SD-WAN growth slows as leading vendors cement market share

The global SD-WAN market has continued to expand this year, but at a slower rate compared to 2019’s explosive growth thanks to supply chain issues, according to a leading analyst.

Shin Umeda, Vice President at Dell’Oro Group, said the market grew 24% in Q1 2020 compared to the same period last year, well down on the 64% growth of that period over 2018. COVID-related disruption is largely to blame, said Umeda. He pointed out that the market’s leading players – Cisco, VMware, Silver Peak, Versa and Fortinet – have continued to prosper, seeing their combined revenue share climb above 60%.

“Demand for SD-WAN held up well in the first quarter, but supply chain disruptions induced by the COVID-19 pandemic caused a sharper deceleration in vendor revenue growth,” he commented. “We still expect the SD-WAN market to grow by double-digits this year, but with so much macroeconomic uncertainty, strong performance won’t be a shoo-in for all vendors.”

Independent analyst firm IDC has said that despite setbacks, the SD-WAN market continues to be one of the fastest-growing segments of the network infrastructure industry, driven by the significant benefits the technology provides for enterprises and service providers.
Brandon Butler, Senior Research Analyst, Network Infrastructure, IDC, said he sees vendors continue to package more features and functionalities into their SD-WAN platforms to make them more suitable for large-scale enterprise-wide deployments.

“A key market driver continues to be the significant advantages SD-WANs enable, namely centralized, policy-based management of hybrid WAN connections,” he added. He observed that vendors have been busy adding features to their SD-WAN offer in the areas of security, visibility, analytics, automation, and enhanced routing functionality.

On June 30, NetEvents will be offering the chance to hear more on these subjects from a panel of experts, including the above two analysts. They will be joined in what should be a lively discussion by Scott Raynovich, Founder of Futuriom, who will be chairing the session, and Vertical Systems Group’s Director of Research Services Erin Dunne. Raynovich will present recent findings from Futuriom’s SD-WAN survey and resulting market forecast, while Dunne will expand on Vertical’s latest SD-WAN market data including a detailed timeline and impact analysis of COVID-19. See here for further info.





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