Software-Defined Wide Area Network (SD-WAN) Market by Component, Organization Size, Deployment Mode, End User (Communication Service Providers, Data Centers, and Enterprises), and Geography—Global Forecast to 2029

The Software-Defined Wide Area Network (SD-WAN) Market is projected to reach $18.2 billion by 2029, at a CAGR of 23% from 2022 to 2029.

The growth of this market is driven by the increasing number of cloud solutions, the rising demand for internet broadband connections to replace more expensive solutions, the increasing demand for improved security, and the growing need for network agility and visibility.

However, the reliability issues in SD-WAN may restrain the market’s growth. The increasing proliferation of SD-WAN solutions to automate operations to simplify workflows and the rising demand for connecting data centers and multiple offices are expected to offer significant growth opportunities for the stakeholders in the software-defined wide area network market.

Furthermore, the concerns over SD-WAN security and the lack of standards for software-defined networking are expected to pose challenges to the growth of the SD-WAN market.

The latest trends in the global software-defined wide area network market are the move to hybrid or multi-cloud environments, firewall as a service, and secure access service edge.

Impact of COVID-19 on the Software-Defined Wide Area Network Market

The COVID-19 pandemic created several challenges for the software-defined wide area network market due to the lockdowns imposed during the second and third quarters of 2020. The pandemic lowered consumers' financial potential, which decreased the sales of SD-WAN services and solutions. However, in 2021, many enterprises, data centers, and communication service providers started recovering from the economic setbacks triggered by the pandemic. The COVID-19 pandemic moderately impacted the SD-WAN market due to delayed and postponed orders for SD-WAN solutions; however, it started recovering rapidly in the last quarter of 2020.

The following factors contributed to the growth of the SD-WAN market during the COVID-19 pandemic:

• The COVID-19 pandemic positively impacted the software-defined networking (SDN) segment. The outbreak of the COVID-19 pandemic brought researchers, doctors, and data scientists together to find effective solutions to mitigate the impacts of the pandemic. Researchers employed advanced technologies, such as big data, machine learning, and other technologies, to implement network automation solutions. Due to an increase in COVID-19 cases across the globe, it was problematic to analyze the records of each patient and provide a solution to curb the spread of infection. SD-WAN solutions enabled companies to develop unified dashboards to extract data from multiple countries and display it through a single platform. These dashboards were also used to estimate possible hotspots and alert healthcare authorities in advance. Hence, the adoption of network automation solutions positively impacted the demand for software-defined networking (SDN), consequently driving the growth of the software-defined wide area network market during the pandemic.
• IT infrastructure giants have relocated networking infrastructures for their employees to work remotely. Hence, increasing demand for virtual private networks (VPN) for remote work and teleconferencing has generated strong network bandwidths to handle heavy data traffic. Thus, the COVID-19 pandemic compelled IT infrastructure providers to adopt software-defined networking technology, driving the growth of the software-defined wide area network market.

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Increasing Number of Cloud Solutions to Fuel the Market Growth

SD-WAN is the ideal solution for deploying, managing, and monitoring cloud WAN. It helps deliver network and security services within a cloud WAN (or cloud network). Cloud Managed SD-WAN solutions offer notable benefits such as operational infrastructure support & maintenance, reduced operational risks, reduced service startup costs, and provides customized control and visibility.

In recent years, there has been an increase in the adoption of multi-cloud and SaaS applications. The growing demand for agile, secure, and reliable direct connectivity, the increasing popularity of cloud-managed network and security functions, and the rising need to reduce bandwidth and operational costs are driving the demand for cloud-based SD-WAN solutions, subsequently driving the growth of the SD-WAN market.

Furthermore, the increasing emphasis by leading SD-WAN providers to launch cloud-based SD-WAN solutions is improving their market demand. For instance, in 2022, Nokia Corporation (Finland) and stc (Saudi Arabia) launched a managed SD-WAN solution, stc SD-WAN, based on Nuage Networks from Nokia Virtualized Network Services (VNS) platform. Additionally, in 2020, Fortinet, Inc. (U.S.) partnered with Equinix (U.S.) to accelerate cloud connectivity with the addition of Fortinet secure SD-WAN on Equinix’s network edge. Such developments are expected to drive the demand for cloud-based SD-WAN solutions and contribute to the growth of the software-defined wide area network market.

