Open Networking Market

Open Networking Market Overview

The global Open Networking Market size was valued at XX billion in 2024 and is predicted to reach XX billion by 2030 with a CAGR of XX% from 2025-2030.

The open networking market is driven by boosting cloud adoption coupled with booming healthcare sector and global shift towards digitalization, the market on the other hand, is constrained by the rising security threats. Also, few market participants such as Juniper Networks Inc., Cisco Systems Inc., and Dell Technologies are embracing various business strategies such as product releases and acquisition to sustain their leadership in the market Further, the utilisation of edge computing shows ample number of future opportunities in the domain.

Boosting Cloud Adoption Fuels Market Growth

The rising adoption of cloud computing drives the demand for scalable and flexible network solutions. Open networking solutions addresses these requirements by providing cost-effective solutions and enabling seamless integration of diverse components. 

As per the report published by McKinsey & Company, adoption of cloud services in the U.S. for 500 companies is anticipated to generate USD 1 trillion in value by 2030. The growing adoption of cloud services puts emphasis on scalable, flexible and open network solutions that results in the growth in the market.

Booming Healthcare Sector Spurs Market Growth

The expanding healthcare sector across the globe coupled with the rising adoption of digital health technologies and electronic health records drive the demand for open-source networking. This is because healthcare organizations need scalable, flexible, and interoperable network solutions to manage and secure large amounts of sensitive data effectively. 

The U.K. healthcare spending summed USD 371 billion in 2023, a 5.6% rise from 2022, according to the U.K. Office for National Statistics. In contrast, in the U.S. as per CMS, the national healthcare expenditure rose USD 4.9 trillion in 2023 equating USD 14,570 per person, and accounted for 17.6% of GDP. Such increased health spendings facilitates the investment in open-source networking solutions to support and enhance the healthcare systems driving the growth of the market.

Global Shift Towards Digitalisation Drives Market Growth

The global shift towards digitalisation drives the open-source networking market by increasing the need for advanced network solutions. As organizations embrace digital technologies, they require efficient and flexible networks to support and manage their systems effectively. 

According to UN Trade & Development (UNCTAD), the cost for the digital transformation for the 48 developing economies is expected to equate USD 5.6 trillion annually from 2023 to 2030. This substantial investment highlights the role of advanced networking solutions in enabling successful digital transitions, thereby fuelling the open networking market growth.

Increased Security Risk Hinders Market Growth

The increased security risks associated with open-source software and customizable configurations leads to increased vulnerabilities and is the major factor restraining the open networking market expansion.

Utilisation of Edge Computing Creates Future Opportunities

The inclusion of edge computing in open networking platforms is expected to provide substantial future scope in the market as it provides decentralised processing and storage near data sources resulting in reduced latency, increased responsiveness and greater bandwidth. The collaboration is expected to facilitate numerous new applications such as real-time analytics and smart city solutions that requires rapid data processing.

Market Segmentations and Scope of the Study

The open networking market report is segmented on the basis of component, deployment, organization size, SDN types, end-user and region. On the basis of component, the market is classified into hardware, software, and services. On the basis of deployment, the market is bifurcated into on-premises and cloud. On the basis of organization size, the market is divided into small & medium enterprises and large enterprises. On the basis of SDN types, the market is segmented into open SDN, SDN via API, and SDN via overlay. On the basis of end-user, the market is classified into data centres, service providers, enterprises, banking, financial services & insurance, manufacturing, retail, healthcare, education, IT & telecommunication service providers, cloud service providers, enterprises, government & defence, and others.  Regional breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and Row.

Geographical analysis

North America dominates the open networking market share and is expected to continue its dominance during the forecast period due to the rising investment in cloud services. For instance, in January 2025, Amazon Web Services (AWS) announced to invest an estimated USD 11 billion in the state of Georgia, USA, to expand its cloud computing and artificial intelligence infrastructure. 

As organisations in the region invest more in cloud infrastructure, they require advanced and flexible networking solutions to support and manage these cloud environments effectively and this promotes the open networking market demand. 

