HOME Top Market Reports Software-Defined Wide Area Network (SD-WAN) Market by Component (Virtual Appliances, Physical Appliances and Hybrid), Deployment Type (On-Premises and Cloud), Technology Service (Managed and Professional), Vertical, and Region - Global Forecast to 2021

Software-Defined Wide Area Network (SD-WAN) Market by Component (Virtual Appliances, Physical Appliances and Hybrid), Deployment Type (On-Premises and Cloud), Technology Service (Managed and Professional), Vertical, and Region - Global Forecast to 2021

By: marketsandmarkets.com
Publishing Date: December 2016
Report Code: TC 3991

 

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The Software Defined WAN Market size is estimated to grow from USD 738.9 Million in 2016 to USD 9,066.2 Million by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 65.11%.

Central network management, integration of traditional WAN or existing network into SD-WAN, reducing data congestion, and simple & user-friendly network management are some of the emerging aspects increasing the demand for SD-WAN solutions. The report aims at estimating the market size and future growth potential of the SD-WAN market across different segments by component, deployment type, technology service, industry vertical, and region. The base year considered for the study is 2015 and the forecast period is from 2016 to 2021.

The research methodology used to estimate and forecast the Software Defined WAN Market begins with capturing data on key vendor revenues through secondary research, such as Computer Science & Engineering Association (CSEA), International Data Corporation (IDC), and company financials. The vendors’ offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global SD-WAN market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments. The breakdown of profiles of primary participants is depicted in the below figure:

Software Defined Wide Area Network Market

To know about the assumptions considered for the study, download the pdf brochure

The SD-WAN ecosystem comprises application providers, such as Cisco Systems, Inc., Ecessa Corporations, and CloudGenix. Other stakeholders of the Software Defined WAN Market include SD-WAN vendors, software providers, product manufacturers, system integrators/migration service providers, and consultancy /advisory firms.

Target Audience

  • Cloud vendors
  • Application design and development service providers
  • Consultancy /advisory firms
  • Training and education service providers
  • Data integration service providers
  • Banking and Insurance service providers

 “The research study answers several questions for the stakeholders, primarily which market segments to focus in during the next two to five years for prioritizing the efforts and investments”.

Scope of the Report

The research report categorizes the Software Defined WAN Market to forecast the revenues and analyze the trends in each of the following submarkets:

By Component

  • Virtual appliance
  • Physical appliance
  • Hybrid

By Deployment Type

  • On-premises
  • On cloud

By Service

  • Managed services
  • Professional services

By Region

  • North America
  • Europe
  • Middle East and Africa (MEA)
  • Asia-Pacific (APAC)
  • Latin America

By Vertical

  • Banking, Financial Services and Insurance (BFSI)
  • Retail
  • Healthcare
  • Government
  • IT & Telecom
  • Manufacturing
  • Others (Oil & Gas and Mining & Transportation)

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

  • Product matrix gives a detailed comparison of product portfolio of each company

Geographic Analysis

  • Further breakdown of the North American Software Defined WAN Market
  • Further breakdown of the European SD-WAN market
  • Further breakdown of the APAC SD-WAN
  • Further breakdown of the MEA SD-WAN
  • Further breakdown of the Latin American SD-WAN market

Company Information

  • Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 13)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 16)
    2.1 Introduction
    2.2 Research Data
           2.2.1 Secondary Data
                    2.2.1.1 Key Data From Secondary Sources
           2.2.2 Primary Data
                    2.2.2.1 Key Data From Primary Sources
                    2.2.2.2 Key Industry Insights
    2.3 Market Size Estimation
           2.3.1 Bottom-Up Approach
           2.3.2 Top-Down Approach
    2.4 Market Breakdown and Data Triangulation
    2.5 Market Forecast Assumptions

3 Executive Summary (Page No. - 24)

4 Premium Insights (Page No. - 29)
    4.1 Attractive Market Opportunities in the Software Defined WAN Market
    4.2 SD-WAN Market: By Type
    4.3 SD-WAN Market: By Vertical and Region
    4.4 Life Cycle Analysis, By Region (2016)

