The SD-WAN market reached a valuation of USD 4,287.4 million in 2023, and it is anticipated to surge to USD 42,606.9 million by 2030, with a robust compound annual growth rate (CAGR) of 38.9%.
The growing emphasis on network privacy and visibility is a key driver behind this growth, as network security remains a critical concern for IT leaders. The global escalation of data usage exposes mission-critical assets—such as databases, enterprise information, applications, and other resources—to increased risks of unauthorized access.
Traditional WAN solutions often lack the sophistication needed to safeguard networks effectively, providing limited control. Consequently, organizations are upgrading their IT infrastructure to mitigate risks such as unauthorized access to crucial business information and to ensure continuous operations.
SD-WAN solutions enable traffic monitoring, visibility, and rapid detection of security threats for IT departments, contributing to their appeal. Additionally, there is a rising need for intelligent path control as network complexity and data congestion increase. With this, policy-driven routing solutions are becoming essential, allowing traffic to be routed based on destination, origin, or specific applications, thereby enhancing network efficiency.
Key Insights:
- North America led the SD-WAN market in 2023, holding over 50% market share due to the presence of key industry players, widespread adoption of advanced technologies, and a strong demand for streamlined network processes.
- APAC is projected to grow at the fastest CAGR of 39.3% due to increasing IT investments, supportive government policies for 5G adoption, rapid device connectivity, and digital transformation.
- The solution category dominated in 2023 with a 70% share, driven by the transition to multi-cloud setups, compliance requirements, IoT adoption, application optimization needs, and the demand for secure network infrastructure.
- The on-premises deployment category was the largest contributor, with a 45% share in 2023, attributed to security concerns among large organizations and the high demand for physical networking devices to handle unstructured data.
- The network operations visibility segment is set to grow the fastest, at 39.4% CAGR, fueled by the demand for real-time data to resolve issues and optimize SD-WAN functions.
- IT & telecom held a 35% share of the market in 2023, supported by the rapid digitization of this sector, increased mobile device usage in workplaces, and the rising emphasis on consumer experience enhancement.
The fragmented SD-WAN industry is expected to keep growing, driven by a deepening awareness of SD-WAN’s advantages.
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