Accelerated adoption of IoT to propel software-defined WAN market higher
According to a new report by Global Market Insights, the market for software-defined wide-area networks (SD-WANs) will jump from $700 million in 2018 to $17 billion by 2025, increasing at a compound annual growth rate (CAGR) of 60 percent.
The Lowdown: Enterprises will increase SD-WAN spending to replace expensive legacy wide-area networking systems, particularly in support of Internet of Things hardware and software solutions, as well as cloud computing implementations.
The Details: As businesses across verticals such as finance, health care, and manufacturing invest in more network replacement infrastructure, security, and IoT devices, they’ll likely increase their use of next-generation SD-WAN to provide better visibility into and operational effectiveness of their networks and connected systems, Global Market Insights said.
The Impact: The 60 percent CAGR growth in SD-WAN is based on the expected replacement of existing, installed appliance-based SD-WAN systems. More than 75 percent of current SD-WAN capabilities are through legacy systems. Additionally, managed services for SD-WAN are expected to increase 65 percent from 2019 to 2025.