The increasing adoption of the internet of things (IoT) and big data in the retail, manufacturing, government, information technology (IT) and telecom, and banking, financial services, and insurance (BFSI) sectors is creating a huge requirement for software-defined wide area network (SD-WAN) solutions and services, globally. This is due to the data privacy, security, data handling and management issues related to IoT and big data. To combat these challenges, end users are increasingly adopting SD-WAN solutions as they help in risk minimization, centralized management and control, and zero-touch provisioning (automatic configuration of devices with minimal human interference).
Therefore, the growing need for network privacy and visibility will help the SD-WAN market progress at a robust CAGR of 38.6% during 2020–2030. The market was valued at $1.4 billion in 2019, and it is projected to generate $43.0 billion revenue by 2030. As traditional WAN solutions are inefficient in protecting the network from the rising threats and offering effective security control for cloud applications, organizations are adopting SD-WAN solutions as they assist IT departments in quickly identifying a security attack, by monitoring and measuring the network traffic and providing deep visibility.
Get More Insights: SD-WAN Market Segmentation Analysis Report
At present, SD-WAN solution providers, such as Cisco Systems Inc., Aryaka Networks Inc., Fortinet Inc., Oracle Corporation, Palo Alto Networks Inc., Martello Technologies Group Inc., VMware Inc., Adaptiv Networks Inc., Silver Peak Systems Inc., Gluware Inc., Juniper Networks Inc., Mushroom Networks Incorporated, Citrix Systems Inc., and Riverbed Technology Inc., are providing hybrid, virtual, and physical appliances and software to expand their clientele. Additionally, the companies are offering consulting, implementation, and training and support services for branch connectivity, security, application control, and network operations visibility in organizations.
Nowadays, solution providers are engaging in mergers and acquisitions to offer better SD-WAN solutions to end users. For instance, in April 2020, Palo Alto Networks Inc. announced its plan to acquire CloudGenix Inc., a cloud-based SD-WAN service provider, to strengthen the integration of Palo Alto Networks Prisma, a secure-access service edge (SASE) platform, with the cloud-enabled SD-WAN solutions of the latter. Likewise, in May 2020, Communication Systems Inc. completed the acquisition of Ecessa Corporation, an SD-WAN solution and service provider, to expand its sales network, thereby expanding its service platform.
According to P&S Intelligence, the largest user of SD-WAN solutions and services in the preceding years has been North America due to the rising focus on the introduction of new solutions, surging support from the government for the establishment of 5G network infrastructure, increasing requirement of businesses for simplifying their network operations, and escalating use of advanced technologies in the region. Moreover, the presence of leading SD-WAN solution and service providers facilitates the adoption of this technology in the region.
Whereas, the Asia-Pacific (APAC) SD-WAN market is expected to advance at the highest rate in the upcoming years due to the growing use of enterprise networking solutions, increasing deployment of wireless devices, escalating focus on network security, magnifying emphasis of small and medium enterprises (SMEs) on cloud solutions, and growing popularity of the bring-your-own-device (BYOD) culture at workplaces. Additionally, the soaring focus of SD-WAN solution providers on partnering with cloud service providers, to assist businesses with a secure hybrid IT network and facilitate digital transformation, will fuel the adoption of such solutions in the region.
Thus, the rising use of IoT and big data and escalating need for network privacy and visibility will propel the adoption of SD-WAN solutions in the coming years.