The SD-WAN market revenue is expected to be $30,907.6 million in 2030, recording a compound annual growth rate of 31.2% during 2022–2030. This can be ascribed to the increasing migration to the cloud, surging demand for cost-effective network management and automation, and rising need for network privacy and visibility.
In addition, the implementation of advanced technologies, including machine learning, computer vision, big data analytics, and IoT; increasing need to safeguard computers, networks, and databases from unauthorized access; and intense focus on meeting compliance requirements are contributing to the growth of the market.
Further, traditional WANs are becoming challenging and resource-intensive to manage for enterprises globally. The primitive WAN architecture makes it difficult to manage a large number of network endpoints, because its setup is complex and requires firewalls and routers. Managing multiple vendors, lack of network visibility, low application performance, high architecture cost, continuous administrative overhead at organization headquarters, and uneven services between different locations are some major challenges faced by enterprises with the traditional WAN technology.
SD-WAN makes the network less complex by making it simpler to install and manage many branch offices efficiently. It also offers centralized cloud-based configuration through templates, enables zero-touch deployment, and automatically monitors link performance and bandwidth. Moreover, this approach simplifies the complex WAN architecture and reduces the burden of IT executives, by utilizing application management in place of network management.
Of the two primary offerings, the service category is expected to witness the faster growth, exhibiting a CAGR of around 40%, during the forecast period. This can be ascribed to the increasing need of organizations for SD-WAN consulting, planning, maintenance, and support.
The implementation service category held the largest share in 2022, mainly due to the indispensable requirement for support during the installation of SD-WAN solutions in enterprises.
The consulting service category is projected to register the fastest growth during the forecast period, owing to the increasing need of businesses to select the appropriate SD-WAN solution, based on the requirement and budget.
The on-premises category held significant share in the market in 2022. This was mainly due to the security concerns of large organizations associated with the adoption of cloud-based software and wide usage of physical devices for the effective management of the network and large volumes of unstructured data.
The IT & telecom category accounted for the largest share in 2022. This is mainly due to the rapid pace of digitization, high demand for the improvement of the customer experience, growing IT & telecom industry, and adoption of mobile devices at workplaces.
In addition, the rising adoption of 5G connections, IoT, AI, and big data analytics is expected to transform the IT & telecom industry in the coming years. Countries such as Germany, the U.S., China, and France have an established telecommunications industry, which would result in the increasing adoption of SD-WAN solutions.
Geographically, North America led the SD-WAN market in 2022, and it is expected to retain its position in the coming years. The primary factors contributing to the progress include the rising adoption of IoT, surge in network traffic, need for enhanced network control, increasing focus on the development of 5G infrastructure, growing deployment of IaaS, SaaS, and cloud-based SD-WAN solutions, and strong presence of the key players in the region.
Moreover, in March 2020, the Federal Communication Commission (FCC) of the U.S. announced the National Strategy to Secure 5G, which focuses on the development, implementation, and management of the 5G communication infrastructure. The key points under the strategy include facilitating the commercial usage of 5G networks, recognizing fundamental security principles for 5G infrastructure, managing the risks to economic and national security from the use of the 5G infrastructure, and encouraging the global deployment of the 5G infrastructure.
Key players in the market include Cisco Systems Inc., Citrix Systems Inc., Fortinet Inc., Oracle Corporation, Juniper Networks Inc., Palo Alto Networks Inc., Aryaka Networks Inc., Riverbed Technology LLC, VMware Inc., and Hewlett Packard Enterprise Company.