized Enterprises (SMES)

Market by End-user:

• Cloud Service Providers
• Telecom Service Providers
• Others

The report scope is widely characterized based on components that include solutions and services. The total market revenue is calculated based on net adoption of SDN orchestration across the end-user segment.

On the basis of geography, the global SDN Orchestration market has been segmented in four major regions;

• North America Sdn Orchestration Market : the United States, Canada
• Europe Sdn Orchestration Market : United Kingdom, Germany, France, Spain, Italy, & Rest of Europe
• Asia Pacific Sdn Orchestration Market : China, Japan, India, South Korea, Australia & Rest of Asia Pacific

• Rest of World: Latin America, Middle East & Africa

Geographically, North America dominated the global SDN orchestration market by capturing the largest market share of over 34% in 2018 with an estimated revenue of approximately $XX million. North America SDN orchestration market is primarily driven by the growing deployment of SDN orchestration in the region coupled with high investment in IoT & network infrastructure. For instance, in 2017, Google Corporation launched Espresso, which is a part of SDN strategy adopted by the organization with an aim to bring SDN to the open Internet. Moreover, high investment for the deployment of 5G infrastructure is also expected to drive the demand for SDN orchestration market in North America over the forecast period.

On the flip side, Asia Pacific SDN orchestration market is expected to grow at the highest CAGR of XX% during the forecast period of 2019-2027. Asia Pacific SDN orchestration market growth is justified towards increasing data traffic and connected devices. For instance, as per the CISCO VNI, (in 2016), Asia Pacific is expected to account for XX% of global data traffic by 2021. Asia Pacific mobile data and Internet traffic are expected to reach XX PB per month in 2021 from XX PB per month in 2016, rising at CAGR of XX% throughout 2016-2021. Moreover, a growing number of data centers is expected to propel the SDN orchestration market in the region. For instance, in 2017, Bridge Data Centers (Singapore) have announced to invest approximately $XX million for the development of data center in India to cater the rising data traffic. In addition, Apple Inc. (U.S.) announced to build their second data center in Ulanqab City (China), first was set up at Guizhou (China).

Global SDN orchestration market is segmented on the basis of Component type, Organization Size and End-User. The SDN orchestration market by component comprises the market of SDN (software-defined network) orchestration solutions and services. Market by organization size comprises the market of SDN orchestration solutions and services that are deployed in large enterprises and small and medium enterprises (SMEs). Market by end-user comprises the market of cloud service providers, telecom service providers and other end users.

The key companies operating in the global SDN Orchestration market are:

• Cisco Systems, Inc.
• Nokia Corporation
• Ciena Corporation
• Juniper Networks
• Huawei Technologies
• And other companies

Company profiles of the prominent market players are discussed in detail. Most of the companies look for strategies such as merger & acquisition, partnership, contracts, agreements, new product launch, to gain a competitive edge over other companies. For instance, in April 2018, Etisalat entered into a partnership with Netcracker Corp as a primary solution provider for its telecom cloud program. Through this deal, Netcracker will offer Etisalat, with third party hardware solutions vis-à-vis VIM, SDN control and network equipment creating complete end-to-end cloud solutions. In May 2017, Juniper Networks signed a partnership agreement with Infinera, NEC Corporation and Netcracker Technology to introduce a new Transport SDN solution designed to transform how networks are managed and controlled. This would help the company to generate more revenue in the United States which focuses more on selling products related to SDN Orchestration.

Key findings of the global SDN orchestration market:

• North America accounts for the largest market share of the overall SDN Orchestration market in 2018.
• Technological advancements and innovations in software-defined networking orchestration are expected to increase its demand and adoption over the forecast period.
• Small & Medium-sized Enterprises (SME’s) SDN orchestration market is expected to grow with the highest CAGR of XX% during the forecast period 2019-2027.
• There are notable investments carried out by the governments and private organizations across the globe in the 5G infrastructure, which in turn will aid in market growth.
• Higher involvement of Value-Added Resellers (VARS) and SDN infrastructure vendors are further boosting the market growth and creating growth opportunity in the market over the forecast period.