Software-Defined Wide Area Network (SD-WAN) Market to Grow by USD 13.66 Billion (2024-2028), Driven by Rising Demand for Cloud Solutions, with AI Driving Market Transformation - Technavio

NEW YORK, Nov. 20, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global software-defined wide area network (SD-WAN) market size is estimated to grow by USD 13.66 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  29.02%  during the forecast period. Rising demand for cloud solutions is driving market growth, with a trend towards optimization of networks using advanced technologies such as AI. However, implementation challenges in SD-WAN poses a challenge.Key market players include Arista Networks Inc., Aryaka Networks Inc., Bigleaf Networks Inc., Cato Networks Ltd., Cisco Systems Inc., Citrix Systems Inc., FatPipe Networks Inc., flexiWAN Ltd. , Forcepoint LLC, Fortinet Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Juniper Networks Inc., Lumen Technologies Inc., Nokia Corp., Oracle Corp., Palo Alto Networks Inc., Riverbed Technology Inc., Versa Networks Inc., and VMware Inc..

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Market Driver

The SD-WAN market is booming as businesses seek to simplify their Wide Area Networks (WANs) and reduce costs. SD-WAN offers bandwidth efficiency, enabling enterprises to handle increasing cloud IP traffic, even as it grows from exabytes to zettabytes. Traditional MPLS networks face reliability issues, making SD-WAN an attractive alternative. Digital transformation drives demand, with SMEs in sectors like healthcare, transportation and logistics, energy and utilities, and more adopting SD-WAN for cost-saving and improved application performance. 5G, RAN, cyber security, smart cities, IIoT, edge computing, IoT, cloud, ZTNA, AI, big data, hybrid cloud, mobility, and more are all driving the need for agile, flexible SD-WAN networks. IT staff can easily deploy SD-WAN, improving user experience while managing operating costs, network links, and wireless, broadband, and internet connectivity. Employees accessing corporate applications, servers, and resources on cloud platforms benefit from SD-WAN's advanced technologies, ensuring profitability and agility in today's fast-paced business environment. 

SD-WAN technology is increasingly being adopted by businesses to manage their wide area networks more effectively. However, network management can present challenges. Advanced technologies like machine learning (ML) and artificial intelligence (AI) are helping enterprises address these issues. AI applications, such as configuration management and root cause analysis (RCA), are becoming essential in IT operations. Key benefits of AI in SD-WAN solutions include automating tasks like event correlation, fault detection, fault isolation, and remediation. Additionally, AI provides effective bandwidth utilization, actionable insights for future problem resolution, and trend detection. Vendors, such as Cisco Systems, are integrating AI and ML capabilities into their SD-WAN offerings, including Cisco SD-Access, Cisco SD-WAN, and Cisco Application Centric Infrastructure (ACI). 

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 Market Challenges

• The SD-WAN market is experiencing significant growth due to the need for WAN simplification in businesses. Traditional approaches to network infrastructure are becoming outdated as enterprises face challenges with lower costs, bandwidth efficiency, and reliability issues. With the rise of cloud IP traffic and the increasing use of exabytes (EB) and zettabytes (ZB) of data, SD-WAN networks offer cost-saving solutions for SMEs and large industries such as healthcare, transportation and logistics, energy and utilities, and more. SD-WAN addresses the reliability concerns of MPLS networks while ensuring application performance and network security. Advanced technologies like 5G, RAN, cyber security, smart cities, IoT, edge computing, AI, big data, hybrid cloud, mobility, and ZTNA are being integrated into SD-WAN to enhance connectivity and user experience. However, deploying SD-WAN networks comes with challenges like operating costs, security, and IT staff requirements. SD-WAN solutions offer agility and improved performance for cloud platforms and corporate applications, making them essential for enterprises aiming for profitability. As more employees work remotely and rely on cloud-based services and software-as-a-service (SaaS), SD-WAN becomes a crucial component of network infrastructure. SD-WAN networks prioritize network links, ensuring reliable connectivity for wireless, broadband, internet, and cloud applications. Overall, the SD-WAN market is poised for continued growth as businesses seek to optimize their network infrastructure and enhance their digital transformation journey.
• The SD-WAN market offers enterprises numerous advantages over traditional WAN, but careful consideration is necessary before implementation. Incorrect deployment can result in operational difficulties. Interoperability with legacy infrastructure is a significant concern, and choosing the wrong SD-WAN solution from the numerous vendors in the market can lead to potential issues. Enterprises must determine the most suitable SD-WAN model for their business, considering their resources and manpower. DIY and managed services each have advantages, such as cost savings and expert support, respectively. Companies with a multi-regional presence may require more resources to deploy, monitor, and run SD-WAN solutions themselves.

