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EU Software Defined Wan Market

ID: MRFR/ICT/20089-HCR
128 Pages
Ankit Gupta
October 2025

Europe Software Defined Wan Market Research Report Information By Component (Solution And Services), By Deployment Mode (Cloud And On-premises), By Organization Size (SMEs And Large Enterprises), By End User (Service Providers And Verticals) –and Europe Market Forecast Till 2035

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EU Software Defined Wan Market Summary

As per MRFR analysis, the Europe Software Defined WAN Market Size was estimated at 2.559 USD Billion in 2024. The Software Defined Wan industry is projected to grow from 3.391 USD Billion in 2025 to 56.56 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 32.5 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Europe Software Defined WAN market is poised for substantial growth driven by evolving technological demands and strategic shifts in network management.

  • The market experiences increased cloud adoption, reflecting a broader trend towards digital transformation across enterprises.
  • A heightened focus on network security is evident as organizations prioritize safeguarding their data and infrastructure.
  • Intelligent network management solutions are gaining traction, enhancing operational efficiency and user experience.
  • Rising demand for bandwidth and cost efficiency are key drivers, particularly as the cloud and services segments expand in response to remote work trends.

Market Size & Forecast

2024 Market Size 2.559 (USD Billion)
2035 Market Size 56.56 (USD Billion)
CAGR (2025 - 2035) 32.5%

Major Players

Cisco Systems (US), VMware (US), Arista Networks (US), Hewlett Packard Enterprise (US), Juniper Networks (US), MikroTik (LV), Nokia (FI), Fortinet (US), Silver Peak (US), Aryaka Networks (US)

EU Software Defined Wan Market Trends

The Europe Software Defined Wan Market is currently experiencing a transformative phase, characterized by the increasing adoption of cloud-based solutions and the growing need for enhanced network flexibility. Organizations across various sectors are recognizing the advantages of Software Defined Wide Area Networks, which offer improved bandwidth management and cost efficiency. This shift is largely driven by the demand for seamless connectivity and the ability to support remote work environments. As businesses continue to evolve, the integration of advanced technologies such as artificial intelligence and machine learning into SD-WAN solutions appears to be gaining traction, potentially leading to more intelligent network management and optimization. Moreover, the competitive landscape within the Europe Software Defined Wan Market is intensifying, with numerous players striving to differentiate their offerings. Partnerships and collaborations among technology providers are becoming increasingly common, as companies seek to enhance their service portfolios and deliver comprehensive solutions to clients. The emphasis on security within network infrastructure is also notable, as organizations prioritize safeguarding sensitive data against emerging threats. Overall, the Europe Software Defined Wan Market seems poised for sustained growth, driven by innovation and the ongoing digital transformation of enterprises across the region.

Increased Cloud Adoption

The trend towards cloud adoption is reshaping the Europe Software Defined Wan Market. Organizations are increasingly migrating their applications and services to cloud environments, necessitating robust and flexible network solutions. SD-WAN technology facilitates this transition by providing reliable connectivity and optimizing performance for cloud-based applications.

Focus on Network Security

As cyber threats continue to evolve, there is a heightened focus on security within the Europe Software Defined Wan Market. Companies are prioritizing secure access and data protection, leading to the integration of advanced security features within SD-WAN solutions. This trend reflects a broader commitment to safeguarding sensitive information.

Intelligent Network Management

The incorporation of artificial intelligence and machine learning into SD-WAN solutions is emerging as a key trend. These technologies enable more intelligent network management, allowing for real-time monitoring and optimization. This advancement enhances overall network performance and responsiveness, aligning with the growing demands of modern enterprises.

EU Software Defined Wan Market Drivers

Rising Demand for Bandwidth

The Europe Software Defined Wan Market is experiencing a notable increase in demand for bandwidth due to the proliferation of data-intensive applications. Organizations are increasingly reliant on cloud services, video conferencing, and real-time data analytics, which necessitate higher bandwidth capabilities. According to recent estimates, the average bandwidth consumption in enterprises has surged by over 30% in the past year alone. This trend is compelling businesses to adopt Software Defined WAN solutions that can dynamically allocate bandwidth based on application needs, thereby optimizing network performance. As a result, the industry is likely to witness a robust growth trajectory, driven by the necessity for enhanced connectivity and efficient resource utilization.

