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Japan Software Defined Networking Market

ID: MRFR/ICT/61470-HCR
200 Pages
Aarti Dhapte
February 2026

Japan Software Defined Networking Market Size, Share and Research Report: By Component (Hardware Component, Services, Software), By Application (Open SDN, SDN via API, SDN via Overlay), By Solution (Physical Network Infrastructure Solution, Network Virtualization, Automation Solution) and By End-User (Retail, I.T. & Telecommunication, Healthcare, BFSI, Industrial, Government) - Industry Forecast to 2035

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Japan Software Defined Networking Market Summary

As per Market Research Future analysis, the Japan software defined-networking market Size was estimated at 842.08 USD Million in 2024. The Japan software defined-networking market industry is projected to grow from 932.94 USD Million in 2025 to 2600.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 10.7% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Japan software defined-networking market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The market is witnessing increased adoption of cloud services, enhancing operational efficiency and scalability.
  • A heightened focus on network security is emerging as organizations prioritize data protection and compliance.
  • Integration with artificial intelligence is becoming prevalent, enabling smarter network management and automation.
  • Key market drivers include rising demand for network agility and government initiatives supporting technological innovation.

Market Size & Forecast

2024 Market Size 842.08 (USD Million)
2035 Market Size 2600.0 (USD Million)
CAGR (2025 - 2035) 10.79%

Major Players

Cisco Systems (US), VMware (US), Arista Networks (US), Juniper Networks (US), Hewlett Packard Enterprise (US), Nokia (FI), Huawei Technologies (CN), Extreme Networks (US)

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Japan Software Defined Networking Market Trends

The software defined-networking market is currently experiencing notable growth, driven by the increasing demand for flexible and efficient network management solutions. Organizations are increasingly adopting software defined networking to enhance their operational efficiency and reduce costs. This shift is largely influenced by the need for improved network performance and the ability to quickly adapt to changing business requirements. As a result, many enterprises are investing in advanced technologies that facilitate automation and centralized control, which are essential for managing complex network environments. Furthermore, the rise of cloud computing and the Internet of Things (IoT) is further propelling the adoption of software defined networking, as these technologies require robust and scalable network infrastructures. In addition, the regulatory landscape in Japan is evolving to support the growth of the software defined-networking market. Government initiatives aimed at promoting digital transformation and enhancing cybersecurity are likely to create a conducive environment for market expansion. The emphasis on innovation and technological advancement is expected to drive further investments in software defined networking solutions. As organizations continue to seek ways to optimize their network operations, the software defined-networking market is poised for sustained growth in the coming years, reflecting a broader trend towards digitalization and modernization in various sectors.

Increased Adoption of Cloud Services

The shift towards cloud computing is significantly influencing the software defined-networking market. Organizations are increasingly leveraging cloud services to enhance their operational capabilities. This trend is likely to drive demand for software defined networking solutions that facilitate seamless integration and management of cloud resources.

Focus on Network Security

As cyber threats become more sophisticated, there is a growing emphasis on network security within the software defined-networking market. Companies are prioritizing solutions that offer enhanced security features, indicating a shift towards more secure network architectures that can adapt to emerging threats.

Integration with Artificial Intelligence

The integration of artificial intelligence into software defined networking is emerging as a key trend. This development appears to enhance network management capabilities, allowing for predictive analytics and automated decision-making processes. Such advancements may lead to more efficient and responsive network operations.

Japan Software Defined Networking Market Drivers

Emergence of 5G Technology

The rollout of 5G technology is poised to significantly impact the software defined-networking market in Japan. With its promise of ultra-fast connectivity and low latency, 5G is expected to drive demand for more sophisticated networking solutions. The software defined-networking market is likely to benefit from the need to manage the increased complexity and scale associated with 5G networks. As businesses and service providers prepare for the 5G era, there is a growing recognition of the importance of software defined networking in facilitating seamless integration and management of diverse network elements. Analysts predict that the software defined-networking market could see a growth rate of around 20% as 5G adoption accelerates. This trend underscores the critical role that software defined networking will play in enabling the next generation of connectivity and digital services.

Increased Focus on Data Privacy

As data privacy concerns continue to escalate, the software defined-networking market in Japan is witnessing a heightened focus on security measures. Organizations are compelled to adopt solutions that not only enhance network performance but also ensure the protection of sensitive information. The implementation of software defined networking allows for more granular control over data flows and access policies, thereby addressing compliance requirements and mitigating risks. Recent surveys indicate that approximately 70% of enterprises in Japan prioritize data security when selecting networking solutions. This trend is driving vendors to integrate advanced security features into their software defined-networking offerings, making them more attractive to potential customers. As a result, the software defined-networking market is likely to expand as organizations seek to balance performance with robust security protocols.

