The software defined wide area network (SD-WAN) market is steadily growing as enterprises embrace mobility and look for ways to reduce expenses.
According to MarketsandMarkets, the market is expected to reach NZD 8.49 billion by 2020 (USD 5.57 billion), growing at an estimated CAGR of 3.64% from 2015 to 2020.
MarketsandMarkets describes SD-WAN is a transformational application installed in existing WAN connections used by enterprises users to simplify their branch networking performance over large geographies.
Increasing need of mobility services, and requirement for simplified network architecture is driving the SD-WAN market during the forecast period, the analysts say.
Overall, the market is segmented on the basis of different verticals into BFSI, oil and gas, healthcare, government, manufacturing, and other.
MarketsandMarkets says the demand for SD-WAN solutions is gaining traction across all the industries but, in particular, banking financial services and insurance (BFSI) is spurring on demand.
Since improving operational efficiency has become one of the key elements of enterprise strategies, the demand for providing high-speed internet and strong network coverage is increasing rapidly, and now BFSI holds the largest share of the total market share of SD-WAN market across the globe.
As well as improving operational efficiency, the growing need for enterprise mobility and to reduce expenses is driving SD-WAN adoption.
The growing need for enterprise mobility has given rise to usage of mobile personal devices such as smartphones, notebooks, and tablets to access corporate networks, says MarketsandMarkets.
When it comes to reducing expenses, the deployment of SD-WAN enables the network operators to save huge capital and operational expenditure.
SD-WAN are affordable in comparison to traditional networking connections as these assists easy up-gradation of traditional complex network into simplified network connections, MarketsandMarkets says.
The enterprises have realised the importance of SD-WAN solutions and are focusing to deploy these solutions in their premises, according to the analysts.
The major vendors in the SD-WAN market include Aryaka Networks, Cisco Systems, Talari Networks, FatPipe Networks, Mushroom Networks, and others.