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, 2020 - 2026

Published Date: May 2020  |  Report ID: GMI2214  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 295   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

SD-WAN Market size exceeded USD 1 billion in 2019 and is anticipated to grow at a CAGR of over 60% between 2020 and 2026. The market growth is attributed to growing needs among organizations to simplify network management.
 

Organizations with traditional WAN architecture face bandwidth & reliability-related issues while providing connections to their data centers and cloud-based applications. SD-WAN enables the quick deployment of a new network compared to traditional ways of network deployment using routers and gateways.
 

SD-WAN Market

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SD-WAN is an application of Software-Defined Networking (SDN), which utilizes software and virtualization technologies to create a faster & more reliable WAN network. While SDN focuses more on the internal network, SD-WAN enables connections between devices & networks over a WAN. As enterprises are looking for new ways to meet the evolving needs of their networking infrastructure, the SD-WAN market demand is growing rapidly.
 

The recent COVID-19 outbreak is enabling enterprises to allow their employees to work from home. The increasing work from home trend is positively impacting the market growth as the technology is being leveraged to effectively manage the growing network usage and traffic flow.
 

Software-Defined Wide Area Network (SD-WAN) Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 1 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 60% 2026 Value Projection: 30 Billion (USD)
Pages: 295 Tables, Charts & Figures: 440
Geographies covered (25): U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, China, India, Japan, Australia and New Zealand, South Korea, Southeast Asia, Philippines, Brazil, Mexico, Argentina, Colombia, South Africa, UAE, Saudi Arabia, Israel, East Africa, West Africa
Segments covered: Component, Deployment Model, 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, Martello Technologies (Elfiq Networks), FatPipe Networks, Inc., Huawei Technologies Co., Ltd., Infovista, Nuage Networks, Oracle Corporation, Peplink, Riverbed Technology, Inc., Silver Peak, Versa Networks, VMware, Inc. (Dell Technologies), and 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 SDWAN 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 a hybrid networks

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Demand for virtual appliance is growing rapidly in China

China SD-WAN Market

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In China, the virtual appliance segment is expected to witness around 70% growth rate during the forecast period impelled by increase in adoption of network virtualization technology. The market demand for virtual appliance is expected to increase in the coming years as most organizations are moving their workload to the cloud to facilitate centralized management of networks and improved performance.
 

Integration & maintenance segment in the UK is expected to hold a significant market share by 2026

Integration and maintenance services segment is expected to hold a UK SD-WAN market share of over 30% by 2026 owing to growing demand across enterprises to integrate SD-WAN technology across the existing WAN infrastructure. To facilitate the smooth integration of new devices at the existing branch locations, organizations need system integrators, which ensure that SD-WAN solutions are effectively integrated into their infrastructure.

 

 

This integration and maintenance segment’s growth is driven by rising adoption of integration services by network operators as they face interoperability issues while integrating existing hardware network devices with virtualized network environment.
 

The cloud deployment model in the Brazil market is expected to grow exponentially during the forecast period

Brazil SD-WAN Market

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In Brazil market, the cloud deployment model is poised to expand at over 60% CAGR through 2026 on account of benefits offered by cloud technology such as real-time traffic shaping and load balancing along with increased reliability and performance of cloud deployment over the on-premise model.
 

The cloud-enabled SD-WAN architecture includes an onsite SD-WAN appliance, connecting to the cloud gateway. The gateway connected to cloud service providers help in improving the performance of cloud apps and keeping the cloud session active in events of any failure.
 

IT & telecom industry players in India are integrating SD-WAN into their network infrastructure

The IT & telecom sector dominated the India SD-WAN market with a share of 30% in 2019 due to rising demand for bandwidth-intensive applications. The penetration of smartphones has resulted in an increase in the use of bandwidth-intensive applications. This increases complexities for the telecom operators, who face inflexible MPLS bandwidth constraints. To address this, there is a need for cloud-enabled software-defined solutions, allowing them to take advantage of a broadband to provide high-quality services.
 

