SDN Orchestration Market Size Forecast to Reach $52.6 Billion in 2025

The market for SDN Orchestration is analysed to reach $52.6 billion in 2025, and is estimated to grow at a CAGR of 68.76% during the forecast period 2020 to 2025. SDN Orchestration supports the applications and services by automating the behaviours in order to maintain coordination between hardware and software elements. The increasing deployment of cloud technologies, rise in adoption of automation and many other factors are set to boost the market growth rate.

Key Takeaways
  • APAC is analysed to grow at highest rate during the forecast period owing to the increasing developments in the telecom sector and adoption of advanced technologies in BFSI sector.
  • IT and telecom is the dominant segment in the end user segment majorly attributed to the high requirement of SDN in various applications.
  • The increasing infrastructure development in the communication sector such as 5G is analysed to be the key driving factor for the market.
By Enterprise size 
Large scale enterprises hold the highest share in 2019 as they deal with high huge amount of data and data centers. As the adoption rate of the SDN Orchestration is high in large scale enterprises compared to small and medium scale enterprises, they hold high share. Small and medium scale organizations are analysed to grow significantly during the forecast period owing to the gradual increase in the adoption rate in the market. As stated by World Bank, SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Alongside this, the significant adoption cloud technologies is set to boost the market growth rate.
By Application:
IT and Telecom is analysed to be the major segment as of 2019. IT and Telecom is analysed to grow at a significant rate majorly attributed to the 5G deployment. The growing 5G deployment in many countries is set to further escalate the market growth rate. Ericsson has stated that the subscriptions for 5G are forecast to reach 190M by the end of 2020 and 2.8bn by 2025. The significant rise in the 5G infrastructure developments is set to boost the SDN Orchestration market. Adding to this, the gradual shift in deploying cloud models for data storage in banks is certainly contributing to the increasing adoption of SDN Orchestration. This is set to contribute to the market growth rate as the connected solutions require the data centers where SDN is orchestration is majorly deployed. BFSI includes the management of banking services, including, core banking, mutual funds, insurance and others which handles the physical servers and the virtual ones as well which is majorly contributing to the market growth rate.
Geography – Segment Analysis
APAC is analysed to be the dominant region in 2019 owing to the increasing data traffic from the economies such as China and India. The shifting trend towards the digitalization in India involving the projects such as Digital India, Smart cities and others is set to significantly contribute to the growth of the market. All these require connected solutions thereby boosting the demand for SDN Orchestration for monitoring and controlling the processes. In July 2020, Google announced plans to invest $10bn for the next five to seven years to accelerate the digital transformation in the country. Adding to this, the large banking sector alongside the deployment of cloud solutions in China is also a major factor contributing to the market growth rate.
Drivers – SDN Orchestration market 
  • Increasing data traffic
The increasing data traffic at a global level, with the growing demand from the end users majorly from communication sector is set to escalate the market growth rate as the high data traffic involves high network management where SDN is deployed. The significant rise in data traffic is majorly attributed to the adoption of technologies including innovations and technologies utilizing cloud computing, mobility solutions, network virtualization, and so on thereby contributing to the growth of the market.
  • Growing communication infrastructure including 5G:
As the 5G deployment is significantly rising across all the regions, the significant rise in the developing infrastructure is set to be a key driver to the market. As the growing telecom sector certainly creates opportunity for the growth of SDN market it is analysed to boost the market growth rate. As the service offerings from the telecom operators include enhancing role of value-added resellers, integrators, and infrastructure vendors. The implementation of SDN orchestration alongside the implementation of analytics in these applications is analysed to be a key driving factor for the market.
Challenges – SDN Orchestration market
  • Lack of awareness about the threats
Many firms are unaware of the cyber threats, hence the attacks are significantly rising thereby hindering the market growth rate. Furthermore, ransom ware attacks are growing at a rapid rate which is again becoming a major challenge to the networking sector. As the adoption of these solutions is significantly rising owing to controlling and various factors, the threat is also significantly rising. However the lack of knowledge about the security factors of SDN Orchestration is set to hamper the market growth rate.
Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the SDN Orchestration market. SDN Orchestration market is expected to be dominated by major companies such as Cisco, Nokia, Ciena Corporation, Huawei, Netcracker, Hewlett Packard Enterprise, CENX, Virtela, Quali Systems, Juniper Networks, among others.
Acquisitions/Technology Launches/Partnerships
  • In October 2018, Nokia has launched a software-focused suite of applications for more control over the optical networks. It is supported by Nokia’s Network Services Platform carrier SDN solution and its FlowOne OSS to provide improved services orchestration and operational tools for the optical networking domain.