Software-Defined Networking And Network Function Virtualization Market Report 2026

Software-Defined Networking And Network Function Virtualization Market Overview

• Software-Defined Networking And Network Function Virtualization market size has reached to $68.54 billion in 2025 • Expected to grow to $172.49 billion in 2030 at a compound annual growth rate (CAGR) of 20.2% • Growth Driver: The Increasing Adoption Of Cloud Computing Across Enterprises Driving The Growth Of The Market Due To Reduce Information Technology Costs • Market Trend: Advancements In Software-Defined Enterprise Networking Platforms • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Software-Defined Networking And Network Function Virtualization Market?

Software-defined networking (SDN) and network function virtualization (NFV) refer to network technologies that improve the flexibility, automation, and efficiency of network management by separating network control from hardware and virtualizing network functions. Software-defined networking centralizes network control through software, while network function virtualization replaces dedicated hardware appliances with virtualized network services running on standard servers. The main components of software-defined networking and network function virtualization include hardware, software, and services. Hardware refers to the physical networking infrastructure, including switches, routers, servers, and other network equipment that supports programmable and virtualized network environments. These solutions are deployed through on-premise and cloud-based models. They are adopted by small and medium enterprises and large enterprises and are utilized across industry verticals including banking, financial services, and insurance, healthcare, information technology and telecommunications, government and defense, manufacturing, retail and e-commerce, energy and utilities, transportation and logistics, media and entertainment, and others.

What Is The Software-Defined Networking And Network Function Virtualization Market Growth Forecast?

The software-defined networking and network function virtualization market size is expected to see exponential growth in the next few years. It will grow to $172.49 billion in 2030 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to increasing demand for automated network orchestration, rising adoption of programmable networking infrastructure, growing need for scalable network architectures, expanding deployment of virtual network services, increasing demand for cost-efficient network operations. Major trends in the forecast period include increasing adoption of intent-based networking, growing use of network automation and orchestration, rising demand for programmable network infrastructure, increasing adoption of virtualized network services, growing demand for network slicing and service chaining.

What Is The Driver Of The Software-Defined Networking And Network Function Virtualization Market?

The increasing adoption of cloud computing across enterprises is expected to propel the growth of the software-defined networking and network function virtualization market going forward. Cloud computing across enterprises refers to the use of shared, scalable, and on-demand computing resources such as storage, applications, and processing power delivered over the internet to support business operations across multiple organizations. The increasing adoption of cloud computing across enterprises is due to its ability to reduce information technology costs by eliminating the need for large upfront investments in physical infrastructure and lowering ongoing expenses for maintenance, upgrades, and in-house information technology management. Adoption of cloud computing across enterprises drives the demand for software-defined networking and network function virtualization by enabling flexible, scalable, and automated network infrastructures that support efficient resource management, dynamic workload allocation, and seamless connectivity across cloud environments. For instance, in January 2026, according to Eurostat, a Luxembourg-based official European Union statistical office, in 2025, 52.74% of EU enterprises used paid cloud computing services, primarily for e-mail, office software, and file storage, showing an increase compared with 2023. Therefore, the increasing adoption of cloud computing across enterprises is driving the growth of the software-defined networking and network function virtualization industry.

Key Players In The Global Software-Defined Networking And Network Function Virtualization Market

Major companies operating in the software-defined networking and network function virtualization market are Microsoft Corporation, Verizon Communications Inc., Huawei Technologies Co. Ltd., AT&T Inc., Dell Technologies Inc., Broadcom Inc., International Business Machines Corporation, Oracle Corporation, Cisco Systems Inc., Intel Corporation, Hewlett Packard Enterprise Company, Fujitsu Limited, Telefonaktiebolaget LM Ericsson, Nokia Corporation, ZTE Corporation, Arista Networks Inc., Ciena Corporation, Amdocs Limited, NEC Corporation, Extreme Networks Inc., Ribbon Communications Inc., H3C Technologies Co. Limited, Pica8 Inc.

Global Software-Defined Networking And Network Function Virtualization Market Trends and Insights

Major companies operating in the software-defined networking and network function virtualization market are focusing on developing advanced solutions, such as software-defined enterprise networking platforms, to enhance network agility, centralized management, scalability, security, and application performance across distributed enterprise environments. A software-defined enterprise networking platform is a centralized networking solution that uses software-based control and automation to manage, monitor, and optimize enterprise network infrastructure across branch offices, data centers, cloud environments, and remote locations. For instance, in October 2024, Orange S.A., a France-based telecommunications and digital services company, launched SD-WAN Essentials based on Ekinops technology to enhance secure, scalable, and centrally managed enterprise networking across distributed business locations and cloud environments. The solution is designed to provide a simplified and cost-effective SD-WAN offering for small and medium-sized businesses, enabling secure and centralized network management, improved application performance, and scalable connectivity across distributed enterprise locations through software-defined and virtualized networking capabilities.

What Are Latest Mergers And Acquisitions In The Software-Defined Networking And Network Function Virtualization Market?

In July 2025, Hewlett Packard Enterprise Company, a US-based technology company, acquired Juniper Networks for $14 billion. With this acquisition, HPE aims to strengthen its networking portfolio, accelerate growth in the artificial intelligence and hybrid cloud markets, and enhance its ability to deliver a comprehensive cloud-native, AI-driven networking and IT infrastructure ecosystem. Juniper Networks Inc. is a US-based company that offers software-defined networking (SDN) and network functions virtualization (NFV) solutions.

What Defines the Software-Defined Networking And Network Function Virtualization Market?

The software-defined networking and network function virtualization market consists of revenues earned by entities by providing services such as network virtualization services, virtual network function deployment, network automation services, and managed network services. The market value includes the value of related goods sold by the service provider or included within the service offering. The software-defined networking and network function virtualization market also includes sales of network switches, routers, and other related accessories. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Software-Defined Networking And Network Function Virtualization Market Report 2026?

The software-defined networking and network function virtualization market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the software-defined networking and network function virtualization industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.