Furthermore, as companies operating in the IT industry are expanding their business operations globally and moving to cloud platforms, the market demand for a robust & secure WAN architecture to achieve high connectivity and improve network performance increases. Challenges in IT enterprises are rapidly growing with changing business & technology needs such as the adoption of cloud platforms, rise in security threats, and decentralized manageability of various branches. This facilitates the need for software-defined solutions, enabling them to address these challenges.
 

The growing broadband penetration in North America to boost the market revenue

North America SD-WAN market is projected to hold a major revenue share of more than 45% by 2026. The increasing smartphone penetration, rapid adoption of cloud computing platforms, and significant investments in broadband infrastructure are expected to fuel the North American market growth. Furthermore, the growing trend of workforce mobility is also driving the demand for a centralized network management solution, which gives enterprises a full control over their networks. The region has also witnessed various 5G network trials.
 

Large-scale private & government-led investments in the broadband infrastructure will propel the SD-WAN adoption as it replaces expensive MPLS with cost-effective broadband links. For instance, in August 2019, the Federal Communications Commission (FCC) allocated USD 4.9 billion to be distributed over 10 years to expand rural broadband service in around 39 states. The funding provided internet service providers with the flexibility to adopt any broadband technology to meet FCCs’ performance standards for fixed services. The supportive government initiatives are propelling the regional market growth.
 

Strategic partnerships is a key market strategy for leading industry players

The companies operating in the industry are forming strategic partnerships with other technology companies to develop new software-defined solutions and gain a competitive advantage over the other market players. For instance, in September 2019, Citrix Systems collaborated with Palo Alto Networks for the development of its SD-WAN solutions. The companies leveraged the technology expertise to enable next-generation firewalls and security in Citrix SD-WAN solution. This helped both the companies to provide security & protection to data and applications.
 

Some of the major industry players are Aryaka Networks, Inc., Barracuda Networks, Inc., Berkshire Partners LLC (Masergy Communications), Cato Networks, Cisco Systems, Inc., Citrix Systems, Inc., CloudGenix, Inc., Ecessa Corporation, Martello Technologies (Elfiq Networks), FatPipe Networks, Inc., Huawei Technologies Co., Ltd., Infovista, Nuage Networks, Oracle Corporation, Peplink, Riverbed Technology, Inc., Silver Peak, Versa Networks, VMware, Inc. (Dell Technologies), and ZTE Corporation.
 

The SD-WAN market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market by Component

  • Solution
    • Physical Appliance
    • Virtual Appliance
  • Service
    • Training & Consulting
    • Integration & Maintenance
    • Managed Services

Market by Deployment Model

  • On-premise
  • Cloud
  • Hybrid

Market by Application

  • IT & Telecom
  • BFSI
  • Healthcare
  • Retail & Consumer Goods
  • Government
  • Manufacturing
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia & New Zealand
    • South Korea
    • Southeast Asia
    • Philippines
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Israel
    • West Africa
    • East Africa

 

Frequently Asked Questions (FAQ) :

The market size of SD-WAN was exceeded USD 1 billion in 2019.
The industry share of SD-WAN is anticipated to grow at a CAGR of over 60% between 2020 and 2026.
According to the analysts at GMI, North American market is projected to hold a major revenue share of more than 45% by 2026.
In China, the virtual appliance segment is expected to witness around 70% growth rate during the forecast period impelled by increase in adoption of network virtualization technology.
Some of the major industry players are Aryaka Networks, Inc., Barracuda Networks, Inc., Berkshire Partners LLC (Masergy Communications), Cato Networks, Cisco Systems, Inc., Citrix Systems, Inc., CloudGenix, Inc., Ecessa Corporation, Martello Technologies (Elfiq Networks), FatPipe Networks, Inc., Huawei Technologies Co., Ltd., Infovista, Nuage Networks, Oracle Corporation, Peplink, Riverbed Technology, Inc., Silver Peak, Versa Networks, VMware, Inc. (Dell Technologies), and ZTE Corporation.
The cloud technology offers benefits such as real-time traffic shaping and load balancing along with increased reliability and performance, which makes it preferable over the on-premise model.

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Premium Report Details

  • Published Date: May 2020
  • Pages: 295
  • Tables: 410
  • Charts / Figures: 30
  • Companies covered: 20
  • Countries covered: 25

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