• January 2023 - A new SDN (Software Defined Network) controller developed by Nokia has boosted the network of global communications platform provider BICS. The module will automate the network's traffic routing, enhancing user experience while laying the 5G network slicing framework. It will further guide intelligent bandwidth utilization across 5G networks, opening up new possibilities for meeting the growing connectivity requirements for enterprises. It will be used to schedule an activity at predefined times, such as calendaring bandwidth every month for a cloud data backup.

• November 2022 - Liquid Dataport was the first African company to launch a pan-African Software Defined Network (SDN) service. By adapting to this software, users can choose and scale their network requirements based on their particular demands and only pay for what they use. Users can abandon the conventional method of siloed networking and take advantage of Liquid Dataport's massive fiber network that spans the continent. Companies adopting this change can build on a digitized network in Africa and beyond.

In this report, the Scalable Software Defined Networking Market has been segmented by Use Case, Deployment, Solution, End User, and Geography.

Scalable Software Defined Networking Market, Segmentation by Use Case

The Scalable Software Defined Networking Market has been segmented by Use Case into Mobile Core, EPC, IMS Virtualization, Operation Support System & Business Support System, Radio Access Networks, Wireline Fixed Access Networks, Customer Premises Equipment, and Mobile Backhaul.

Mobile Core

The Mobile Core is a critical area in Scalable SDN, enabling efficient traffic routing and seamless mobility for end-users. With SDN deployment, network operators are experiencing up to 35% improvements in operational efficiency, supporting more responsive and scalable infrastructures.

EPC

The EPC segment plays a foundational role in LTE networks, and SDN integration streamlines data handling and service delivery. Centralized control has led to up to 40% reductions in operational expenses, enabling agile and scalable core architectures.

IMS Virtualization

By virtualizing IP Multimedia Subsystems (IMS), telecom providers can deliver voice, video, and messaging services more flexibly. This approach reduces infrastructure spending by around 30% and accelerates new service rollouts across heterogeneous networks.

Operation Support System & Business Support System (OSS/BSS)

Scalable SDN modernizes OSS/BSS by enabling automation, predictive analytics, and faster service rollouts. Telecom operators are achieving up to 25% quicker provisioning times, enhancing both operational efficiency and customer satisfaction.

Radio Access Networks

SDN adoption in RAN allows dynamic control over radio resources, improving spectrum use and user experience. With enhancements like Open RAN, providers have realized up to 20% better load balancing and network adaptability in real time.

Wireline Fixed Access Networks

Through SDN, Wireline Fixed Access Networks gain increased agility and fault recovery capabilities. This leads to around 15% savings in maintenance costs while enhancing performance and uptime in fixed-line broadband services.

Customer Premises Equipment

SDN-based CPE management empowers providers to offer tailored services and resolve issues remotely. The outcome is a 35% drop in on-site technician visits, translating into better cost control and faster service delivery.

Mobile Backhaul

The Mobile Backhaul segment benefits from SDN through intelligent bandwidth allocation and network optimization. This results in up to 50% higher utilization of backhaul capacity, supporting smoother connectivity and lower latency across mobile environments.

Scalable Software Defined Networking Market, Segmentation by Deployment

The Scalable Software Defined Networking Market has been segmented by Deployment into On-Premises, Cloud, and Hybrid.

On-Premises

The On-Premises deployment model for Scalable SDN offers businesses complete control over their network architecture, ideal for industries with stringent data governance. Approximately 45% of large enterprises continue to prefer this model due to its superior data security and network customization capabilities.

Cloud

The Cloud deployment of SDN enables seamless scalability, quicker rollouts, and reduced reliance on physical infrastructure. As organizations seek agility, about 55% of new SDN implementations are cloud-based, making it the fastest-growing deployment model in the market.

Hybrid

Hybrid SDN deployments provide a balanced approach, merging on-premise control with cloud scalability. Especially suited for businesses undergoing digital transformation, nearly 30% of enterprises are leveraging hybrid models to optimize performance while managing cost and compliance.

Scalable Software Defined Networking Market, Segmentation by Solution

The Scalable Software Defined Networking Market has been segmented by Solution into SDN Switching, SDN Controllers, Cloud Provisioning, Orchestration, Security Technologies, and Others.

SDN Switching

SDN Switching is a foundational element in software-defined networks, enabling flexible traffic routing and bandwidth optimization. It powers approximately 50% of all SDN deployments, offering programmability and real-time traffic control that traditional switching lacks.

SDN Controllers

Serving as the core intelligence of SDN architecture, SDN Controllers centralize network management and automate decision-making. Used in about 60% of enterprise networks, they deliver policy-driven orchestration and streamline complex configurations.

Cloud Provisioning

Cloud Provisioning solutions allow dynamic network resource allocation in cloud environments. With nearly 45% of cloud SDN deployments incorporating these tools, businesses can reduce configuration times and adapt rapidly to changing demands.

Orchestration

Orchestration in SDN ensures end-to-end coordination of services across network layers. About 35% of telecom and cloud providers now rely on orchestration tools to automate operations and accelerate service deployment cycles.

Security Technologies

Integrated Security Technologies in SDN enhance protection through features like micro-segmentation and behavioral analytics. Over 40% of modern SDN implementations use embedded security layers to combat evolving cyber threats effectively.

Others

The Others segment includes essential components such as monitoring systems, legacy system bridges, and analytics modules. These tools support approximately 20–25% of SDN ecosystems, aiding in compatibility, visibility, and operational insights.

