SD-WAN Market Size and Share Analysis By Offering (Solution, Service), Deployment (On-Premises, Cloud, Hybrid), Use Case (Branch Connectivity, Application Control, Security, Network Operations Visibility), Industry (Retail, Manufacturing, Healthcare, BFSI, IT & Telecom, Government) - Global Industry Demand Forecast to 2030

Market Overview

The SD-WAN market size was $3,514.6 million in 2022, and it is expected to reach $30,907.6 million in 2030, with a growth rate of 31.2% during 2022–2030. This will be mainly due to the rapid shift from traditional SD-WAN solutions, rising adoption of digitization, high spending on cloud computing technologies, growing awareness of cyber threats, and booming need for a centralized network management system.

The surging smartphone and mobile internet penetration is a major factor supporting the adoption of SD-WAN solutions across various sectors. IT organizations around the world are recognizing the need for WAN optimization solutions to lower the WAN cost and tackle the challenges of network performance. Hence, market players are upgrading their virtual and physical WAN optimization product portfolios, to provide industries with enhanced application performances.

Some major advantages provided by such solutions include greater virtual flexibility, cloud-ready network infrastructure, improved user experience, augmented business productivity, secure optimization, and better performance of SaaS applications. Moreover, the advancement in hybrid cloud connectivity is driving the adoption of SD-WAN among enterprises focusing on enhanced IT performance. Advanced SD solutions, combined with private circuits and public internet, offer organizations with a higher network uptime, secure access to applications in enterprise data centers from branch locations, dynamic multi-path optimization, and cost reduction, for enhanced enterprise scalability and performance.

With the growing concern regarding network management complexities, owing to the lack of IT resources, organizations are looking for managed SD-WAN to replace their traditional WAN architecture. Managed services include the implementation and management of networks distributed across different branch locations of organizations. As the threat of data breaches has increased in recent years, the demand for managed services has surged among enterprises.

Thus, managed service providers (MSPs) are augmenting their offerings through the multi-vendor strategy, to deliver simplified operations to organizations. Additionally, they are offering service agility and differentiated services, according to business needs.

Increasing Need for Network Privacy and Visibility Supports Industry Growth

Network security is always a priority for IT executives. With the burgeoning data usage worldwide, a wide range of mission-critical assets, such as applications, enterprise information, databases, and other resources, are becoming prone to unauthorized access.

Legacy WAN solutions are not sufficient to protect the network from threats, and they also offer weak overall control. Enterprises are, hence, continuously updating their IT infrastructure to reduce the chances of malicious activities, including unauthorized access to critical business data, and ensure business continuity. Apart from this, IT administrators require real-time system visibility to track network activity from end to end.

SD-WAN assists in monitoring and measurement traffic, provides deep visibility to IT department into WAN, and allows them to quickly pinpoint a security attack. It enables organizations to create certain priority policies in order to inform the network about how certain types of traffic should be treated. In addition, IT executives can establish policies with built-in encryption capabilities, to specify and control external traffic and prevent confidential data access by unknown sources.

They also provide a new level of visibility and control for IT operations teams. This includes the visibility of traffic from the data center through all of the enterprise’s internal links and remote office locations.

Solution Category To Dominate Market

The solution category held the larger share, around 70%, in the market in 2022. This is mainly owing to the shift to multi-cloud environments, adoption of connected IoT devices, proliferating compliance requirements, strong need for secured network infrastructure, and strengthening focus on application optimization. These factors have resulted in the growing use of these solutions by several industries, such as IT & telecom, BFSI, and healthcare, in order to effectively meet the customer requirements.

Of the two types of solutions, software held the larger share, and it is also projected to register the faster growth during the forecast period. This is mainly due to the high demand for software that strengthens internet services within a company, for a secured connection of users with applications. Moreover, it enables enterprises to connect several branch locations with a centralized network, in order to increase the visibility of the network, reduce the need for manual configuration, improve the bandwidth at a low cost, and secure the transfer of files over the cloud.

Cloud Category To Grow Fastest during Forecast Period

The cloud category is projected to register the fastest growth, at a CAGR of over 30%, during the forecast period. This would mainly be due to the increasing adoption of cloud services owing to their capability to enable dynamic and highly automated operations in a cost-effective manner. Moreover, amidst the increasing number of cloud security challenges, such as in the control and visibility of data, configuration, and user access to cloud data and applications, SD-WAN supports in the strengthening of the networking infrastructure, thus resulting in increased branch office agility, simpler orchestration, and streamlined application performance.

