Software-defined Wide Area Network (SD-WAN) Market to Grow by USD 13.66 Billion (2024-2028) with Rising Demand for Cloud Solutions Boosting the Market, Report on How AI is Redefining Market Landscape – Technavio

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Feb 05, 2025, 02:53 ET

NEW YORK, Feb. 5, 2025 /PRNewswire/ — Report with market evolution powered by AI – 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 BT, Cisco, Citrix, Ciena, Colt Technology Services, Epsilon Telecommunications, Extreme Networks, Fortinet, Hewlett Packard Enterprise, Huawei, Juniper Networks, Martello Technologies, NEC Corporation, Nokia, Oracle, Palo Alto Networks, Riverbed Technology, Tata Communications, VMware, Oracle

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Market Driver

The SD-WAN market is booming due to trends like WAN simplification, lower costs, and bandwidth efficiency. Businesses are looking to replace expensive MPLS connections with SD-WAN for handling cloud IP traffic, as exabytes (EB) and zettabytes (ZB) of data grow. SD-WAN addresses reliability issues in digital transformation, saving costs on network infrastructure and improving application performance and network security. SMEs in sectors like healthcare, transportation and logistics, energy and utilities, and more, benefit from SD-WAN’s cost-saving and agility. With the rise of 5G, RAN, and IoT, SD-WAN becomes essential for connectivity, especially for cloud-based services, SaaS, and cloud applications. SD-WAN networks offer advanced technologies like ZTNA, AI, big data, hybrid cloud, mobility, and more, ensuring profitability and better user experience. IT staff can easily deploy SD-WAN, addressing slower performance issues, while ensuring security for employees and corporate resources. 

SD-WAN technology is increasingly being adopted by enterprises to manage their wide area networks. However, network management can present challenges. Advanced technologies like machine learning (ML) and artificial intelligence (AI) are helping businesses address these issues. AI applications, such as configuration management and root cause analysis, are becoming essential in IT operations. SD-WAN solutions with AI capabilities offer benefits like automation of tasks, effective bandwidth utilization, actionable insights, and trend detection. Vendors like Cisco Systems are integrating AI and ML into their SD-WAN offerings, including Cisco SD-Access, Cisco SD-WAN, and Cisco Application Centric Infrastructure. These advancements enable enterprises to streamline network management and enhance overall network performance. 

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Market Challenges

• The SD-WAN market is experiencing significant growth due to the need for WAN simplification and cost savings in today’s digital transformation era. With the increase in cloud IP traffic and the use of exabytes (EB) and zettabytes (ZB) of data, traditional approaches to network infrastructure are no longer sufficient. SD-WAN offers bandwidth efficiency and reliability, addressing challenges in industries like SMEs, healthcare, transportation and logistics, energy and utilities, and more. SD-WAN enables enterprises to use multiple network links, including wireless, broadband, and internet, to improve application performance and network security. It’s essential for businesses using cloud-based services, software-as-a-service (SaaS), and cloud applications. SD-WAN’s agility and cost-saving benefits make it a popular choice for enterprises looking to optimize their network infrastructure and resources. However, SD-WAN deployment comes with challenges, such as reliability issues and cybersecurity concerns. Advanced technologies like AI, big data, hybrid cloud, mobility, and edge computing are being integrated into SD-WAN networks to address these challenges. SD-WAN is also crucial for industries adopting 5G, RAN, IoT, and ZTNA. Overall, SD-WAN is a profitable investment for enterprises seeking to improve connectivity, user experience, and profitability while reducing operating costs.
• The SD-WAN market presents numerous advantages over traditional WAN for businesses, but careful consideration is required before implementation. Incorrect setup can result in operational issues. Interoperability with existing infrastructure is a significant concern. With various SD-WAN vendors, selecting the optimal solution is crucial. DIY and managed services each have advantages. Companies with extensive resources and locations may opt for DIY, while managed services offer expertise and support. Proper evaluation and planning are essential to maximize the benefits of SD-WAN.

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Segment Overview 

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

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

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 such as MPLS, LTE, and broadband internet. Managed SD-WAN services offer complete outsourcing of networking applications and services to managed service providers (MSPs) or communications service providers (CSPs), providing the necessary hardware, software, networking, and transport services, along with SLAs for uptime and performance. Regular maintenance is essential for SD-WAN’s sophistication, and providers often offer additional setup, integration, and maintenance services, fueling the growth of the global SD-WAN market.

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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 reduction. SD-WAN enables businesses to efficiently manage and prioritize application traffic over multiple types of connectivity, including MPLS, Cloud IP, and 5G. With the explosion of exabytes (EB) and zettabytes (ZB) of data generated daily, SD-WAN becomes essential for businesses dealing with reliability issues and high bandwidth requirements. SD-WAN is particularly beneficial for small and medium enterprises (SMEs) in sectors like healthcare, energy and utilities, and transportation and logistics, where network reliability and application performance are critical. SD-WAN also supports the digital transformation of industries, including smart cities, industrial IoT (IIoT), and hybrid cloud, by providing secure connectivity and network infrastructure for mobility and edge computing. Additionally, SD-WAN enhances cybersecurity, network security, and AI capabilities, making it an indispensable tool for businesses dealing with the increasing threat landscape. The operating costs of SD-WAN are further reduced by the availability of Software-as-a-Service (SaaS) offerings, making it an attractive solution for businesses of all sizes.

Market Research Overview

The 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 prioritize network traffic, making it an ideal solution for handling the exponential growth of cloud IP traffic. With the advent of 5G, RAN, and IoT, the need for reliable and agile network infrastructure is more critical than ever. SD-WAN addresses reliability issues by intelligently routing traffic over multiple network links, including wireless, broadband, and Internet. This technology is essential for digital transformation initiatives in various industries, such as SMEs, healthcare, transportation and logistics, energy and utilities, and smart cities. SD-WAN also offers advanced security features, including ZTNA, AI, and Big data analytics, to protect against cyber threats. Furthermore, it supports hybrid cloud, mobility, and cloud-based services, ensuring seamless connectivity to cloud applications and resources. Operating costs are significantly reduced with SD-WAN, as it eliminates the need for expensive MPLS connections and allows businesses to leverage multiple network links. The technology also enhances application performance and user experience, making it a profitable investment for enterprises. Traditional approaches to network management are being replaced with SD-WAN networks, which offer agility, centralized management, and the ability to easily deploy new applications and services. Despite these benefits, IT staff may face challenges with deployment and slower performance in some cases. However, the advantages of SD-WAN far outweigh these challenges, making it a must-have technology for businesses seeking to stay competitive in today’s digital landscape.

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
• Deployment
  • Cloud
  • On-premise

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

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio