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Global SD-WAN Market: Snapshot

The global market for SD-WAN, acronym for software-defined wide area network, is slated to expand at a cracking pace in the years to come on account of strong competition among the prominent players, resorting to different strategies to outshine one another. Keen players, for example, are developing and launching more advanced products to steal a march over their competitors in the market. They are also resorting to strategic partnerships to increase their market share.

Massive proliferation of data, worldwide, and increased flexibility offered by SD-WAN solution is the primary growth driver in the global SD-WAN (Software-Defined Wide Area Network) market. In addition, the extra safety and ease in resource provisioning associated with SD-WAN solutions are also serving to stoke growth in the market.

Posing a hindrance to the global SD-WAN (Software-Defined Wide Area Network) market, on the other hand, is the steep cost of implementing such solutions. Further, the dearth of standardization and resistance by users of WAN architecture is also expected to be a major restraint to the growth of the global SD-WAN (Software-Defined Wide Area Network) market.

As per a report by Transparency Market Research, the global SD-WAN market will expand at a phenomenal 51.4% CAGR between 2017 and 2025. Rising at this rate, the market will likely become worth US$34.35 bn by 2025.


software defined wan technology market


Booming Retail Sector Propelling Growth in Asia Pacific

From a geographical perspective, North America, at present, dominates the global SD-WAN (Software-Defined Wide Area Network) market with a leading share. By expanding at a stellar CAGR of 52.9%, the region is slated to become worth US$13.92 bn by 2025. The presence of prominent industry players and rapid uptake of SD-WAN solutions by BFSI sector will help North America market retain its dominant share in the near future. The market in the region is also being helped by the recent investments made by venture capitalists in the SD-WAN technology.

In terms of growth rate, the market in Asia Pacific is predicted to surpass all others by registering a CAGR of 58.6%. This is because of a burgeoning retail sector, growing internet penetration, and increased awareness about technology. Investments in communication infrastructure in nations of China, Japan, and India are also said to be stoking growth in the SD-WAN market in the region. In addition, the region is home to numerous IT and telecom enterprises, which are expected to drive the market growth.

BFSI Segment Leads in Terms of Uptake of SD-WAN

The global SD-WAN (Software-Defined Wide Area Network) market can be classified into retail, banking, financial services, and insurance (BFSI), healthcare, IT and telecom, government, and manufacturing, among others such as oil and gas and mining and transportation, depending upon the type of vertical. Among them, the BFSI segment is predicted to account for a dominant share in the market on account of their swift uptake of SD-WAN solutions. BFSI segment is expected to be followed by IT and telecom segment in terms of market share owing to the strengthening of IT industry worldwide. In terms of growth rate, however, the manufacturing segment is slated to outpace the others by clocking a phenomenal CAGR of 53.0% between 2017 and 2025.

Some of the prominent participants in the global SD-WAN market are Silver Peak, Inc., Cloudgenix Inc., Nuage Networks, Talari Networks, Inc., VeloCloud Networks, Inc., Fatpipe Networks Inc., Versa Networks, Inc., Viptela, Inc., Riverbed Technology, Inc., and Citrix Systems, Inc.

SD-WAN (Software-Defined Wide Area Network) Market to Gain Maximum Advantage  from BFSI Sector

Major investments in launch of different products and their advancements will help boost the global SD-WAN market rise remarkably in the near future. Enormous multiplication of information, around the world, and expanded adaptability offered by SD-WAN arrangement is the essential development driver in the worldwide SD-WAN (programming characterized wide territory organization) market. Taking off ubiquity of distributed computing is likewise prompting development on the lookout. Moreover, the extra wellbeing and simplicity in asset provisioning related with SD-WAN arrangements are additionally expected to add to the market's development.

With reference to segmentation by vertical type, the global Software-Defined Wide Area Network market is dominated by the BFSI segment on account of the rapid uptake of SD-WAN solutions by the finance and banking sectors worldwide. Other sub-segments of the vertical type category include retail, IT and telecom, manufacturing, oil & gas, government services, healthcare, mining & transportation.

The 2019 pandemic of the novel coronavirus on the worldwide SD-WAN market has been impactful in a positive way. Despite the imposition of lockdown and temporary halt on most businesses worldwide, the market generated notable revenues in the past one year owing to the availability of high-speed internet and cloud solutions. The forthcoming years is likely to gain impetus on account of the reason listed above. Some of the companies operating in the global SD-WAN market include Citrix Systems Inc., Riverbed Technology Inc., Viptela Inc., Versa Networks Inc., Fatpipe Networks Inc., VeloCloud Networks, Inc., Nuage Networks, Cloudgenix Inc., Silver Peak, and others.

