Software-Defined Wide Area Network (SD-WAN) Market by Emerging Trends, Segmentation and Future Growth Opportunities to 2026

Based on component, the software-defined wide area network (SD-WAN) market is classified into services and solution. The service segment is further categorized into managed services, integration & maintenance, and training & consulting. The training & consulting segment held a market share of over 20% in 2019 due to growing need to train the in-house staff for improving network performance.
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The software-defined wide area network (SD-WAN) market is projected to expand at a significant rate over the coming time period owing to increasing investments in cloud-based data centers and smart city projects. A software-defined wide area networks utilizes software in order to control the management, services, and connectivity between cloud instances or remote branches and data centers.
LATAM Software-Defined Wide Area Network (SD-WAN) Market will witness a CAGR over 61% across the analysis period due to the surging investments in cloud-based data centers across the region. The Middle East & Africa Software-Defined Wide Area Network (SD-WAN) will witness a market share of more than 6% over the forecast timeframe due to increasing investments in smart city projects.
With respect to application, the overall software-defined wide area network (SD-WAN) market is bifurcated into healthcare, manufacturing, government, retail & consumer goods, BFSI, IT & telecom, and others. The BFSI application segment will witness a CAGR of over 60% through the projected timeframe due to rising demand for SD-WAN solutions across BFSI enterprises to connect to their remote offices. The healthcare application segment will represent a market share of over 15% by 2026 due to growing adoption of remote healthcare services.
The deployment of SD-WAN includes vCPE (virtualized customer premises equipment) or existing switches and routers, which are all running on some version of software that is designed to handle policy, networking functions, security, and management tools, based upon customer and vendor configuration.
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The SD-WAN architecture can be cloud-enabled, on-premises, cloud-enabled along with a backbone. The key benefits of SD-WAN include its capability to manage various connections including MPLS, broadband, and LTE.
The benefits of SD-WAN for enterprises includes improving the security and decreasing threats, increasing the business productivity as well as user satisfaction, reduction in WAN costs by nearly 90%, simplifying branch WAN architecture, and improving the business agility as well as responsiveness.
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It utilizes a centralized control function to intelligently and securely drive traffic through the WAN. This in turn expands the application performance, leading to an improved user experience. It also decreases costs for IT and increases business productivity.
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