Global SD-WAN Market Report 2021-2026 - Leading Vendors are Focused on Multi-cloud, Edge Enabled Networks

Dublin, Nov. 12, 2021 (GLOBE NEWSWIRE) -- The "SD-WAN Market by Components, Appliances, Services, Deployment, Segments and Verticals 2021 - 2026" report has been added to's offering.

This SD-WAN market report evaluates the players (vendors and service providers), strategies, technologies, and solutions. It includes analysis by Component, Appliance, Services, Deployment, Segment (Communication Service Providers, Enterprise, Industrial, and Government), and Enterprise Verticals with forecasts from 2021 to 2026.

Many consider SD-WAN part of the evolution of SDN as applied to existing networking technologies such as Multiprotocol Label Switching (MPLS), which directs data from one node to the next based on short path labels rather than long network addresses.

SD-WAN was often applied as an overlay to existing network technologies such as MPLS virtual private networks and the Internet as a whole. SD-WAN saw early favor with enterprise networks on a managed service basis but has also gained great support with communication service providers (CSP) as a means of unifying networks that are increasingly becoming software-controlled and virtualized.

While the initial industry driver for SD-WAN has been reducing bandwidth costs and overall operational expense reduction, there are other benefits as businesses increasingly rely upon the cloud-based services model. Enabling more efficient operations, SD-WAN also facilitates a more robust and survivable environment such as the ability to support alternate/redundant paths for routing broadband traffic, which is especially important for cloud-based service quality of service support.

This is especially important in a multi-cloud environment in which there is a need for visibility and control for hybrid networks involving centralized cloud and edge computing equipment as well as a combination of public, private, and hybrid cloud infrastructure.

Some CSPs rely upon existing enterprise relationships (e.g. already provide enterprise networking services such as MPLS), while others position themselves with a more unique value proposition. For example, Aryaka announced its "HybridWAN" solution to provide enterprise customers with the flexibility to run whatever applications over any architecture.

This is part of the dominant trend of enterprise organization migration from leased-lines and legacy technologies to a hybrid infrastructure that involves both MPLS and SD-WAN. The company positions this solution approach as ideal for reducing complexity in hybrid networks that must simultaneously deal with application optimization, connectivity, security issues, and multi-cloud access. While many CSPs provide SD-WAN managed services based on infrastructure from market leaders such as Cisco/Viptela, Silver Peak, Versa Networks, and VMware/VeloCoud, some utilize their own internally developed technologies.

One of the core drivers for growth in SD-WAN for enterprise is simple equipment upgrades. For example, SD-WAN is anticipated to continue to benefit from enterprise router replacement. Other drivers include the need to support an increasingly mobile and remote workforce as well as general network operations rationalization. In the case of remote workers, small offices, and SMBs, compact appliances are the targeted low-cost offering by leading vendors, although many customers are still vying for traditional-sized SD-WAN equipment.

In terms of the future direction of SD-WAN, we anticipate that it will become the go-to means for managing networking and security for a wide range of applications, services, and solutions including LTE, 5G, and Internet of Things (IoT) networks. For an enterprise, SD-WAN may be used to provide greater reliability through a variety of strategies such as provisioning LTE and/or 5G as a back-up in a fail-over scenario. With some companies making plans to launch a large number of LEO satellites for communications, satellite broad represents yet another point of integration for the SD-WAN market.

In the case of IoT, there are many device end-points, ranging from communication modules to consumer gear such as smartphones, wearables, and laptops. SD-WAN will ultimately become the primary means for managing connectivity and security for this many-to-many IoT device environment of the future. As enterprise and industrial segments add massive numbers of IoT-enabled "things", there will be an increasing number of devices for businesses to integrate and manage. Accordingly, simultaneously optimizing network and device resources will be very important in future IoT networks.

Unified Communications (UC) including UC as a Service (UCaaS) and Communications Platform as a Service (CPaaS) represent two additional growth areas for the SD-WAN market. UCaaS represents a platform and/or services upon which an enterprise can manage communication services in a seamless fashion.

