Market Overview

SD-WAN Infrastructure Market Poised to Reach $4.5 Billion in 2022, According to IDC

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SD-WAN Infrastructure Market Share Leaders include Cisco, VMware,
Silver Peak, Riverbed

International Data Corporation (IDC)
has published two new reports on the fast-growing Software-Defined Wide
Area Network (SD-WAN) infrastructure market. This rapidly evolving
segment of the networking market will grow at a 40.4% compound annual
growth rate from 2017 to 2022 to reach $4.5 billion, according to IDC's
latest SD-WAN Infrastructure Forecast. The IDC Market Share report,
IDC's first for this segment, includes 2016 and 2017 revenues by vendor
for SD-WAN infrastructure.

"The emergence of SD-WAN technology has been one of the fastest industry
transformations we have seen in years. Organizations of all sizes are
modernizing their Wide Area Networks to provide improved user experience
for a range of cloud-enabled applications," said Rohit
Mehra
, vice president, Network
Infrastructure
, IDC. "Incumbent networking vendors have quickly
realigned their routing and WAN optimization portfolios to take on the
growing cadre of startups in this market. Enabled by a rapid uptake
across the service provider domain, SD-WAN infrastructure will continue
to grow rapidly in the coming years, providing a beachhead for other
software-defined networking and security functions in the enterprise
branch."

SD-WAN infrastructure revenues increased 83.3% in 2017 to reach $833
million. The market has also become increasingly competitive, with
traditional networking vendors looking to M&A strategies to complement
their existing offerings or gain a foothold in this rapidly-expanding
market. IDC found that Cisco holds the largest share of the SD-WAN
infrastructure market, fueled by its extensive routing portfolio that is
used in SD-WAN deployments, as well as its Meraki offering and its
August 2017 acquisition of Viptela. VMware, which in December 2017
purchased VeloCloud, holds the second largest market share in the SD-WAN
infrastructure market, followed by Silver Peak, Riverbed, Aryaka, Nokia
and Versa.

IDC's Market Share and Market Forecast reports focus specifically on the
SD-WAN infrastructure market, which includes both hardware and software
used in SD-WAN deployments. IDC defines SD-WAN as an architecture that
leverages a hybrid WAN using at least two or more connection types (such
as MPLS, broadband internet, 3G/4G, etc.). SD-WANs include a centralized
application-based policy controller that provides intelligent path
selection, along with an optional forwarder for routing capability. The
SD-WAN infrastructure Market Share and Forecast reports do not include
Comms SP-provided (or other) managed services related to SD-WAN
provisioning or operations, nor do they include connectivity costs.

IDC's Worldwide
SD-WAN Infrastructure Forecast, 2018–2022
(IDC #US44182618)
provides an outlook for this market across major regions for the period
extending to 2022, including historical numbers through 2017 and
forecast numbers from 2018 to 2022. It also provides regional geographic
segmentation of the SD-WAN infrastructure market, including market sizes
and CAGRs for each major region (North America, EMEA, APJ, and Latin
America).

The IDC study, Worldwide
2017 SD-WAN Infrastructure Market Shares: Incumbent networking vendors
and startups compete in fast-growing market
(IDC #US44182518)
provides a view of worldwide SD-WAN infrastructure market shares by
vendor. The report covers significant market developments in 2017 and
offers an overview of how the leading vendors performed during the year.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

All product and company names may be trademarks or registered trademarks
of their respective holders.

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