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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, 2023 – 2032

  • Report ID: GMI2214
  • Published Date: Nov 2022
  • Report Format: PDF

Industry Drivers

SD-WAN Market size valued at USD 4 billion in 2022 and is estimated to grow at over 65% CAGR from 2023 to 2032.

Software-Defined Wide Area Network (SD-WAN) Market

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The prominence of the 4G network, MPLs, and LTE is set to foster market growth. In addition, the rapid shift of organizations towards cloud-based applications is pushing the demand for cloud-based platforms as they offer a cost-effective way to manage network assets. Enterprises are moving their business-critical applications to externally managed network infrastructure, which has increased the uptake of SD-WAN solutions to meet rapidly evolving cloud-based demands.

Government agencies of various developed countries are also integrating software-defined wide area networks owing to significant digitalization and network modernization in local areas. For Instance, Shared Services Canada (SSC) is aiding the government of Canada in connecting government buildings with government data centers, cloud, and data centers using SD-WAN and allowing SSC to separate departmental networks on the same physical network infrastructure.

Rising data security concerns may impede industry progression

Concerns related to data security are restraining the software-defined wide area network market growth. Network security is considered the biggest drawback when choosing an SD-WAN solution. Security solutions are vital for protecting the integrity, reliability, resilience, quality, availability, and privacy of all connected resources and information. Nonetheless, the burgeoning use of AI with machine learning is poised to encourage product penetration and help manufacturers overcome this issue.

Minimizing effects of fragmented technologies to bolster SD-WAN services demand

The service segment surpassed USD 1 billion valuation in 2022. Organizations rely on system integrators to install and incorporate SD-WAN into their existing WAN infrastructure. Fragmented technologies can jeopardize operations’ visibility, leading to high costs and poor utilization of resources, which is likely to accelerate the market size expansion for SD-WAN services.

Premium network experiences helping training & consulting services to gain traction

The software-defined wide area network market from the training & consulting services is foreseen to expand at around 70% gains up to 2032. Ongoing efforts by organizations to encourage the use of SD-WAN solutions to simplify network management and deliver premium network experiences at low costs are promoting the adoption of training & consulting services to allow customers to effectively deploy SD-WAN solutions. Training and consultation services providers are focused on improving the ability of customers to utilize SD-WAN solutions effectively to meet their business objectives.

Ability to manage various cloud systems to favor the hybrid deployment model

The hybrid deployment model is primed to progress at nearly 75% growth rate between 2023 and 2032. This growth is attributed to its capacity to enable enterprises to deploy on-premises cloud to host critical workloads and third-party public cloud to host less-critical resources. Furthermore, widespread utilization by large organizations to gain the flexibility and scalability of the public clouds benefits the hybrid deployment model of SD-WAN.

Prevalent usage of bandwidth-intensive applications to define the IT & telecom industry landscape

China SD-WAN Market Share By Application

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The IT & telecom segment held approximately 25% of the SD-WAN market share in 2022 driven by the surging demand for high-performance applications in the IT sector. The increasing use of bandwidth-intensive applications due to high smartphone penetration has provided lucrative opportunities for segment growth. Moreover, the mounting inclination toward cloud platforms is forecast to elevate the need for secure WAN architecture in IT & telecom applications.

Rapid digitalization to propel market revenue in Asia Pacific

Global SD-WAN Market Size By Region

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The Asia Pacific software-defined wide area network market size is expected to attain nearly 70% CAGR through 2032. The region is observing an upsurge in digitalization, which is boosting the utilization of SD-WAN solutions. The mounting need among enterprises for cost-effective WANs to support connectivity options, such as DSL, Ethernet, and LTE, depending upon site requirements is also slated to promote the demand for SD-WAN in the APAC region.

Product development to strengthen the SD-WAN market outlook

CloudGenix, Inc., VMware, Inc. (Dell Technologies), FatPipe Networks, Inc., Riverbed Technology, Inc., Barracuda Networks, Inc., Aryaka Networks, Inc., Ecessa Corporation, Versa Networks, Peplink, Nuage Networks, Oracle Corporation, Berkshire Partners LLC (Masergy Communications), Infovista, Cisco Systems, Inc., Cato Networks, Citrix Systems, Inc., Martello Technologies (Elfiq Networks), Huawei Technologies Co., Ltd., Silver Peak, and ZTE Corporation are some key players functioning in the software-defined wide area network market. These companies majorly focus on product line diversification, collaborations, and acquisitions to remain ahead in the competitive landscape.

Impact of COVID-19 on the SD-WAN market trends

With the onset of the COVID-19 pandemic, the industry witnessed an adverse impact on SD-WAN demand as a result of changes in the working environment and disruptions in the business operations of large organizations. However, SD-WAN vendors are extending VPN concentrators for security to handle remote users, enabling the market to recover from the aftereffects of the coronavirus outbreak. Additionally, a gradual shift of businesses to online platforms has proliferated cloud-based data storage, in turn resulting in high demand for software-defined wide-area network solutions, which is anticipated to facilitate industry expansion.

This software-defined wide area network (SD-WAN) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032, for the following segments:

Market, By Component

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

Market, By Deployment Model

  • On-premises
  • 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


Authors: Preeti Wadhwani, Smriti Loomba

Frequently Asked Questions (FAQ) :

The market size of software-defined wide area network was valued at USD 4 billion in 2022 and is set to progress at more than 65% CAGR from 2023 to 2032, says this GMI report.

The IT & telecom application segment held approximately 25% of the market share in 2022 as a result of mounting inclination toward cloud platforms and the surging demand for high-performance applications in the IT sector.

The services segment crossed USD 1 billion revenue in 2022 due to high costs and poor utilization of resources through the use of fragmented technologies, which is boosting the use of SD-WAN services.

The Asia Pacific SD-WAN market is anticipated to depict more than 70% growth rate between 2023 and 2032 as a result of the mounting need among enterprises in the region for cost-effective WANs to support connectivity options, such as DSL, Ethernet, and LTE.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 430
  • Countries covered: 26
  • Pages: 310

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