Enhanced Network Security Features

The Europe Software Defined Wan Market is increasingly influenced by the growing emphasis on network security. As cyber threats become more sophisticated, organizations are prioritizing solutions that offer robust security features. Software Defined WAN solutions often integrate advanced security protocols, such as encryption and secure access controls, which are essential for protecting sensitive data. Recent surveys indicate that over 60% of enterprises consider enhanced security capabilities as a critical factor when selecting a WAN solution. This heightened focus on security is likely to drive the adoption of SD-WAN technologies, as businesses seek to safeguard their networks against potential vulnerabilities.

Integration with Emerging Technologies

The Europe Software Defined Wan Market is poised for growth due to the integration of SD-WAN with emerging technologies such as IoT and AI. As businesses increasingly adopt Internet of Things devices and artificial intelligence applications, the need for a flexible and scalable network infrastructure becomes paramount. Software Defined WAN solutions can effectively manage the diverse traffic generated by these technologies, ensuring optimal performance and reliability. Recent projections suggest that the number of connected IoT devices in Europe will exceed 30 billion by 2025, further amplifying the demand for SD-WAN capabilities. This integration not only enhances operational efficiency but also positions organizations to leverage new technological advancements.

Cost Efficiency and Operational Flexibility

Cost efficiency remains a pivotal driver in the Europe Software Defined Wan Market. Traditional WAN architectures often entail substantial capital expenditures and ongoing operational costs. In contrast, Software Defined WAN solutions offer a more economical alternative by leveraging existing internet connections and reducing the need for expensive MPLS circuits. Organizations can potentially save up to 50% on their networking costs by transitioning to SD-WAN. Furthermore, the operational flexibility provided by SD-WAN allows businesses to scale their networks seamlessly, adapting to changing demands without incurring significant costs. This financial incentive is likely to propel the adoption of SD-WAN technologies across various sectors.

Support for Remote Work and Distributed Teams

The shift towards remote work and the rise of distributed teams are significantly impacting the Europe Software Defined Wan Market. Organizations are increasingly adopting SD-WAN solutions to ensure reliable connectivity for remote employees and branch offices. This trend is underscored by the fact that nearly 70% of companies in Europe have implemented or are planning to implement remote work policies. Software Defined WAN provides the necessary infrastructure to support this transition, offering secure and efficient access to corporate resources from various locations. As remote work becomes a permanent fixture in many organizations, the demand for SD-WAN solutions is expected to grow, facilitating seamless collaboration and productivity.

Market Segment Insights

By Component: Solution (Largest) vs. Services (Fastest-Growing)

In the Europe Software Defined WAN Market, the Component segment is primarily divided into Solutions and Services. The Solution segment holds a significant portion of the market share, largely due to established demand for advanced networking solutions that streamline operations and enhance security. Conversely, the Services segment, while smaller in market share, is experiencing rapid growth as businesses increasingly seek managed services and consultancy to optimize their SD-WAN deployments and address unique performance challenges.

Component: Solution (Dominant) vs. Services (Emerging)

The Solution component of the Europe Software Defined WAN Market is characterized by a diverse range of offerings that provide essential functionalities like bandwidth management, network virtualization, and integrated security. These solutions are favored by enterprises looking for scalable and reliable networking options. In contrast, the Services component is emerging as a critical area of focus, encompassing managed services, support, and consultancy. This shift reflects the growing trend towards outsourcing expertise in SD-WAN implementation. Service providers are capitalizing on this demand by offering tailored solutions that help businesses enhance their network performance and agility, thereby driving their adoption at a faster rate.

