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    Software Defined Wide Area Network Market Trends

    ID: MRFR/ICT/1364-CR
    172 Pages
    Aarti Dhapte
    November 2020

    Software-Defined Wide Area Network Market Research Report Information By Component (Appliances [Physical {Router, Access Point, Switches, Gateways and Cables} and Virtual {CSP, Web Portal and Internet}] and Services [Managed Services and Professional Services]), Deployment (On-Premise and Cloud), Vertical (IT & Telecommunication, BFSI, Manufacturing, Healthcare and Retail) - Forecast till 2035

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    Software Defined Wide Area Network Market Infographic

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    Market Trends

    Key Emerging Trends in the Software Defined Wide Area Network Market

    The Software Defined Wide Area Network (SD-WAN) marketplace is witnessing a mess of tendencies that can be reshaping the panorama of community connectivity and control. One prominent trend is the increasing adoption of SD-WAN as a provider. Organizations are gravitating in the direction of a subscription-primarily based model for their SD-WAN solutions, allowing them to leverage the benefits of superior networking without the need for good-sized upfront investments. This fashion aligns with the broader enterprise shift closer to flexible and scalable intake fashions, allowing agencies to conform their network infrastructure to converting necessities extra effectively. Another noteworthy fashion is the mixing of artificial intelligence (AI) and gadget studying (ML) abilities into SD-WAN solutions.

    As networks turn out to be more complicated and dynamic, the need for wise and automatic control equipment has become obvious. SD-WAN vendors are incorporating AI and ML algorithms to analyze community statistics, expect ability issues, and dynamically adjust community configurations in real time. This fashion not only complements the general performance of SD-WAN deployments but also contributes to the proactive control of community sources. Furthermore, the convergence of safety and SD-WAN is a key trend shaping the market. As cyber threats become extra state-of-the-art, the importance of integrating sturdy security features inside SD-WAN solutions is gaining prominence. Vendors are imparting integrated protection capabilities more and more, which include firewall abilities, intrusion detection, and encryption, to make certain that SD-WAN deployments are not only efficient but also secure.

    The multi-cloud surroundings are likewise influencing the SD-WAN market trends. Organizations are leveraging a couple of cloud carrier providers to diversify their IT infrastructure and optimize performance. SD-WAN answers are adapting to this trend by offering seamless connectivity and orchestration throughout numerous cloud environments. This flexibility allows agencies to select the most appropriate cloud sources for specific programs while retaining a cohesive and nicely managed network infrastructure. In conclusion, the marketplace developments in the software-defined wide area network underscore the dynamic nature of the networking industry. From the shift toward subscription-primarily based fashions to the mixing of advanced technologies like AI and ML and the convergence of protection with SD-WAN, these developments together shape the evolving panorama. As corporations continue to prioritize the agility, safety, and performance of their community infrastructures, the SD-WAN marketplace is poised to witness innovations and advancements in the coming years.

    Market Summary

    As per Market Research Future Analysis, the Software-Defined Wide Area Network (SD-WAN) market is experiencing significant growth driven by the increasing adoption of mobile workers and enterprise mobility. The market is projected to reach USD 32.167 billion by 2032, with a compound annual growth rate (CAGR) of 21.3% from 2024 to 2032. The COVID-19 pandemic has accelerated the demand for cloud-based solutions, enhancing the market's dynamics. Key drivers include the rise of BYOD policies, the proliferation of cloud applications, and the need for secure access to enterprise data. However, reliability issues and the inability to guarantee Quality of Service (QoS) pose challenges to market growth. The market is segmented by components, deployment, organization size, and verticals, with the IT and telecommunications sector expected to dominate. North America is anticipated to lead the regional market, followed by Europe.

    Key Market Trends & Highlights

    The SD-WAN market is characterized by rapid growth and evolving technology trends.

    • Market Size: USD 32.167 billion by 2032; CAGR: 21.3% from 2024 to 2032. North America was valued at USD 1,297.5 million in 2019; CAGR: 37.5%. IT and telecommunications sector expected to dominate the market. Cloud segment projected to lead in deployment.

