Cloud Managed SD-WAN Services Market Size (2023 – 2030)

The Global Cloud Managed SD-WAN Services Market was estimated to be worth USD 767.34 Million in 2023 and is anticipated to reach a value of USD 5,126.63 Million by 2030, growing at a fast CAGR of 31.17% during the outlook period 2024-2030.

A computer network called a software-defined wide area network (SD-WAN) enables several Internet access points to be connected to provide high-throughput data channels, such as cables, cellular phones, DSL, and other IP transports. WAN solutions improve application performance while lowering costs, increasing agility, and resolving several IT issues. The corporate WAN needs more than connectivity to enter the era of intelligent organizations. Network optimization and ensuring that application performance objectives are met depend more and more on network intelligence.

Application-based networking, which prioritizes application traffic over various WANs based on the company's priority criteria and QoS security, uses the managed SD-WAN service. Services for SD-WAN are handled by service providers or businesses. Enterprises prefer to have a Managed Service Provider (MSP) or Communications Service Provider (CSP) supply the SD-WAN managed service rather than deploying and operating it themselves because network administration and operations are not their major business. With Managed SD-WAN Services, clients may make use of high-end features like real-time monitoring, application performance management, replay capabilities, and WAN optimization.

The information that SD-WAN managed services give you in your network and apps lead to significant performance gains. Predictive analytics and automation from the Managed SD-WAN Services portal prove to be a powerful combination that increases secure network performance even further. Managed SD-WAN Services help clients by offering flexible network connectivity options for businesses and a full suite of cybersecurity, wireless access VPN, and application acceleration potentials to ensure higher levels of network accessibility, performance, and security. These services also help clients transform their network architecture, optimizing cloud connectivity, and improving the overall end-user experience.

Global Cloud Managed SD-WAN Services Market Drivers:

The increasing number of cloud-based solutions is driving demand in the Cloud Managed SDWAN Services Market.

In recent years, as the cost of bandwidth and cloud storage has decreased, there have been an increasing number of cloud-based solutions. Cloud-based applications are now widely used in business. Cloud-based services and cloud platforms are currently being offered by numerous well-known IT organizations. Enterprises would probably choose SD-WAN because it offers better cloud connectivity than MPLS. The network's traffic is also growing as a result of the rise in cloud-based services. To handle increasing traffic, businesses must use cutting-edge technologies like SD-WAN. Consequently, the worldwide software-defined wide-area network market is anticipated to grow during the forecast period as more cloud-based solutions become available.

Integration of 5G technology with SD-WAN will drive growth in the Cloud Managed SD-WAN Services Market.

Global use of 5G and SD-WAN technology is rising. In 2021, it is predicted that 30% of businesses will be using SD-WAN, and the market for 5G systems will grow at a CAGR of 40%.

However, by enabling a significant influence in enterprise branch networking and connecting systems, data, applications, and cloud at the edge, SD-WAN and 5G will transform the networking landscape for next-generation enterprises.

Due to enhanced WAN bandwidth capacity, SD-WAN made possible by 5G would aid in lowering operational costs. By moving computing functions to the cloud and utilizing 5G to speed up data transport, businesses are better able to process large volumes of data quickly. Additionally, by putting resources closer to edge devices, businesses can spend less on hardware and energy.

Due to the rise in web traffic and lack of security, the 5G high-speed network attracts hackers. However, because SD-WAN can connect various networks, it aids in enhancing security by routing data traffic through the 5G radio network. This contributes to the development of a zero-trust access environment because the 5G radio network supports mutual authentication and is encrypted.

Global Cloud-Managed SD-WAN Services Market Challenges:

Although SD-WAN is a cutting-edge technology, some networking experts argue that for consistent quality of service, another type of transmission is still required. They encourage businesses to maintain an MPLS link in tandem with a broadband connection to ensure high-quality real-time traffic service. Although SD-WAN is used to enhance QoS, it cannot ensure QoS on its own. If all paths are faulty, SD-WAN cannot ensure the quality of service. SD-WAN may detect packet loss and jitter and choose the best path for the packet. The company's reliance on MPLS can be greatly reduced by the adoption of SD-WAN, but it is unlikely that SD-WAN can soon totally replace MPLS. Customers' worries about the reliability of the SD-WAN network are not anticipated to endure for very long because several SD-WAN suppliers claim that their solutions would boost network reliability.

Global Cloud Managed SD-WAN Services Market Opportunities:

The adoption of SD-WAN has more than one goal, including cost reduction. Network operations, management, and upkeep are made simpler by the implementation of SD-WAN. The organization frequently uses SD-WAN as part of its digital transformation approach. In many organizations, improving the efficiency of platforms and applications used by businesses for social, marketing, or e-commerce operations is one of the main goals of digital transformation. SD-WAN is essential to digital transformation since it lowers the cost of network infrastructure while also enhancing application performance. By allowing data to be transmitted across numerous lines, SD-WAN improves application performance over the WAN infrastructure. The global SD-WAN market is anticipated to expand significantly over the course of the forecast period as businesses prepare to undertake high-budget digital transformations.

