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The software-defined wide area network (SD-WAN) market generated revenue of $676.9 million in 2017, and it is projected to progress at a CAGR of 54.1% during 2018–2023. The surging need for a simplified enterprise network architecture, cost-effective network management, network privacy and visibility, and increasing migration toward cloud-based applications are the key factors driving the market across the globe.
Among all regions, Asia-Pacific (APAC) is expected to witness the fastest growth in the SD-WAN market during the forecast period. The rising economic growth rate, increasing investment in the IT and telecom infrastructure in developing countries, including China and India, and adoption of new technologies are the key factors supporting the growth of the market in the region.
Factors Governing SD-WAN Market
The increasing preference for WAN optimization solutions is a key trend being observed in the SD-WAN market. Organizations are increasingly using such solutions to overcome the challenges of WAN network performance and lower the operational cost. Some major advantages provided by WAN optimization solutions include greater virtual flexibility, cloud-ready networking infrastructure, and improved user experience.
The surging requirement for cost-effective network management is primarily driving the SD-WAN market across the globe. Traditional WAN requires manual configurations, which are complex and have high maintenance costs. In addition, with the increasing preference for mobile and cloud technologies, the complexity and cost of traditional WAN models are becoming unsustainable. SD-WAN solutions enable enterprises to centrally manage and automate the configurations of WAN edge routers and reduce the overall operational cost, which promotes their adoption.
The growing demand for intelligent pathway control would offer opportunities to the market players in the coming years. With the surging network complexity and data congestion on network ends, the demand for policy-based routing solutions to assign a path to their traffic, based on source, destination or specific application, is increasing. Therefore, SD-WAN solutions, which offer intelligent path control, by steering the traffic based on application, have a huge opportunity to grow in the global SD-WAN market.
SD-WAN Market Segmentation Analysis
The solution category generated the higher revenue in the market in 2017, on the basis of offering. The service category is expected to witness faster growth in the market during the forecast period, due to the increasing demand for integration, implementation, and consulting services.
The virtual appliance category held the largest share in the SD-WAN market in 2017, on the basis of appliance, as it doesn’t require hardware components, thereby reducing the installation and configuration cost, and it also allows for remote maintenance.
The in-house category held the larger share in the market in 2017, on the basis of implementation type. This can be attributed to the fact that as part of in-house implementation, the configuration, security, and maintenance of the network are under the control of the end user itself, which gives more flexibility in performing the day-to-day operations.
The outsourced category is expected to witness faster growth in the market during the forecast period, based on implementation type. This would be due to the increasing demand for outsourced implementation, as it reduces the risk of failure and complexity, as well as the operational cost associated with in-house deployment of the solutions.
Geographical Analysis of SD-WAN Market
North America held the largest share in the SD-WAN market in 2017, primarily because of technological advancements, swift digitalization, productive telecom industry, and early adoption of emerging technologies. APAC is expected to witness the fastest growth in the market during the forecast period.
Competitive Landscape of RPA Market
The global SD-WAN market is highly competitive with the presence of a large number of market players. Some of the prominent ones are Ecessa Corporation, Silver Peak Systems Inc., Citrix Systems Inc., Glue Networks Inc., Cisco Systems Inc., Mushroom Networks Inc., CloudGenix Inc., Viptela Inc., VeloCloud Networks Inc., Riverbed Technology Inc., and Elfiq Inc.
Recent Strategic Developments of Major SD-WAN Market Players
In recent years, the major players in the SD-WAN market have taken several strategic measures. For instance, in February 2018, Cisco Systems Inc. acquired BroadSoft Inc., a global communication software and service provider, for approximately $1.9 billion. The acquisition was aimed at accelerating Cisco’s cloud strategy and collaboration portfolio, by adding BroadSoft’s cloud calling and contact center solutions.
SD-WAN Market Size Breakdown by Segment
The SD-WAN market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Offering
Based on Appliance
Based on Implementation Type
Based on Industry
Key Questions Addressed/Answered in the Report