Growing Need for Cost Efficiency

Cost efficiency remains a critical driver in the software defined-networking market in Japan. Organizations are increasingly recognizing the financial benefits associated with adopting software defined networking solutions. By virtualizing network resources, companies can reduce hardware expenditures and operational costs. Recent studies indicate that businesses can achieve savings of up to 30% by transitioning to software defined networking architectures. This financial incentive is compelling many enterprises to explore software defined-networking solutions as a means to optimize their IT budgets. Additionally, the ability to automate network management processes further contributes to cost reductions, allowing IT teams to focus on strategic initiatives rather than routine maintenance. Consequently, the software defined-networking market is poised for growth as more organizations seek to enhance their cost efficiency through innovative networking solutions.

Rising Demand for Network Agility

The software defined-networking market in Japan is experiencing a notable surge in demand for enhanced network agility. Organizations are increasingly seeking solutions that allow for rapid deployment and reconfiguration of network resources. This shift is driven by the need for businesses to adapt quickly to changing market conditions and customer demands. According to recent data, the market is projected to grow at a CAGR of approximately 15% over the next five years. This growth is indicative of a broader trend where enterprises prioritize flexibility and responsiveness in their IT infrastructure. As a result, vendors in the software defined-networking market are innovating to provide solutions that facilitate seamless integration and management of diverse network environments, thereby enhancing overall operational efficiency.

Government Initiatives and Support

The Japanese government is actively promoting the adoption of advanced networking technologies, including software defined-networking. Initiatives aimed at fostering innovation and digital transformation are creating a conducive environment for market growth. For instance, the government has allocated substantial funding to support research and development in networking technologies. This support is expected to bolster the software defined-networking market, as companies leverage these resources to enhance their offerings. Furthermore, regulatory frameworks are being established to encourage the deployment of next-generation networking solutions. As a result, the software defined-networking market is likely to benefit from increased investment and collaboration between public and private sectors, driving further advancements in technology and infrastructure.

Market Segment Insights

By Component: Hardware Component (Largest) vs. Services (Fastest-Growing)

The Japan software defined-networking market is largely dominated by the Hardware Component segment, which secures the largest share due to its critical role in infrastructure development and efficient network management. Services are emerging as a significant player, driven by the increasing demand for tailored solutions and maintenance support, thereby contributing to a competitive and dynamic landscape. Growth trends point towards a strong inclination towards Services, which are projected to grow rapidly as enterprises seek flexible, managed network solutions that can adapt to evolving technological requirements. Factors driving this growth include a rise in cloud adoption, increased reliance on remote work solutions, and the need for enhanced security measures. The hardware segment, while dominant, will face challenges from these shifting demands in the marketplace.

Hardware Component (Dominant) vs. Services (Emerging)

The Hardware Component segment maintains a dominant position in the Japan software defined-networking market, characterized by its essential functions in enabling robust and scalable network infrastructure. This segment includes physical devices such as routers, switches, and servers, which are crucial for facilitating efficient data transmission and management. On the other hand, the Services segment is emerging strongly, focusing on providing value-added solutions like consulting, integration, and ongoing support tailored to the specific needs of businesses. As organizations increasingly seek to enhance operational efficiency and agility, the demand for these services is growing rapidly. The interplay between these two segments showcases a market where traditional hardware support is being complemented by innovative service offerings.

By Application: Open SDN (Largest) vs. SDN via API (Fastest-Growing)

In the Japan software defined-networking market, the distribution of market share among the application segment values reveals that Open SDN holds the largest position, positioned well within various sectors seeking higher efficiency and control. Meanwhile, SDN via API has emerged as a robust contender, witnessing significant interest from companies looking to integrate automation and streamline processes, thus gaining ground quickly. Growth trends in the Japan software defined-networking market show a clear preference for adaptable and scalable solutions. Open SDN is preferred for its flexibility and extensive capabilities, catering to a wide array of applications. Conversely, SDN via API is accelerating in adoption due to the increasing demand for integration in existing systems and the push for more agile and responsive network management. This shift is spurred by ongoing digital transformation efforts across various industries.

Open SDN (Dominant) vs. SDN via API (Emerging)

Open SDN is characterized by its advanced architecture that supports dynamic network management and is highly valued in enterprise environments for providing improved operational efficiency. As a dominant player, it offers strong customization capabilities, catering to diverse application scenarios, thus ensuring its continued relevance in the market. In contrast, SDN via API is an emerging approach that appeals to organizations emphasizing automation and integration, allowing for rapid deployment and seamless interoperability with existing network solutions. This flexibility positions SDN via API favorably for businesses aiming to adapt to evolving technological landscapes and improves overall service delivery.

