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SD WAN Market

Pages: 180 | Base Year: 2024 | Release: July 2025 | Author: Versha V.

Market Definition

Software-defined wide area network (SD-WAN) is a virtual WAN architecture that securely connects users to applications by centrally managing traffic across multiple connections, including MPLS, LTE, and broadband.

The market encompasses hardware, software platforms, and managed services that enable dynamic traffic routing, application-aware policies, and enhanced network visibility. It covers enterprise branches, data centers, and cloud environments, supporting digital transformation through improved performance, security, scalability, and cost efficiency across distributed networks. 

The global SD WAN market size was valued at USD 11.45 billion in 2024 and is projected to grow from USD 14.79 billion in 2025 to USD 93.08 billion by 2032, exhibiting a CAGR of 29.80% during the forecast period. This growth is attributed to the growing demand for multi-cloud and cloud-native connectivity across distributed digital environments. Moreover, AI and ML integration enhances intelligent SD-WAN optimization. 

Major companies operating in the SD WAN industry are Cisco Systems, Inc., Oracle, Hewlett Packard Enterprise Development LP, Nokia, Broadcom, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Fortinet, Inc, Citrix Systems, Inc, Epsilon Telecommunications, Palo Alto Networks, Inc., Riverbed Technology, Inc., Telefonaktiebolaget LM Ericsson, Colt Technology Services Group Limited, and Tata Communications Limited.  

SD WAN Market Size & Share, By Revenue, 2025-2032

Key Highlights:

  1. The SD WAN industry size was recorded at USD 11.45 billion in 2024.
  2. The market is projected to grow at a staggering CAGR of 29.80% from 2025 to 2032.
  3. North America held a share of 36.00% in 2024, valued at USD 4.12 billion.
  4. The solution segment garnered USD 7.12 billion in revenue in 2024.
  5. The on-premises segment is expected to reach USD 51.49 billion by 2032.
  6. The large enterprises segment secured the largest revenue share of 59.94% in 2024.
  7. The BFSI segment is set to grow at a robust CAGR of 30.86% through the forecast period.
  8. Asia Pacific is anticipated to grow at a CAGR of 30.85% over the forecast period.

SD WAN Market Report Scope

Segmentation

Details

By Component

Solution, Services

By Deployment

On-premises, Cloud-based

By Organization Size

Small and Medium Enterprises, Large Enterprises

By Vertical

IT & Telecommunications, BFSI, Manufacturing, Retail, Healthcare, Government, Transport & Logistics, Energy & Utilities

By Region

North America: U.S., Canada, Mexico

Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe

Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific

Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa

South America: Brazil, Argentina, Rest of South America

SD WAN Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America SD WAN market share stood at 36.00% in 2024, valued at USD 4.12 billion. This dominance is reinforced by the strong presence of major technology vendors leading SD-WAN innovation in the region.

Continuous advancements in network capabilities through integrated platforms, enhanced security features, and intelligent traffic management, along with early market entry and sustained product development, have accelerated enterprise adoption. These factors have solidified North America's position as a central hub for SD-WAN deployment and technological progress.

  • For instance, Cisco was named a Leader in the 2024 Gartner Magic Quadrant for SD-WAN for its Secure Access Service Edge (SASE)-ready architecture, which features integrated ThousandEyes visibility, next-generation firewall, and advanced traffic orchestration.

SD WAN Market Size & Share, By Region, 2025-2032

The Asia-Pacific SD WAN industry is set to grow at a staggering CAGR of 30.85% over the forecast period. This growth is propelled by accelerated digital transformation across enterprises in the region, resulting in increased demand for agile and scalable network solutions.

Businesses are rapidly adopting cloud services, supporting distributed workforces, and expanding digital operations, which require reliable and adaptable connectivity. The need for centralized control, secure data transmission, and consistent application performance is increasing reliance on SD-WAN platforms, positioning Asia Pacific as the fastest growing market for SD-WAN. 

SD WAN Market Overview

Market expansion is fueled by the cost-efficiency of SD WANs over traditional WANs. Enterprises are replacing costly multiprotocol label switching (MPLS) with broadband and long-term evolution (LTE), enabling lower connectivity expenses without compromising network performance. SD-WAN platforms provide centralized control and intelligent traffic routing, optimizing usage and reducing infrastructure overhead.

In response, manufacturers and service providers are enhancing their offerings with policy-based routing and integrated security features, positioning SD-WAN as a cost-effective, high-performance solution for enterprise networks.

Market Driver

Growing Demand for Multi-Cloud and Cloud-Native Connectivity

Growing enterprise demand for seamless connectivity across multi-cloud and cloud-native environments is propelling the growth of the SD WAN market. Organizations are increasingly deploying workloads across various cloud platforms, which is creating a strong demand for secure, reliable, and high-performance network access.

SD-WAN addresses this requirement by providing centralized orchestration, intelligent traffic routing, and full visibility across hybrid cloud networks. These capabilities ensure consistent application performance and data security, making SD-WAN essential for enterprises adopting complex cloud-based architectures.

  • In April 2025, Cisco integrated with Google Cloud Wide Area Network (WAN) to enable SD-WAN fabrics to route traffic directly to Google Cloud workloads via optimized middle-mile paths, enhancing Software-as-a-Service (SaaS) performance and cloud-native application delivery.

