Wireless technology, complemented by the Internet of Things (IoT) & 5G is rapidly replacing conventional cable-based networks due to the reduction in costs and versatility in placing devices without any crucial requirement of creating a suitable infrastructure. Proliferated adoption of cloud computing platforms and an increasing number of software-defined data centers are the key factors driving the software-defined wide area network (SD-WAN) solutions. According to the Global System for Mobile Communications (GSMA), the global 5G network connections is estimated to reach 1.4 billion by 2025. The lucrative demand for security features in-network services and increasing adoption for high and uninterrupted broadband services are the factors influencing the SD-WAN industry. The global Software-Defined Wide Area Network Market size is valued at $1.2 billion as of 2018 and is anticipated to grow with a CAGR of 35.36% throughout the forecast period 2019-2025.

Cost-effective usage of public and private networks, optimizable hybrid cloud connectivity, and application-aware routing are also influencing the demand for SD-WAN solutions. In addition, increasing usage of smartphones and internet-enabled devices are other aspects anticipated to propel growth. According to the GSMA, approximately 700 million new mobile subscribers are estimated to enter the telecommunication sector by 2025 globally. Furthermore, as information technology companies are expanding their business operations around the globe and moving to cloud-based platforms, the demand for a secure wide area network architecture to achieve high connectivity and improve the network performance will increase. A rise in demand among firms to manage their networks to monitor their performance easily will support multi-vendor IT environments and help in gaining complete control over their networks, driving the demand for software-defined WAN solutions. Due to the growing business and operational needs are driven by the widespread adoption of advanced technological innovations such as cloud platforms, big data, and analytics, internet traffic requiring high bandwidth availability at affordable costs, and IoT devices in the business applications led the growth of the SD-WAN market share across all regions.

Recent Developments in Software-Defined Wide Area Network

The SD-WAN market is anticipated to witness extreme competition as the enterprises shift their focus more on product innovations, developments in security, and routing.

In April 2019, Citrix Systems recently announced the Citrix SD-WAN (virtual software-defined WAN system) and Citrix ADC (application delivery controller) which will be available for sale on the GCP Marketplace.

In Jan2019, Cisco Systems Inc., a U.S. based IT, and Networking Company released a security patch for its SD-WAN solution’s vContainer containing the flaw, which enables the attacker to create Denial of Service (DoS) state. 

In October 2018, Huawei, a Chinese multinational technology company, launched its next-generation SD-WAN routers into the global market, these routers use a unified platform and integrate branch services across all business platforms.

The proliferation of Software-Defined Wide Area Network in Various Industry Verticals

SD-WAN in Banking

Software-defined WAN can improve agility and application visibility and reduce connectivity charges while providing security in supporting digital branches. SD-WAN allows banks to connect remote branch branches quickly, easily, and securely. The use of videos and video conferencing over the bank communication networks has also increased, and the tendency for this is to keep increasing, as it can reduce the charges drastically and improve the efficiency of bank personnel.

SD-WAN in the Retail Sector

SD-WAN solutions can connect retail stores, online warehouses, and distribution centers across all the regions. Retailers must provide an environment to the customers what they are expecting in today’s world: relevant, personalized, always-on, and easily accessible.

For instance, VMware SD-WAN by VeloCloud benefits retail business dealers’ to shift their focus towards revenue-generating solutions. Broadband networks can be easily installed for a low cost when compared to alternative solutions and easily incorporated into a VMware SD-WAN environment.

SD-WAN in the Healthcare Sector

The digital transformation, federal regulations, emerging networking trends, and patient expectations are the factors influencing the incorporation of SD-WAN technological application into the healthcare networks. 

Software-defined wide area network in the healthcare system is able to deliver care through

· Shift to cloud storage of healthcare records requires constant network uptime and connectivity

· For non-disruptive access to patient records, SD-WAN provides constant network uptime in the healthcare networks

· Segmenting the traffic such as relevant patient records and internet traffic

Organizations are looking at improving the performance of cloud services and the internet. Software-defined wide area network provides automation capabilities and helps in connecting users and devices from different locations directly to the cloud data centers. Improved data transport independence and intelligent pathway control are offering immense growth to the SD-WAN market. The SD-WAN solutions provide businesses with independence and flexibility of transport by aggregating all available bandwidth, and maximizing its usage while ensuring high network performance, manageability, and reliability.

North America Holding Major Share of the Software-Defined Wide Area Network Market

North America generated approximately 33% of the global revenue in the software-defined wide area network market in 2018. Extensive usage of bandwidth-intensive applications driven by smartphone penetration, automation in the enterprises across the various manufacturing sector, and growing adoption of cloud computing platforms are the factors influencing the SD-WAN industry in this region. Growth in the information technology sector, progressive GDP in this region are also triggering the SD-WAN industry growth. A rise in demand for highly efficient networking architecture and increasing demand for bandwidth requirements fuel the growth for advanced wireless area network solutions.

The application segment that will be creating the most lucrative opportunities for the enterprise social software market is the IT & telecom sector. This application segment is projected to grow at a CAGR of 38.87% through to 2025. Due to rapid urbanization and industrialization in the economies around the globe, the telecom sector had to experience significant growth in the software-defined wide area network market. Telecom industry has incorporated SD-WAN solutions to develop and deploy efficient networking with high bandwidths across all business suits.

Factors Driving Software-Defined Wide Area Network Market

· A growing need for cost-effective network management, security and visibility, and simplified network architecture are the major factors driving the SD-WAN market. The SD-WAN solutions enable enterprises to centrally manage and automate the existing configurations of WAN edge routers and reduce the overall operational cost. Companies around the world changing their existing WAN infrastructure to cloud-based solutions is driving the adoption of SD-WAN.

The Major Players in the Software-Defined Wide Area Network Market:

The prominent players in the global software-defined wide area network market include Aryaka, Cisco, Citrix, Huawei, Infovista, Juniper Networks, Nokia, Oracle, Silver Peak, and VMware. Mergers and acquisitions are the key strategies adopted by the players in this market to stay ahead of their competitors.

In May 2017, Cisco, a U.S. based IT, and networking company acquired Viptela a network virtualization company, to utilize Viptela’s software-driven, cloud-first architecture for WAN, which fits well with Cisco Digital Network Architecture (DNA).

In December 2017, VMWare, a U.S. based software company acquired VeloCloud Networks, Inc. With this acquisition, VMWare integrated VeloCloud SD-WAN into its product suite and strengthened its position as a key player in the software-defined wide area network market.

Such joint ventures aid the market players to expand their geographical boundaries and accentuate their footprint into the global software-defined wide area network market.

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