Software Defined Wide Area Network Market by Components (Virtual Appliance, Physical Appliance & Hybrid), Deployment Type (On-Premises & On-Cloud), Service (Managed Services & Professional Services), Verticals, & by Regions - Global Forecast to 2020

 Published On: Jan, 2016 |    No of Pages: 124 |  Published By: MarketsandMarkets | Format: PDF
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Increasing need for mobility services to drive the SD-WAN market
The SD-WAN market size is estimated to grow from USD 4.66 billion in 2015 to USD 5.57 billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of 3.64%. The SD-WAN market is driven by factors such as increasing need for mobility services, reducing OPEX and urge for simplified network architecture.
 
Controllers are expected to gain the maximum traction during the forecast period
The controller segment is estimated to contribute the largest market share during the forecast period. Furthermore, rising need for enterprise mobility has increased the usage of mobile personal devices, such as smartphones, notebooks, and tablets to access corporate networks. The incumbent IT infrastructure is under pressure to configure these devices in a robust manner, while meeting compliance standards and norms. The rise of such enormous mobile datasets calls for parallel processing on multiple servers and seamless interconnections. This, in turn, has stimulated a constant demand for additional network capacity and more sophisticated network solutions. While carrier and data center players face the daunting task of scaling their networks to unimaginable sizes, SD-WAN comes off as a promising solution. On-cloud services are expected to grow with the highest rate from 2015 to 2020. However, professional services are expected to contribute the largest market share during the forecast period. The SD-WAN vendors are coming up with various programs to mitigate gaps and correct implementation of the solution at user’s premises.

The report also covers the total SD-WAN market by geographic regions. North America is expected to have the largest market share; however, Latin America will grow at the highest CAGR from 2015 to 2020.  On-going demand for the increasing bandwidth and increasing dependency in high performance networks are the reason for growth of SD WAN in  North America.  In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted.

Breakdown for primaries has been given below:
• By Company Type- Tier 1- (25%), Tier 2- (10%), and Tier 3- (65%)
• By Designation- C-Level (50%), Director Level- (15%), and Others- (35%)
• By Region- North America (40%), Europe (15%), APAC (20%), ROW (30%)
The various key SD-WAN vendors and service providers profiled in the report are as follows:
1. Aryaka Networks, Inc.
2. Cisco systems, Inc.
3. Talari Networks, Inc.
4. FatPipe Networks, Inc.
5. Mushroom Networks, Inc.
6. Glue Networks, Inc.
7. Velocloud
8. Netcraftsmen
9. Viptela, Inc.

