The worldwide software-defined networking (SDN) market - comprising physical network infrastructure, virtualization/control software, SDN applications (including network and security services), and professional services - will have a CAGR of 53.9% from 2014 to 2020 and will be worth nearly $12.5 billion in 2020, according to a recent International Data Corporation (IDC) forecast.
IDC expects SDN to continue gaining market traction as an innovative architectural model capable of enabling automated provisioning, network virtualization, and network programmability for data centers at cloud-providers and enterprise networks. Although SDN initially found favor in hyperscale data centers and at large-scale cloud service providers, it is winning adoption in a growing number of enterprise data centers across a broad range of vertical markets, added IDC.
According to IDC, while the physical network, encompassing data center switches, will still account for the largest single segment of the SDN market in 2020, the fastest growth will be found in the two software categories – the virtualization/control layer and SDN applications – which together will be worth approximately $5.9 billion. IDC expects the virtualization/control layer software market to reach $2.4 billion in 2020, with a CAGR of nearly 64% during the forecast period. SDN applications – including Layer 4-7 network and security services and analytics – are forecast to achieve a CAGR of 66% through 2020, when they will account for revenue of more than $3.5 billion.