Dell'Oro Group Predicts SD-WAN Market Growth to Accelerate

SD-WAN Market Growth Will Accelerate in 2021, According to Dell’Oro Group

SD-WAN Market to Grow at 24 Percent Compounded Annual Growth Rate over Next Five Years

According to a newly published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, 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. After experiencing slower growth in 2020 caused by the COVID-19 pandemic, 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. “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 Umeda.

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

  • 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.
Source: Dell'Oro Group media announcement

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