The rising need for network privacy and improved visibility, vast adoption of cloud-based applications, internet of things (IoT), and big data, and surging awareness about cyber threats are the major factors contributing toward the rising demand for software-defined wide area network (SD-WAN) solutions. Due to these factors, the SD-WAN market is expected to reach $43.0 billion by 2030, registering a CAGR of 38.6% during the forecast period (2020–2030).
COVID-19 Impact Analysis
The COVID-19 outbreak is expected to result in slow growth of the global SD-WAN market in 2020. The complete and partial lockdown situation across the globe has resulted in the temporary closure of businesses, leading to huge losses for companies. As a result, companies are not willing to spend much on software-defined wide area network solutions in order to secure their network operations, as they are focusing on reducing their overall expenditure. Moreover, in several cases, the growing focus of enterprises on the work-from-home (WFH) and shutdown of businesses have also resulted in the cancellation of planned implementation of SD-WAN solutions and services.
Solution Category Accounted for Larger Market Size in Offering Segment
On the basis of offering, the market is categorized into solution and service. Between the two, the solution category held the larger share in the market in 2019. This was mainly due to the shift toward a multi-cloud environment, adoption of IoT and connected devices, increasing compliance requirements, strong need for a secured network infrastructure, and application optimization.
Based on industry, the telecom category held the largest revenue share in the market in 2019. This is mainly attributed to the rapid pace of digitization in the industry, high demand for an improvement in customer experience, and adoption of mobile devices at workplaces. In addition, the ongoing technological advancements in the industry, such as the adoption of 5G network connections, IoT, and artificial intelligence (AI), are expected to transform the IT & telecom industry in the coming years, thereby resulting in the increasing adoption of SD-WAN solutions.
Geographically, the fastest growth in demand for SD-WAN solutions is expected in the Asia-Pacific (APAC) region during the forecast period. This can be due to the growing IT spending, supportive government initiatives in China and Japan for the adoption of 5G, shift of enterprises toward digital transformation, rapid adoption of connected devices and cloud computing technology, and focus on business expansion plans of market players.
Market Players are Extensively Building Partnerships to Gain Competitive Advantage
The players in the global SD-WAN market are concentrating on establishing partnerships, in order to strengthen their offerings. For instance, in June 2020, Silver Peak Systems Inc. announced a partnership with Kentik Inc., a provider of network intelligence platforms. Under this partnership, both the companies aim to offer advanced SD-WAN visibility, to keep businesses and their networks operating optimally.
In April 2020, Cisco Systems Inc. partnered with Google LLC in order to develop an application-centric multi-cloud networking solution, Cisco SD-WAN Cloud Hub with Google Cloud. The partnership would support the companies in advancing their hybrid and multicloud strategies.
Browse report overview with detailed TOC on "SD-WAN Market Research Report: 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 Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/sd-wan-market
In September 2019, Citrix Systems Inc. collaborated with Palo Alto Networks Inc. for the development of its SD-WAN solutions. Under this partnership, the companies are deploying and managing next-generation firewalls (NGFWs) and security in the Citrix SD-WAN solution. This also provides enterprises with an additional level of security for the protection of their assets in varied branches.
Some of the key players operating in the SD-WAN market are Cisco Systems Inc., Citrix Systems Inc., Fortinet Inc., Juniper Networks Inc., Silver Peak Systems Inc., Palo Alto Networks Inc., VMware Inc., Riverbed Technology Inc., Aryaka Networks Inc., Oracle Corporation, and Mushroom Networks Incorporated.