Impact of COVID-19 on global SD-WAN market
Demand for SD-WANs is also gaining momentum as organizations rely heavily on the homework initiative, as a result of the COVID-19 revolution. To enable remote operation, organizations are looking for advanced network solutions for greater flexibility and security. However, the supply chain disruption among the pandemic creates a short-term barrier, especially in the use of SD-WAN Services. The impact of COVID-19 on the overall market is expected to be positive; however, the market is likely to see a small decline in 2020 due to supply chain disruptions.
Market dynamics
Driver: Rising demand for mobility services
The growing need for enterprise mobility has led to the use of mobile personal devices such as smartphones, notebooks, and tablets to access corporate networks. There is an emphasis on the existing IT infrastructure to deploy these tools in a robust manner while meeting compliance standards and norms. The rise of mobile data is so great that parallel processing of multiple servers and sewing interconnects requires parallel processing. This, in turn, has stimulated a steady demand for additional network capacity and more sophisticated network solutions. While carrier players and data centers are opposed to the daunting task of scaling up their networks to incredible sizes, SD-WAN will come off as a promising solution.
Limitation: Reliability issues in SD-WAN
SD-WAN is an advanced technology, but some network experts suggest that a reliable alternative quality of service is needed. They advise taking advantage of quality of service in real-time traffic, the enterprise should keep the MPLS connection in parallel with the broadband connection. Although SD-WAN is used to improve QoS, it itself cannot guarantee QoS. SD-WAN can detect packet loss and jitter and select the best route for the package, but if all routes are bad, SD-WAN cannot guarantee quality of service. Effective implementation of SD-WAN can significantly reduce the company’s dependence on MPLS; however, it is unlikely that SDLS will soon replace MPLS. With many SD-WAN vendors promising to increase network reliability, consumer concerns about SD-WAN network reliability are not expected to last long.
Opportunity: Increase network traffic
Internet traffic has been on the rise in recent years, largely due to the rapid increase in video content traffic. As consumers have switched to high-definition screens, the demand for high-quality video streaming has intensified. High quality video requires high bandwidth. Video-based traffic also varies by day and time. At peak times, video-based traffic increases dramatically. Therefore, bandwidth allocation is needed soon. Using an SD-WAN network, an operator can set some rules to prioritize network traffic based on its application. An increase in network traffic is expected to boost the global network traffic market in the forecast period.
Challenge: SD-WAN security issues
When cyber attackers try to find serious ways to attack networks, organizations with sensitive data traffic have legitimate concerns about network security. For organizations with highly sensitive data traffic, the security capabilities in the SD-WAN devices they use may not be sufficient. In SD-WAN, security devices must be installed in each remote location to protect the network from Internet-based threats. There are several options for SD-WAN security; however, sometimes there is confusion between what kind of situation they need to ensure optimal security. While many companies are concerned about SD-WAN security and what options are there to address it, it is hoped that they will soon have an advanced SD-WAN security interface, as many security solutions SD-WAN provides. vendors.
The cloud segment becomes a larger market size in the forecast period
It is expected to see high demand in the cloud sector, due to its various functions, such as greater flexibility, lower costs and faster services. The cloud-enabled SD-WAN deployment model offers built-in advantages and features along with the added benefit of connecting to a virtual or cloud gateway. Cloud migration will continue to drive SD-WAN adoption for cloud-based applications such as Office 365, Amazon Web Services (AWS), Dropbox, Azure, and Salesforce.
In part, the services sector will grow at a higher CAGR over the forecast period
With more and more SD-WAN solutions, the adoption of connected services is expected to grow among businesses. The total services sector has a major impact on the growth of the SD-WAN market. These services help end users reduce costs, reduce operating costs and improve business performance. With the help of these services, organizations can monitor, evaluate and analyze the requirements of their business to make informed decisions.
Major initiatives to increase the market size in the expected period
Large companies need the knowledge of IT staff to manage specific applications and IT infrastructure due to the large amount of data they generate. SD-WAN technology accelerates problems for large enterprise networks by providing information about network forwarding. This information helps network administrators check the status of the network at any time.
APAC is expected to maintain the highest CAGR in the forecast period
The global SD-WAN market by region covers 4 main geographical regions, namely North America, Asia Pacific (APAC), Europe and the rest of the world (RoW). APAC is expected to see the highest growth rate. Large-scale investments in infrastructure modernization and the adoption of automation technologies such as the Internet of Things (IoT) and artificial intelligence (AI).
Key market players
The SD-WAN market includes major solution and service providers, such as Cisco (USA), VMware (USA), Silver Peak (USA), Aryaka Networks (USA), Nokia (Finland), Adaptiv Networks (Canada), Peplink (USA) ), Lavelle Networks (India), Martello Technologies (Canada), Mushroom Networks (USA) and Zenlayer (USA).
