Managed Sd Wan Services Market Overview
As per MRFR analysis, the Managed Sd Wan Services Market Size was estimated at 9.4 (USD Billion) in 2022.The Managed Sd Wan Services Market Industry is expected to grow from 10.62 (USD Billion) in 2023 to 32.1 (USD Billion) by 2032. The Managed Sd Wan Services Market CAGR (growth rate) is expected to be around 13.07% during the forecast period (2023 - 2032).
Key Managed Sd Wan Services Market Trends Highlighted
The Managed SD-WAN Services Market is witnessing a surge in demand due to the growing need for secure, reliable, and cost-effective networking solutions. The proliferation of cloud applications, IoT devices, and remote work arrangements has driven the adoption of SD-WAN, enabling organizations to optimize their network performance and connectivity.
Key market drivers include the increasing complexity of network infrastructure, the need for improved application performance, and the growing adoption of hybrid and multi-cloud environments. The market is also benefitting from the advancements in virtualization and cloud computing technologies, which have made SD-WAN more accessible and affordable for organizations of all sizes.
Recent market trends include the integration of advanced security features, such as next-generation firewalls and intrusion detection systems, into SD-WAN solutions. This is driven by the growing concerns around cyber threats and the need for robust network protection. Additionally, the rise of 5G technology is expected to further accelerate the adoption of SD-WAN, as it provides the high-speed and low-latency connectivity required for bandwidth-intensive applications and services.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Sd Wan Services Market Drivers
Rising Adoption of Cloud-Based Applications and Services
The increasing adoption of cloud-based applications and services is a major driver of the Managed Sd Wan Services Market Industry. As businesses move their applications and data to the cloud, they require reliable and secure networking solutions to ensure optimal performance and availability. Managed SD-WAN services provide a cost-effective and efficient way to connect cloud-based applications and services to branch offices and remote locations.By leveraging managed SD-WAN services, businesses can improve application performance, reduce network complexity, and enhance security.
Additionally, the adoption of cloud-based applications and services is leading to an increase in the number of remote workers. Managed SD-WAN services enable remote workers to securely access corporate applications and data from anywhere, improving productivity and flexibility.
Growing Demand for Secure and Reliable Networking Solutions
The growing demand for secure and reliable networking solutions is another key driver of the Managed Sd Wan Services Market Industry. With the increasing number of cyber threats and data breaches, businesses are looking for ways to protect their networks and data. Managed SD-WAN services provide a comprehensive security solution that includes features such as firewall, intrusion detection and prevention, and data encryption. By partnering with a managed SD-WAN provider, businesses can leverage the latest security technologies and expertise to protect their networks and data from cyber threats.Additionally, managed SD-WAN services can help businesses comply with industry regulations and standards, such as PCI DSS and HIPAA.
Increasing Adoption of Internet of Things (IoT) Devices
The increasing adoption of Internet of Things (IoT) devices is driving the demand for managed SD-WAN services. IoT devices generate large amounts of data that need to be transmitted to the cloud for processing and analysis. Managed SD-WAN services provide a reliable and secure way to connect IoT devices to the cloud. By leveraging managed SD-WAN services, businesses can improve the performance and efficiency of their IoT applications and services.Additionally, managed SD-WAN services can help businesses reduce the cost of managing and maintaining their IoT networks.
Managed Sd Wan Services Market Segment Insights
Managed Sd Wan Services Market Deployment Model Insights
The cloud-based deployment model is expected to dominate the Managed Sd Wan Services Market revenue, with a market share exceeding 60% by 2024. The increasing adoption of cloud-based applications and services, coupled with the benefits of scalability, flexibility, and cost-effectiveness, is driving the growth of this segment.
On-premises deployment model is projected to hold a significant market share, owing to the need for enterprises to maintain control over their network infrastructure and data. The on-premises model offers greater security and customization options, making it suitable for organizations with sensitive data or complex networking requirements.The hybrid deployment model, which combines elements of both cloud-based and on-premises deployments, is gaining traction due to its ability to provide a balance between flexibility, cost-effectiveness, and security.
This model allows enterprises to leverage the benefits of cloud-based services while maintaining control over critical network components. In terms of market growth, the cloud-based deployment model is expected to witness the fastest growth rate, driven by the increasing adoption of cloud-based applications and services. The on-premises deployment model is also expected to grow, albeit at a slower pace, due to the preference of some enterprises for greater control over their network infrastructure.The hybrid deployment model is expected to experience moderate growth as enterprises seek to optimize their network infrastructure and balance flexibility with security.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Sd Wan Services Market Connectivity Type Insights
The Connectivity Type segment is a crucial aspect of the Managed Sd Wan Services Market segmentation. It categorizes the market based on the type of connectivity used in Managed Sd Wan Services. Among the key Connectivity Type segments are MPLS, Cloud Direct Connect, and Fiber.
