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

Report ID: GMI2214
Published Date: Feb 2024
Report Format: PDF

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Software-Defined Wide Area Network Market Size

SD-WAN Market was valued at USD 7.2 billion in 2023 and is poised to witness more than 27% CAGR from2024 to 2032. The market is rising owing to the scalability and flexibility SD-WAN offers. Modern businesses require agile and flexible networking solutions to adapt to changing needs, especially with the increasing adoption of cloud services and the rise of remote work. SD-WAN architectures offer scalability to easily accommodate growing network demands and the flexibility to support diverse connectivity options, including MPLS, broadband internet, and LTE. This scalability and flexibility are particularly attractive to enterprises with distributed locations or those undergoing digital transformation initiatives.

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Cost Efficiency and ROI benefits associated with SD-WAN solutions and services will help shape the SD-WAN industry outlook. SD-WAN solutions often provide significant cost savings compared to traditional WAN setups. By leveraging software-defined networking, organizations can optimize bandwidth usage, prioritize critical applications, and potentially reduce the need for expensive dedicated lines. Software-Defined Networking (SDN) is a pivotal driver in the widespread adoption of SD-WAN solutions. SDN principles enable the abstraction of network control and forwarding functions, allowing for centralized management and orchestration of network resources. This paradigm shift in networking architecture facilitates the dynamic provisioning and optimization of network services, which is fundamental to SD-WAN's ability to enhance agility, flexibility, and efficiency in wide area network deployments.

Software-Defined Wide Area Network Market Report Attributes
Report Attribute	Details
Base Year:	2023
Software-Defined Wide Area Network Market Size in 2023:	USD 7.2 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	27%
2032 Value Projection:	USD 69 Billion
Historical Data for:	2018 - 2023
No. of Pages:	260
Tables, Charts & Figures:	285
Segments covered:	Component, Deployment Model, End Use
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 toward cloud-based applications
Pitfalls & Challenges:	Lack of skilled professionals Issues related to operationalization of hybrid networks

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However, integrating SD-WAN into existing network infrastructures can be complex and challenging, particularly for organizations with legacy systems or complex network architectures. Migration from traditional WAN setups to SD-WAN requires careful planning, configuration, and testing to ensure a seamless transition and minimal disruption to ongoing business operations. The complexity of integration and migration processes can deter organizations from embracing SD-WAN, especially if they lack the necessary expertise or resources to manage the transition effectively. Simplifying integration processes and providing comprehensive support and guidance during migration can help mitigate this barrier.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of software-defined wide area network was reached USD 7.2 billion in 2023 and is estimated to register over 27% CAGR between 2024 and 2032, owing to the scalability and flexibility that this network offers.

In 2023, the on-premises segment accounted for a market share of 70% and is projected to grow through 2032, as SD-WAN solutions offer scalability and flexibility to businesses, particularly those with stringent security and compliance requirements, to keep critical network functions and data on-premises.

North America dominated the global software-defined wide area network market with a major share of over 45% in 2023 and will grow significantly through 2032 due to the region's large and diverse business landscape, ranging from small startups to multinational corporations, demanding scalable and flexible networking solutions.

Aryaka Networks, Inc., Cisco Systems, Inc., Extreme Networks, Inc., Hewlett Packard Enterprise (HPE), Huawei Technologies Co., Ltd., Juniper Networks, Inc., Martello Technologies Group Inc., Oracle Corporation, Palo Alto Networks, Inc., Versa Networks, Inc., VMware, Inc., and ZTE Corporation.