    Market Size & Forecast

    Market Size USD 32.167 billion by 2032
    CAGR 37.5%.
    North America USD 1,297.5 million in 2019

    Major Players

    <p>Citrix Systems Inc., Cisco Systems Inc., VMware Inc., Fortinet, Aryaka Networks, Riverbed Technology, Nokia (Nuage Networks), Palo Alto Networks Inc.</p>

    Market Trends

    <p>The ongoing evolution of network infrastructure, driven by the increasing demand for agile and efficient connectivity solutions, underscores the transformative potential of Software-Defined Wide Area Networks in enhancing organizational performance.</p>

    U.S. Department of Commerce

    Software Defined Wide Area Network Market Market Drivers

    Market Growth Projections

    The Global Software-Defined Wide Area Network Market Industry is poised for remarkable growth, with projections indicating a substantial increase in market size. By 2024, the market is expected to reach 6.17 USD Billion, and by 2035, it is anticipated to soar to 205.1 USD Billion. This trajectory suggests a compound annual growth rate of 37.5% from 2025 to 2035, highlighting the increasing adoption of SD-WAN solutions across various sectors. The market's expansion is likely driven by the convergence of technological advancements, evolving business needs, and the imperative for enhanced network performance and security.

    Enhanced Security Features

    Security considerations play a critical role in shaping the Global Software-Defined Wide Area Network Market Industry. As cyber threats become increasingly sophisticated, organizations are prioritizing solutions that offer enhanced security features. SD-WAN solutions often incorporate advanced security protocols, such as encryption and secure access controls, which are essential for protecting sensitive data transmitted across networks. The integration of security into the SD-WAN framework not only mitigates risks but also aligns with compliance requirements. This focus on security is likely to drive market growth, as organizations recognize the importance of safeguarding their digital assets in an interconnected world.

    Growing Internet of Things Adoption

    The proliferation of Internet of Things devices is a significant driver within the Global Software-Defined Wide Area Network Market Industry. As organizations increasingly deploy IoT solutions across various sectors, the demand for reliable and scalable network infrastructure intensifies. SD-WAN technology offers the necessary bandwidth and connectivity to support the vast number of devices generating data. This trend is particularly evident in industries such as manufacturing and healthcare, where real-time data transmission is critical. The market's projected growth trajectory reflects the increasing reliance on SD-WAN to facilitate the seamless integration of IoT devices into existing network architectures.

    Increased Demand for Network Agility

    The Global Software-Defined Wide Area Network Market Industry experiences heightened demand for network agility as organizations seek to enhance operational efficiency. This demand is driven by the need for rapid deployment of applications and services across geographically dispersed locations. As businesses increasingly adopt cloud-based solutions, the ability to dynamically adjust network resources becomes crucial. In 2024, the market is projected to reach approximately 6.17 USD Billion, reflecting the growing recognition of SD-WAN's role in facilitating agile and responsive network architectures. Organizations are likely to prioritize SD-WAN solutions to remain competitive in a fast-evolving digital landscape.

    Support for Multi-Cloud Environments

    The rise of multi-cloud strategies significantly influences the Global Software-Defined Wide Area Network Market Industry. Organizations are increasingly adopting multiple cloud services to optimize performance and avoid vendor lock-in. SD-WAN solutions facilitate seamless connectivity across various cloud platforms, enabling businesses to leverage the strengths of different providers. This capability is particularly valuable as enterprises seek to enhance their operational flexibility and scalability. The anticipated compound annual growth rate of 37.5% from 2025 to 2035 indicates a robust market response to the growing need for efficient multi-cloud management, positioning SD-WAN as a vital enabler of cloud-centric strategies.

    Cost Efficiency and Operational Savings

    Cost efficiency emerges as a pivotal driver within the Global Software-Defined Wide Area Network Market Industry. Organizations are increasingly drawn to SD-WAN solutions due to their potential to reduce operational costs associated with traditional WAN architectures. By leveraging broadband internet connections and optimizing traffic routing, businesses can achieve substantial savings on bandwidth expenses. The projected growth of the market to 205.1 USD Billion by 2035 underscores the financial incentives driving SD-WAN adoption. As companies seek to streamline expenditures while maintaining robust connectivity, the cost-effectiveness of SD-WAN solutions becomes a compelling factor in their decision-making processes.

    Market Segment Insights

    Regional Insights

    Key Companies in the Software Defined Wide Area Network Market market include

    Industry Developments

    • Q2 2024: Aryaka raises $100M to expand its SD-WAN and SASE platform Aryaka, a leading SD-WAN and SASE provider, announced a $100 million funding round to accelerate product development and global expansion of its software-defined wide area network solutions.
    • Q2 2024: Cisco Announces New SD-WAN Innovations to Simplify Hybrid Work Cisco unveiled new SD-WAN features designed to enhance security and performance for hybrid workforces, including AI-powered analytics and expanded multi-cloud connectivity.
    • Q2 2024: Juniper Networks Expands SD-WAN Portfolio with New AI-Driven Capabilities Juniper Networks launched new AI-driven enhancements to its SD-WAN portfolio, aiming to improve network automation, security, and user experience for enterprise customers.
    • Q3 2024: VMware and Google Cloud Partner to Deliver Integrated SD-WAN Solutions VMware announced a strategic partnership with Google Cloud to offer integrated SD-WAN solutions, enabling enterprises to optimize connectivity and security for cloud workloads.
    • Q3 2024: Fortinet Launches Next-Generation Secure SD-WAN Appliance Fortinet introduced a new secure SD-WAN appliance featuring advanced threat protection and improved performance for distributed enterprises.
    • Q3 2024: HPE Aruba Networking Unveils Enhanced SD-WAN Orchestration Platform HPE Aruba Networking announced enhancements to its SD-WAN orchestration platform, focusing on simplified management and improved cloud integration.
    • Q4 2024: Versa Networks secures $50 million in Series D funding Versa Networks, a provider of SD-WAN and SASE solutions, raised $50 million in Series D funding to support product innovation and global market expansion.
    • Q4 2024: Aryaka and Microsoft Announce Partnership to Integrate SD-WAN with Azure Virtual WAN Aryaka and Microsoft announced a partnership to integrate Aryaka's SD-WAN solutions with Microsoft Azure Virtual WAN, enabling seamless cloud connectivity for enterprise customers.
    • Q1 2025: Cisco Completes Acquisition of Valtix to Bolster SD-WAN Security Cisco completed its acquisition of Valtix, a cloud network security company, to enhance the security capabilities of its SD-WAN offerings.
    • Q1 2025: VMware appoints new head of SD-WAN business unit VMware announced the appointment of a new executive to lead its SD-WAN business unit, signaling a renewed focus on enterprise networking solutions.
    • Q2 2025: Juniper Networks Wins Major SD-WAN Contract with European Telecom Operator Juniper Networks secured a significant SD-WAN contract with a leading European telecom operator to modernize its enterprise connectivity services.
    • Q2 2025: Fortinet acquires SD-WAN startup CloudWAN for $200 million Fortinet announced the acquisition of CloudWAN, an SD-WAN startup, for $200 million to strengthen its position in the enterprise networking market.

    Future Outlook

    Software Defined Wide Area Network Market Future Outlook

    <p>The Software-Defined Wide Area Network Market is poised for remarkable growth, driven by a 37.5% CAGR from 2024 to 2035, fueled by increasing demand for network agility and cost efficiency.</p>

    New opportunities lie in:

    • <p>Develop AI-driven analytics tools for enhanced network <a href="https://www.marketresearchfuture.com/reports/performance-analytics-market-2761">performance monitoring</a>. Create tailored SD-WAN solutions for specific industry verticals like healthcare and finance. Leverage partnerships with cloud service providers to expand service offerings and reach.</p>

    <p>By 2035, the Software-Defined Wide Area Network Market is expected to achieve substantial growth, solidifying its critical role in global networking.</p>