The report will help the market leaders/new entrants in this market in the following ways:
1. This report segments the SD-WAN market comprehensively and provides the closest approximations of the revenue numbers for the overall market and the subsegments across different verticals and regions.
2. The report helps stakeholders to understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
3. This report will help stakeholders to better understand the competitors and gain more insights to better their position in the business. The competitive landscape section includes competitor ecosystem, new product develpoments, and partnerships.
1 INTRODUCTION 14
1.1 OBJECTIVES OF THE STUDY 14
1.2 MARKET DEFINITION 14
1.3 MARKET SCOPE 14
1.3.1 MARKETS COVERED 15
1.3.2 YEARS CONSIDERED FOR THE STUDY 15
1.4 CURRENCY 16
1.5 LIMITATIONS 16
1.6 STAKEHOLDERS 16
2 RESEARCH METHODOLOGY 17
2.1 INTRODUCTION 17
2.2 RESEARCH DATA 18
2.2.1 SECONDARY DATA 18
2.2.1.1 Key data from secondary sources 18
2.2.2 PRIMARY DATA 19
2.2.2.1 Key data from primary sources 19
2.2.2.2 Key industry insights 20
2.3 MARKET SIZE ESTIMATION 21
2.3.1 BOTTOM-UP APPROACH 21
2.3.2 TOP-DOWN APPROACH 22
2.4 MARKET BREAKDOWN AND DATA TRIANGULATION 23
2.5 MARKET FORECAST ASSUMPTIONS 24
3 EXECUTIVE SUMMARY 25
4 PREMIUM INSIGHTS 29
4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE SD-WAN MARKET 29
4.2 SD-WAN MARKET: BY TYPE 29
4.3 SD-WAN MARKET: BY VERTICAL AND REGION 30
4.4 LIFE CYCLE ANALYSIS, BY REGION (2015) 30
5 MARKET OVERVIEW 32
5.1 INTRODUCTION 33
5.2 EVOLUTION 33
5.3 MARKET SEGMENTATION 34
5.3.1 BY COMPONENT 34
5.3.2 BY DELPOYMENT TYPE 34
5.3.3 BY SERVICE 35
5.3.4 BY VERTICAL 35
5.4 MARKET DYNAMICS 36
5.4.1 DRIVERS 37
5.4.1.1 Increasing need for mobility services 37
5.4.1.2 Reducing OPEX 37
5.4.1.3 Need for simplified network architecture 37
5.4.2 RESTRAINTS 38
5.4.2.1 Lack of security 38
5.4.3 OPPORTUNITIES 38
5.4.3.1 Improved Quality of Service (QoS) 38
5.4.3.2 Increase in usage of cloud-based technologies 38
5.4.4 CHALLENGES 39
5.4.4.1 Bandwidth provisioning 39
5.5 SD-WAN ECOSYSTEM 39
6 INDUSTRY TRENDS 40
6.1 INTRODUCTION 40
6.2 TECHNOLOGY TRENDS 40
6.2.1 DEEP PACKET INSPECTION (DPI) 40
6.2.2 CLOUD MANAGEMENT 40
6.3 STANDARDS 41
6.3.1 DATA CENTER BRIDGING (DCB) 41
6.3.1.1 Priority flow control (PFC) 802.1Qbb 41
6.3.1.2 Congestion management (802.1Qua) 41
6.3.1.3 Bandwidth management (802.1Qaz) 41
6.3.1.4 Data Center Bridging Exchange (DCBX) 41
6.3.2 FIBER CHANNEL OVER ETHERNET (FCOE) 42
6.3.3 NETWORK VIRTUALIZATION USING GENERIC ROUTING ENCAPSULATION (NVGRE) 42
6.3.4 SHORTEST PATH BRIDGING (SPB) 42
6.3.5 TRANSPARENT INTERCONNECTION OF LOTS OF LINKS (TRILL) 42
6.3.6 VIRTUAL ETHERNET PORT AGGREGATOR (VEPA) 42
6.3.7 MULTIPROTOCOL LABEL SWITCHING (MPLS) 42
6.3.8 VIRTUAL EXTENSIBLE LOCAL AREA NETWORK (VXLAN) 42
6.4 VALUE CHAIN ANALYSIS 43
6.5 STRATEGIC BENCHMARKING 44
7 SD-WAN MARKET ANALYSIS, BY COMPONENT 45
7.1 INTRODUCTION 46
7.2 VIRTUAL APPLIANCE 47
7.3 PHYSICAL APPLIANCE 47
7.4 HYBRID 48
8 SD-WAN MARKET ANALYSIS, BY DEPLOYMENT TYPE 49
8.1 INTRODUCTION 50
8.2 ON-PREMISES 51
8.3 ON-CLOUD 52
9 SD-WAN MARKET ANALYSIS, BY SERVICE 53
9.1 INTRODUCTION 54
9.2 MANAGED SERVICES 55
9.3 PROFESSIONAL SERVICES 56
10 SD-WAN MARKET ANALYSIS, BY VERTICAL 57
10.1 INTRODUCTION 58
10.2 BANKING, FINANCIAL SERVICES, AND INSURANCE 59
10.3 OIL AND GAS 60
10.4 HEALTHCARE 60
10.5 GOVERNMENT 61
10.6 IT AND TELECOM 62
10.7 MANUFACTURING 62
10.8 OTHERS 63
11 GEOGRAPHIC ANALYSIS 64
11.1 INTRODUCTION 65
11.2 NORTH AMERICA 66
11.3 EUROPE 71
11.4 ASIA-PACIFIC 75
11.5 MIDDLE EAST AND AFRICA 80
11.6 LATIN AMERICA 84
12 COMPETITIVE LANDSCAPE 89
12.1 OVERVIEW 89
12.2 COMPETITIVE SITUATIONS AND TRENDS 90
12.2.1 AGREEMENTS, PARTNERSHIPS, COLLABORATIONS, AND JOINT VENTURES 91
12.2.2 EXPANSIONS 93
12.2.3 NEW PRODUCT/TECHNOLOGY LAUNCHES 94

