Dell’Oro Group: SD-WAN Market Growth Will Accelerate in 2021

Photo Shin Umeda, Vice President at Dell’Oro Group
“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.

The worldwide sales of SD-WAN technologies are forecasted to grow at a compounded annual growth rate of 24 percent over the next five years, and the market is expected to surpass $4 billion in 2025. The forecast has been shared in a newly published report by Dell’Oro Group.

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

Wide area networks (WANs) utilize software components to control WAN operations. Network control software is being used to virtualize networking hardware, just like hypervisors can be deployed to virtualize data center operations. SD-WANs allow enterprises to connect all of their networks within their systems across a wide geographic area. It may include branch office networks and attendant data centers.

“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. “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.”

Additional highlights from Dell’Oro Group’s SD-WAN Advanced Research Report include:

  • Software accounts for more than 80 percent of SD-WAN revenue currently, and its contribution is expected to rise over the next five years
  • SD-WAN vendor consolidation is expected to continue over the next five years following a surge of acquisitions in 2020

The Dell’Oro Group SD-WAN Advanced Research Report would offer complete, in-depth coverage of the service Provider Core and Edge Router, Carrier Ethernet Switch, and Enterprise Router markets for future current and historical time periods. The report includes qualitative analysis and detailed statistics for manufacture revenue by regions, customer types, and use cases, average selling prices, and unit and port shipments.

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