The software-define wide area network (SD-WAN) market is expected to advance at a CAGR of 38.6% during the forecast period (2020–2030). At this rate, the market is expected to reach $43.0 billion by 2030 from $1.4 billion in 2019. The key factors driving the market growth include increasing penetration of internet, surging adoption of bring-your-own-device (BYOD) policy at workplaces, rising need for simplified enterprise network architecture, growing utilization of data and internet of things (IoT), escalating demand for network privacy, and rising deployment of cloud-based solutions.
One of the prime reasons behind the SD-WAN market growth is the amplifying usage of IoT and big data technologies. The challenges associated with IoT and big data, including high implementation costs, lack of knowledge, issues with the management and handling of the data, and security and data privacy, can be mitigated through the adoption of SD-WAN solutions. These solutions manage these challenges via centralized management and control, zero-touch provisioning (automatically configuring the devices with minimal human intervention), and minimization of risks.
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Another factor supporting the SD-WAN market growth is the surging requirement for network privacy and visibility. The increasing volume of data has increased the threat for a wide range of mission-critical assets like enterprise information and databases. Conventional WAN solutions are not qualified to protect the network from intensifying threats and are not sufficient to provide effective security control for cloud applications. Deployment of SD-WAN solutions helps in measuring and monitoring network traffic and they also offer deep visibility to IT departments into WAN and enable them to rapidly pinpoint a security attack.
The deployment segment of the SD-WAN market is classified into the cloud, hybrid, and on-premises. Among these, the cloud category will witness the fastest growth in the forecast period, due to the increasing implementation of cloud services, as they can support highly automated and dynamic operations cost effectively. Moreover, the soaring number of cloud security challenges, like misconfiguration, user access to cloud applications and data, and visibility of cloud data and control, will propel the demand for enhanced SD-WAN solutions.
Geographically, the North American SD-WAN market generated the highest revenue in 2019. This is attributed to the strong presence of established players, vast adoption of innovative technologies, high focus on the launch of advanced SD-WAN solutions, strong requirement of organizations to simplify their network operations, and extensive support from governments to set up 5G network infrastructure, in the region. In March 2020, the Federal Communication Commission (FCC) of the U.S. rolled out the National Strategy to Secure 5G that focuses on the development, implementation, and management of 5G communication infrastructure.
Furthermore, the Asia-Pacific (APAC) SD-WAN market is expected to register the fastest growth in the forecast period. This can be owed to the increasing deployment of enterprise networking solutions, escalating focus of small and medium enterprises (SMEs) on the implementation of cloud solutions, surging adoption of wireless devices, rising IT spending, popularizing trend of BYOD at workplaces, and surging focus on network security. Owing to these factors, market players have increased their focus on establishing partnerships with cloud service providers to assist enterprises in accelerating their digital transformation and build a secure hybrid IT network.
Thus, the rising deployment of IoT and big data and the magnifying security threats are expected to boost the market in the foreseeable future.