13 COMPANY PROFILES 96
(Overview, Products & Services, Strategies & Insights, Developments and MnM View)*
13.1 ARYAKA NETWORKS, INC. 96
13.2 CISCO SYSTEMS, INC. 99
13.3 TALARI NETWORKS, INC. 101
13.4 FATPIPE NETWORKS, INC. 103
13.5 MUSHROOM NETWORKS, INC. 106
13.6 GLUE NETWORKS, INC. 108
13.7 VELOCLOUD 110
13.8 NETCRAFTSMEN 112
13.9 VIPTELA, INC. 113
*Details on Overview, Products & Services, Strategies & Insights, Developments and MnM View might not be captured in case of unlisted companies.
14 APPENDIX 115
14.1 INSIGHT OF INDUSTRY EXPERTS 115
14.2 DISCUSSION GUIDE 116
14.3 INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE 119
14.4 AVAILABLE CUSTOMIZATIONS 121
14.5 RELATED REPORTS 122

LIST OF TABLES

TABLE 1 SD-WAN MARKET SIZE, BY SEGMENT, 2013–2020 (USD MILLION) 25
TABLE 2 SD-WAN MARKET: SUMMARY OF DRIVERS 37
TABLE 3 SD-WAN MARKET: SUMMARY OF RESTRAINT 38
TABLE 4 SD-WAN MARKET: SUMMARY OF OPPORTUNITIES 39
TABLE 5 SD-WAN MARKET: SUMMARY OF CHALLENGES 39
TABLE 6 SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 46
TABLE 7 VIRTUAL APPLIANCE: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 47
TABLE 8 PHYSICAL APPLIANCE: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 47
TABLE 9 HYBRID: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 48
TABLE 10 SD-WAN MARKET SIZE, BY DEPLOYMENT, 2013–2020 (USD MILLION) 50
TABLE 11 ON-PREMISES: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 51
TABLE 12 ON-CLOUD: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 52
TABLE 13 SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 54
TABLE 14 MANAGED SERVICES: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 55
TABLE 15 PROFESSIONAL SERVICES: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 56
TABLE 16 SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 58
TABLE 17 BFSI: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 59
TABLE 18 OIL AND GAS: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 60
TABLE 19 HEALTHCARE: SD-WAN NETWORKS MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 61
TABLE 20 GOVERNMENT: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 61
TABLE 21 IT AND TELECOM: SD-WAN MARKET SIZE, BY REGIONS, 2013-2020 (USD MILLION) 62
TABLE 22 MANUFACTURING: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 62
TABLE 23 OTHERS: SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 63
TABLE 24 SD-WAN MARKET SIZE, BY REGION, 2013–2020 (USD MILLION) 66
TABLE 25 NORTH AMERICA: SD-WAN MARKET SIZE, 2013–2020 (USD MILLION) 68
TABLE 26 NORTH AMERICA: SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 68
TABLE 27 NORTH AMERICA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2013–2020 (USD MILLION) 68
TABLE 28 NORTH AMERICA: SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 68
TABLE 29 NORTH AMERICA: SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 69
TABLE 30 NORTH AMERICA: SD-WAN MARKET SIZE, BY COUNTRY, 2013-2020 (USD MILLION) 69
TABLE 31 U.S.: SD-WAN MARKET SIZE: BY SEGMENTS, 2013-2020 (USD MILLION) 69
TABLE 32 U.S.: SD-WAN MARKET SIZE, BY COMPONENTS, 2013-2020 (USD MILLION) 70
TABLE 33 U.S.: SD-WAN MARKET, BY DEPLOYMENT, 2013-2020 (USD MILLION) 70
TABLE 34 U.S.: SD-WAN MARKET, BY SERVICE, 2013-2020 (USD MILLION) 70
TABLE 35 U.S.: SD-WAN MARKET SIZE, BY VERTICALS, 2013-2020 (USD MILLION) 71
TABLE 36 EUROPE: SD-WAN MARKET SIZE, 2013–2020 (USD MILLION) 71
TABLE 37 EUROPE: SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 72
TABLE 38 EUROPE: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2013–2020 (USD MILLION) 72
