Due to the rising adoption of IoT and the growing utilization of big data, the valuation of the global SD-WAN market is predicted to increase from $1.4 billion to $43 billion from 2019 to 2030. Further, the market will demonstrate a CAGR of 38.6% between 2020 and 2030, according to ResearchAndMarkets.
Big data and IoT help businesses in monitoring the utilization of their products by consumers and gaining valuable insights from the analysis of this information, offering a customized customer experience, and tracking their various operations. Additionally, the adoption of these technologies allows the real-time monitoring of company assets.
As the big data and IoT technologies bring them a host of numerous challenges such as data handling and management, security concerns, data privacy, demand for advanced technical expertise and knowledge, and high implementation costs, the rising integration of these technologies is massively boosting the progress of the SD-WAN market.
SD-WAN effectively resolves these issues with the help of risk minimization, centralized management and control, and zero-touch provisioning.
In addition to this, SD-WAN solutions simplify device and network security management, provide deep visibility into network performance, which allows the IT professionals to easily detect network problems and security threats, and integrate application filters, firewalls, and UTM functionality.
The pandemic severely affecting the progress of the SD-WAN market
The current COVID-19 crisis is severely affecting the progress of the SD-WAN market. This is because businesses operating in various sectors have had to either scale down or shut down their operations because of the lockdown initiated in several countries for controlling the spread of the virus.
Because of this reason, companies are incurring huge financial losses and are therefore, reducing their IT spending, including their expenditure on SD-WAN solutions. Moreover, as most of the employees are working remotely (from home), the requirement for advanced networking solutions is very low.
Between the solution and service categories, under the offering segment of the SD-WAN market, the former is expected to register higher revenue growth in the market in the coming years.
This is ascribed to the rapidly rising popularity of multi-cloud ecosystems, rising compliance requirements, increasing procurement of connected and IoT devices, and the growing requirement for secured network infrastructure and application optimization. These factors are fueling the adoption of SD-WAN solutions in the BFSI (banking, financial services, and insurance), healthcare, and IT & telecom sectors.
Under the deployment segment, the on-premises category recorded the highest growth in the SD-WAN market in the last few years, mainly because the SD-WAN solutions come with various security concerns.
Additionally, the on-premises deployment method helps in the management of large volumes of unstructured data. Moreover, the usage of physical devices is usually preferred for the effective management of network in the corporate sector.
The bright future of the network operations visibility category
In the future years, the network operations visibility category, based on use case, would exhibit the fastest growth in the SD-WAN market. This is credited to the rising requirement for real-time insights for resolving the issues arising in SD-WAN and making its operation hassle-free.
Historically, under the industry segment of the SD-WAN market, the IT & telecom classification had the highest share, mainly because of its rapid expansion and digitization and the high requirement for a better customer experience in this industry. In addition to this, the rising usage of mobile phones in offices, development and penetration of 5G, increasing adoption of IoT, and mushrooming utilization of big data are boosting the demand for SD-WAN solutions in the industry.
Globally, the North American SD-WAN market is currently the most prosperous one, on account of the presence of several well-established SD-WAN solution providing firms, favorable government policies for 5G adoption, quick integration of various advanced technologies, and the increasing need for simple and hassle-free networking operations in the region.
In the near future, the market will demonstrate the highest CAGR in the Asia-Pacific region. This is because of the rising investments being made in the IT sector, increasing implementation of supportive government policies for 5G, rapid digital transformation in enterprises, expanding operations of market players, and the ballooning popularity of cloud computing and connected devices in the region.