Security Category To Lead Market

The security category held the largest share, of around 40%, in the market in 2022. This is mainly attributed to the rising need for gathering and analyzing potential threats, monitoring and tracking events in real time, and meeting compliance needs, to ultimately be able to detect cyberattacks beforehand.

Solution Demand in Healthcare Industry To Escalate Fastest during Forecast Period

The healthcare industry is expected to witness the fastest growth, around 35%, during the forecast period. This can be ascribed to the rising demand for enhanced patient experiences, increasing usage of remote medical care, escalating need to fulfill regulatory compliance, and surging utilization of cloud-based software. In this regard, the rising healthcare spending is supporting the high adoption of SD-WAN solutions globally.

Need for Cost-Effective Network Management and Automation Boosts Growth

Globally, organizations have become more geographically dispersed and are continuously expanding for a greater reach of their solutions. This has increased the broadband connectivity demand for enterprise WAN.

The management and maintenance of WAN are costly, and manual configuration is complex and time-consuming, which creates the need for more-flexible and -agile WAN solutions. Moreover, with the continuous business changes and the shift of enterprises to mobile and cloud technologies, the complexity and cost of traditional WAN models are becoming unsustainable.

To overcome these challenges, organizations are adopting the SD concept from the data center to the edge of the WAN. SD-WAN enables organizations to centrally manage and automate the configurations of WAN edge routers and reduce the overall operational cost. Moreover, it reduces the cost by making it possible for enterprises to rely more upon broadband and less upon the expensive, private MPLS links.

Explore more about this report - Request free sample pages

North America Is Principal Revenue Contributor

In 2022, North America accounted for the largest share, over 40%, in the SD-WAN market. This is mainly due to the strong presence of the major players in the region, growing frequency of the launch of advanced solutions, vast adoption of next-generation technologies, increasing support from the government for the setup of 5G infrastructure, and strong requirement of organizations to simplify their networking operations.

APAC is expected to witness the fastest growth during the forecast period. This can be imputable to the growing IT spending, supportive government initiatives in China, India, and Japan for the adoption of 5G connectivity, rampant digital transformation of enterprises, rapid adoption of connected devices, and growing focus on business expansion by players. Additionally, the rapid cloud deployment and usage of big data platforms in the region are contributing to the adoption of SD-WAN solutions by end users.

Further, Europe is set to be the second-fastest-growing region over the forecast period. The key factors contributing to the market progress include the growing internet penetration, elevating demand for advanced networking solutions from enterprises, adoption of IoT and connected devices in manufacturing facilities, and rising emphasis of European governments on strategic initiatives to boost their economies. For instance, as part of its Industry 4.0 initiatives, the European Union (EU) aims to invest more in smart manufacturing and other next-generation technologies. This results in a high requirement for advanced security solutions, along with enhanced network monitoring software, thereby contributing to SD-WAN solution sales to enterprises.

LATAM is likely to register a moderate growth rate in the coming years, due to the rising demand for end-to-end network security, visibility, and management by enterprises, growing number of cyberattacks in Brazil and Mexico, expanding customer requirements, and strong pace of digitization in the region.

Top SD-WAN Providing Companies Are:

• Cisco Systems Inc.
• Citrix Systems Inc.
• Fortinet Inc.
• Oracle Corporation
• Juniper Networks Inc.
• Palo Alto Networks Inc.
• Aryaka Networks Inc.
• Riverbed Technology LLC
• VMware Inc.
• Hewlett Packard Enterprise Company

The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017–2030.

Based on Offering

• Solution
  • Software
  • Appliance
    • Physical
    • Virtual
    • Hybrid
• Service
  • Consulting
  • Implementation
  • Training and support

Based on Deployment

• On-Premises
• Cloud
• Hybrid

Based on Use Case

• Branch Connectivity
• Application Control
• Security
• Network Operations Visibility

Based on Industry

• Retail
• Manufacturing
• Healthcare
• Banking, Financial Services, and Insurance (BFSI)
• Information Technology (IT) & Telecom
• Government

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • U.A.E.
  • South Africa