TABLE 39 EUROPE: SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 72
TABLE 40 EUROPE: SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 73
TABLE 41 EUROPE: SD-WAN MARKET SIZE, BY COUNTRIES, 2013-2020 (USD MILLION) 73
TABLE 42 U.K.: SD-WAN MARKET SIZE, BY SEGMENTS, 2013-2020 (USD MILLION) 73
TABLE 43 U.K.: SD-WAN MARKET SIZE, BY COMPONENTS, 2013-2020 (USD MILLION) 74
TABLE 44 U.K.: SD-WAN MARKET SIZE, BY DEPLOYMENT, 2013-2020 (USD MILLION) 74
TABLE 45 U.K.: SD-WAN MARKET SIZE, BY SERVICE, 2013-2020 (USD MILLION) 74
TABLE 46 U.K.: SD-WAN MARKET SIZE, BY VERTICALS, 2013-2020 (USD MILLION) 75
TABLE 47 ASIA-PACIFIC: SD-WAN MARKET SIZE, 2013–2020 (USD MILLION) 77
TABLE 48 ASIA-PACIFIC: SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 77
TABLE 49 ASIA-PACIFIC: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2013–2020 (USD MILLION) 77
TABLE 50 ASIA-PACIFIC: SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 78
TABLE 51 ASIA-PACIFIC: SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 78
TABLE 52 ASIA-PACIFIC: SD-WAN MARKET SIZE, BY COUNTRIES, 2013-2020 (USD MILLION) 78
TABLE 53 CHINA: SD-WAN MARKET SIZE, BY SEGMENTS, 2013-2020 (USD MILLION) 79
TABLE 54 CHINA: SD-WAN MARKET SIZE, BY COMPONENTS, 2013-2020 (USD MILLION) 79
TABLE 55 CHINA: SD-WAN MARKET SIZE, BY DEPLOYMENT, 2013-2020 (USD MILLION) 79
TABLE 56 CHINA: SD-WAN MARKET SIZE, BY SERVICES, 2013-2020 (USD MILLION) 79
TABLE 57 CHINA: SD-WAN MARKET SIZE, BY VERTICALS, 2013-2020 (USD MILLION) 80
TABLE 58 MIDDLE EAST AND AFRICA: SD-WAN MARKET SIZE, 2013–2020 (USD MILLION) 80
TABLE 59 MIDDLE EAST AND AFRICA: SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 81
TABLE 60 MIDDLE EAST AND AFRICA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2013–2020 (USD MILLION) 81
TABLE 61 MIDDLE EAST AND AFRICA: SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 81
TABLE 62 MIDDLE EAST AND AFRICA: SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 82
TABLE 63 MIDDLE-EAST AND AFRICA: SD-WAN MARKET SIZE, BY COUNTIRES, 2013-2020 (USD MILLION) 82
TABLE 64 KSA: SD-WAN MARKET SIZE, BY SEGMENTS, 2013-2020 (USD MILLION) 82
TABLE 65 KSA: SD-WAN MARKET SIZE, BY COMPONENTS, 2013-2020 (USD MILLION) 83
TABLE 66 KSA: SD-WAN MARKET SIZE, BY DEPLOYMENT, 2013-2020 (USD MILLION) 83
TABLE 67 KSA: SD-WAN MARKET SIZE, BY SERVICE, 2013-2020 (USD MILLION) 83
TABLE 68 KSA: SD-WAN MARKET SIZE, BY VERTICALS, 2013-2020 (USD MILLION) 84
TABLE 69 LATIN AMERICA: SD-WAN MARKET SIZE, 2013–2020 (USD MILLION) 84
TABLE 70 LATIN AMERICA: SD-WAN MARKET SIZE, BY COMPONENT, 2013–2020 (USD MILLION) 85
TABLE 71 LATIN AMERICA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2013–2020 (USD MILLION) 85
TABLE 72 LATIN AMERICA: SD-WAN MARKET SIZE, BY SERVICE, 2013–2020 (USD MILLION) 85
TABLE 73 LATIN AMERICA: SD-WAN MARKET SIZE, BY VERTICAL, 2013–2020 (USD MILLION) 86
TABLE 74 LATIN AMERICA: SD-WAN MARKET SIZE, BY COUNTRIES, 2013-2020 (USD MILLION) 86
TABLE 75 BRAZIL: SD-WAN MARKET SIZE, BY SEGMENTS, 2013-2020 (USD MILLION) 86
TABLE 76 BRAZIL: SD-WAN MARKET SIZE: BY COMPONENTS, 2013-2020 (USD MILLION) 87
TABLE 77 BRAZIL: SD-WAN MARKET SIZE, BY DEPLOYMENTS, 2013-2020 (USD MILLION) 87
TABLE 78 BRAZIL: SD-WAN MARKET SIZE, BY SERVICES, 2013-2020 (USD MILLION) 87
TABLE 79 BRAZIL: SD-WAN MARKET SIZE, BY VERTICALS, 2013-2020 (USD MILLION) 88
TABLE 80 AGREEMENTS, PARTNERSHIPS, COLLABORATIONS, AND JOINT VENTURES, 2014-2015 91
TABLE 81 EXPANSIONS, 2014–2015 93
TABLE 82 NEW PRODUCT LAUNCHES, 2014-2015 94