5 Market Overview (Page No. - 32)
    5.1 Introduction
    5.2 Evolution
    5.3 Market Segmentation
           5.3.1 By Component
           5.3.2 By Deployment Type
           5.3.3 By Technology Service
           5.3.4 By Vertical
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Increasing Need for Mobility Services
                    5.4.1.2 Reduced OPEX
                    5.4.1.3 Need for Simplified Network Architecture
           5.4.2 Restraints
                    5.4.2.1 Lack of Security
           5.4.3 Opportunities
                    5.4.3.1 Improved QOS
                    5.4.3.2 Increase in Use of Cloud-Based Technologies
           5.4.4 Challenges
                    5.4.4.1 Bandwidth Provisioning
    5.5 SD-WAN Ecosystem

6 Industry Trends (Page No. - 39)
    6.1 Introduction
    6.2 Technology Trends
           6.2.1 DPI
           6.2.2 Cloud Management
    6.3 Standards
           6.3.1 DCB
                    6.3.1.1 PFC 802.1qbb
                    6.3.1.2 Congestion Management (802.1qua)
                    6.3.1.3 Bandwidth Management (802.1qaz)
                    6.3.1.4 DCBX
           6.3.2 FCOE
           6.3.3 Nvgre
           6.3.4 SPB
           6.3.5 Trill
           6.3.6 VEPA
           6.3.7 MPLS
           6.3.8 VXLAN
    6.4 Value Chain Analysis
    6.5 Strategic Benchmarking

7 Software Defined WAN Market Analysis, By Component (Page No. - 44)
    7.1 Introduction
    7.2 Virtual Appliances
    7.3 Physical Appliances
    7.4 Hybrid

8 Software Defined WAN Market Analysis, By Deployment Type (Page No. - 48)
    8.1 Introduction
    8.2 On-Premises
    8.3 On-Cloud

9 Software Defined WAN Market Analysis, By Technology Service (Page No. - 52)
    9.1 Introduction
    9.2 Managed Services
    9.3 Professional Services

10 Software Defined WAN Market Analysis, By Vertical (Page No. - 56)
     10.1 Introduction
     10.2 BFSI
     10.3 Retail
     10.4 Healthcare
     10.5 Government
     10.6 It and Telecom
     10.7 Manufacturing
     10.8 Others

11 Geographic Analysis (Page No. - 63)
     11.1 Introduction
     11.2 North America
     11.3 Europe
     11.4 APAC
     11.5 MEA
     11.6 Latin America

12 Competitive Landscape (Page No. - 85)
     12.1 Vendor Dive Overview
     12.2 SD-WAN Market: Vendor Comparison
     12.3 Vendor Inclusion Criteria
     12.4 Vendors Evaluated
     12.5 SD-WAN: MnM Dive –Vendor Comparison
     12.6 Battle for Market Share: Partnerships/ Collaborations/ Agreements is the Key Strategy Adopted By the Market Companies From 2014 to 2016
             12.6.1 Partnerships, Collaborations, and Agreements
             12.6.2 New Product Launches and Product Enhancements
             12.6.3 Business Expansions

13 Company Profiles (Page No. - 94)
(Overview, Solutions Offered & Recent Developments & Key Strategies and MnM View)*
     13.1 Introduction
     13.2 Cisco Systems, Inc.
     13.3 Citrix Systems, Inc.
     13.4 Aryaka Networks Inc.
     13.5 Cloudgenix Inc.
     13.6 Ecessa Corporation
     13.7 Silver Peak Systems Inc.
     13.8 Velocloud
     13.9 Viptela, Inc.
*Details on Overview, Solutions Offered & Recent Developments & Key Strategies and MnM View Might Not Be Captured in Case of Unlisted Companies.
     13.10 Key Innovators
             13.10.1 Elfiq Networks Inc.
             13.10.2 Peplink
             13.10.3 Versa Networks

14 Appendix (Page No. - 115)
     14.1 Insights of Industry Experts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing RT: Real-Time Market Intelligence
     14.5 Available Customizations
     14.6 Related Reports
     14.7 Author Details


List of Tables (69 Tables)