Geographically, the market is dominated by North America on account of wide adoption of this software solutions. There is major demand for software-defines wide area network from banking and finance sector, along with the retail sector in the developed nations of the United States and Canada. On the other side, the increasing adoption of SD-WAN from the IT and telecom sector and rising popularity of online retail will help promote the growth of the market in the future.

Global SD-WAN Market: Overview

This report on the global SD-WAN (Software-Defined Wide Area Network) market provides analysis for the period 2015–2025, wherein 2016 is the base year and the period from 2017 to 2025 is the forecast period. Data for 2015 has been included as historical information. The report covers market dynamics including drivers, restraints opportunities, and trends expected to influence the global SD-WAN (Software-Defined Wide Area Network) market growth during the said period. Technologies that are playing a major role in driving the global SD-WAN (Software-Defined Wide Area Network) market have also been covered in the study. The study provides a comprehensive analysis on market growth throughout the above forecast period in terms of value estimates (in US$ Mn), across different geographies. 

The report also includes key developments in the SD-WAN (Software-Defined Wide Area Network) market. Porter Five Force analysis and funding received are also included in the report. The report also covers segment wise comparison matrix, market attractiveness analysis and market share analysis for all regions covered in the scope of study.  

Comparison matrix includes segment growth matrix, 2015 - 2025 (%), segment value share contribution, 2015 - 2025 (%), and segment compounded growth matrix (CAGR %). Market attractiveness identifies and compares segments market attractiveness on the basis of CAGR and market share index.

Global SD-WAN Market: Segmentation 

The SD-WAN (Software-Defined Wide Area Network) market has been segmented on the basis of component, deployment, service, vertical and geography. Based on component, the market has been divided into virtual appliance, physical appliance and hybrid segment. Based on deployment, the market has been divided into on-premise and cloud. Cloud based deployment could be defined as delivery of hosted services over the internet. Cloud based deployment model can include Public, Private and Hybrid Cloud whereas On-Premise deployment model would refer to the computation that is located within the physical confines of an organization. 

Based on service, the market has been divided into managed services and professional services. Managed services could be defined as the outsourcing of management responsibilities and functions in order to cut expenses and improve operational efficiency while professional services could mean the intangible product sold by a vendor or a contractor to a customer in order to help them manage their businesses. The providers of such services have specialized knowledge about different areas of interest. The market on the basis of vertical has been segmented into BFSI, Retail, Healthcare, Government, IT & Telecom, Manufacturing and Others (Oil & Gas and Mining & Transportation).

Geographically, the report classifies the global SD-WAN (Software-Defined Wide Area Network) market into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America; the regions are analyzed in terms of market revenue. Furthermore, region wise prominent countries covered in the report include the following - the U.S, Canada, Germany, France, the U.K., China, India, Japan, UAE, Saudi Arabia and Brazil.

Global SD-WAN Market: Competitive Landscape 

The report also includes competition landscape which include competition matrix, market share analysis of major players in the global SD-WAN (Software-Defined Wide Area Network) market based on their projected value share, and business profiling of major players. The Competition Matrix benchmarks leading players on the basis of their capabilities and potential to grow. Factors including market position, offerings and R&D focus are attributed to company’s capabilities. Factors including top line growth, market share, segment growth, infrastructure facilities and future outlook are attributed to company’s potential to grow. This section also identifies and includes various recent developments carried out by the leading players.

Company profiling includes company overview, major business strategies adopted and SWOT analysis. Major players in the SD-WAN (Software-Defined Wide Area Network) Market include Silver Peak, Inc., Talari Networks, Inc., Nuage Networks, VeloCloud Networks, Inc., Versa Networks, Inc., Viptela, Inc., Riverbed Technology, Inc., Cloudgenix Inc., Fatpipe Networks Inc. and Citrix Systems, Inc.

The global SD-WAN (Software-Defined Wide Area Network) Market is segmented as below:

By Component

  • Virtual Appliance
  • Physical Appliance
  • Hybrid

By Deployment

  • On-Premise
  • Cloud

By Service

  • Managed Services
  • Professional Services

By Vertical

  • BFSI
  • Retail
  • Healthcare
  • Government
  • IT & Telecom
  • Manufacturing
  • Others (Oil & Gas and Mining & Transportation)

By Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • The U.K
    • Germany
    • France 
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • Japan
    • India
    • Rest of APAC
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Rest of MEA
  • South America
    • Brazil
    • Rest of South America

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