LIST OF FIGURES

FIGURE 1 GLOBAL SD-WAN MARKET : RESEARCH DESIGN 17
FIGURE 2 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH 21
FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: TOP-DOWN APPROACH 22
FIGURE 4 DATA TRIANGULATION 23
FIGURE 5 SERVICES SEGMENT IN SD-WAN MARKET EXPECTED TO WITNESS A HIGH GROWTH RATE IN THE FORECAST PERIOD 26
FIGURE 6 TOP THREE SEGMENTS IN THE SOFTWARE-DEFINED WAN MARKET DURING THE PERIOD 27
FIGURE 7 NORTH AMERICA IS EXPECTED TO HOLD THE LARGEST MARKET SHARE IN THE GLOBAL SD-WAN MARKET, 2015 27
FIGURE 8 INCREASING FOCUS ON REMOTE LOCATION NETWORK CONNECTIVITY IS BOOSTING THE SD-WAN MARKET 29
FIGURE 9 VIRTUAL APPLIANCE IS EXPECTED TO HOLD THE LARGEST MARKET SHARE OF THE SD-WAN MARKET 29
FIGURE 10 MANUFACTURING VERTICAL ACCOUNTED FOR THE LARGEST SHARE IN THE SD-WAN MARKET 30
FIGURE 11 NORTH AMERICA IS EXPECTED TO BE IN THE HIGH GROWTH PHASE IN THE COMING YEARS 30
FIGURE 12 EVOLUTION OF THE SD-WAN MARKET 33
FIGURE 13 SD-WAN MARKET, BY COMPONENT 34
FIGURE 14 SD-WAN MARKET, BY DEPLOYMENT TYPE 34
FIGURE 15 SD-WAN MARKET, BY SERVICE 35
FIGURE 16 BY VERTICAL 35
FIGURE 17 SD-WAN MARKET: DRIVERS, RESTRAINTS, OPPORTUNITIES, AND CHALLENGES 36
FIGURE 18 VALUE CHAIN ARCHITECTURE: SD-WAN MARKET 43
FIGURE 19 COMPANIES ADOPT DIFFERENT STRAGTEGIES TO GAIN COMPETITIVE EDGE IN THE MARKET 44
FIGURE 20 VIRTUAL APPLIANCE COMPONENT WOULD GROW AT THE FASTEST RATE DURING THE FORECAST PERIOD 46
FIGURE 21 ON-PREMISES DEPLOYMENT IS EXPECTED TO DOMINATE THE MARKET THROUGHOUT THE FORECAST PERIOD 50
FIGURE 22 PROFESSIONAL SERVICES IS EXPECTED TO DOMINATE THE MARKET THROUGHOUT THE FORECAST PERIOD 54
FIGURE 23 BFSI VERTICAL IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 58
FIGURE 24 GEOGRAPHIC SNAPSHOT (2015–2020): LATIN AMERICA IS EXPECTED TO GROW AT THE HIGHEST CAGR 65
FIGURE 25 NORTH AMERICA IS EXPECTED TO LEAD THE MARKET IN 2020 66
FIGURE 26 NORTH AMERICA MARKET: SNAPSHOT 67
FIGURE 27 ASIA-PACIFIC MARKET: SNAPSHOT 76
FIGURE 28 COMPANIES ADOPTED NEW PRODUCT LAUNCH AND NEW VERSION RELEASE AS THE KEY GROWTH STRATEGIES 89
FIGURE 29 MARKET EVALUATION FRAMEWORK: SIGNIFICANT PRODUCT LAUNCHES HAVE FUELED THE GROWTH OF THE SD-WAN MARKET 90
FIGURE 30 PRODUCT PORTFOLIO COMPARISON OF THE TOP 5 COMPANIES 91
FIGURE 31 CISCO SYSTEMS, INC.: COMPANY SNAPSHOT 99

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