By Solution: Network Virtualization (Largest) vs. Automation Solution (Fastest-Growing)

In the Japan software defined-networking market, the market share distribution among the segment values indicates that Network Virtualization holds the largest share due to its established role in optimizing network performance and resource utilization. Physical Network Infrastructure Solution, while significant, is gradually losing prominence as businesses move towards more agile and scalable solutions. Automation Solution, although currently smaller in terms of market share, is gaining traction as firms seek efficiency and reduced operational costs. The growth trends in this segment are driven primarily by the increasing demand for digital transformation across various sectors. As organizations aim to enhance operational efficiencies and manage increasing network complexities, the adoption of Automation Solutions is on the rise. Network Virtualization continues to be a fundamental building block for modern network architecture, while the Automation Solution is emerging as a vital catalyst for innovation, enabling quicker and more efficient network management.

Network Virtualization (Dominant) vs. Automation Solution (Emerging)

Network Virtualization serves as a dominant player in the Japan software defined-networking market, facilitating seamless integration and management of network resources. Its effectiveness in creating virtualized instances of networking elements allows businesses to leverage existing infrastructure more efficiently. Conversely, Automation Solution is positioned as an emerging force, providing considerable advantages in deployment speed and operational efficiency. This segment is particularly appealing to enterprises looking for smart network solutions that reduce manual interventions and enhance adaptability. As organizations progressively adopt flexible networking strategies, the gap between these two solutions widens, underscoring the critical role of each in the evolving landscape of network management.

By End-User: IT & Telecommunication (Largest) vs. Healthcare (Fastest-Growing)

In the Japan software defined-networking market, the end-user segment is characterized by a broad distribution among several key sectors. The IT & Telecommunication sector holds the largest share, driven by an increasing demand for robust network solutions to handle vast amounts of data generated daily. This is followed by the retail sector, which is also seeing significant investments in networking solutions to enhance customer experiences through better connectivity and data integration. Growth in the healthcare sector represents the fastest trend, propelled by the ongoing digital transformation and the push for improved patient care solutions. With the rise of telemedicine and online health services, there is an urgent need for reliable and secure networking solutions. Similarly, the BFSI sector is witnessing an upward trajectory due to the necessity of secure transaction processing and compliance with regulatory standards.

IT & Telecommunication: Dominant vs. Healthcare: Emerging

The IT & Telecommunication sector remains the dominant force in the Japan software defined-networking market, focusing on providing advanced networking capabilities that support large-scale operations and telecommunications infrastructure. Companies within this sector are investing heavily in cutting-edge technologies to enhance their offerings, ensuring high availability and performance. Conversely, the healthcare sector is emerging rapidly, spurred by innovations in digital health technologies and the increasing reliance on telehealth services. Organizations in this space are integrating SDN to improve data flow, secure patient information, and facilitate seamless communication between healthcare providers, thus transforming service delivery and patient engagement.

Get more detailed insights about Japan Software Defined Networking Market

Key Players and Competitive Insights

The software defined-networking market in Japan is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for network flexibility and efficiency. Major players such as Cisco Systems (US), VMware (US), and Juniper Networks (US) are strategically positioned to leverage their innovative capabilities and extensive portfolios. Cisco Systems (US) focuses on enhancing its software offerings, particularly in security and automation, while VMware (US) emphasizes its cloud-native solutions to cater to the growing enterprise demand for hybrid cloud environments. Juniper Networks (US) is concentrating on its AI-driven networking solutions, which are designed to optimize network performance and reduce operational costs. Collectively, these strategies indicate a shift towards more integrated and intelligent networking solutions, shaping a competitive environment that prioritizes innovation and customer-centric approaches.Key business tactics within this market include localizing manufacturing and optimizing supply chains to enhance responsiveness to customer needs. The competitive structure appears moderately fragmented, with several key players vying for market share while also collaborating through strategic partnerships. This collective influence of major companies fosters a robust ecosystem that encourages innovation and accelerates the adoption of software defined-networking technologies across various sectors.

In October Cisco Systems (US) announced a strategic partnership with a leading telecommunications provider in Japan to enhance its 5G network capabilities. This collaboration aims to integrate Cisco's advanced networking solutions with the telecom provider's infrastructure, thereby improving service delivery and customer experience. The strategic importance of this partnership lies in its potential to position Cisco as a frontrunner in the 5G space, capitalizing on the increasing demand for high-speed connectivity and advanced networking solutions.

In September VMware (US) launched a new suite of cloud management tools tailored for the Japanese market, focusing on simplifying multi-cloud operations for enterprises. This initiative reflects VMware's commitment to addressing the unique challenges faced by Japanese businesses in managing diverse cloud environments. The strategic significance of this launch is underscored by the growing trend of digital transformation among Japanese enterprises, which necessitates robust cloud management solutions to enhance operational efficiency.

In August Juniper Networks (US) unveiled its AI-driven network automation platform, specifically designed to cater to the needs of Japanese enterprises. This platform aims to streamline network operations and enhance security measures through intelligent automation. The introduction of this platform is strategically important as it aligns with the increasing emphasis on AI integration within networking solutions, positioning Juniper as a leader in the AI-driven networking space.

As of November current competitive trends in the software defined-networking market include a pronounced focus on digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition towards a greater emphasis on technological innovation, supply chain reliability, and the ability to deliver tailored solutions that meet the specific needs of customers. This shift suggests that companies will need to invest significantly in R&D and strategic partnerships to maintain a competitive edge in this rapidly evolving market.

Key Companies in the Japan Software Defined Networking Market include

Industry Developments

Fujitsu and SoftBank Corp. successfully expanded an all-optical network throughout Japan's core regions in November 2023, utilizing Fujitsu's disaggregation-type optical transmission system. This network is distinguished by its pioneering use of liquid cooling technology, which is designed to reduce power consumption by as much as 90%.Juniper Networks is fortifying its market position by emphasizing AI-driven network automation, which is consistent with Japan's expanding digital transformation initiatives. 

Through its AI-powered solutions, the organization has been committed to streamlining network operations and enhancing the user experience.Extreme Networks has been fortifying its presence in the Japanese market by appointing new leadership to facilitate business expansion. The company announced the appointment of a new executive officer president and an APAC strategy director in July 2023 with the objective of accelerating its business development in Japan.

Future Outlook

Japan Software Defined Networking Market Future Outlook

The Software Defined Networking Market in Japan is projected to grow at a 10.79% CAGR from 2025 to 2035, driven by increased demand for network automation and cloud services.

New opportunities lie in:

  • Development of AI-driven network management tools to enhance operational efficiency.
  • Expansion of SDN solutions for IoT applications in smart cities.
  • Partnerships with telecom providers to offer integrated SDN services for 5G networks.

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

Market Segmentation

Japan Software Defined Networking Market End-User Outlook

  • Retail
  • IT & Telecommunication
  • Healthcare
  • BFSI
  • Industrial
  • Government

Japan Software Defined Networking Market Solution Outlook

  • Physical Network Infrastructure Solution
  • Network Virtualization
  • Automation Solution

Japan Software Defined Networking Market Component Outlook

  • Hardware Component
  • Services
  • Software

Japan Software Defined Networking Market Application Outlook

  • Open SDN
  • SDN via API
  • SDN via Overlay

Report Scope

MARKET SIZE 2024 842.08(USD Million)
MARKET SIZE 2025 932.94(USD Million)
MARKET SIZE 2035 2600.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 10.79% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Cisco Systems (US), VMware (US), Arista Networks (US), Juniper Networks (US), Hewlett Packard Enterprise (US), Nokia (FI), Huawei Technologies (CN), Extreme Networks (US)
Segments Covered Component, Application, Solution, End-User
Key Market Opportunities Integration of artificial intelligence in software defined-networking market enhances automation and operational efficiency.
Key Market Dynamics Rising demand for agile network solutions drives innovation in the software defined-networking market in Japan.
Countries Covered Japan
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FAQs

What is the expected market size of the Japan Software Defined Networking Market in 2024?

The Japan Software Defined Networking Market is expected to be valued at 936.0 USD million in 2024.

What is the projected market value for the Japan Software Defined Networking Market by 2035?

By 2035, the Japan Software Defined Networking Market is projected to reach a value of 3208.0 USD million.

What is the expected compound annual growth rate (CAGR) for the Japan Software Defined Networking Market from 2025 to 2035?

The expected CAGR for the Japan Software Defined Networking Market from 2025 to 2035 is 11.849%.

Which component is projected to hold the largest market share in the Japan Software Defined Networking Market in 2024?

In 2024, the hardware component is expected to dominate the Japan Software Defined Networking Market with a value of 325.0 USD million.

What will be the market size of software components in the Japan Software Defined Networking Market by 2035?

By 2035, the market size of software components in the Japan Software Defined Networking Market is expected to reach 843.0 USD million.

Who are the key players in the Japan Software Defined Networking Market?

Major players in the Japan Software Defined Networking Market include Arista Networks, Juniper Networks, and Cisco Systems.

What is the projected market value for services in the Japan Software Defined Networking Market in 2035?

In 2035, the market value for services in the Japan Software Defined Networking Market is expected to reach 1230.0 USD million.

How are the current market trends impacting the Japan Software Defined Networking Market?

Current trends are showing increased adoption of software-defined solutions, driving significant growth in the Japan Software Defined Networking Market.

What are the key applications driving growth in the Japan Software Defined Networking Market?

Key applications driving growth in the market include cloud computing, data center operations, and network optimization.

What impact do emerging technologies have on the Japan Software Defined Networking Market?

Emerging technologies like 5G and IoT are expected to enhance the capabilities and demand within the Japan Software Defined Networking Market.

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