Moreover, the growing healthcare sector promotes growth in the market as the healthcare organizations need scalable, flexible, and interoperable network solutions to manage and secure large amounts of sensitive data. In Canda as per CIHI, healthcare spending is expected to reach USD 372 billion or USD 9,054 per Canadian showing a 5.7% increase in 2024. The booming healthcare sector needs scalable solution to enhance the healthcare system leading to boost in the market. 

On the other hand, Asia-Pacific shows a steady rise in the open networking industry during the forecast period. This is due to presence of BFSI sectors in the region that drives the demand for secure, efficient, and flexible networking solutions to support the complex operations of the financial industry. 

According to the report published by Bruegel 2023 China’s financial sector is one of the largest in the world and it generated USD 60 trillion. The growing financial sector drives the demand for resilient software defined networking solutions to efficiently manage large financial data. 

In addition, the growing telecommunication business within the Asia-Pacific market, as companies pursue scalable and adaptable networking infrastructure to meet their increasing digital business, drives a heightened demand for open networking solutions. 

In terms of the recently released report of the Indian Ministry of Commerce and Industry, the telecommunication industry of India stands as the world's second-largest telecommunication industry and its base of telephone subscribers totalled 1.20 billion in May 2024. Such huge market needs scalable open network solutions to accommodate the growing subscriber base and deliver seamless connectivity services leading to boost in the market.

Competitive Landscape

The key players operating in open networking industry are Cisco Systems Inc., Juniper Networks Inc., Dell Technologies Inc., Hewlett Packard Enterprise Company, Extreme Networks Inc., Mphasis Limited, VMware Inc., Kyndryl Inc., Garland Technology, LLC, Pica8 Inc., Broadcom, Inc., Nokia Corporation, Arista Networks, Inc., Telefonaktiebolaget LM Ericsson, Nutanix, Inc., and others. These market players are adopting various business strategies including product launches and acquisition of business across various regions to maintain their dominance in the market. 

For instance, in July 2024, Juniper Networks Inc. launched Ops4AI Lab and validated designs to maximize AI workload performance using open and flexible infrastructure. The development conveys the company’s commitment to launch best products in the market. 

Moreover, in April 2024, Cisco Systems Inc. acquired Isovalent to enhance networking and security in multicloud settings. This acquisition is significant for open-source networking as Cisco combines its skills with Isovalent's technologies. 

Further, in February 2023, Dell Technologies improved the telecommunication business with its open, cloud-native technology solutions. The solutions based on open and flexible architecture enable service providers to advance network flexibility, scale faster, and boost innovation in providing next-gen telecommunication services.

Key Benefits 

• The report provides quantitative analysis and estimations of the open networking industry from 2025 to 2030, which assists in identifying the prevailing industry opportunities.

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

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

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

• SWOT analysis and Porters Five Forces model is elaborated in the study.

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

Open Networking Market Key Segments

By Component 

• Hardware

• Software

• Services

By Deployment 

• On-Premises 

• Cloud

By Organization Size 

• Small & Medium Enterprises 

• Large Enterprises

By SDN Types

• Open SDN

• SDN Via API 

• SDN Via Overlay

By End-User 

• Data Centres

• Service Providers

• Enterprises

• Banking Financial Services & Insurance

• Manufacturing

• Retail

• Healthcare

• Education

• Telecommunication Service Providers

• Cloud Service Providers

• Enterprises Government

• Defence

• Others

By Region

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • 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

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Cisco Systems Inc.

• Juniper Networks Inc.

• Dell Technologies Inc.

• Hewlett Packard Enterprise Company

• Extreme Networks Inc.

• Mphasis Limited

• VMware Inc.

• Kyndryl Inc.

• Garland Technology, LLC

• Pica8 Inc.

• Broadcom, Inc.

• Nokia Corporation

• Arista Networks, Inc.

• Telefonaktiebolaget LM Ericsson

• Nutanix, Inc.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD XX billion
Revenue Forecast in 2030	USD XX billion
Growth Rate	CAGR of XX% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The rising adoption of cloud computing boosts the market growth. The expanding healthcare sector further fuels the market growth. The shift towards digitalization drives the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to 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.