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The SDN, NFV & Network Virtualization Ecosystem: 2015 - 2030 - Global Industry Analysis, Size & Share

Press Release   •   May 03, 2016 06:03 EDT


While the advantages of SDN (Software Defined Networking) and network virtualization are well known in the enterprise IT and data center world, both technologies also bring a host of benefits to the telecommunications service provider community. Not only can these technologies help address the explosive capacity demand of mobile traffic, but they can also reduce the CapEx and OpEx burden faced by service providers to handle this demand by diminishing reliance on expensive proprietary hardware platforms. The recognition of these benefits has led to the emergence of the NFV (Network Functions Virtualization) concept that seeks to virtualize and effectively consolidate many service provider network elements onto multi-tenant industry-standard servers, switches and storage.

Mobile operators and internet service providers have already begun making SDN and NFV investments in a number of functional areas including but not limited to EPC/mobile core, IMS, policy control, CPE (Customer Premises Equipment), CDN (Content Delivery Network) and transport networks. SNS Research estimates that service provider SDN and NFV investments will grow at a CAGR of 54% between 2015 and 2020. As service providers seek to reduce costs and virtualize their networks, these investments will eventually account for over $20 Billion in revenue by the end of 2020.

The “SDN, NFV & Network Virtualization Ecosystem: 2015 – 2030 – Opportunities, Challenges, Strategies & Forecasts” report presents an in-depth assessment of the SDN, NFV and network virtualization ecosystem including enabling technologies, key trends, market drivers, challenges, use cases, deployment case studies, regulatory landscape, standardization, opportunities, future roadmap, value chain, ecosystem player profiles and strategies. The report also presents market size forecasts from 2015 till 2030. The forecasts are segmented for 10 submarkets, 2 user base categories, 9 use cases, 6 regions and 34 countries.

The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report.

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Topics Covered

The report covers the following topics:

SDN, NFV and network virtualization ecosystem

Market drivers and barriers

Enabling technologies, protocols, architecture and key trends

Use cases, applicatons, PoC (Proof of Concept) and deployment case studies

CapEx saving potential of SDN and NFV

Orchestration and management platforms

Regulatory landscape and standardization

Industry roadmap and value chain

Profiles and strategies of over 240 leading ecosystem players

Strategic recommendations for ecosystem players

Market analysis and forecasts from 2015 till 2030

Forecast Segmentation

Market forecasts are provided for each of the following submarkets, user base and use case categories:


SDN Hardware & Software

NFV Hardware & Software

Other Network Virtualization Software

User Base Categories

Service Providers

Enterprises & Data Centers

NFV Submarkets

Hardware Appliances

Orchestration & Management Software

VNF Software

Service Provider SDN Submarkets

SDN-Enabled Hardware Appliances

Orchestration & Management Software

SDN Controller Software

Network Applications Software

Enterprise & Data Center SDN Submarkets

SDN-Enabled Hardware Appliances

SDN-Enabled Virtual Switches

SDN Controller Software

Service Provider Use Case Categories



Data Center

EPC/Mobile Core

Fixed Access Networks


Policy, OSS & BSS

RAN (Radio Access Network)

Transport & Backhaul

The following regional and country markets are also covered:

Regional Markets

Asia Pacific

Eastern Europe

Latin & Central America

Middle East & Africa

North America

Western Europe

Country Markets

Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mexico, Norway, Pakistan, Philippines, Poland, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, Thailand, UAE, UK, USA

Additional forecasts are provided for:

SDN and NFV Induced Service Provider CapEx Savings by Region

Key Questions Answered

The report provides answers to the following key questions:

How big is the SDN, NFV and network virtualization opportunity?

What trends, challenges and barriers are influencing its growth?

How is the ecosystem evolving by segment and region?

What will the market size be in 2020 and at what rate will it grow?

Which regions, submarkets and countries will see the highest percentage of growth?

How are service provider led initiatives driving SDN and NFV investments?

How does regulation impact the adoption of SDN and NFV centric networks?

How can NFV make the VoLTE (Voice over LTE) business case work?

How can software defined DPI (Deep Packet Inspection) complement SDN functionality?

What level of CapEx savings can SDN and NFV facilitate for service providers?

Do SDN and NFV pose a threat to traditional network infrastructure vendors?

Who are the key market players and what are their strategies?

Is there a ring leader in the SDN and NFV ecosystem?

What strategies should enabling technology providers, network infrastructure vendors, mobile operators and other ecosystem players adopt to remain competitive?

Key Findings

The report has the following key findings:

SNS Research estimates that service provider SDN and NFV investments will grow at a CAGR of 54% between 2015 and 2020, eventually accounting for over $20 Billion in revenue by the end of 2020.

At present, virtualized EPC/mobile core, IMS and policy control platforms represent over 70% of all VNF (Virtual Network Function) software investments.

Although the use of SDN is widespread in the enterprise and data center domain, service providers are only beginning to adopt the technology to programmatically manage their networks.

Investments on orchestration platforms will account for nearly $2 Billion in revenue by the end of 2020, representing more than 9% of all service provider SDN and NFV spending.

The growing adoption of SDN and NFV has created a natural opportunity for silicon and server OEMs to combine their server platforms with a networking business stream.