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Global SD-WAN Market worth over $30bn by 2026

  • Published Date: May 15, 2020

Software-Defined Wide Area Network (SD-WAN) Market size is set to surpass USD 30 billion by 2026, according to a new research report by Global Market Insights Inc.

SD-WAN separates the Wide Area Network (WAN) from hardware networking components by creating a virtualized network and provides control over the operation and management of the network infrastructure. It centralizes the rule definition process and provides administrators and network engineers with the authority to define new policies and configurations with a single application. It also facilitates virtual connectivity to the network application via the network transport service.

Growing demand to reduce network infrastructure complexities across organizations is expected to propel the uptake of SD-WAN solutions

The SD-WAN market growth is driven by extensive adoption of virtual network infrastructure solutions to reduce infrastructure maintenance costs. These solutions eliminate the requirements for expensive hardware appliances, helping enterprises to connect remote appliances & users directly through the virtual secure network. It also reduces the complexities arising at the time of offering network visibility and managing the network workload. Furthermore, the extensive adoption of smart IoT devices across enterprises is also expected to drive the demand for software-defined networking solutions.

Increasing demand for sophisticated physical appliances is expected to drive the SD-WAN market size

The physical appliance solution segment is expected to witness a growth rate of 40% during the forecast timeline. The growth is attributed to growing demand for physical appliances with built-in SD-WAN functionalities including dynamic path routing, WAN optimization, and network firewall. Enterprises are deploying these physical appliances to provide basic functionalities and advanced security capabilities over the on-premise network infrastructure. Additionally, the development of advanced hardware components by industry players to enhance networking capabilities is fueling the market revenue.

Browse key industry insights spread across 295 pages with 410 market data tables & 30 figures & charts from the report, “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” in detail along with the table of contents:

Growing emphasis on outsourcing the management of network infrastructure across SMEs is supporting managed services segment growth

The managed service segment in the SD-WAN market is anticipated to grow at a CAGR of over 60% through 2026 due to growing demand for outsourced implementation of WAN to minimize complexities associated with in-house WAN deployment. Business challenges such as enhancing hardware platforms, upgrading software licenses, and ensuring that the staff is trained on the relevant software are contributing toward the need for managed services. To lower costs and increase operational efficiency, large enterprises and smaller organizations have been outsourcing their network and IT functions.

Better recovery & backup functionality is enabling enterprises to deploy on-premise SD-WAN solutions

The on-premise deployment model held a SD-WAN market share of over 70% in 2019 as most of the smaller & localized organizations are building their WAN infrastructure to provide employees and customers access to data and applications. These organizations widely use an appliance placed on-site to achieve SD-WAN functionality cost-effectively. As the on-premise architecture is not intended to connect with cloud gateway services, it is seen in companies that host their applications in-house rather than utilizing cloud applications.

Increasing demand to manage many retail stores located at different places is supporting the SD-WAN market growth

SD-WAN Market

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The retail and consumer goods segment will observe around 60% gains till 2026 owing to growing adoption of wireless network infrastructure across the retail sector. As the adoption of digitalized platforms and the IoT technology is growing continuously, the retailers are facing challenges related to the management of omnichannel environments. This factor fuels the demand for SD-WAN solutions to help retail enterprises to manage their retail operations and remote store functions & systems. Furthermore, the increasing penetration of smartphones and emergence of e-commerce platforms are expected to drive the market share.

Extensive digitization and growing adoption of network virtualization technologies in Asia Pacific are anticipated to influence the market revenue

The Asia Pacific SD-WAN market size is slated to expand at 60% CAGR from 2020 to 2026 propelled by supportive government initiatives in developing countries including China, Japan, and India. These supportive initiatives are enabling enterprises from multiple industry verticals to support digital transformation by using advanced network technologies. This helps enterprises in the market to mitigate risks associated with the existing infrastructure. China is expected to lead IoT spending in Asia Pacific, driven by huge adoption of IoT platforms in the healthcare and agriculture sectors.

Partnerships and collaborations are the key market strategies adopted by leading players in the ecosystem

Industry players are focusing on partnerships and collaborations to develop innovative networking solutions. For instance, in April 2020, Lanner collaborated with nacXvon to develop cost-effective SD-WAN solutions for enterprises. The collaboration was to integrate Lanner’s Whitebox uCPE platform with nacXvan’s orchestration platform and develop cost-effective SD-WAN solutions for enterprise customers.

Some of the key players in the SD-WAN market 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.

Authors: Preeti Wadhwani, Smriti Loomba

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