SD-WAN Market Value to Reach $30,907.6 million in 2030

March 14, 2023

By Alex Passett, Editor

In 2022, the SD-WAN market size stood at $3,514.6 million and is expected to reach $30,907.6 million in 2030 (i.e. with a CAGR of 31.2% over the next seven years.) These big SD-WAN figures come from market research and consulting services resource P&S Intelligence. P&S Intelligence provides quantitative and qualitive insights and market forecasts, competitive analyses, industry reports and more. Per P&S, “companies should feel empowered to make informed decisions and to base their business strategies with astuteness.”

In that vein, P&S has shared additional SD-WAN-related information, as there has been increased usage of mobile internet (which has aided in the acceptance of enhanced SD-WAN solutions across many key industries).

The following are ancillary takeaways from P&S’s exploration:

There is a growing requirement for network privacy and visibility. – For executives at IT organizations, challenges in network performance and security are under the microscope. Per P&S, “With the mushrooming data utilization globally, a wide range of mission-critical assets – including enterprise info, application and databases – are the subjects of unauthorized access. More optimized solutions are being called for.”

End users are majorly demanding such solutions. – In 2022, the solutions category had the larger market share of approximately 70%. P&S ascribes this to multi-cloud platform shifts, proliferating compliance needs, the expansively growing acceptance rates of interconnected IoT devices and applications, and the strong requirements for ultra-secured network infrastructure. As a result, a rise in SD-WAN solutions in IT and telecom, healthcare, and banking, financial services and insurance (BFSI) is taking place to best meet customers’ needs.

Ultimately, cloud-driven solution demand has grown fastest. – As mentioned, categories tied to the cloud have seen some of the fastest growth. P&S projects that this will climb above 30% in the coming years due to cloud-based solutions’ abilities to “allow for dynamic and highly automated operations via cost-effective means.” Cloud security dilemmas have snowballed (e.g. visibility, data control, configuration and access, and cyber threats), creating more demand for SD-WAN solutions that can help in the consolidation of networking infrastructure for improved branch offices, much simpler orchestration, and agility. (And related specifically to cyber threats, analyzing and real-time tracking to handle them proactively was a common denominator, per P&S.)

Supplemental SD-WAN notes:

  • Surging smartphone penetration fueled the adoption of SD-WAN solutions.
  • IT organizations worldwide recognize the need for WAN optimization; i.e. to lower the costs and tackle evolving challenges.
  • Advancements in hybrid cloud connectivity drove SD-WAN adoption, as well; combined with private circuits and public internet, they offer organizations higher network uptime, secure applications access, dynamic multi-path optimization, and scalability.
  • Legacy WAN solutions haven’t remained sufficient enough to protect against network threats, i.e. weak control. Updates and upgrades have proven necessary.
  • In 2022, North America generated more than 40% of the revenue in the market.
  • The EU seems to be investing in more smart manufacturing and other next-gen tech (hugely part of Industry 4.0 initiatives), which will continue resulting in high requirements for SD-WAN solutions sales for both European enterprises and governments alike.
  • 5G infrastructure in India, Japan, and China has demanded rapid setups in IT sectors, necessitating more SD-WAN offerings.
  • The top SD-WAN providers included Cisco, Citrix, Fortinet, Oracle, Juniper Networks (News - Alert), VMware and Riverbed Technology, to name a few.

More P&S Intelligence data (and reports outside the space of SD-WAN) can also be found here.

Edited by Greg Tavarez

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