Dell’Oro: SD-WAN market to grow at 35% CAGR for next 5 years

Dell’Oro Group is predicting that the sales of Software Defined Wide Area Network (SD-WAN) technologies will grow at a compounded annual growth rate of 35 percent over the next five years. A new Dell’Oro report forecasts the sales of SD-WAN software to grow at almost double the rate of hardware.

“The SD-WAN software components are the key differentiators of vendors’ offerings, and we expect controller and virtualized network functions software revenue to account for the large majority of the market size,” said Shin Umeda, Vice President at Dell’Oro Group. “Over time, software innovation will drive the SD-WAN market while hardware will increasingly be commoditized,” added Umeda.

Dell’Oro Group’s Advanced Research: SD-WAN Report forecast is based on a bottoms-up methodology and includes details of the hardware and software components required for full SD-WAN implementation separated into enterprise and telecom market segments.

This new advanced research report also forecasts the SD-WAN market by the type of customer deployments.

• Sales of SD-WAN solutions to Enterprises will account for the largest portion of the market over the next five years.
• Service Provider SD-WAN deployments for the purposes of managed services will grow at an average annual rate over 40 percent over the next five years.