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SDN: Precocious Technology Generating Near Triple-Digit CAGRs, Reports BCC Research


/EINPresswire.com/ -- WELLESLEY, MA --(Marketwired - April 07, 2016) - Software-defined networking (SDN) promises increased cost savings and flexibility by replacing manual provisioning, controlling and servicing of communications infrastructure with automation. BCC Research reveals in its new report that nearly every network provider and enterprise is considering or implementing this precocious technology, which heralds prodigious growth rates that will exceed triple digits in some market regions.

SDN is a network programmed, managed and controlled using intelligent software rather than by the firmware inside the hardware components of the infrastructure. SDN is characterized as dynamic, cost-effective, manageable and adaptable network architecture formed by physically separating the network control plane from the forwarding plane, and several devices lying under are controlled by the control plane.

Global market revenues are expected to reach $56.1 billion by 2020 from nearly $2.4 billion in 2015, reflecting a five-year compound annual growth rate (CAGR) of 88.1%. The North American market is expected to grow from $1.1 billion in 2015 to $26.8 billion in 2020 at a five-year CAGR of 88.7%. The Asia-Pacific market will grow from $235 million in 2015 to nearly $8.6 billion in 2020 at a five-year CAGR of 105.2%.

SDN is seen as a disruptive networking architecture that should help organizations that need cloud-like dynamic, flexible and cost-effective processes to provide enriched user experiences to their clients. SDN is not a single technology, but rather a convergence of various software and hardware components, abstractions, services and functions under a single architecture. Therefore, it is far from a plug-and-play installation.

Adding features and simplifying its complexity will drive the dynamic development of SDN through 2020 as many new features are implemented. For example, the first feature of SDN provided the logically centralized controller that defines where the data goes. In recent evolutions, new applications such as providing network intelligence, shifting application loads anywhere -- as that enables shifting virtual machines (VM) -- and supporting multi-tenancy allows agile development of features and management of dynamic workloads and policy changes.

"The revenue growth for software-defined networking (SDN) is predicated on the fact that before 2016, broad adoption beyond the cloud and some network providers has been minimal. However, the proven value these early adopters are generating should produce a massive uptake of the technology as networks of all kinds transform to a more cost-effective solution," says BCC Research analyst Anand Gijare. "This adoption will be equally driven by end-users who seek greater value for their network investments and suppliers that migrate their product lines to SDN and retire traditional systems."

Software-Defined Networking: Technologies and Global Markets (IFT121A) analyzes the industry by technology, by type, and by end-user application. The report examines emerging applications, trends, pricing considerations, R&D, government regulations, and competitive technologies. Analyses of global market drivers and trends, with data from 2014, 2015, and projections of CAGRs through 2020 also are provided.

About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today's major industrial and technology sectors, including emerging markets. For more than 40 years we've helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world's greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email information@bccresearch.com.

Editors and reporters who wish to speak with the analyst should contact:
Steven Cumming
steven.cumming@bccresearch.com


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