MPLS (Multi-Protocol Label Switching) holds a significant market share, offering reliable and secure connectivity with guaranteed bandwidth. Cloud Direct Connect provides direct access to cloud platforms, enabling seamless integration and optimized performance. Fiber connectivity offers high bandwidth and low latency, making it suitable for bandwidth-intensive applications.In 2023, the Managed Sd Wan Services Market for MPLS was valued at USD 3.2 billion and is projected to reach USD 5.6 billion by 2032, exhibiting a CAGR of 6.5%.
Cloud Direct Connect is estimated to grow from USD 2.1 billion in 2023 to USD 4.2 billion by 2032, with a CAGR of 8.2%. Fiber connectivity is expected to witness substantial growth, expanding from USD 1.8 billion in 2023 to USD 3.8 billion by 2032, reflecting a CAGR of 9.1%. These Connectivity Type segments cater to diverse customer requirements, including bandwidth demands, security needs, and application performance.Enterprises are increasingly adopting Managed Sd Wan Services with these connectivity options to enhance network efficiency, reduce costs, and improve overall business outcomes.
Managed Sd Wan Services Market Organization Size Insights
The Global Managed SD-WAN Services Market is segmented by organization size into Small and Medium-Sized Businesses (SMBs), Enterprise, and Government. Among these segments, the Enterprise segment is expected to hold the largest market share in 2023, owing to the increasing adoption of SD-WAN solutions by large enterprises to improve network efficiency and reduce costs.
The SMB segment is also expected to grow significantly, driven by the increasing adoption of cloud-based applications and the need for improved network security. The Government segment is expected to have a moderate growth rate due to the increasing adoption of SD-WAN solutions by government agencies to improve network performance and security.
Managed Sd Wan Services Market Vertical Insights
The healthcare vertical is expected to account for a significant share of the Managed Sd Wan Services Market revenue by 2024. The growing adoption of telemedicine, remote patient monitoring, and other healthcare applications is driving the demand for managed SD-WAN services in this vertical.
The financial services vertical is also expected to witness substantial growth as financial institutions increasingly adopt SD-WAN to improve the security and reliability of their networks. The retail vertical is another key growth area for managed SD-WAN services as retailers look to improve the customer experience and optimize their supply chains.
Managed Sd Wan Services Market Service Provider Type Insights
The Managed Sd Wan Services Market is segmented by service provider type into Tier 1 Carriers, Tier 2 Carriers, and Managed Service Providers (MSPs). Tier 1 Carriers are expected to hold the largest market share in 2023, owing to their extensive network reach and established customer base.
Tier 2 Carriers are expected to witness significant growth over the forecast period, driven by their focus on providing cost-effective solutions and expanding their geographic presence. MSPs are expected to gain traction in the market due to their ability to offer customized solutions and provide end-to-end managed services.
Managed Sd Wan Services Market Regional Insights
The regional segmentation of the Global Managed SD-WAN Services Market offers insights into the market's geographical distribution and growth potential. North America holds a significant market share due to the presence of major technology hubs and the early adoption of advanced networking solutions.
The region is expected to maintain its dominance in the coming years, driven by ongoing digital transformation initiatives and investments in cloud-based services. Europe is another key region, with a growing demand for Managed SD-WAN services to support the region's digital economy.
The market in APAC is projected to witness substantial growth, fueled by the increasing adoption of cloud and mobile technologies in emerging economies. South America and MEA are also expected to contribute to the overall market growth, driven by government initiatives to improve connectivity and support economic development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Sd Wan Services Market Key Players And Competitive Insights
Major players in the Managed Sd Wan Services Market industry are continuously focusing on expanding their global presence by acquiring stakes in regional players and establishing partnerships with local system integrators and value-added resellers. For instance, in February 2023, Cisco Systems announced a strategic partnership with Tech Mahindra to provide managed SD-WAN services to enterprises in India. Such partnerships enable leading Managed Sd Wan Services Market players to leverage the expertise and resources of local players to gain a competitive advantage and meet the specific requirements of regional markets.AT&T offers a comprehensive suite of managed SD-WAN services, including network design, deployment, and management.
The company has a global presence and serves a diverse customer base across various industries. AT&T's managed SD-WAN offering is designed to provide enterprises with secure, reliable, and scalable network connectivity. The company also offers a range of value-added services, such as security and cloud integration, to complement its managed SD-WAN solution.Verizon is another major player in Managed Sd Wan Services Market industry. The company offers a range of managed SD-WAN services, including network design, deployment, and management.
Verizon's managed SD-WAN offering is designed to provide enterprises with a fully managed solution that is tailored to their specific business needs. The company also offers a range of value-added services, such as security and cloud integration, to complement its managed SD-WAN solution.
Key Companies in the Managed Sd Wan Services Market Include:
- Nuage Networks
- Cisco Systems
- Cradlepoint
- AT
- Verizon
- HPE
- Versa Networks
- Juniper Networks
- Fortinet
- Cato Networks
- Silver Peak Systems
- Aryabhatta Networks
- Check PointowparaPalo Alto Networks
- VMware
Managed Sd Wan Services Market Industry Developments
The Managed SD-WAN Services market has grown significantly in recent years due to the increasing adoption of cloud-based applications and the need for improved network performance. The market is expected to continue growing rapidly in the coming years, driven by the increasing demand for bandwidth and the growing adoption of SD-WAN solutions by enterprises.Some of the recent news developments and current affairs in the Managed SD-WAN Services market include:
In June 2023, Cisco announced the launch of its new Managed SD-WAN service, which is designed to help enterprises simplify their network management and improve their application performance.In July 2023, VMware announced the acquisition of VeloCloud, a leading provider of SD-WAN solutions. This acquisition is expected to strengthen VMware's position in the Managed SD-WAN Services market.
In August 2023, ATT announced the launch of its new Managed SD-WAN service, which is designed to provide enterprises with a secure and reliable network connection.These developments indicate that the Managed SD-WAN Services market is becoming increasingly competitive and that enterprises are increasingly looking to managed service providers to help them manage their networks and improve their application performance.
Managed Sd Wan Services Market Segmentation Insights
Managed Sd Wan Services Market Deployment Model Outlook
- Cloud-Based
- On-Premises
- Hybrid
Managed Sd Wan Services Market Connectivity Type Outlook
- MPLS
- Cloud Direct Connect
- Fiber
Managed Sd Wan Services Market Organization Size Outlook
- Small and Medium-Sized Businesses (SMBs)
- Enterprise
- Government
Managed Sd Wan Services Market Vertical Outlook
- Healthcare
- Financial Services
- Retail
Managed Sd Wan Services Market Service Provider Type Outlook
- Tier 1 Carriers
- Tier 2 Carriers
- Managed Service Providers (MSPs)
Managed Sd Wan Services Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
9.4(USD Billion) |
| Market Size 2023 |
10.62(USD Billion) |
| Market Size 2032 |
32.1(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
13.07% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Nuage Networks, Cisco Systems, Cradlepoint, AT, Verizon, HPE, Versa Networks, Juniper Networks, Fortinet, Cato Networks, Silver Peak Systems, Aryabhatta Networks, Check PointowparaPalo Alto Networks, VMware |
| Segments Covered |
Deployment Model, Connectivity Type, Organization Size, Vertical, Service Provider Type, Regional |
| Key Market Opportunities |
Growing demand for SDWAN solutions Surge in cloud and SaaS adoption Increase in remote workforce. Expansion of IoT and edge computing Growing need for secure and reliable connectivity |
| Key Market Dynamics |
Cloud adoption and digital transformation Increasing demand for secure and reliable connectivity Growing adoption of IoT and edge computing Need for optimized network performance. Managed services simplify management and reduce costs. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Managed SD-WAN Services market was valued at USD 10.62 billion in 2023 and is expected to reach USD 32.1 billion by 2032, exhibiting a CAGR of 13.07% during the forecast period.
North America held the largest market share in 2023, accounting for 38.5% of the global revenue. Asia Pacific is projected to register the highest CAGR of 14.2% from 2024 to 2032.
Managed SD-WAN Services are primarily used for network connectivity, cloud connectivity, and security. Other applications include WAN optimization, application acceleration, and unified communications.
Major players in the Managed SD-WAN Services market include ATT, Verizon, BT, Orange, Deutsche Telekom, and Cisco.
The growth of the Managed SD-WAN Services market is driven by factors such as the increasing adoption of cloud-based applications, the need for improved network performance and security, and the rising demand for managed services.
Challenges faced by the Managed SD-WAN Services market include the complexity of SD-WAN deployments, the lack of skilled professionals, and security concerns.
Key trends in the Managed SD-WAN Services market include the adoption of software-defined networking (SDN), the integration of artificial intelligence (AI) and machine learning (ML), and the rise of managed security services.
The future of the Managed SD-WAN Services market is expected to be bright, with continued growth driven by the increasing demand for cloud-based applications and the need for improved network performance and security.
Key opportunities for growth in the Managed SD-WAN Services market include the expansion into new markets, the development of new services, and the adoption of new technologies.
Key recommendations for success in the Managed SD-WAN Services market include investing in research and development, expanding into new markets, and developing strong partnerships with key players in the ecosystem.