Scalable Software Defined Networking Market, Segmentation by End User

The Scalable Software Defined Networking Market has been segmented by End User into Telecommunication, IT & Technology, BFSI, and Healthcare.

Telecommunication

The Telecommunication industry is at the forefront of SDN adoption, using the technology to optimize network traffic, improve scalability, and reduce operational expenses. Nearly 60% of SDN deployments globally are driven by telecom operators seeking agile, future-ready networks.

IT & Technology

Organizations in the IT & Technology sector are deploying SDN to simplify network management and support complex, distributed environments. With about 50% of tech firms adopting SDN, the focus is on automation, cloud integration, and dynamic service delivery.

BFSI

The BFSI sector is rapidly embracing SDN to meet growing demands for secure, compliant, and programmable networks. Around 35% of banks and financial institutions now rely on SDN to enhance data protection, segment network traffic, and streamline operations.

Healthcare

In the Healthcare sector, SDN is transforming data connectivity by supporting telemedicine, EHR systems, and secure device communication. Approximately 30% of healthcare organizations are transitioning to SDN for improved performance, resilience, and compliance with health data standards.

Scalable Software Defined Networking Market, Segmentation by Geography

In this report, the Scalable Software Defined Networking Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Scalable Software Defined Networking Market Share (%), by Geographical Region

North America

The North American SDN market is the most mature, driven by early technological adoption and substantial investment in 5G, cloud computing, and data centers. Holding around 35% of the global revenue, the U.S. leads with widespread enterprise and telecom implementation of SDN.

Europe

Europe is emerging as a strong SDN market, supported by regulatory frameworks, digital transformation in BFSI and healthcare, and focus on network security. Approximately 25% of global SDN investments are being made across European countries.

Asia Pacific

Asia Pacific is poised for exponential SDN growth, thanks to increasing 5G rollouts, government-led smart infrastructure projects, and rising enterprise demand. With a projected growth rate exceeding 20% CAGR, this region is set to become a dominant SDN hub.

Middle East and Africa (MEA)

In MEA, SDN adoption is gaining traction through telecom upgrades and public-private investments in digital infrastructure. While currently contributing 7–8% of global SDN demand, the region is expected to grow steadily as network modernization continues.

Latin America

Latin America is showing progressive SDN integration, mainly in telecom and banking sectors. Contributing 5–7% to the global market, this region’s growth is centered around increasing data traffic and the shift toward cloud-based networking.

This report provides an in depth analysis of various factors that impact the dynamics of Scalable Software Defined Networking Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Growth of Cloud Computing and Data Centers
• Need for Efficient Network Management and Automation

• Surge in Network Traffic and Data Consumption - The exponential growth in network traffic and data consumption has created a significant demand for scalable Software Defined Networking (SDN) solutions. Enterprises and service providers are under pressure to manage increasing data volumes while maintaining network performance and agility.

  SDN enables dynamic and centralized network control, allowing IT teams to optimize bandwidth, minimize congestion, and improve resource allocation. As digital transformation accelerates, organizations seek flexible networking frameworks that adapt to fluctuating demands in real time.

  The rise of cloud computing, video streaming, IoT devices, and remote work infrastructures further amplifies the need for automated and programmable networks. Traditional architectures cannot keep pace with such scalable, on-demand connectivity requirements.

  SDN's ability to separate the control and data planes facilitates network virtualization, making it a core component of modern IT infrastructure. As data consumption surges globally, SDN adoption will become essential for future-proofing networks and ensuring business continuity.

Restraints

• Security Concerns and Vulnerabilities
• Complexity in Integration with Legacy Systems

• Limited Technical Expertise and Skilled Workforce - One of the critical challenges facing the SDN market is the shortage of skilled professionals capable of managing and deploying these advanced systems. The transition from traditional network setups to software-centric architectures requires a new set of technical competencies.

  Organizations often lack personnel proficient in SDN controllers, network automation tools, and open-source platforms, making implementation difficult. The learning curve for IT teams is steep, requiring time and resources for training and reskilling.

  This skills gap not only delays SDN rollouts but also introduces security vulnerabilities and reduces operational efficiency due to configuration errors. SMEs, in particular, are impacted by the high cost of hiring or outsourcing SDN expertise.

  This restraint, vendors and enterprises must invest in comprehensive training programs and promote cross-functional collaboration. Industry-wide efforts to build a robust talent pipeline will be crucial for the sustainable adoption of SDN solutions.

Opportunities

• Development of Advanced Security Solutions
• Adoption in Edge Computing and AI Applications

• Partnership with Telecom Operators and Service Providers - Strategic partnerships with telecom operators and service providers offer a powerful opportunity to accelerate SDN adoption. As carriers modernize their networks to support 5G, edge computing, and cloud-native services, collaboration becomes essential.

  Telecom providers benefit from SDN through faster provisioning, automated network slicing, and improved quality of service (QoS). These enhancements lead to lower costs and greater customer satisfaction, driving mutual value creation.

  Such alliances also foster innovation through co-development of customized SDN applications tailored to industry-specific needs. Shared infrastructure and deployment models help expand market reach and enable faster rollout of next-gen connectivity solutions.

  With service providers acting as key enablers of digital infrastructure, their involvement is critical to unlocking the full potential of SDN. Joint ventures and technology partnerships will continue to play a central role in scaling and commercializing SDN ecosystems.

Key players in Scalable Software Defined Networking Market include :

• HPE
• Intel Corporation
• Big Switch Network
• AT&T Inc
• Pluribus Network
• Plexxi Inc
• Huawei Technologies
• NEC Corporation
• Arista Network
• IBM Corporation

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis