Software-Defined Wide Area Network (SD-WAN) Market Size By Component (Solution [ Physical Appliance, Virtual Appliance], Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Deployment Model (On-premise, Cloud, Hybrid), By Application (IT & Telecom, BFSI, Healthcare, Retail & Consumer Goods, Government, Manufacturing), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 - 2025

Published Date: Feb 2019  |  Report ID: GMI2214  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 300   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Trends

SD-WAN Market size estimated at over USD 700 million in 2018, growing at a CAGR of 58% from 2019 to 2025.

APAC SD-WAN Market Revenue, By Region, 2018 & 2025 (USD Million)

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The SD-WAN market growth is due to rising need among organizations to simplify their WAN infrastructure. As they are expanding their geographic presence by establishing branch offices and data centers, they need SD-WAN solutions, which help them to reduce the number of physical devices used to connect remote offices. The technology incorporates virtualization, which enables them to orchestrate applications and unify connectivity across multiple locations. By deploying these solutions, organizations can improve the network management and increase business agility. All such factors are expected to augment the demand for these solutions over the forecast timeline.

Another factor fueling the market growth is the rising inclination of organizations toward the private & public cloud platforms to support their workflow applications. The cloud-based network optimization solutions provide instant and streamlined WAN connectivity to support their business operations. The solutions ensure that organizations’ remote sites and branch offices are configured accurately to connect multiple users to applications while assuring high security compliance.

Software-Defined Wide Area Network (SD-WAN) Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 700 Million (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 58% 2025 Value Projection: 17 Billion (USD)
Pages: 300 Tables, Charts & Figures: 393
Geographies covered (22): U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, China, Japan, Australia & New Zealand (ANZ), South Korea, India, Southeast Asia, Brazil, Mexico, Argentina, Colombia, UAE, South Africa, Saudi Arabia, Israel
Segments covered: Component, Application and Region
Companies covered (20): Aryaka Networks, Inc., Barracuda Networks, Inc., Berkshire Partners LLC (Masergy Communications), Cato Networks, Cisco Systems, Inc., Citrix Systems, Inc., CloudGenix Inc., Ecessa Corporation, Elfiq Networks, FatPipe Networks Inc., Huawei Technologies Co. Ltd., Infovista, Nuage Networks, Oracle Corporation, Peplink, Riverbed Technology, Inc., Silver Peak, Versa Networks, VMware, Inc., ZTE Corporation,
Growth Drivers:
  • Increased adoption of SD-WAN in manufacturing due to rising IoT trend
  • Growing need among organizations to simplify network management
  • Implementation of SD-WAN for CAPEX and OPEX savings
  • Increased business agility and responsiveness
  • Rapid migration towards cloud-based applications
Pitfalls & Challenges:
  • Lack of in-house expertise
  • Concerns related to data security
  • Issues related to operationalization of hybrid networks

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By Component

Europe SD-WAN Market Revenue By Component

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The solutions segment is expected to hold a market share of over 60% by 2025 due to the widespread usage of physical and virtual SD-WAN appliances. The physical appliance market is projected to hold a major portion of the SD-WAN market share by 2025 as these appliances contain most of the SD-WAN functionality including network optimization, firewalls, and dynamic path routing and can be deployed on-premise. The companies operating in the market are offering several physical appliances including routers and switches to enable high-performance and protect enterprise networks.

In the services segment, the integration & maintenance service market will grow at a CAGR of over 55% over the forecast timeline. These services provide support to enterprises and help them integrate various network devices including controllers, routers, and switches to ensure high compatibility between the platforms. The integration service providers operating in the market are offering subscription-based integration services to provide initial set up and assure ongoing compatibility and maintenance.

By Deployment Model

The cloud deployment model segment is expected to hold a SD-WAN market share of over 15% by 2025 due to growing cloud-based networking solution deployments. This architecture enables the company to get the benefits of on-premise architecture including real-time traffic shaping and load balancing as well as increased reliability and performance of cloud applications. By using cloud-enabled solutions, customers optimize network traffic and gain enhanced visibility into their networks. The companies operating in the market are providing their hybrid network connectivity solutions as a service to enable customers to simplify the management of their disparate resources.

 By Application

U.S. SD-WAN Industry Revenue By Application

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The BFSI sector held a SD-WAN market share of over 15% in 2018 and is expected to hold a share of around 18% by 2025. The demand for network virtualization solutions is increasing in the sector to ensure low-cost branch connectivity. BFSI institutions are moving toward hybrid network connectivity option to lower the cost of connecting their multiple branch offices and meet the changing network connectivity demands to improve customer engagement. For instance, in March 2018, SVC Co-operative Bank Limited deployed FatPipe Networks’ SD-WAN solutions to ensure high business continuity in its network. The solutions enable the bank to enhance its IT infrastructure with resilient connectivity between all branches and ATMs.

 By Region

The LATAM SD-WAN market is expected to grow at a CAGR of over 55% from 2019 to 2025 due to rising popularity of network optimization solutions and the growing popularity of cloud computing and 5G networks. As the adoption of cloud computing services is increasing in the country, the market is shifting from isolated infrastructure-based solution to integrated onsite platforms, which is estimated to foster the market growth. The regional companies operating in the market are partnering with global network solution providers to cater to customers, fueling the market growth. For instance, in October 2018, Embratel, a Brazilian telecommunications operator selected VMWare for its VeloCloud-based NSX SD-WAN services. By using VMWare’s solution, Embratel enabled its enterprise customers to accelerate their performance and rearchitect the WAN to meet the networking requirements.

Competitive Market Share

The established & new market players operating in the market are developing new products with enhanced capabilities to gain more market share. In November 2018, Cisco combined its software-defined capabilities and security technologies and extended its Catalyst 9000 switches and intent-based networking to wireless branch networks. The company extended its Catalyst 9000 switches portfolio for wireless and mid-market customers. In March 2018, Cato partnered with Videns IT Services for delivering cloud-based secure SD-WAN solutions. The partnership helps to strengthen the company’s position as the leading virtualization networking service provider in the region and significantly contributes to the realization of its growth objectives. Some companies are entering into partnerships to expand their geographic presence and product portfolio. For instance, in September 2017, the company partnered with Telerus to extend its portfolio of leading telecom technologies by adding the best-in-class SD-WAN solutions. The addition of new solutions to its list of products & services offered by Telarus will further extend CloudGenix’s market presence.

Some of the prominent companies operating in the SD-WAN market are Aryaka Networks, Inc., Cisco Systems, Inc., Citrix Systems, Inc., Riverbed Technology, Inc., CloudGenix Inc., FatPipe Networks Inc., Berkshire Partners LLC (Masergy Communications), Ecessa Corporation, Elfiq Networks, Infovista, Nuage Networks, Versa Networks, Oracle Corporation, Peplink, Huawei Technologies Co., Ltd., Barracuda Networks, Inc., Cato Networks, Silver Peak, Vmware, Inc., and ZTE Corporation.

Industry Background

As enterprises are rapidly using Unified Communications & Collaboration (UCC) services and Software as a Service (SaaS) applications to meet the growing business demands, they need effective networking solutions, which improve connectivity through WAN optimization. This has resulted in the adoption of SD-WAN solutions to enable cost-effective management and monitoring of wide enterprise networks. The rising popularity of network virtualization technology and cloud computing will also support the uptake of software-defined and network virtualization solutions over the forecast timeline.   

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