Table 1 Software Defined WAN Market Size, By Component, 2014–2021 (USD Million)
Table 2 SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 3 SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 4 SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 5 Virtual Appliances: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 6 Physical Appliances: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 7 Hybrid: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 8 Software Defined WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 9 On-Premises: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 10 On-Cloud: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 11 SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 12 Managed Services: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 13 Professional Services: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 14 Software Defined WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 15 BFSI: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 16 Retail: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 17 Healthcare: SD-WAN Networks Market Size, By Region, 2014–2021 (USD Million)
Table 18 Government: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 19 It and Telecom: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 20 Manufacturing: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 21 Others: SD-WAN Market Size, By Region, 2014–2021 (USD Million)
Table 22 Software Defined WAN Market Size, By Region, 2014–2021 (USD Million)
Table 23 North America: SD-WAN Market Size, By Type, 2014–2021 (USD Million)
Table 24 North America: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 25 North America: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 26 North America: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 27 North America: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 28 North America: SD-WAN Market Size, By Country, 2014–2021 (USD Million)
Table 29 U.S.: SD-WAN Market Size, By Type, 2014–2021 (USD Million)
Table 30 U.S.: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 31 U.S.: SD-WAN Market, By Deployment Type, 2014–2021 (USD Million)
Table 32 U.S.: SD-WAN Market, By Technology Service, 2014–2021 (USD Million)
Table 33 U.S.: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 34 Europe: Software Defined WAN Market Size, By Type, 2014–2021 (USD Million)
Table 35 Europe: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 36 Europe: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 37 Europe: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 38 Europe: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 39 Europe: SD-WAN Market Size, By Country, 2014–2021 (USD Million)
Table 40 U.K.: Software Defined WAN Market Size, By Type, 2014–2021 (USD Million)
Table 41 U.K.: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 42 U.K.: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 43 U.K.: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 44 U.K.: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 45 APAC: Software Defined WAN Market Size, By Type, 2014–2021 (USD Million)
Table 46 APAC: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 47 APAC: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 48 APAC: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 49 APAC: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 50 APAC: SD-WAN Market Size, By Country, 2014–2021 (USD Million)
Table 51 China: Software Defined WAN Market Size, By Type, 2014–2021 (USD Million)
Table 52 China: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 53 China: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 54 China: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 55 China: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 56 MEA: Software Defined WAN Market Size, By Type, 2014–2021 (USD Million)
Table 57 MEA: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 58 MEA: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 59 MEA: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 60 MEA: SD-WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 61 Latin America: SD-WAN Market Size, By Type, 2014–2021 (USD Million)
Table 62 Latin America: SD-WAN Market Size, By Component, 2014–2021 (USD Million)
Table 63 Latin America: SD-WAN Market Size, By Deployment Type, 2014–2021 (USD Million)
Table 64 Latin America: SD-WAN Market Size, By Technology Service, 2014–2021 (USD Million)
Table 65 Latin America: Software Defined WAN Market Size, By Vertical, 2014–2021 (USD Million)
Table 66 Evaluation Criteria
Table 67 Partnerships, Collaborations, and Agreements, 2015-2016
Table 68 New Product Launches and Product Enhancements, 2014-2016
Table 69 New Product Launches and Product Enhancements, 2016


List of Figures (35 Figures)

Figure 1 Global Software Defined WAN Market : Research Design
Figure 2 Market Size Estimation Methodology: Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Top-Down Approach
Figure 4 Data Triangulation
Figure 5 SD-WAN Market Snapshot, By Component, 2016 vs 2021
Figure 6 SD-WAN Market Snapshot, By Technology Service, 2016 vs 2021
Figure 7 SD-WAN Market Snapshot, By Vertical, 2016 vs 2021
Figure 8 North America has the Largest Share in the Global SD-WAN Market, 2016
Figure 9 Increasing Focus on Remote Location Network Connectivity is Boosting the SD-WAN Market
Figure 10 Physical Appliances Segment is Expected to Hold the Largest Market Share in the SD-WAN Market During the Forecast Period (2016–2021)
Figure 11 Among Verticals, the Retail Vertical Accounted for the Largest Share in the SD-WAN Market in 2016
Figure 12 North America is Expected to Be in the High Growth Phase in 2016
Figure 13 Evolution of the Software Defined WAN Market
Figure 14 SD-WAN Market Segmentation: By Component
Figure 15 SD-WAN Market Segmentation: By Deployment Type
Figure 16 SD-WAN Market Segmentation: By Technology Service
Figure 17 SD-WAN Market Segmentation: By Vertical
Figure 18 Software Defined WAN Market: Drivers, Restraints, Opportunities, and Challenges
Figure 19 Value Chain Architecture: SD-WAN Market
Figure 20 Companies Adopted Different Strategies to Gain Competitive Edge in the SD-WAN Market From 2014 to 2016
Figure 21 Hybrid Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 22 On-Cloud Deployment is Expected to Dominate the Market in 2021
Figure 23 Managed Services is Expected to Dominate the Market in 2021
Figure 24 Manufacturing Vertical is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 25 Geographic Snapshot (2016–2021): APAC is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 26 APAC Region is Expected to Grow at Highest CAGR in the Forecast Period
Figure 27 North America: Market Snapshot
Figure 28 APAC: Market Snapshot
Figure 29 Business Strategy Analysis
Figure 30 Product Offerings Analysis
Figure 31 Market Evaluation Framework: Significant Partnerships, Collaborations, and Agreements Have Fueled Growth of the SD-WAN Market
Figure 32 Cisco Systems, Inc.: Company Snapshot
Figure 33 Cisco Systems, Inc.: SWOT Analysis
Figure 34 Citrix Systems, Inc.: Company Snapshot
Figure 35 Citrix Systems Inc.: SWOT Analysis

The Software Defined WAN Market is expected to grow from USD 738.9 Million in 2016 to USD 9,066.2 Million by 2021, at a Compound Annual Growth Rate (CAGR) of 65.11% during the forecast period. A rising need for SD-WAN solutions, effective management of network, and need of security are increasing the demand for SD-WAN in the market.

The SD-WAN market is segmented by components, deployment types, technology services, verticals, and regions. The SD-WAN market segmented based on components installed at enterprises and in branches includes virtual appliances, physical appliances, and hybrid. The physical appliances have the largest market share in 2016.  Physical appliances are directly installed in the premises of end-users and assist in laying a foundation for the network connections at the end-users’ premises. Having physical appliances deployed, enterprises can move to a broadband WAN at their own pace, whether site-by-site, or via a hybrid WAN.

The Software Defined WAN Market by deployment type comprises on-premises and on cloud. On–premises deployment helps in upgrading the in-house capabilities of enterprises solutions, such as firewall and remote site surveillance. The on-cloud solution provides easy provision for deploying advanced cloud-based solutions, such as high quality internet and highly-secured access. The on-cloud-based services are expected to become the largest segment by 2021. An increasing demand for SD-WAN cloud-based services is driving the market.

Software Defined WAN Market is also segmented on basis of type of services that are utilized and deployed to the end-users, such as managed services and professional services. Managed services have the largest market share in 2016. Managed services provide a combination of SDN-WAN solutions to end-users, which helps in reducing the overall cost of operations and makes them more flexible. They also provide seamless integration of WAN and branch networks to provide end-to-end solutions to end-users.

The Software Defined WAN Market is segmented on the basis of verticals into Banking, Financial Services & Insurance (BFSI), retail, healthcare, government, manufacturing, and others, including oil & gas, mining, and logistics & transportation. In 2016, the retail vertical is expected to have the highest market share. Since improving the operational efficiency has become one of the key elements of the enterprise strategies, the demand for providing high-speed internet and strong network coverage is increasing rapidly.

North America is expected to have the largest market share in 2016, whereas the Asia-Pacific (APAC) region is expected to grow at the highest CAGR from 2016 to 2021 in the Software Defined WAN Market. The major growth factors that would drive the adoption of SD-WAN include the increasing need to central network management and reducing the operating cost. Since APAC is the fastest growing region and represents the investors with immense opportunities of growth, a lot of the companies are investing in this region.

Software Defined Wide Area Network Market

The Software Defined WAN Market lacks in security standards, such as lack of network synchronization and security administration at every level of the network. The key vendors in the SD-WAN market are Cisco Systems, Inc. (U.S.), Citrix Systems, Inc. (U.S.), Aryaka Networks, Inc. (U.S.), CloudGenix, Inc. (U.S.), Ecessa Corporation (U.S.), Silver Peak Systems, Inc. (U.S.), VeloCloud, Viptela, Inc. (U.S.), Elfiq Networks, Inc. (Canada), Peplink (Hong Kong), and Versa Networks (U.S.). These players have adopted various strategies, such as new product developments, acquisitions, and partnerships to serve the Software Defined WAN Market.

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