    Market Segmentation

    Report Overview

    Software-Defined Wide Area Network Market Segmentation

    Report Scope

    Attribute/MetricDetails
      Market Size  USD 32.167 Billion
      CAGR  21.3%
      Base Year  2023
      Forecast Period  2024-2032
      Historical Data  2018
      Forecast Units  Value (USD Million)
    Report Coverage  Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Segments Covered  By Component, Services
    Geographies Covered North America, Europe, Asia-Pacific, and Rest of the World (RoW)
    Key Vendors  Versa Networks, Inc., VMware, Inc, Palo Alto Networks, Inc., Nokia (Nuage Networks is a Nokia venture), Cisco Systems, Inc., Oracle, CENTURYLINK, Silver Peak Systems, Inc., Ecessa, ARYAKA NETWORKS, INC., Riverbed Technology, Cato Networks, Citrix Systems, Inc., Forcepoint, and Untangle.
    Key Market Opportunities  The rise in network traffic is predicted to have robust opportunities for market players.
    Key Market Drivers  The strong software-defined WAN market growth can be accredited to rising software-defined data centers and growing adoption of private cloud.

    Market Highlights

    Author

    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the projected market value of the global software defined WAN market?

    The global software defined WAN market is expected to record a substantial market valuation of up to USD 32.167 Billion by 2032.

    What is the estimated growth rate of the global software defined WAN market?

    The global software defined WAN market is projected to register a moderate 21.3% CAGR in the forecast period.

    What is the component segment of the global software defined WAN market expected to witness the highest growth?

    The software segment is slated to expand as the fastest-growing segment.

    Which is the leading deployment segment of the global software defined WAN market?

    The on-premise deployment segment is expected to witness substantial growth.

    Who are the key players operative in the global software defined WAN market?

    A few major market players operating in the global software defined WAN market are Viptela (), Talari Networks (U.S.), Nuage Networks (U.S.), and Ecessa Corporation (U.S.) among others.

