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SD-WAN Market to Reach $9,691 Million by 2023

Published Date:   June 2018

Global SD-WAN market is expected to reach $9,691.0 million by 2023, the demand for cost effective WAN management solutions, increasing adoption of cloud technologies, need for simplified network architecture, end-to-end network security and visibility are driving the market globally, according to P&S Market Research.

Insights into Market Segments

On the basis of offering, the SD-WAN market is classified into solution and service. The solution category held a larger revenue share in the market accounting for nearly 78% in 2017. During the forecast period, the market for SD-WAN service is expected to witness higher growth, as the need for traffic management to optimize bandwidth and cost reduction by replacement of dedicated WAN network with broadband network without compromising on security, increases.

Based on appliances, the SD-WAN market is categorized into virtual, physical and hybrid appliances. Virtual appliance accounted for largest revenue share in the market in 2017. During the forecast period, it will continue to contribute largest revenue share owing to the fact that it reduces the cost incurred in installation and offers configuration and maintenance of complex stack of software virtually.

Browse report overview with detailed TOC on "Software Defined Wide Area Network (SD-WAN) Market by Offering (Solution [WAN Infrastructure, SD-WAN Control & Overlay] & Service [CSP SD-WAN Managed Services, Cloud-Managed SD-WAN]), by Appliance (Physical, Virtual, Hybrid), by Implementation Type (Outsourced, In-house), by Industry (IT & Telecom, BFSI, Healthcare, Government), by Geography (U.S., Canada, U.K., France, Germany, Netherlands, Japan, China, India, South Korea, Singapore, Brazil, Mexico, South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/sd-wan-market

Based on the industry, it is segmented into IT & telecom, banking, financial services and insurance (BFSI), government, healthcare and others, where “others” include defense, retail and manufacturing industry. The IT & telecom accounted for nearly 40% revenue of the SD-WAN market in 2017, owing to the evolving telecommunications and information technology, and demand for greater bandwidth for high performance applications.

APAC is expected to be the fastest growing SD-WAN market

The Asia-Pacific (APAC) SD-WAN market is expected to witness a CAGR of 57.9% during the forecast period. Since the internet speed and internet quality have significantly improved in the region, IT departments are looking for cost effective, secure, performance related solutions to reduce their dependency on multi-protocol label switching (MPLS). Organizations in the IT and telecom industry in the region are focusing on agile, secure, and end-to-end visible WAN management solution, which will support the market growth in future.

Rise of cloud computing and cost-effective network management offered by SD-WAN are the key growth drivers

The growth of data-intensive applications with the emergence of cloud technology is making SD-WAN technology a promising solution for geographically distant offices, which need reliable and faster bandwidth. The companies transitioning into cloud hosted, software as a service (SaaS) and infrastructure as a service (IaaS) applications, have started focusing on new WAN solutions to increase productivity and business execution. As a result, enterprises are focusing on updating their legacy network infrastructure, which will support the growth of the SD-WAN market. The SD-WAN solutions enable enterprises to centrally manage and automate configurations of WAN edge routers and reduce the overall operational cost.

Intelligent pathway control and improved data transport independence are offering immense growth opportunities to the SD-WAN market players

With growing network complexity and data congestion on network ends, the demand for policy-based routing solutions in the IT industry to assign path to their traffic, based on source, destination or specific application is increasing. The SD-WAN solutions offer intelligent path control by steering traffic, based on application, IP addresses, quality of service (QoS), and time of day.

While the availability and maintenance of bandwidth is costly, enterprises are heading towards new technology solutions for economical bandwidth expansion. The SD-WAN solutions provide businesses with independence and flexibility of transport by aggregating all available bandwidth, and maximizing its usage while ensuring high network performance, manageability and reliability.

SD-WAN market competitiveness

Players in the SD-WAN market are focusing on developing simplified network architecture with enhanced features such as privacy and visibility, which will help in monitoring and measuring network traffic, providing deep visibility to IT department into WAN, and allowing them to quickly pinpoint a security attack.

Some of the key players operating in the market are Cisco Systems, Inc, Citrix Systems, Inc, Silver Peak Systems Inc, CloudGenix Inc, Ecessa Corporation, Viptela Inc, Riverbed Technology, Inc, Mushroom Networks, Inc, VeloCloud networks Inc, Glue Networks Inc, Elfiq Inc.

SD-WAN Market Segmentation

Market Segmentation by Offering

  • Solution
    • WAN Infrastructure
    • SD-WAN control and overlay
  • Service
    • CSP SD-WAN Managed Services
    • Cloud-Managed SD-WAN

Market Segmentation by Appliance

  • Virtual Appliance
  • Physical Appliance
  • Hybrid Appliance

Market Segmentation by Implementation Type

  • In-house
  • Outsourced

Market Segmentation by Industry

  • IT and Telecom
  • BFSI
  • Government
  • Healthcare
  • Others (Includes Defense, Retail and Manufacturing Industry)

Market Segmentation by Region

  • North America SD-WAN Market
    • By Offering
    • By Appliance
    • By Implementation Type
    • By Industry
    • By Country – U.S. and Canada
  • Europe SD-WAN Market
    • By Offering
    • By Appliance
    • By Implementation Type
    • By Industry
    • By Country – Germany, France, U.K., Netherlands and Rest of Europe
  • Asia-Pacific (APAC) SD-WAN Market
    • By Offering
    • By Appliance
    • By Implementation Type
    • By Industry
    • By Country – China, Japan, India, South Korea, Singapore and Rest of APAC
  • Latin America SD-WAN Market
    • By Offering
    • By Appliance
    • By Implementation Type
    • By Industry
    • By Country – Brazil, Mexico and Rest of Latin America
  • Middle East and Africa (MEA) SD-WAN Market
    • By Offering
    • By Appliance
    • By Implementation Type
    • By Industry
    • By Country – South Africa and Rest of MEA