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The software-defined wide area network market size is forecast to increase by USD 13.66 billion, at a CAGR of 29.02% between 2023 and 2028. Market expansion hinges on various factors, such as the escalating demand for cloud-based solutions driven by their scalability and flexibility. Moreover, the increase in digital transformation services across industries is fueling the need for advanced networking technologies and network automation. Additionally, the growing popularity of SD-WAN as a service is reshaping the landscape of enterprise networking, offering enhanced agility and cost effectiveness. These factors collectively contribute to the growth of the market, reflecting the evolving needs of businesses towards more efficient and adaptable solutions to support their digital initiatives and drive innovation.
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The SD-WAN market forecast report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the product segment of the software-defined wide area network market, several key features and benefits shape the market landscape. WAN simplification is a primary objective, offering streamlined management and operation of wide area networks, reducing complexity and enhancing efficiency. SD-WAN solutions enable lower costs compared to traditional networking approaches, providing cost-effective alternatives for businesses. Improved bandwidth efficiency is achieved through dynamic traffic management, optimizing resources and enhancing performance. While MPLS remains a prominent technology, SD-WAN offers flexible and scalable cloud-based solutions, catering to the growing demand for cloud-based applications and services.
Cloud IP traffic continues to grow exponentially, measured in exabytes (EB) and zettabytes (ZB), driving the need for SD-WAN solutions to ensure reliable connectivity and quality of service (QoS) for cloud-based applications. Reliability issues persist, but SD-WAN addresses these concerns with enhanced security features, particularly vital in industries like healthcare, transportation, and logistics, where data security is paramount. Additionally, SD-WAN solutions play a crucial role in integrating with emerging technologies like 5G and Radio Access Network (RAN), facilitating the development of smart cities and enhancing connectivity for SMEs. The market forecast report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The market share growth by the solutions segment will be significant during the forecast period. To securely link users to applications, businesses can employ any combination of transport services, such as MPLS, LTE IoT, and broadband internet services, through the usage of a software-defined wide area network (SD-WAN). A business model known as "managed network service" or "SD-WAN service" involves completely outsourcing networking applications and services to a managed service provider (MSP) or communications service provider (CSP).
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The solutions segment showed a gradual increase in the market share of USD 1.36 billion in 2018. Because SD-WAN is a sophisticated technology, it requires regular maintenance by IT professionals. If this is not done, it may lead to higher expenses in maintaining SD-WAN infrastructure. Providers of SD-WAN frequently need extra services for setting up, integrating, and maintaining the software. Thus, the services segment is expected to fuel the growth of the market during the forecast period.
Customers in the market are large-scale enterprises and service providers. While most large-scale enterprises purchase SD-WAN solutions directly from market players and implement them on their own, most SMEs approach service providers to assist them in implementing SD-WAN solutions. Service providers partner with SD-WAN market players and offer managed SD-WAN services to such customers. Furthermore, enterprises are increasingly opting for managed services to overcome high in-house cost-related factors. Also, digital transformation initiatives undertaken by enterprises, the adoption of cloud solutions, and the rise of new technologies such as artificial intelligence will fuel the demand for SD-WAN solutions. Thus, the service providers segment of the market is expected to grow significantly during the forecast period.
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North America is estimated to contribute 37% to the growth of the global software-defined wide area network market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada dominate data center investments in North America due to the rising demand for 5 G-enabled IoT solutions in these countries, strongly supported by high connectivity and bandwidth, cool ambient temperature, low electricity tariffs, and a tax-friendly environment.
Moreover, consumer and enterprise data traffic fuel the demand for data centers in the region, owing to factors such as demand for IoT devices, rising investments in AI, implementation of autonomous technologies across enterprises, and growing investments in autonomous vehicles. IP traffic is also experiencing exponential growth, mainly driven by increasing mobile data consumption and high-bandwidth applications, leveraging the growth of the market in North America during the forecast period.
The SD-WAN market is witnessing rapid growth driven by the demand for wireless connectivity and enhanced network security. With virtual private networks (VPNs) and multiprotocol label switching (MPLS) technology, SD-WAN offers flexible and secure connectivity across cloud-based services and software-as-a-service (SaaS). It leverages both hardware and professional services to enable seamless on-premise and cloud deployment options, catering to the needs of large enterprises and SMEs alike, including those in the healthcare and cybersecurity sectors. Powered by artificial intelligence and optimized IT processes such as configuration management and root cause analysis (RCA), SD-WAN ensures customer satisfaction, robust data security, and improved performance and visibility for organizations with varying levels of in-house expertise.