    1. --- '1 Executive Summary
      1. MARKET ATTRACTIVENESS ANALYSIS ............................................................................................................................ 24
    2. Market Introduction
      1. DEFINITION ....................................................................................................................................................................... 25
      2. Scope of the Study ...................................................................................................................................................... 25
      3. RESEARCH OBJECTIVE ..................................................................................................................................................... 25
      4. MARKET STRUCTURE ....................................................................................................................................................... 26
    3. Research Methodology
    4. MARKET INSIGHTS
    5. MARKET DYNAMICS
      1. INTRODUCTION ................................................................................................................................................................. 36
      2. DRIVERS ............................................................................................................................................................................ 37
        1. INCREASING ADOPTION OF PRIVATE CLOUD .............................................................................................................. 37
        2. RISING NUMBER OF SOFTWARE-DEFINED DATA CENTERS ........................................................................................ 37
      3. RESTRAINT ........................................................................................................................................................................ 38
        1. BANDWIDTH PROVISIONING AND VENDOR LOCK-IN .................................................................................................. 38
      4. OPPORTUNITY .................................................................................................................................................................. 38
      5. IMPACT OF COVID-19........................................................................................................................................................ 39
        1. DELAY OF WAN UPGRADE DUE TO RECESSIONARY NATURE OF THE ECONOMY ...................................................... 39
        2. DELAY IN SD-WAN PROJECTS AMONG ENTERPRISES ................................................................................................ 39
        3. MEASURABLE ECONOMIC RECOVERY IN Q4 OF 2020 AND REVENUE REBOUND FROM 2021 ................................... 39
        4. COMPANIES WITH SD-WAN IN PLACE WERE MUCH MORE READY FOR THE PANDEMIC .......................................... 39
        5. IMPACT OF WFH AND EXTENSIVE FLOW OF DATA TRAFFIC ...................................................................................... 40
    6. MARKET FACTOR ANALYSIS
      1. MANAGED SERVICE PROVIDERS (MSPS): .................................................................................................................... 41
        1. SD-WAN TECHNOLOGY PROVIDERS: ........................................................................................................................... 41
        2. HARDWARE PROVIDERS: .............................................................................................................................................. 41
        3. SECURITY SOFTWARE PROVIDERS .............................................................................................................................. 42
      2. PORTER’S FIVE FORCES MODEL ....................................................................................................................................... 42
        1. THREAT OF NEW ENTRANTS ....................................................................................................................................... 42
        2. BARGAINING POWER OF SUPPLIERS ........................................................................................................................... 43
        3. THREAT OF SUBSTITUTES ........................................................................................................................................... 43
        4. BARGAINING POWER OF BUYERS ................................................................................................................................ 43
        5. INTENSITY OF RIVALRY ................................................................................................................................................ 43
    7. GLOBAL SOFTWARE-DEFINED WIDE AREA NETWORK (SD-WAN) MARKET, BY COMPONENT
      1. OVERVIEW ......................................................................................................................................................................... 44
      2. APPLIANCES ..................................................................................................................................................................... 44
        1. PHYSICAL APPLIANCES ............................................................................................................................................... 44
        2. VIRTUAL APPLIANCES .................................................................................................................................................. 45
      3. SERVICES .......................................................................................................................................................................... 46
        1. MANAGED SERVICES .................................................................................................................................................... 46
        2. PROFESSIONAL SERVICES ........................................................................................................................................... 46
    8. GLOBAL SOFTWARE-DEFINED WIDE AREA NETWORK (SD-WAN) MARKET, BY DEPLOYMENT
      1. OVERVIEW ......................................................................................................................................................................... 49
      2. CLOUD ............................................................................................................................................................................... 49
      3. ON-PREMISES ................................................................................................................................................................... 49
    9. GLOBAL SOFTWARE-DEFINED WIDE AREA NETWORK (SD-WAN) MARKET, BY VERTICAL
      1. INTRODUCTION ................................................................................................................................................................. 51
      2. BFSI ................................................................................................................................................................................... 51
      3. HEALTHCARE .................................................................................................................................................................... 51
      4. MANUFACTURING ............................................................................................................................................................. 51
      5. RETAIL ............................................................................................................................................................................... 51
      6. IT & TELECOMMUNICATION ............................................................................................................................................. 52
      7. OTHERS ............................................................................................................................................................................. 52
    10. GLOBAL SOFTWARE-DEFINED WIDE AREA NETWORK (SD-WAN) MARKET, BY REGION
    11. COMPETITVE LANDSCAPE
      1. COMPETITIVE BENCHMARKING ....................................................................................................................................... 130
      2. VENDOR SHARE ANALYSIS ............................................................................................................................................... 131
      3. RECENT DEVELOPMENTS ................................................................................................................................................. 131
        1. PRODUCT DEVELOPMENTS ......................................................................................................................................... 131
        2. PARTNERSHIPS/AGREEMENTS/CONTRACTS/COLLABORATIONS ............................................................................. 134
        3. MERGERS AND ACQUISITION ....................................................................................................................................... 136
    12. COMPANY PROFILES
      1. VERSA NETWORKS ........................................................................................................................................................... 137
        1. COMPANY OVERVIEW .................................................................................................................................................. 137
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 137
        3. KEY DEVELOPMENTS ................................................................................................................................................... 138
        4. KEY STRATEGIES .......................................................................................................................................................... 138
      2. VMWARE, INC .................................................................................................................................................................... 139
        1. COMPANY OVERVIEW .................................................................................................................................................. 139
