Propelled by Increasing Migration Towards Cloud-Based Application, Software-Defined Wide Area Network (SD-WAN) to Surpass $9,691.0 Million by 2023

Published Date:   June 2018

The software-defined wide area network (SD-WAN) market is projected to reach $9,691.0 million by 2023, progressing at a CAGR of 54.1% during 2018–2023. Hybrid appliances, which are a combination of physical and virtual appliances, are projected to witness the highest CAGR, of 62.2%, during the forecast period. This can be attributed to the fact that such appliances offer a robust WAN network with enhanced real-time agility, which improves the mobility of data, via optimized WAN management.

Increasing demand for managed SD-WAN offerings trending in the market

The usage of managed solutions is a prominent SD-WAN market trend in the present times. With the growing concern regarding network management complexities, with respect to network security and a lack of IT resources, enterprises are considering replacing their traditional WAN architecture with managed software defined WAN. Managed SD-WAN offers the implementation and management of a network distributed across the different branch locations of organizations. As the threat of data breach increased in recent years, the demand for managed SD-WAN services also surged among enterprises.

Increasing need for network privacy and visibility driving the market growth

Network security is always a priority for IT executives, which is driving the SD-WAN market across the world. With the increasing data usage worldwide, a wide range of mission-critical assets, such as applications, enterprise information, and databases, is becoming prone to unauthorized access. Traditional WAN solutions are not sufficient to protect the network from threats. SD-WAN solutions assist in the monitoring and measurement of network traffic, providing deep visibility to IT departments into WAN, and allow them to quickly pinpoint a security attack. It enables enterprises to create certain priority policies, in order to inform the network about how certain types of traffic should be treated.

Segmentation Analysis of SD-WAN Market

SD WAN Market

  • The service category is expected to witness faster growth in the SD-WAN market during the forecast period, based on offering. This can be attributed to the increasing demand for integration and implementation and consulting services.
  • The IT & telecom category generated the highest revenue in the market in 2017, on the basis of industry. This can be ascribed to the advancements in the telecommunication and IT sector and the rising demand for greater bandwidth, for high-performance applications.

Geographical Analysis of SD-WAN Market

Together, North America and Europe are expected to account for over 50.0% share in the global SD-WAN market by 2023. Technological advancements, rising adoption of internet of things (IoT), surging network traffic, and escalating requirement for enhanced network control are the most prominent factors driving the market in these regions. APAC is expected to witness the fastest growth in the market during the forecast period. Robust economic growth, increase in the investment in the telecom and IT infrastructure, especially in emerging economies, such as China and India, and usage of advanced technologies are the primary factors supporting the regional market’s growth.

Competitive Landscape of SD-WAN Market

The global SD-WAN market is highly competitive, owing to the presence of numerous market players. In recent years, the major players have taken several strategic measures to strengthen their position in the market. For instance, in August 2017, Cisco Systems Inc. acquired Viptela Inc., a cloud-based SD-WAN service provider, for $610 million. This acquisition helps expand Cisco’s SD-WAN portfolio, by adding features such as advanced routing and secure interconnection between complex enterprise networks.

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:

Some of the major players operating in the SD-WAN market 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.