Cloud Networking Software Market

Market Definition

The Cloud Networking Software Market size was valued at USD 16.45 billion in 2023 and is predicted to reach USD 51.63 billion by 2030 with a CAGR of 17.75% from 2024-2030. Cloud networking software refers to software applications and tools that are used to manage and operate networks and network-related functions in cloud computing environments. It allows organizations to create and manage virtual networks in cloud infrastructure, enabling them to improve network performance, security, and availability, while reducing costs. Cloud networking software provides a wide range of services, including network virtualization, load balancing, traffic management, security, and monitoring. It allows users to manage network configurations, deploy applications & services, and monitor network performance in real time without the need for physical hardware.

Market Dynamics and Trends

The growth of the cloud networking software market is driven by the increasing adoption of cloud computing by organizations. More businesses are turning to cloud networking software to manage and optimize network traffic between cloud-based and on-premises environments, fostering market expansion as they seek solutions for seamless integration and efficient operation of their hybrid IT infrastructures.

Also, the rapid expansion of e-commerce and the ongoing digital transformation across industries are driving the need for scalable and flexible networking solutions. As businesses increasingly rely on online platforms to reach customers and streamline operations, there's a growing demand for cloud networking software that can efficiently manage and optimize network traffic.

These solutions enable companies to adapt to changing demands, handle increased online traffic, and support the seamless integration of digital processes, thereby fuelling the growth of the cloud networking software market. Furthermore, as cyber threats continue to increase, there's a growing demand for network security solutions that offer advanced features such as encryption, intrusion detection, prevention, and access controls.

This heightened need for enhanced security measures is driving the expansion of the cloud networking software market. However, the high initial cost of cloud infrastructure and the risk of data breaches are the major factors restraining the growth of the cloud networking software market.

On the contrary, the introduction of multi-cloud networking to leverage the strengths of different clouds and the integration of blockchain technology to secure cloud networking by providing a tamper-proof and decentralized ledger of transactions are expected to create ample opportunities in the cloud networking software market in the coming years.

Market Segmentations and Scope of the Study

The cloud networking software market share is segmented on the basis of type, deployment mode, enterprise size, and end-user. On the basis of type, the market is divided into solution and services. On the basis of deployment mode, the market is classified into public cloud and private cloud. On the basis of enterprise size, the market is segmented into small & medium enterprise and large enterprise. On the basis of end-user, the market is divided into BFSI, IT & telecom, retail, e-commerce, healthcare, manufacturing, consumer electronics, energy & utilities, media & entertainment, educational institutions, and others. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of cloud networking software market and is expected to continue its dominance during the forecast period. This is attributed to the presence of advanced healthcare sector in countries such as the U.S. and Canada by demanding efficient and scalable networking solutions to support modern healthcare infrastructure.

With the digitization of patient records, telemedicine services, and medical imaging, there's a growing need for secure and interconnected networks that can handle large volumes of data while ensuring compliance with healthcare regulations.

According to the Peter G. Peterson Foundation report, the United States maintained one of the world's highest healthcare expenditures, reaching a total of USD 4.5 trillion in 2022, equating to an average of USD 13,493 per individual. Cloud networking software offers healthcare providers the flexibility, scalability, and security required to manage and exchange sensitive medical information effectively, driving its adoption across the industry in North America.

Moreover, the presence of key players such as IBM Corporation, Alphabet Inc, and Oracle Corporation that are adopting various strategies including product launches is further boosting the growth of the market. For instance, in May 2023, IBM launched IBM Hybrid Cloud Mesh, aimed at assisting enterprises in regaining control of their multi-cloud infrastructure. This software innovation integrates various cloud environments to streamline management and enhance efficiency for businesses.

On the other hand, Asia Pacific is expected to show a steady rise in the growth of the cloud networking software market. This is due to the rapid growth of e-commerce in the Asia Pacific region by necessitating robust and scalable networking solutions to support online retail operations. According to the International Trade Administration, China is the largest e-commerce market globally as it reached USD 2.29 trillion in 2020 and is expected to reach USD 3.56 trillion by the end of 2024.

Also, China stands as the largest e-commerce market worldwide, accounting for nearly half of all global transactions. As more businesses shift towards online platforms to reach customers and facilitate transactions, there's a heightened demand for cloud networking software that can handle the increased volume of online traffic efficiently. Cloud networking software offers the flexibility and scalability required to manage e-commerce platforms, ensuring seamless connectivity, secure transactions, and optimal performance, thereby driving its adoption across the Asia Pacific region.

Also, the Asia Pacific region is expected to witness steady growth in the cloud networking software market, fueled by the adoption of cloud networking solutions by the BFSI sector. With total assets valued at USD 51.19 trillion in 2022, China's BFSI industry ranks among the largest in the world, according to the China Banking and Insurance Regulatory Commission. The BFSI sector's emphasis on digital transformation and the need for robust infrastructure to support financial operations drive the adoption of cloud networking software, contributing significantly to the market's expansion in the Asia Pacific region.

Competitive Landscape

Various market players operating in the cloud networking software market include Amazon Web Services (AWS), Microsoft Corporation, Alphabet Inc, Alibaba Cloud, Oracle Corporation, IBM Corporation, Tencent Holdings Ltd, CoreSite, Nokia Corporation, Akamai Technologies, and others. These market players are adopting various strategies such as product launches to remain dominant in the cloud networking software market. 

For instance, in February 2023, Akamai Technologies Inc launched Akamai connected cloud and new cloud computing platform. The launch was aimed toward providing computing, security, and content delivery in cloud. 

Moreover, in November 2022, CoreSite launched new open cloud exchange automation and direct-to-cloud capabilities with google cloud. The launch was aimed toward providing secure, low latency connectivity among the company’s data centers, cloud providers and digital ecosystem.

Furthermore, in March 2022, Nokia Corporation launched its cloud-native solution, Adaptive Cloud Networking, to transform service provider cloud networks to be consumable, agile and automated. Through this launch, the company aims to provide comprehensive solution to respond to the unpredictable demands of the 5G era.

Key Benefits

• The report provides quantitative analysis and estimations of the cloud networking software market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the cloud networking software market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the cloud networking software market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porter’s Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Key Market Segments

By Type 

• Solution

• Services

By Deployment Mode 

• Public Cloud

• Private Cloud

By Enterprise Size 

• Small & Medium Enterprises (SMEs) 

• Large Enterprises

By End-User 

• BFSI

• IT and Telecom

• Retail

• E-Commerce

• Healthcare

• Manufacturing

• Consumer Electronics

• Energy and Utilities

• Media and Entertainment

• Educational Institutions

• Others

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)    

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 16.45 Billion
Revenue Forecast in 2030	USD 51.63 Billion
Growth Rate	CAGR of 17.75% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing adoption of cloud computing by organizations fuels the market. The rapid expansion of e-commerce and the ongoing digital transformation across industries boosts the market growth. Surge in cyber security threats drives the market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Amazon Web Services (AWS)

• Microsoft Corporation

• Alphabet Inc

• Alibaba Cloud

• Oracle Corporation

• IBM Corporation

• Tencent Holdings Ltd.

• CoreSite

• Nokia Corporation

• Akamai Technologies