COVID-19 Impact on Global Cloud Managed SD-WAN Services Market:

Businesses are now required to operate remotely using bandwidth-intensive applications due to the COVID-19 pandemic. Networks are being impacted in hitherto unheard-of ways as a result. The popularity of SD-WAN is growing as a result of remote working because it offers a virtual WAN architecture that enables enterprises to employ any combination of transport services, such as broadband, LTE, MPLS, and internet services, for securely connecting users to applications.

Due to its ability to reduce the operational complexity of IT by considering the home environment as a branch extension of the corporate network, SD-WAN has helped businesses perform better, save money, and remain flexible during the pandemic. To secure, authenticate, and manage connectivity for a sizable remote workforce that will continue after the epidemic, SD-WAN is essential. Remote workers can receive direct access to SaaS applications by using SASE in conjunction with SD-WAN gateways.

Global Cloud Managed SD-WAN Services Market Recent Developments:

• A five-year deal between Nokia and Ice to supply high-capacity hardware, including 5G Massive MIMO to handle all frequency bands, was announced in July 2022. According to this arrangement, the business will install 3900 new base stations in addition to modernizing about 3,200 existing ones.
• Cisco and Telefónica Tech joined together in June 2022 to develop SD-WAN, security, and SASE solutions. A comprehensive connectivity and safety package would be offered by this new service to connect businesses with data centers, neighborhood branches, and far-flung worker locations. It was intended to satisfy the needs of both significant startups and small enterprises in the area.
• Hewlett Packard Enterprise purchased Zerto in September 2021; Zerto is a market leader in cloud data management and security. The HPE GreenLake edge-to-cloud technology is now well-positioned in the fast-growing industry thanks to this acquisition, which also transforms HPE's storage division into a software-defined, cloud-native data service.

CLOUD MANAGED SD-WAN SERVICES MARKET REPORT COVERAGE:

Global Cloud Managed SD-WAN Services Market Segmentation: By End User

• BFSI

• Manufacturing

• Retail

• Healthcare

• Education

• Transportation and logistics

• Energy and utilities

• Others

Industries including BFSI, manufacturing, retail, healthcare, education, transportation and logistics, energy and utilities, and others have been used to categorize the industry verticals. The advantages gained by businesses during the COVID-19 epidemic, such as a remote work culture around the world, support for a cloud-first strategy, and improvements in application performance, have led to an increase in the deployment of SD-WAN solutions across a variety of vertical sectors. Healthcare and Education sectors are anticipated to hold the highest market share in 2022 collectively. However, BFSI is predicted to grow at the fastest rate during the forecast period.

Global Cloud Managed SD-WAN Services Market Segmentation: By Component

• Solutions

• Services

• Others

The market is divided into Solutions, Services, and others based on Component. The market growth is anticipated to be inflated by the services segment and is anticipated to grow at the fastest rate. These services aid clients in cutting expenses, bringing down operating costs, and boosting productivity. Organizations can track, assess, and analyze their business requirements with the use of these services to make wise decisions.

Global Cloud Managed SD-WAN Services Market Segmentation: By Organization Size

• Large Enterprises (1000+ Users)

• Medium-Sized Enterprise (499-1000 Users)

• Small Enterprises (1-499 Users)

Large enterprises (1000+ Users), medium-sized enterprises (499–1000 Users), and small enterprises (1-499 Users) make up the market's application-based segments. Due to the enormous amount of data these companies produce, the Large Enterprises (1000+ Users) category dominates the globally managed SD-WAN service market. The expertise of IT staff is needed by large businesses to manage specialized applications and IT infrastructure. By being aware of all forwarding tables on the network, SD-WAN technology for big enterprise networks expedites troubleshooting. This information enables network administrators to assess the state of the network at any given moment.

The organization's ongoing drive to better customer experience, which will contribute to the business's financial success, is another motivator for implementing the managed SD-WAN solution. With the help of WAN management and web-based performance monitoring, network complexity is also made easier to manage. Additionally, as time goes on, managing extensive networks internally by an organization's staff members becomes time-consuming due to the possibility that a single error could have a significant snowball impact. The time it takes to set up and run an SD-WAN as a managed service may be cut in half.

Global Cloud Managed SD-WAN Services Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Due to the rapid deployment of 5G applications and infrastructure, the North American region will continue to dominate the globally managed SD-WAN service market over the predicted timeframe. The need for these services will increase as more American firms use SD-WAN services. Businesses and organizations in the United States are becoming more and more accustomed to operating in a networked environment. Companies are embracing automation and virtualization to lower costs and increase the scalability of the experiences they want to offer as the volume of data increases.

For employees to interact across platforms, devices, and locations, businesses must manage mobile devices, applications, and a variety of voice and collaboration solutions. The adoption of managed SD-WAN services will also be aided by the rise in smartphone usage in the US. Additionally, Europe is slightly behind North America in terms of market share for managed SD-WAN services globally. The use of managed SD-WAN services has expanded in Europe over the last two to three years as businesses look to streamline their network design and boost network flexibility. The regional market will expand as a result of service providers delivering secure access service edge (SASE) solutions and customer desire for increased security through SD-WAN solutions.

Global Cloud Managed SD-WAN Services Market Key Players:

1. Cisco

2. VMware

3. Silver Peak

4. Aryaka Networks

5. Nokia

6. Adaptive Networks

7. Peplink

8. Lavelle Networks

9. Martello Technologies

10. Mushroom Networks.