The rising demand for cloud solutions is notably driving software-defined wide area network market growth. Enterprises and service providers are the main contributors to the rise in demand, that are looking to shift their on-premise data center workloads to the cloud to improve their scalability, efficiency, and agility and reduce CAPEX and OPEX.
However, the inadequate WAN capacity of such enterprises does not support such transition and results in network reliability issues, latency issues, and network congestion. the demand for cloud-based SD-WAN is increasing as it overcomes such challenges. Enterprises across various industry sectors, such as banking, financial services, and insurance (BFSI), content and digital media, retail, and manufacturing, are implementing SD-WAN solutions to overcome network-related challenges. Therefore, such factors will boost the market growth during the forecast period.
Business strategies undertaken by companies is the primary trend shaping SD-WAN market growth. Collaborations between service providers and market players will contribute toward the growth of SD-WAN solutions among SMEs. Furthermore, companies' willingness to expand their operations globally will increase the partnerships with local service providers. Furthermore, market players will continue to invest in enhancing security, routing, and network management features in their SD-WAN solutions to gain a competitive edge in the market.
For instance, in December 2020, Fortinet, a global leader in integrated and automated cybersecurity solutions, announced the FortiGate Rugged 60F and FortiGate Rugged 60F with built-in LTE next-generation firewalls, the industry's first secure SD-WAN appliances that are certified to perform in operational technology (OT) environments. Therefore, the business strategies undertaken by market companies, such as acquisitions and product enhancement, are expected to fuel the growth of the market during the forecast period.
The lack of workers with technical skills is a challenge that affects software-defined wide area network market growth. Most IT personnel have command over traditional and fundamental technologies in network infrastructures, such as cyber-threat detection, assessment, and prevention. However, as most data centers are shifting toward automation processes, the entire infrastructure, including computing, storage, security, and networking infrastructure, is integrated and controlled by a single interface. To overcome this challenge, most market players are offering courses to enable young professionals to understand new technological advancements in the market.
Furthermore, although the technical skill gap will remain a major constraint for enterprises while adopting advanced technologies such as SD-WAN solutions, it is expected to be short-term as most companies have started offering educational resources for young professionals to understand their SD-WAN solutions. Hence, the lack of workers with technical skills is expected to have a negative impact on the market during the forecast period.
The software-defined wide area network market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the SD-WAN market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
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Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
This software-defined wide area network market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The global software-defined wide area network market is witnessing rapid growth driven by WAN simplification and the need for lower costs in enterprise networking. SD-WAN solutions provide bandwidth efficiency and enable seamless integration of cloud-based applications, catering to the increasing cloud IP traffic measured in exabytes (EB) and zettabytes (ZB). With a focus on quality of service (QoS), SD-WAN is gaining traction across various industries, including transportation and logistics, energy and utilities, and small and medium enterprises (SMEs). As the deployment of 5G networks and RAN (Radio Access Network) technologies expands, cyber security remains a top priority, especially in smart cities and industrial IoT (IIoT) environments. SD-WAN solutions also play a crucial role in managing big data and facilitating hybrid cloud environments to ensure mobility and flexibility. The market integrates Software-Defined Data Center (SDDC) and Software-Defined Storage (SDS) to offer comprehensive solutions for modern networking needs.
The market is experiencing significant growth as businesses seek cost-saving solutions for their network infrastructure while ensuring optimal application performance. SD-WAN technology enables edge computing and Zero Trust Network Access (ZTNA), particularly beneficial for SMEs (Small and Medium Enterprises) looking to enhance security and reduce operating costs. By optimizing network links and efficiently managing corporate applications, SD-WAN improves business productivity and profitability. Unlike traditional approaches relying on centralized data centers, SD-WAN provides a more agile and user-centric experience. With the increasing adoption of IoT (Internet of Things) devices and cloud applications, SD-WAN networks offer enhanced cybersecurity features, minimizing risks and ensuring faster, more reliable performance with fewer IT staff resources required.
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Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 29.02% |
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Market Growth 2024-2028 |
USD 13.66 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
27.25 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arista Networks Inc., Aryaka Networks Inc., Bigleaf Networks Inc., Cato Networks Ltd., Cisco Systems Inc., Citrix Systems Inc., FatPipe Networks Inc., flexiWAN Ltd. , Forcepoint LLC, Fortinet Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Juniper Networks Inc., Lumen Technologies Inc., Nokia Corp., Oracle Corp., Palo Alto Networks Inc., Riverbed Technology Inc., Versa Networks Inc., and VMware Inc. |
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Market dynamics |
Parent software-defined wide area network market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period, software-defined wide area network market share |
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Customization purview |
If our software-defined wide area network market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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