By Deployment Mode: Cloud (Largest) vs. On-premises (Fastest-Growing)

In the Europe Software Defined WAN market, the deployment mode segment is characterized by a diverse distribution between Cloud and On-premises solutions. Cloud deployment has emerged as the largest segment, favored for its scalability, ease of deployment, and cost-effectiveness. Organizations increasingly embrace cloud-based solutions as they seek to digitize operations and support remote work trends, making it a prominent choice among enterprises looking for flexibility and innovation. On the other hand, the On-premises deployment mode is recognized as the fastest-growing segment within this market. Businesses are gravitating towards on-premises solutions for reasons including enhanced security, better control over data management, and compliance with local regulations. As organizations grow more concerned about data privacy and security, this segment is gaining traction and witnessing an upward trajectory in adoption rates.

Deployment Mode: Cloud (Dominant) vs. On-premises (Emerging)

In the ever-evolving landscape of the European Software Defined WAN market, the Cloud deployment mode stands out as the dominant force. Its advantages—such as scalability, reduced hardware dependencies, and access to innovative services—make it a preferred choice for many organizations transitioning to digital-first strategies. In contrast, the On-premises mode is emerging rapidly, driven by enterprises that prioritize data sovereignty, security, and regulatory compliance. The growth of this segment reflects a shift in mindset where organizations are increasingly seeking hybrid solutions that combine the strengths of both cloud and on-prem environments. This dual preference showcases the evolution of networking strategies in response to broader IT goals, highlighting the need for flexibility and resilience in networking.

By Organization Size: Large Enterprises (Largest) vs. SMEs (Fastest-Growing)

In the Europe Software Defined WAN market, the distribution of market share is heavily skewed towards large enterprises, which dominate the segment due to their greater infrastructure demands and the need for enhanced connectivity solutions. These organizations benefit from extensive resources, allowing them to invest significantly in advanced SD-WAN technologies, ensuring reliable performance and extensive coverage. Meanwhile, small and medium enterprises (SMEs) are gaining traction, driven by the increasing adoption of cloud-based applications and the need for cost-effective network solutions, thus capturing an emerging share of the market.

Large Enterprises (Dominant) vs. SMEs (Emerging)

Large enterprises stand as the dominant force within the Europe Software Defined WAN market, characterized by their substantial capital investments in technology to streamline operations and enhance network performance. They leverage SD-WAN to optimize their extensive networks, ensuring scalability and efficiency. In contrast, SMEs, recognized as an emerging segment, are quickly adopting SD-WAN solutions to address their evolving needs for flexibility and affordability. These businesses are increasingly prioritizing agility, seeking to improve their network capabilities without the overhead of traditional WAN architectures. The growth of SMEs in this space is fueled by the digital transformation wave, driving demand for innovative and adaptable networking solutions.

By End User: Service Providers (Largest) vs. Verticals (Fastest-Growing)

In the Europe Software Defined WAN market, Service Providers hold the largest share, dominating the end-user segment due to their extensive infrastructure and resources. Their established presence allows them to offer comprehensive solutions and leverage existing customer relationships, making them a preferred choice for businesses seeking reliable SD-WAN solutions. Verticals, including sectors like healthcare, education, and retail, are emerging as a significant player in this market, driven by the increasing demand for digital transformation and enhanced connectivity.

End User Segment: Service Providers (Dominant) vs. Verticals (Emerging)

Service Providers are the backbone of the Europe Software Defined WAN market, characterized by their vast network capabilities and full-service offerings. They are well-equipped to address the complexities of SD-WAN implementation and maintenance, allowing them to cater to various business needs effectively. On the other hand, Verticals represent an emerging segment, propelled by rising digital initiatives across industries. These verticals are increasingly recognizing the importance of flexible and scalable network solutions to support their digital journeys, making them a key growth area in the SD-WAN landscape.