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Segment Overview 

This software-defined wide area network (sd-wan) market report extensively covers market segmentation by  

1. Product 
• 1.1 Solutions
• 1.2 Services
2. End-user 
• 2.1 Service providers
• 2.2 Enterprise customers
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Solutions-  Businesses can securely connect their users to applications using a software-defined wide area network (SD-WAN), which allows the combination of various transport services like MPLS, LTE, and broadband internet. Managed SD-WAN services, offered by managed service providers (MSPs) or communications service providers (CSPs), provide the necessary networking, transport, hardware, and software for delivering applications or services, such as branch connectivity with specified SLAs. Regular maintenance is crucial for SD-WAN's optimal performance, and providers often offer additional services for setup, integration, and maintenance. The services segment is expected to drive the growth of the global SD-WAN market during the forecast period.

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Research Analysis

The Software-defined Wide Area Network (SD-WAN) market is experiencing significant growth due to the increasing demand for WAN simplification and cost savings. SD-WAN enables businesses to efficiently manage and optimize their network resources, making it an ideal solution for handling the exponential growth of cloud IP traffic. With the advent of 5G, SD-WAN is set to become even more crucial for businesses dealing with large amounts of data, such as those in healthcare, energy and utilities, and transportation and logistics. SD-WAN offers improved reliability and bandwidth efficiency compared to traditional Multi-Protocol Label Switching (MPLS) networks. It is particularly beneficial for Small and Medium Enterprises (SMEs) and industries dealing with high-volume data, such as industrial IoT (IIoT), smart cities, and edge computing. Moreover, SD-Zero Trust Network Access (ZTNA) and AI-driven network security are essential features of SD-WAN, ensuring secure connectivity for businesses dealing with sensitive data. Operating costs are also reduced through the adoption of Software-as-a-Service (SaaS) and hybrid cloud solutions. The future of SD-WAN lies in its ability to adapt to emerging technologies like 5G, RAN, and mobility, making it a vital component of digital transformation strategies.

Market Research Overview

The SD-WAN market is experiencing significant growth due to the increasing demand for WAN simplification and cost savings. Traditional approaches to managing network infrastructure for enterprises, such as Multiprotocol Label Switching (MPLS), are being replaced with SD-WAN networks for their bandwidth efficiency and ability to handle exabytes (EB) and zettabytes (ZB) of cloud IP traffic. SD-WAN networks provide reliability and agility, enabling digital transformation for various industries, including SMEs, healthcare, transportation and logistics, energy and utilities, and more. The integration of 5G, Radio Access Networks (RAN), and advanced technologies like AI, big data, and edge computing, further enhances SD-WAN's capabilities. Cost savings, network security, and application performance are key benefits of SD-WAN, making it an attractive option for enterprises looking to optimize their network infrastructure and improve user experience. The market for SD-WAN is expected to grow as more businesses adopt cloud-based services, Software-as-a-Service (SaaS), and hybrid cloud platforms. Despite the advantages, SD-WAN deployment can face reliability issues and cybersecurity concerns. Network links, including wireless, broadband, and Internet, must be secure to protect employees, corporate applications, servers, and resources. ZTNA and IoT are also essential considerations for SD-WAN networks. Overall, the SD-WAN market offers enterprises a cost-effective, efficient, and secure solution for managing their network infrastructure and supporting their digital transformation initiatives.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Solutions
• Services
• End-user
• Service Providers
• Enterprise Customers
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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