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

Published Date:   June 2018

The global SD-WAN market is expected to reach $9,691.0 million by 2023, progressing at a CAGR of 54.1% during 2018–2023. The increasing adoption of cloud technologies, demand for cost-effective WAN management solutions, and growing need for a simplified network architecture as well as end-to-end network security and visibility are some of the key factors driving the growth of the market across the globe.

Insights into Market Segments

Based on solution type, WAN infrastructure held the larger share in the SD-WAN market in 2017. This can be attributed to the benefits of WAN infrastructure, mainly advanced management and monitoring of customer-oriented network infrastructure on a larger scale through internet protocols, routing technologies, optimal performance measures, traffic control, and device reporting.

Based on service type, CSP SD-WAN managed services are expected to witness the faster growth in the SD-WAN market during the forecast period, as these provide improved security, smooth interoperability, and increased traffic visibility. On the basis of implementation type, the outsourced category is projected to record the faster growth during the forecast period. This can be attributed 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 solution deployment.

Asia-Pacific (APAC) is anticipated to be the fastest growing SD-WAN market

Geographically, APAC is expected to be the fastest growing region in the market during the forecast period. The increasing adoption of digital platforms, rising internet penetration, massive investments in telecom infrastructure, and surging reliance on cloud platforms are expected to accelerate the growth of the SD-WAN market in the region.

Hybrid cloud connectivity trending in the market

Cloud computing has radically altered the landscape of network environments. As hybrid cloud offers better control, improved security, and enhanced scalability and requires lower IT investment, organizations are increasing adopting it. The growth in hybrid cloud popularity is driving the progress of the SD-WAN market through the increasing adoption of SD-WAN solutions, which cater to such demands of enterprises. The advanced software-defined solutions offer a mix of public internet and private circuits to provide organizations with more network uptime, cost reduction, secure connection from branch locations to applications in the data center, and dynamic multi-path optimization for enterprise-grade performance and scalability.

Growing need for cost effective network management escalating the market growth

The management and maintenance of WAN is costly, and manual configurations are complex and time consuming; therefore, there is a need for more-flexible and agile WAN solutions. Moreover, with continuous business changes and enterprises shifting to mobile and cloud, the complexity and cost of traditional WAN models are becoming unsustainable.

To overcome these challenges, organizations are adopting the software-defined concept from the data center to the edge of the WAN. SD-WAN solutions enable enterprises to centrally manage and automate the configurations of WAN edge routers and reduce the overall operational cost.

SD-WAN market competitiveness

The global SD-WAN market is fragmented in nature with the presence of a large number of players. However, the market is primarily dominated by four major companies, namely VMware Inc., Aryaka Networks Inc., Cisco Systems Inc., and Silver Peak Systems Inc. The major market players are focusing on mergers & acquisitions, partnerships, and service launches to up their revenue. For instance, in February 2018, CloudGenix launched an SD-WAN developer ecosystem, which includes the tools, source code, and documentation needed by customers and software vendors looking to integrate configuration, management, orchestration, and monitoring of their AppFabric into existing tools and workflows.

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:

Moreover, in February 2018, a major SD-WAN market player, Citrix Systems Inc., acquired Cedexis Inc., a software-defined application delivery service provider, for dynamically optimizing the flow of the traffic across public clouds, data centers, and internet service providers (ISPs). This acquisition was aimed at improvising Citrix’s SD-WAN offering — NetScaler — by improving the app and content performance in hybrid and multi-cloud environments, using the dynamic and programmable intelligent traffic steering technology.

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

SD-WAN Market Segmentation

Market Segmentation by Offering

  • Solution
    • WAN infrastructure
    • SD-WAN control and overlay
  • Service
    • Communication service provider (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 (Defense, Retail, and Manufacturing)

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 (LATAM) SD-WAN Market
    • By offering
    • By appliance
    • By implementation type
    • By industry
    • By country – Brazil, Mexico, and Rest of LATAM
  • 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