Get more detailed insights about EU Software Defined Wan Market

Regional Insights

North America : Innovation and Leadership Hub

North America is the largest market for Software Defined WAN (SD-WAN), holding approximately 45% of the global market share. The region's growth is driven by the increasing demand for cloud-based services, enhanced network security, and the need for efficient bandwidth management. Regulatory support for digital transformation initiatives further catalyzes market expansion, with significant investments from both public and private sectors. The competitive landscape is characterized by major players such as Cisco Systems, VMware, and Fortinet, which dominate the market. The presence of advanced technological infrastructure and a high adoption rate of SD-WAN solutions in the United States and Canada contribute to the region's leadership. Additionally, the focus on innovation and strategic partnerships among key players enhances the overall market dynamics.

Europe : Emerging Market with Growth Potential

Europe is witnessing a significant surge in the Software Defined WAN market, currently holding around 30% of the global market share, making it the second-largest region. The growth is fueled by increasing digital transformation initiatives, regulatory frameworks promoting cloud adoption, and the need for improved network performance. Countries like Germany and the UK are leading this trend, supported by government policies that encourage technological advancements and infrastructure investments. Leading countries in the European SD-WAN market include Germany, the UK, and France, with a competitive landscape featuring key players such as Nokia and MikroTik. The presence of established technology firms and startups alike fosters innovation and competition. As organizations increasingly prioritize network agility and security, the demand for SD-WAN solutions is expected to rise, further solidifying Europe's position in the global market.

Asia-Pacific : Rapidly Growing Digital Landscape

Asia-Pacific is rapidly emerging as a significant player in the Software Defined WAN market, currently holding about 20% of the global market share. The region's growth is driven by increasing internet penetration, the rise of cloud computing, and government initiatives aimed at enhancing digital infrastructure. Countries like China and India are at the forefront, with substantial investments in technology and telecommunications, fostering a conducive environment for SD-WAN adoption. The competitive landscape in Asia-Pacific is diverse, with both local and international players vying for market share. Companies such as Arista Networks and Fortinet are expanding their presence, while regional firms are also gaining traction. The focus on improving network efficiency and security is propelling demand for SD-WAN solutions, making Asia-Pacific a key region for future growth in this sector.

Middle East and Africa : Emerging Market with Untapped Potential

The Middle East and Africa region is gradually emerging in the Software Defined WAN market, currently holding approximately 5% of the global market share. The growth is primarily driven by increasing internet connectivity, the rise of cloud services, and government initiatives aimed at enhancing digital infrastructure. Countries like South Africa and the UAE are leading the charge, with investments in technology and telecommunications to support SD-WAN adoption. The competitive landscape is still developing, with a mix of local and international players entering the market. Companies are focusing on providing tailored solutions to meet the unique needs of businesses in the region. As organizations increasingly recognize the benefits of SD-WAN for improving network performance and security, the demand for these solutions is expected to grow, presenting significant opportunities for market players.

EU Software Defined Wan Market Regional Image

Key Players and Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Software Defined Wan market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Europe Software Defined Wan industry must offer cost-effective items.

Major players in the Europe Software Defined Wan market are attempting to increase market demand by investing in research and development operations includes Cisco (US), Oracle (US), Hewlett Packard Enterprise (US), Nokia (Finland), VMware (US), Huawei (China), Juniper Networks (US), Fortinet (US), Citrix US), Ciena (US), Epsilon Telecommunications (Singapore), Palo Alto Networks (US), Riverbed Technology (US), Ericsson (Sweden), BT (UK), Colt Technology Services (UK), NEC Corporation (Japan), Tata Communications (India), Extreme Networks (US), Martello Technologies (Canada), Arelion (Sweden), Aryaka (US), Flexiwan (Israel), Cato Networks (Israel), Nour Global (UAE), Sencinet (Brazil), MCM Telecom (Mexico), InterNexa (Colombia), FatPipe Networks (US), Bigleaf Networks (US), Lavelle Networks (India).

