SDN and NFV market ‘to be worth $54 billion’ by 2022
Analysts say network transformation is catching on, with growth hitting 71% a year and market leaping from $3.6bn to $54bn.
MarketsandMarkets, an analyst company based in Pune, India, says the global markets for software-defined networking (SDN) and network functions virtualisation (NFV) are set to experience considerable growth in the next few years, bringing its market value to around $54 billion.
The current value of the SDN and NFV markets are around $3.6 billion, says MarketsandMarkets, meaning the predicted growth will be at a compound annual rate of 71.4%.
Telecommunications services providers are set to be the fastest growing end-user segment during the forecast period, says the company. SDN will transform the network into a more open and programmable framework and NFV will optimise network resources, ultimately creating the ability to delivery flexibility in bandwidth.
The end result is a reduction in network congestions, improvement in network user capacity and reduces the costs associated with hardware needed for network expansions, says the report.
Asia Pacific is expected to have the highest compound annual growth rate, due to the increasing number of data centre deployments occurring in the region. It is set to displace Europe into second place for in terms of revenue generation.
Japan will be the biggest customer in the region in terms of revenues, says MarketsandMarkets, but China and Korea are doing the most research in this area.
North America is driving continued advancements in technologies and business applications, leading the way for adoption of SDN and NFV in its region.
Included in the report is a competitive landscape analysis, which is based on product offerings and business strategies, it includes some of the biggest SDN and NFV vendors such as: Nokia, Cisco Systems, Ericsson, Huawei, Intel, IBM, Hewlett Packard, Juniper, NEC, Pica8, Brocade, Ciena, Pluribus Networks and Big Switch Networks.