Exponential Growth Forecast for the Global SDN and NFV Markets
The market for global Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) is expected to have an astonishing Compound Annual Growth Rate (CAGR) of 71.4% and grow from USD 3.68 Billion in 2017 to USD 54.41 Billion by 2022.
While the manufacturing vertical is expected to experience the fastest growth rate during the forecast period, the telecommunication service providers segment is likely to be the fastest growing end-user for the market.
The Driving Factors
The major factors driving the market include the surge in demand for cloud service, server virtualization and data center consolidation, along with increased network complexity, varied traffic pattern and demand for mobility services. Conversely, the governance and security standards coupled with the difficulty in balancing SDN with traditional technology, are inhibiting the growth of the market.
Market Size by Region
In terms of size, North America region is expected to be the market leader influenced by the growth of innovative technologies such as cloud computing and Bring Your Own Device (BYOD). With a strong growth in terms of SDN and NFV deployments, the Asia-Pacific (APAC) region is likely to advance to the second position with respect to revenue generation displacing Europe, with the growth attributed mainly to the hike in the number of data center deployments in the region.
Though China and Korea lead the technology research pertaining to SDN and NFV, Japan is poised to be the biggest customer in the APAC region in terms of the revenues.