Key Findings in the Software-Defined Wide Area Network Market Study:

Based on Component, in 2022, the Solutions Segment is Expected to Dominate the market

Based on component, in 2022, the solutions segment is expected to account for the largest share of the global SD-WAN market. The large market share of this segment is attributed to the growing demand for cloud-based SD-WAN solutions, the rising popularity of SD-WAN solutions among large enterprises, and the increasing demand for SD-WAN solutions from large telecommunication service providers, data centers, and campus environments to solve challenges such as operational complexity, slow service delivery, and lack of visibility across both physical and virtual networks.

Based on Deployment Mode, the Cloud-based Deployment Segment is Expected to Register the Higher CAGR During the Forecast Period

In 2022, the cloud-based deployment segment is expected to register the higher CAGR during the forecast period. The rising need to manage complex network requirements, the need to reduce initial and working expenses for infrastructures, and heavy investments from enterprises to accelerate their SD-WAN infrastructure with cloud-based deployment are expected to support the growth of this segment. Several organizations are gradually transitioning to cloud infrastructure, a trend that is expected to grow in the coming years. The benefits of cloud infrastructure, such as ease of adoption, minimal requirement for in-house infrastructure, high scalability, and easy installation of SD-WAN solutions, support the growth of the cloud-based segment.

Based on Organization Size, the Large Enterprises Segment is Expected to Register the Higher CAGR During the Forecast Period

In 2022, the large enterprises segment is expected to register the higher CAGR during the forecast period. The growing demand for SD-WAN solutions by large telecommunication service providers and large data centers and campus environments to solve challenges such as operational complexity, slow service delivery, and lack of visibility across both physical and virtual networks is expected to support the growth of this segment.

Asia-Pacific: The Fastest-growing Regional Market

Asia-Pacific is projected to register the highest CAGR. The rapid growth of software-defined wide area network solutions & services in the urban population is due to growing economies in the region, such as China, India, and Japan. The increasing demand for SD-WAN solutions for reducing infrastructure and operational costs, the growing demand for SD-WAN solutions by mobile phone operators across emerging economies such as China, Japan, and India, and the presence of well-established SD-WAN providers are supporting the market’s growth in the region. Furthermore, the increasing deployments of SDN and NFV by regional enterprises and the rising demand for a broad range of value-added network services contribute to the growth of this regional market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants between 2020 and 2022. The key players operating in the software-defined wide area network market include Cisco Systems, Inc.(U.S.), VMware, Inc. (U.S.), Juniper Networks, Inc. (U.S.), Nokia Corporation (Finland), Hewlett Packard Enterprise Development LP (U.S.), Tata Communications (India), Huawei Technologies Co., Ltd.(China), Fortinet Inc. (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), NEC Corporation (Japan), Oracle Corporation (U.S.), Adaptiv Networks Inc. (Canada), Riverbed Technology Inc. (U.S.), Silver Peak Systems Inc. (U.S.), and Aryaka Networks Inc. (U.S.).

Scope of the Report:

Software-Defined Wide Area Network Market, by Component            

• Solutions
  • Hardware
  • Software
• Services
  • Professional Services
  • Managed Services

Software-Defined Wide Area Network Market, by Organization Size

• Large Enterprises
• Small and Medium-sized Enterprises

Software-Defined Wide Area Network Market, by Deployment Mode

• On-premise Deployment
• Cloud-based Deployment

Software-Defined Wide Area Network Market, by End User

• Communication Service Providers
• Data Centers
• Enterprises
  • IT & Telecommunication
  • Manufacturing
  • Government & Public Sector
  • Retail
  • BFSI
  • Healthcare & Life Science
  • Education
  • Energy & Utilities
  • Media & Entertainment
  • Other End Users

Software-Defined Wide Area Network Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa

Key questions answered in the report: