According to Future Market Insights, in 2022, the worldwide multi-cloud SDN market was worth US$ 4.43 billion. This industry is expected to hit US$ 4.97 billion by 2023 and US$ 15.7 billion by 2033, with a strong CAGR of 12.2% between 2023 and 2033.
Data Points
Key Statistics
Expected Market Value of Multi-Cloud SDN in 2023
US$ 4.97 billion
Expected Market Value of Multi-Cloud SDN in 2033
US$ 15.7 billion
Growth Rate (2023 to 2033)
12.2% CAGR
The primary drivers of the market include:
Preventing Vendor Lock-Ins
Enhanced Agile and Automated Systems
A Comprehensive Framework of Governance and Policy Required
Lower Infrastructure as well as Storage Costs along with Increased Return on Investment
Issues with accidental data loss and the limited capacity for storage of secondary storage gadgets
An increase in demand for virtual workspaces as a result of the COVID-19 outbreak
The necessity of disaster recovery and emergency plans
The increasing use of hybrid cloud as well as multi-cloud strategies by businesses from various industry verticals, the urgent need for higher-level policy and governance administration, and the significant shift in the workforce towards remote working brought on by the pandemic outbreak are the main factors propelling the development of the multi-cloud networking market.
Hybrid clouds, which combine the use of both public and private cloud settings, are not identical to multi-cloud SDN. Instead, multi-cloud uses a hybrid approach that incorporates the best products from different vendors to create a one-of-a-kind solution suited to the particular needs of an organisation. This approach allows companies to take advantage of each vendor's most current advances while avoiding vendor lock-in and ensuring maximum flexibility. Despite its difficulties, multi-cloud SDN interaction is a powerful tool for designing a highly customizable, flexible, and available cloud infrastructure.
During the anticipated period, factors such as rising demand for data recovery and backup planning, as well as increased usage of multi-cloud SDN networking solutions and services, are anticipated to propel the market for multi-cloud SDN networking. Additionally, rising internet usage and increased uptake of cloud services drive market expansion. However, worries about data security and privacy protection as well as a dearth of technical knowledge in multi-cloud networking limit market expansion. On the other hand, it is anticipated that the development of SMEs and the spike in demand for cloud-based SDN networking solutions will create significant, lucrative possibilities for the multi-cloud SDN market.
The term "public cloud" describes computing that, based on demand, distributes resources with external parties outside the company, such as computing, storage, and networking. In the public deployment approach, customer businesses have online access to a variety of resources, including apps, storage, virtual servers, and hardware.
The public distribution model services are either provided for no cost or on a fee basis. It facilitates easy implementation, offers pay-per-usage rates, and aids organizations in meeting their scalability requirements. To avoid data loss, the public cloud is usually built with built-in backups. Applications are developed by service providers and made available to the general public via the Internet using the public cloud, which is built on the multi-cloud networking paradigm.
There is no denying that North America, and particularly the United States, will continue to play a significant role. Any adjustments made by the United States could have an impact on the Multi-Cloud SDN development pattern. Over the projection term, the North American market is anticipated to expand significantly. Due to the widespread use of cutting-edge technology and the existence of major companies in this area, the market is likely to have plenty of room for expansion.
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Multi-Cloud SDN Market Overview
Multi-Cloud SDN (FMC) market is expected to grow at a high CAGR of 12% from 2023 to 2033 and is projected to reach US$ 15 Bn by 2031. A multi-cloud SDN approach enables users to make seamless cloud-to-cloud connections over a low-latency direct connection that bypasses the public internet for offering enhanced security. SDN architectures make it much easier to build a functional multi-cloud environment through a single platform.
What is Driving Demand for Multi-Cloud SDN?
As organizations are continuously focusing towards scaling their hybrid cloud environments, it has become very critical to leverage solutions that help improve productivity and processes. Since, the inception of SDN, the technology has got more attention among enterprises. As more organizations have adopted hybrid cloud and tasked their network engineers with figuring out the basics of connectivity, reliability, and security.
As SDN platforms are enhanced to support multi-cloud environments, the platforms are being used to mitigate the inherent complexity of establishing and maintaining network and security policies across hybrid IT landscapes.
Also, the platform delivers better application experience, reduce security risks and lower operations cost for multi-cloud applications. Thus, the benefits of cost-effectiveness, high scalability, and reliability offered by multi-cloud SDN is expected to propel the market growth in coming years.
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Increasing Adoption SDN in Cloud Computing Services
Software-Defined Networking (SDN) and cloud computing complement each other and enable new visibility and control over the networks. SDNs became even more valuable, when it became possible to integrate the architecture easily with cloud-based environments. The convergence of both the technologies let users to respond quickly to changes. SDN manages network configuration more efficient and improves network performance and monitoring.
SDNs have become integral to cloud-based IT infrastructure. Both enterprises and public cloud providers have started leveraging SDNs in their cloud environments, as applications can self-define the network requirements directly from the application itself. Thus, the network can support hundreds of configurations and be optimized for specific workloads 100% of the time.
Today, SDN architecture can better understand the cloud environment it operates in. That enables new kinds of flexibility, speed, and innovation. In fact, big players present in the SDN market like Cisco, Juniper and VMware have all made moves to tie together enterprise data center and cloud worlds.
USA & Canada Demand Outlook for Multi-Cloud SDN
When it comes to cloud computing adoption, USA is the most mature market. This is due to the early adoption of cloud based networks by the USA markets. Organizations in both the countries have taken high level of initiatives towards adoption of latest digital technologies.
The high internet penetration, coupled with initiatives from government agencies moving partially to the cloud to improve information services would also drive the growth of multi-cloud SDN technologies in the USA & Canada.
USA is expected to hold the largest share in the North America Multi-Cloud SDN market. The country has always been at the forefront in terms of technological development. Moreover, USA is home to multiple multi-cloud SDN solution vendors, such as Cisco Systems, Oracle, Juniper Networks, Fortinet, Ciena Corporation, HPE, Dell and among others.
These companies are targeting higher revenue and business expansions due to high competition and demand prevailing across the region.
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China Adoption Outlook for Multi-Cloud SDN
China is the world's second-largest cloud computing market. The market is prominently occupied by Alibaba Cloud. Alibaba is the largest provider of cloud services in China. The company is the fourth largest global Infrastructure-as-a-Service provider following AWS, Azure, and Google Cloud Platform.
The integration of cloud computing services in for industrial transformation is one of the most prominent trends, in China. It is estimated that in China, the cloud computing industry has been growing around to 25-30% each year, from last five years, and the trend will likely continue into the near future.
Moreover, enterprises in China are adopting the latest technologies to sustain in the global market competition. Government policies in China are also promoting the adoption of cloud services in multiple sectors. These factors are expected to propel the growth of multi-cloud SDN market in China.
Who are the Key Multi-Cloud SDN Vendors?
Some of the leading vendors offering Multi-Cloud SDN products include
AWS
VMware
Microsoft
HPE
Dell
Oracle
IBM
Nutanix
Cisco
Huawei
Fujitsu and others.
These vendors have adopted various key strategies, to increase their market shares locally and globally. The vendors are focusing on product innovation and strategic partnerships with the regional vendors to collaborate for offering advanced solutions to effectively manage business operations.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
