With the increasing usage of big data and the internet of things (IoT), the global SD-WAN market is expected to witness an explosive CAGR of 38.6% during 2020–2030. At this rate, the revenue generated from the sale of such solutions would rise to $43.0 billion by 2030, from merely $1.4 billion in 2019, according to a market research report published by P&S Intelligence.
The study reveals that the increasing big data and IoT adoption is driving the software-defined wide area network (SD-WAN), as these technologies come with numerous challenges, including data privacy, data handling and management, and security issues, requirement for advanced technical knowledge, and high implementation cost.
With SD-WAN, these issues can be effectively taken care of, via centralized management and control, zero-touch provisioning, and risk minimization. In addition, SD-WAN simplifies network and device security management, offers instantaneous visibility into network performance, and integrates unified threat management (UTM) functionality, firewalls, and application filters.
However, the SD-WAN market is being negatively impacted by the COVID-19 situation, as companies across various sectors have had to cease or drastically scale down their operations due the lockdown imposed. Therefore, to minimize losses, enterprises are reducing their IT expenditure, including on SD-WAN solutions. In addition, as a large number of employees are working from home, the demand for advanced networking solutions among businesses has come down.
SD-WAN market by countries
The most productive SD-WAN market currently is North America, due to the existence of numerous established solution providers, strong government support for 5G deployment, quick adoption of advanced technologies, and growing requirement for simple networking operations. The fastest market growth in the immediate future is expected in Asia-Pacific (APAC), as IT investments and government support for 5G are rising, swift digital transformation is taking place in enterprises, uptake of connected devices and cloud computing is surging, and market players are expanding their presence in the region.
Companies in the SD-WAN market are engaging in mergers and acquisitions to increase their profit, as such moves give them the opportunity to expand their product and service portfolios, enhance their meetings, calling, customer care, messaging, service, and hardware endpoint portfolio with contact center and cloud calling solutions.
Companies also improve their content and app performance in multi-cloud and hybrid environments, using the programmable and dynamic intelligent traffic steering technology.