Global Software-Defined Wide Area Network (SD-WAN) Market – Industry Trends and Forecast to 2031

Software-Defined Wide Area Network (SD-WAN) Market Analysis and Size

Software-defined wide area network (SD-WAN) market witnessed significant advancement with its adaptable architecture and centralized management, offering businesses enhanced connectivity and agility. Its benefits include optimized network performance, cost savings through efficient resource utilization, and simplified network operations. As demand grows, SD-WAN continues to revolutionize networking, driving innovation and a competitive edge.

The software-defined wide area network (SD-WAN) market size was valued at USD 4.99 billion in 2023, is projected to reach USD 44.38 billion by 2031, with a CAGR of 31.40% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation       

Market Definition

SD-WAN, or Software-Defined Wide Area Network, revolutionizes network management by abstracting network hardware and control functions. It centralizes control, allowing for dynamic, cost-effective management of WAN connections across multiple locations. SD-WAN enhances performance, security, and agility by utilizing software to optimize traffic routing and prioritize critical applications over diverse networks.

Software-Defined Wide Area Network (SD-WAN) Market Dynamics

Drivers

• Multiple Advantages Associated with Software-Defined Wide Area Network (SD-WAN)

SD-WAN offers numerous advantages, including efficient monitoring of WAN connections and traffic management, ensuring optimized and high-speed connectivity. Palo Alto Networks reports that 60% of cybersecurity firms plan to implement SD-WAN by 2024 to enhance support and agility for cloud applications. Its adoption is rising due to its ability to enhance user experience and reduce costs, exemplifying its value in modern networking solutions.

• Growing Usage of Advanced Technology

The integration of artificial intelligence (AI) in IT processes, such as configuration management and root cause analysis (RCA), is driving the growth of the software-defined wide area network (SD-WAN) market. AI in SD-WAN solutions automates tasks such as fault detection, incident prediction, and bandwidth optimization. This advanced technology enhances network efficiency, scalability, and performance, meeting the evolving demands of modern businesses.

Opportunities

• Growing Adoption of Software-Defined Wide Area Network (SD-WAN)

The surge in cloud adoption, as revealed by HashiCorp's 2022 Cloud Strategy Survey, underscores the need for robust networking solutions. With 87% of respondents favoring cloud platforms, enterprises are turning to SD-WAN for enhanced productivity and customer satisfaction. Through leveraging SD-WAN, organizations such as multinational corporations optimize network management, exemplifying its pivotal role in modernizing business infrastructure and driving market growth.

• Business Continuity and Disaster Recovery

SD-WAN solutions ensure uninterrupted operations during network disruptions. If a primary link fails, SD-WAN seamlessly switches traffic to secondary connections such as LTE or backup MPLS. This maintains critical services and business continuity automatically, without manual intervention. This capability exemplifies the resilience and efficiency of software-defined wide area networks.

Restraints/Challenges

• Rising Risk of Cybercrimes

Contact centers store vast amounts of data, making them prime targets for hackers. Protecting this data is paramount, as any breach could pose the greatest concern for the market. The risk of data loss could impede market expansion. Unfortunately, contact centres, which frequently handle sensitive consumer data, are no exception. Contact centres frequently obtain and retain enormous amounts of client information, attracting attackers.

• Lack of Technical and Operational Expertise

Another impediment to market expansion is a lack of understanding about the advantages of cloud-based contact centres in a few economically developing countries. Meeting client expectations across multiple channels is extremely challenging and costly since it necessitates a reliable infrastructure to connect the channels and transport customer data between them.    

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In 2022, International Business Machines (IBM) Corporations collaborated with Colt Technology Services. With this collaboration, the companies launched a new Industry 4.0 lab in the U.K. With this partnership, Colt Technology Services will provide its Colt Edge computing platform and cloud SD-WAN technology, while IBM will contribute its Axiom application suite and cloud satellite hybrid cloud. Such initiatives are expected to fuel innovation and development in the market
• In 2022, IBM Corporation collaborated with Colt Technology Services. Through this collaboration, the company has launched a new Industry 4.0 lab in the United Kingdom. With this partnership, Colt Technology Services will offer its cloud SD-WAN technology and Colt Edge computing platform, while IBM will contribute its cloud satellite hybrid cloud and axiom application suite
• In 2022, Fortinet announced the industry's first AI-based network operations management for 5G/LTE gateways. The network operations teams will have access to even more dynamic insights and event correlation across their entire network, making FortiAIOps the most complete AIOps network management platform in the industry
• In 2022, Leading satellite internet provider Hughes Communication India announced the commercial launch of India's first high-throughput satellite (HTS) service powered by ISRO. The aim is to deliver high-speed broadband across the country, including the most remote areas beyond the reach of terrestrial networks, thus connecting enterprises and governments

Software-Defined Wide Area Network (SD-WAN) Market Scope

The market is segmented on the basis of component, network type, deployment mode, organization size, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Solution
• Services

 Network Type

• Multiprotocol Label Switching
• Broadband
• Long-Term Evolution
• Hybrid

 Deployment Mode

• Cloud
• On-Premise

 Organization Size

• Large Enterprises
• Small and Medium-Sized Enterprises

 End User

• Communication Service Providers
• Data Centers
• Enterprises

Software-Defined Wide Area Network (SD-WAN) Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, component, network type, deployment mode, organization size, and end user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific will continue to project the highest compound annual growth rate in the software-defined wide area network (SD-WAN) market. This trend is fueled by the region's widespread adoption of automation technologies such as artificial intelligence (AI) and Internet of Things (IoT), alongside increased investments in infrastructure modernization.

North America is poised to lead the SD-WAN market in revenue and market share, propelled by growing smartphone penetration. Additionally, investments in broadband infrastructure and high cloud computing platform adoption will fuel market growth, solidifying the region's prominence in this sector.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Software-Defined Wide Area Network (SD-WAN) Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• Dell Inc (U.S.)
• Cisco Systems, Inc.(U.S.)
• VMware, Inc. (U.S.)
• Juniper Networks, Inc. (U.S.)
• Nokia (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 (U.S.)
• Adaptiv Networks Inc. (Canada)
• Riverbed Technology (U.S.)
• ARYAKA NETWORKS,INC. (U.S.)
• Citrix Systems, Inc. (U.S.)
• FatPipe Networks Inc (Australia)
• Infovista (France)
• Forcepoint (U.S.)

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