Market Challenge

Shortage of Skilled Workforce

A significant challenge in the market is the shortage of skilled IT professionals with expertise in deployment and management. This hampers enterprises in effectively configuring, monitoring, and securing SD-WAN environments, which increases operational risks and slows adoption. The talent gap also increases dependence on third-party providers, impacting long-term cost efficiency.

To overcome this challenge, vendors are investing in automation, user-friendly interfaces, and training programs. These efforts aim to simplify management and reduce skill dependency.

Market Trend

AI and ML Integration for Intelligent SD-WAN Optimization

The adoption of artificial intelligence (AI) and machine learning (ML) for network optimization is emerging as a key trend in the SD WAN market. Vendors are integrating AI and ML capabilities to support real-time application-aware routing, predictive analytics, and automated fault detection.

These technologies are transforming SD-WAN solutions into adaptive, self-healing networks that respond dynamically to performance fluctuations. This shift toward intelligent automation is enhancing network reliability and improving operational efficiency. 

  • In May 2025, Juniper Networks upgraded its Artificial Intelligence (AI)-Native Networking Platform with advanced AI capabilities across Wide Area Network (WAN) Assurance, Marvis Virtual Network Assistant, and Routing Assurance to support intelligent and secure SD-WAN and Secure Access Service Edge (SASE) operations.

Market Segmentation:

  • By Component (Solution and Services): The solution segment earned USD 7.12 billion in 2024, mainly due to rising enterprise demand for integrated platforms that offer centralized management, real-time traffic control, and enhanced network visibility across distributed environments.
  • By Deployment (On-premises and Cloud-based): The on-premises segment held a share of 57.37% in 2024, attributed to enterprise preference for direct control over network infrastructure, data security, and performance customization within private and regulated environments.
  • By Organization Size (Small and Medium Enterprises and Large Enterprises): The large enterprises segment is projected to reach USD 54.89 billion by 2032, owing to the need for scalable, high-performance network solutions that support complex infrastructures, multi-site operations, and strict security requirements.
  • By Vertical (IT & Telecommunications, BFSI, Manufacturing, Retail, Healthcare, Government, Transport & Logistics, and Energy & Utilities): The IT & telecommunications segment earned USD 1.91 billion in 2024, fueled by high bandwidth demands, rapid cloud adoption, and the critical need for reliable, agile, and centrally managed network infrastructure across global operations.

Regulatory Frameworks

  • In the U.S., the Federal Communications Commission (FCC) regulates interstate and international communications, ensuring SD-WAN service providers comply with network neutrality and telecommunications classifications.
  • In India, the Department of Telecommunications (DoT) regulates telecommunications services and network infrastructure, overseeing licensing and the use of virtual network functions such as SD-WAN across sectors.

Competitive Landscape

The competitive landscape of the SD WAN industry remains dynamic, characterized by continuous product innovations and strategic enhancements. Leading vendors are introducing AI-driven capabilities, integrated security frameworks, and cloud-native features to strengthen portfolio differentiation.

Frequent launches of scalable, intent-based networking solutions are addressing rising enterprise demands for agility and operational efficiency. Moreover, providers are advancing platform upgrades to support hybrid and multi-cloud environments, aiming to enhance customer retention and market presence.

  • In April 2025, Verizon launched its first government cloud-managed software-defined wide area network (SD-WAN) solution on its federal risk and authorization management program (FedRAMP) High Ready platform, developed in compliance with National Institute of Standards and Technology (NIST) 800-53 controls.

Key Companies in SD WAN Market:

  • Cisco Systems, Inc.
  • Oracle
  • Hewlett Packard Enterprise Development LP
  • Nokia
  • Broadcom
  • Huawei Technologies Co., Ltd.
  • Juniper Networks, Inc. 
  • Fortinet, Inc
  • Citrix Systems, Inc
  • Epsilon Telecommunications
  • Palo Alto Networks, Inc. 
  • Riverbed Technology, Inc.
  • Telefonaktiebolaget LM Ericsson 
  • Colt Technology Services Group Limited
  • Tata Communications Limited.

Recent Developments (Partnerships/ Product Launches)

  • In February 2025, Orange and Huawei partnered to introduce Huawei’s Software-Defined Wide Area Network (SD-WAN) services on the Huawei Cloud Stack (HCS) platform in Egypt, offering enhanced performance, security, and seamless connectivity for distributed enterprises.
  • In August 2024, Hewlett Packard Enterprise announced that Berger Paints selected the HPE Aruba Networking EdgeConnect Software-Defined Wide Area Network (SD-WAN) solution to enhance WAN connectivity across 160 sites in India, including data centers, disaster recovery sites, and corporate headquarters.
  • In July 2024, Adaptiv Networks introduced an updated version of its Adaptiv Connect SD-WAN solution, introducing advanced network management and troubleshooting capabilities across its Connect Network and Cloud Orchestrator to enhance service delivery for managed service providers (MSPs).

Frequently Asked Questions

What is the expected CAGR for the SD WAN market over the forecast period?
The market is projected to reach USD 93.08 billion by 2032, growing at a CAGR of 29.80% from 2025 to 2032. How big was the industry in 2024?
What are the major factors driving the market?
Who are the key players in market?
Which is the fastest growing region in the market in the forecasted period?
Which segment is anticipated to hold the largest share of the market in 2032?