CPaaS is part of a broader ICT landscape, which includes telecom APIs, CPaaS enabled services, UCaaS, call center as a service, instant authentication and trust ratings, conversational CRM and automated agents, WebRTC, and more. By way of example, Adaptiv provides SD-WAN to SkySwitch UCaaS customers in a manner in which the company is working with managed service providers on a white-label basis. This represents another example of how the SD-WAN managed services approach is viewed as superior to directly to the enterprise.

Almost every form of network infrastructure or service must consider cybersecurity from the ground up and SD-WAN is not an exception. Not surprisingly, leading equipment providers and managed services companies are partnering with firewalls and security vendors to integrate cybersecurity into SD-WAN offerings. By way of example, Fortinet offers SD-WAN ASIC to secure the edge of WAN. The FortiGate 100F Next-Generation Firewall powered by the new SoC4 SD-WAN ASIC combines SD-WAN functionalities with advanced security into one single offering.

As vendors struggle for market share, there does not appear to be great interest in standardizing certain functions as suppliers instead focus upon their respective company positioning in terms of solution performance and feature richness such as multiple VPN and/or VRF and zero-touch provisioning.

In this regard, leaders such as Cisco/Viptela, Nuage Networks, VMware/VeloCloud, and Silver Peak fight to preserve their market position versus challengers such as Aruba Networks, Huawei, Fortinet, and Versa. As the SD-WAN market is fast-growing, it is also attractive to competition from smaller players. By way of example, Bigleaf Networks has recently raised a $21 million Series B round of funding led by Updata Partners. This company positions itself to focus more on the underserved SMB SD-WAN market.

Select Report Findings:

  • Overall global SD-WAN market will reach $7.1B by 2026
  • Global SD-WAN support services market will reach $829M by 2026
  • Leading vendors are focused on multi-cloud, edge enabled networks
  • Managed SD-WAN services gaining ground in select enterprise verticals
  • Equipment replacements a major driver for migration from MPLS to SD-WAN
  • Important professional services include consulting, implementation, and training

Key Topics Covered:

1.0 Executive Summary

2.0 Introduction

3.0 SD-WAN Benefits

4.0 SD-WAN Market Drivers

5.0 SD-WAN Challenges and Opportunities

6.0 SD-WAN Vendor Analysis

7.0 SD-WAN Managed Service Provider Analysis

8.0 SD-WAN Market Analysis and Forecasts 2021 - 2026

9.0 Future Outlook for SD-WAN

10.0 Conclusions and Recommendations

Companies Mentioned

  • Adaptiv Networks
  • Aryaka Networks
  • AT&T
  • BCM One
  • BCN Telecom
  • Bigleaf Networks
  • BT Global Services
  • BullsEye Telecom
  • Cato Networks
  • CenturyLink
  • China Mobile
  • China Telecom Global
  • Cisco
  • Citrix
  • Cloudgenix
  • CMC Networks
  • Colt
  • Comcast Business
  • Consolidated Communications
  • Cradlepoint
  • Epsilon
  • Exponential-e
  • Fatpipe
  • Fortinet
  • Frontier Communications
  • GeoLinks
  • Globe Telecom
  • GTT
  • HPE
  • Huawei
  • Hutchison Global Communications
  • Infovista
  • Internet Solutions
  • Juniper Networks
  • Kalaam Telecom
  • KDDI
  • Lavelle Networks
  • Macquarie Telecom
  • Martello
  • Masergy
  • MegaPath
  • MetTel
  • Mushroom Networks
  • NetFortris
  • NetOne Systems
  • NTT Communications
  • Nuage Networks (Nokia)
  • Optus
  • Oracle
  • Orange Business Services
  • PCCW Global
  • Peplink
  • PLDT
  • Riverbed
  • Sify
  • Silver Peak
  • SingTel
  • SK Broadband
  • SoftBank
  • Spectrotel
  • Sprint
  • T-Systems
  • Tata Communications
  • Telefonica
  • TelePacific
  • Telia Carrier
  • Telstra
  • Telus
  • Vector Security Networks
  • VeloCloud (VMware)
  • Verizon
  • Versa Networks
  • Viettel
  • Virgin Media
  • Vodafone
  • Vonage
  • Windstream
  • Zayo
  • Zenlayer

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