According to a recent study by market research firm Graphical Research, the global SD-WAN market size is expected to register significant growth over the forecast period. A notable increase in the adoption of cloud computing platforms has propelled the global Software Defined Wide Area Network (SD-WAN) market share. Stakeholders are injecting funds to accelerate R&D investments and workload migration for the growth of 5G networks. SD-WAN solutions have reinforced the trend to monitor and manage various enterprise networks in a secure manner.
The trend for SD-WAN technology will be more pronounced, allowing companies to reduce their CAPEX. To put this into perspective, networking technologies and virtualization are encouraging enterprises to develop SD-WAN services.
An exponential increase in 4G subscriptions has led to the adoption of bandwidth-intensive applications. The European Commission claims that average 4G covers 94% of the EU population.
Some of the regional trends that are likely to have a global influence on the SD-WAN market outlook are explained below:
Managed SD-WAN services will gain popularity in North America
Industry players have focused on managed SD-WAN services following the demand for outsourced SD-WAN implementation to reduce in-house deployment complexities. Managed solutions are instrumental in helping companies solve problems including software license upgrade and hardware platform growth.
The trend towards virtual appliances will be pronounced across the region due to faster deployment of SD-WAN technology to reduce capital costs. the SD-WAN market share of the virtual device segment in North America is expected to grow at a staggering CAGR of over 70% through 2025.
Stakeholders will focus on portfolio expansion in the United States
The United States is likely to provide opportunities for increased revenue in the SD-WAN market owing to the robust adoption of cloud services. More importantly, the bring-your-own-device (BYOD) trend in SMBs has played a pivotal role in increasing the installation of SD-WAN solutions. The market share of SD-WAN in the United States in North America is expected to be pegged at over 55% through 2025, partly due to the injection of funds into broadband infrastructure.
Major companies in the region are focusing on expanding their market presence to gain a competitive edge in the landscape. For example, CenturyLink, Inc., deployed Managed Cisco SD-WAN in October 2018 to achieve high network optimization to improve performance.
Cloud deployment model to drive market adoption in Europe
Europe is expected to be a key market for SD-WAN on the heels of growing demand for cloud-based network infrastructure. The cloud deployment model has spurred the trend of improving network performance through load balancing and real-time traffic shaping. This will help reduce costs associated with maintaining and deploying on-premises network infrastructure.
The use of SD-WAN solutions in the IT and telecommunications sector will be conducive to expanding the size of the industry. The trend towards the use of bandwidth-intensive applications and the tendency of IT companies to migrate to cloud platforms bode well for the prospects of the European SD-WAN market.
Stakeholders for new investments in the UK and Spain
The UK is likely to witness investment galore following the injection of funds into the 5G network. The innate ability to deliver high connectivity with real-time applications will remain critical across a host of end uses, including healthcare facilities for medical practices. For example, Nuffield used the Silver Peak Unity EdgeConnect SD-WAN solution in November 2017.
Spain is expected to be one of the fastest growing markets in the region with a projected share of over 65% by 2025. Robust government initiatives and growing adoption of cloud computing are expected to spur large companies to increase their investments in the region.
Hybrid deployment to gain traction in Asian countries
The trend towards hybrid deployment in large enterprises should be noticeable in emerging economies, including India, China and Vietnam. In a bid to host mission-critical workloads via on-premises cloud, large enterprises have been emphasizing the use of hybrid deployment model in APAC. the SD-WAN market share of the hybrid deployment segment in Asia-Pacific is expected to be recorded at over 70% through 2025.
Market players are expected to inject funds into SD-WAN solutions to drive the adoption of physical wireless devices in the region. Large enterprises are adopting both physical and virtual appliances to bolster SD-WAN functionality. The Asia-Pacific SD-WAN solutions segment will grow at a high CAGR of over 60% through 2026.
SD-WAN will be sought after in the retail and consumer goods industry
The demand for SD-WAN solutions will be pronounced among retailers over the next few years in Asia-Pacific. Unprecedented growth in the e-commerce sector and smartphone penetration will propel product adoption in the region. Large enterprises are adopting robust SD-WAN solutions to bolster their omnichannel strategies.
The bullish adoption of smart devices and connected sensors will propel the APAC SD-WAN Market Outlook in the manufacturing application. SD-WAN solutions are gaining popularity to simplify network management and network traffic. The industry share of the manufacturing applications segment in APAC is expected to grow at a strong CAGR of over 65% through 2026.
Traction for cloud-based and hybrid deployment models will remain key among end users. Additionally, the healthcare and retail sectors are expected to be major beneficiaries of SD-WAN solutions.