Analysts: SD-WAN 5-year annual growth rate tops 40%

Whether users are looking to stabilize cloud-connected resources, better manage remote networks or simply upgrade a timeworn wide area environment, software-defined-WAN (SD-WAN) technologies are what’s on the purchasing menu.

The proof lies in the fact that this segment of the networking market will hit $4.5 billion and grow at a 40.4% compound annual growth rate from 2017 to 2022. In 2017 alone, SD-WAN infrastructure revenues increased 83.3% in 2017 to reach $833 million, according to IDC’s recent SD-WAN Infrastructure Forecast.  

A related report from researchers at the Dell’Oro Group predicts revenue from SD-WAN software components, including controller and virtual network functions, will grow almost twice as fast as the hardware components.  Over the next five years, SD-WAN software revenue will grow at a 41% compounded annual growth rate, compared to 21% for hardware.

The speed of SD-WAN adoption is one of the most surprising aspects of the forecast, said Brandon Butler a senior analyst with IDC. “The SD-WAN market is really in the early stages and we expect to see significant growth through 2022.”

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