Key Companies in the EU Software Defined Wan Market market include

Industry Developments

Dec 2022: New managing security service providers actions B.Online, Cirion, ngena, PT&T and Telefónica went for adopting Fortinet Secure SD-WAN to foster better customer outcomes and experiences. Fortinet is one of the leaders in its field in broad, deep and automated information security technologies. Fortinet Secure SD-WAN will cater to the MSSPs Secure Networks at present and in the coming years. Sept 2022: Fortinet displayed 5G/LTE gateways management network technology operations that were designed with artificial intelligence for the first time in the telecommunications sector. The network operations teams will have access to even more dynamic insights and event correlation across their entire network, making it the most complete AIOps Network Management platform FortiAIOps in the industry. Sept 2022: The prestigious satellite communication services provider Hughes Communication India announced the commercial introduction in India of the first country’s high throughput satellite (HTS) service by ISRO. The aim is to provide a high-speed internet connection to remote areas of the country where terrestrial connections cannot reach, thereby linking businesses and the government. In February 2023, Cisco Systems, Inc.'s Viptela SD-WAN platform enhancement is still in progress. A deployment with the vendor's secure access service edge (SASE) product is added to the current support of Cisco’s Meraki SD-WAN platform. Customers with Viptela SDK-WAN can now have access to all features of the Cisco+ secure connection and let their users go online, privately, securely, and quickly whenever and wherever the work takes place. A secure internet access solution provides security functionality to users going online by consolidating several security services such as a firewall, secure web gateway (SWG), cloud-based access security broker (CASB), and information loss management (DLP). Cisco and DISH Wireless made an announcement in February 2024 regarding today’s proof of concept test for the unrivaled slice of network business in the first hybrid cloud environment of multitasking utilizing Cisco hardware and software. In November 2023, Etisalat by E& expanded their offerings by deploying managed SD-WAN services, said to be the next generation of network integration services. This network is likely to alter entrepreneur wire line connectivity, being such a service, being enhanced with SD-n activities. Proposing an on-demand changeable network environment is fit for the current fast-changing business environment, raising a new standard in the industry. In August 2023, Fortinet expanded its offerings with two new SD-WAN services designed for the optimization of operational performance and improving the client experience. The recent Underlay and Overlay Service enhancements will accelerate the deployment of SD-WAN technology which is ideal for companies go forward with minimal resource deployment.

Future Outlook

EU Software Defined Wan Market Future Outlook

The Europe Software Defined WAN Market is projected to grow at a 32.5% CAGR from 2024 to 2035, driven by increasing demand for network agility, cost efficiency, and enhanced security.

New opportunities lie in:

  • Development of AI-driven network optimization tools
  • Expansion of managed SD-WAN services for SMEs
  • Integration of IoT solutions with SD-WAN for real-time analytics

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

EU Software Defined Wan Market End User Outlook

  • Service Providers
  • Verticals

EU Software Defined Wan Market Component Outlook

  • Solution
  • Services

EU Software Defined Wan Market Deployment Mode Outlook

  • Cloud
  • On-premises

EU Software Defined Wan Market Organization Size Outlook

  • SMEs
  • Large Enterprises

Report Scope

MARKET SIZE 20242.559(USD Billion)
MARKET SIZE 20253.391(USD Billion)
MARKET SIZE 203556.56(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)32.5% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for secure, scalable connectivity solutions drives innovation in the Europe Software Defined Wan Market.
Key Market DynamicsRising demand for agile network solutions drives competitive innovation in the Europe Software Defined Wide Area Network market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the current valuation of the Europe Software Defined WAN Market?

The market valuation was 2.559 USD Billion in 2024.

What is the projected market size for the Europe Software Defined WAN Market by 2035?

The market is projected to reach 56.56 USD Billion by 2035.

What is the expected CAGR for the Europe Software Defined WAN Market during the forecast period?

The expected CAGR for the market from 2025 to 2035 is 32.5%.

Which companies are considered key players in the Europe Software Defined WAN Market?

Key players include Cisco Systems, VMware, Arista Networks, and others.

How is the Europe Software Defined WAN Market segmented by component?

The market is segmented into solutions and services, each valued at 1.2795 USD Billion.

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