SD-WAN market forecast to 24% CAGR through 2025

Jan. 27, 2021
After experiencing slower growth in 2020 caused by the COVID-19 pandemic, Dell'Oro Group says the SD-WAN market is expected to accelerate in 2021 and 2022.

According to Dell’Oro Group, worldwide sales of SD-WAN technologies are forecast to grow at a compound annual growth rate (CAGR) of 24 percent over the next five years, and the market is expected to surpass $4 billion in 2025.

After experiencing slower growth in 2020 caused by the COVID-19 pandemic, the analyst says the SD-WAN market is expected to accelerate in 2021 and 2022. 

“The pandemic caused some delays in SD-WAN deployments in 2020, but the underlying demand drivers for modernizing WAN infrastructures remains strong,” said Shin Umeda, Vice President at Dell’Oro Group.  

Dell’Oro Group's recent research also states that software accounts for more than 80 percent of SD-WAN revenue currently, and its contribution is expected to rise over the next five years. Meanwhile, SD-WAN vendor consolidation is expected to continue over the next five years following a surge of acquisitions in 2020. 

“With more clarity on the direction of macroeconomic conditions and the pandemic in 2021, businesses will increasingly execute on their strategic SD-WAN investments, which in turn will drive a market acceleration,” added Dell'Oro's Umeda. 

The Dell’Oro Group's SD-WAN Advanced Research Report offers in-depth coverage of the Service Provider Core and Edge Router, Carrier Ethernet Switch, and Enterprise Router segments for future current and historical time periods.

The report includes qualitative analysis and detailed statistics for manufacturer revenue by region, customer type, and use cases, average selling prices, and unit and port shipments.  

 For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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