Top trends boosting the SD-WAN market through 2025

21st April 2022
Kiera Sowery

According to a recent study from market research firm Graphical Research, the global SD-WAN market size is set to register a significant growth during the forecast timeframe.

A notable surge in the adoption of cloud computing platforms has propelled the global software-defined wide area network (SD-WAN) market share. Stakeholders are infusing funds to expedite R&D investments and workload migration for the growth of 5G networks. SD-WAN solutions have bolstered the trend to monitor and manage diverse enterprise networks in a secure way.

The trend for the SD-WAN technology will be more pronounced, allowing companies to reduce CAPEX. To put this in perspective, networking technologies and virtualisation are encouraging enterprises to develop SD-WAN services.

An exponential rise in 4G subscription has led to the adoption of bandwidth-intensive applications. The European Commission claims that the average 4G covers 94% of the EU population.

Some of the regional trends which are likely to have an overarching influence on the SD-WAN market outlook are elucidated below:

Managed SD-WAN services to gain uptick in North America

Industry participants have upped their focus on managed SD-WAN services in the wake of the demand for outsourced implementation of the SD-WAN to reduce complexities linked with in-house deployment. Managed solutions are playing an instrumental role in helping enterprises solve challenges, including upgrading of software license and growth of hardware platforms.

The trend for virtual appliances will be pronounced across the region on account of faster deployment of SD-WAN technology to reduce capital expenditure costs. The SD-WAN market share from the virtual appliance segment in North America is forecast to grow at a staggering CAGR of more than 70% through 2025.

Stakeholders to emphasise portfolio expansion in the US

The US is likely to provide revenue-boosting opportunities in the SD-WAN market owing to robust adoption of cloud services. More importantly, the trend for Bring Your Own Device (BYOD) across SMEs has played a pivotal role in augmenting the installation of SD-WAN solutions. The U. SD-WAN market share in North America is likely to be pegged at over 55% through 2025, partly attributed to infusion of funds in the broadband infrastructure.

Leading companies in the region are focusing on expanding their market presence to gain a competitive edge in the landscape. For instance, CenturyLink, Inc., rolled out Managed Cisco SD-WAN in October 2018 to achieve high network optimisation to boost performance.

Cloud deployment model to boost market uptake in Europe

Europe is expected to be a key market for SD-WAN on the heels of soaring demand for the cloud-based network infrastructure. The cloud deployment model has spurred the trend to enhance the network performance with load balancing and real-time traffic shaping. It will help ward off the cost linked with the maintenance and deployment of on-premise network infrastructure.

The use of SD-WAN solutions in IT and telecom sector will fare well for the industry size expansion. The trend for the usage of bandwidth-intensive applications and traction among the IT firms to migrate to cloud platforms have augured well for the Europe SD-WAN market outlook.

Stakeholders to further investments in the UK and Spain

The UK is likely witness investments galore following the infusion of funds in 5G network. The innate ability to provide high connectivity with real-time applications will remain instrumental in a battery of end-uses, including healthcare institutions for medical practices. For instance, Nuffield used the Silver Peak Unity EdgeConnect SD-WAN solution in November 2017.

Spain is forecast to be one of the fastest growing markets in the region with the projection of more than 65% share by 2025. Robust government initiatives and increasing adoption of cloud computing are likely to prompt leading companies to boost investments in the region.

Hybrid deployment to gain traction in Asian countries

The trend for hybrid deployment across large enterprises is likely to be noticeable in emerging economies, including India, China and Vietnam. In a bid to host critical workloads through on-premise cloud, large enterprises have emphasized use of hybrid deployment model in APAC. The SD-WAN market share from the hybrid deployment segment in APAC is likely to be logged at more than 70% through 2025.

Market participants are expected to infuse funds in SD-WAN solutions to boost the adoption of wireless physical appliances in the region. Leading companies are adopting both physical and virtual appliance to bolster SD-WAN functionalities. The SD-WAN solution segment in APAC will grow at a strong CAGR of more than 60% through 2026.

SD-WAN to be sought-after in retail & consumer goods sector

Demand for SD-WAN solutions will be pronounced among retailers in the next few years in Asia Pacific. An unprecedented growth of e-commerce sector and the penetration of smartphones will propel the product adoption in the region. Leading companies are adopting robust SD-WAN solutions to bolster their omnichannel strategies.

Bullish adoption of smart devices and connected sensors will propel the APAC SD-WAN market outlook in manufacturing application. SD-WAN solutions are gaining impetus to simplify network management and network traffic. The industry share from the manufacturing application segment in APAC is likely to grow at a strong CAGR of more than 65% through 2026.

Traction for cloud-based and hybrid deployment models will remain instrumental among the end-users. Besides, healthcare and retail sectors are forecast to be major recipients of SD-WAN solutions.

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