        2. FINANCIAL OVERVIEW.................................................................................................................................................. 139
        3. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 140
        4. KEY DEVELOPMENTS ................................................................................................................................................... 140
        5. SWOT ANALYSIS ........................................................................................................................................................... 141
        6. KEY STRATEGIES .......................................................................................................................................................... 141
      3. CLOUDGENIX, INC. ............................................................................................................................................................ 142
        1. COMPANY OVERVIEW .................................................................................................................................................. 142
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 142
        3. KEY DEVELOPMENTS ................................................................................................................................................... 142
        4. KEY STRATEGIES .......................................................................................................................................................... 142
      4. NUAGE NETWORKS (AN INDEPENDENT SUBSIDIARY OF NOKIA CORPORATION) .......................................................... 143
        1. COMPANY OVERVIEW .................................................................................................................................................. 143
        2. FINANCIAL OVERVIEW.................................................................................................................................................. 143
        3. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 144
        4. KEY DEVELOPMENTS ................................................................................................................................................... 144
        5. SWOT ANALYSIS ........................................................................................................................................................... 144
        6. KEY STRATEGIES .......................................................................................................................................................... 145
      5. CISCO SYSTEMS, INC ........................................................................................................................................................ 146
        1. COMPANY OVERVIEW .................................................................................................................................................. 146
        2. FINANCIAL OVERVIEW.................................................................................................................................................. 146
        3. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 147
        4. KEY DEVELOPMENTS ................................................................................................................................................... 147
        5. SWOT ANALYSIS ........................................................................................................................................................... 148
        6. KEY STRATEGIES .......................................................................................................................................................... 148
      6. ORACLE CORPORATION .................................................................................................................................................... 149
        1. COMPANY OVERVIEW .................................................................................................................................................. 149
        2. FINANCIAL OVERVIEW.................................................................................................................................................. 150
        3. PRODUCTS OFFERED ................................................................................................................................................... 150
        4. KEY DEVELOPMENTS ................................................................................................................................................... 151
        5. SWOT ANALYSIS ........................................................................................................................................................... 151
        6. KEY STRATEGIES .......................................................................................................................................................... 151
      7. CENTURYLINK, INC. .......................................................................................................................................................... 152
        1. COMPANY OVERVIEW .................................................................................................................................................. 152
        2. FINANCIAL OVERVIEW.................................................................................................................................................. 152
        3. PRODUCTS/SERVICES/SOLUTIONS OFFERED ............................................................................................................. 153
        4. KEY DEVELOPMENTS ................................................................................................................................................... 153
        5. SWOT ANALYSIS ........................................................................................................................................................... 154
        6. KEY STRATEGIES .......................................................................................................................................................... 154
      8. SILVER PEAK SYSTEMS, INC............................................................................................................................................. 155
        1. COMPANY OVERVIEW .................................................................................................................................................. 155
        2. PRODUCTS/SERVICES/SOLUTIONS OFFERED ............................................................................................................. 155
        3. KEY DEVELOPMENTS ................................................................................................................................................... 156
        4. KEY STRATEGIES .......................................................................................................................................................... 156
      9. ECESSA CORPORATION .................................................................................................................................................... 157
        1. COMPANY OVERVIEW .................................................................................................................................................. 157
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 157
        3. KEY DEVELOPMENTS ................................................................................................................................................... 158
        4. KEY STRATEGIES .......................................................................................................................................................... 158
      10. ARYAKA NETWORKS INC .................................................................................................................................................. 159
        1. COMPANY OVERVIEW .................................................................................................................................................. 159
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 159
        3. KEY DEVELOPMENTS ................................................................................................................................................... 160
        4. KEY STRATEGIES .......................................................................................................................................................... 160
      11. RIVERBED TECHNOLOGY .................................................................................................................................................. 161
        1. COMPANY OVERVIEW .................................................................................................................................................. 161
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ............................................................................................................. 161
        3. KEY DEVELOPMENTS ................................................................................................................................................... 161
        4. KEY STRATEGIES .......................................................................................................................................................... 162
      12. CATO NETWORKS ............................................................................................................................................................. 163
        1. COMPANY OVERVIEW .................................................................................................................................................. 163
        2. PRODUCTS/SOLUTIONS/SERVICES OFFERED ..........................................................'

    Software-Defined Wide Area Network (SD-WAN) Market Segmentation

    Market Segmentation Overview

    • Detailed segmentation data will be available in the full report
    • Comprehensive analysis by multiple parameters
    • Regional and country-level breakdowns
    • Market size forecasts by segment
    Infographic

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