IDC: SD-WAN market to rise from $225 million to $8 billion in 2021


According to a report from the International Data Corporation (IDC), software-defined wide area network (SD-WAN) market is expected hit a compound annual growth rate (CAGR) of 69.6 percent, reaching $8.05 billion in 2021.

Although SD-WAN solutions have only been commercially available for a couple of years, bringing $225 million in 2015, the significant growth, fueled by enterprise networking needs like the cloud, mobile, big data and analytics traffic, will significantly increase its market share.

According to the IDC forecast, the most significant driver of SD-WAN growth will be digital transformation where enterprises deploy the cloud, big data, analytics, mobility and social business.

Another influence in growth is the rise of public cloud-based software-as-a-service (SaaS) applications. The list also includes the broader acceptance and adoption of software-defined networking (SDN) in the enterprise market.

The IDC report, titled “Worldwide SD-WAN Forecast: 2017-2021”, provides a five-year forecast of the SD-WAN market from 2016 to 2021 and includes SD-WAN infrastructure sold by vendors as well as managed SD-WAN services provided through CSPs, and cloud-managed SD-WAN.

While most enterprises have usually relied on hybrid WAN solutions, the recent trend shows that SD-WAN, with its micro-segmentation, is a much better solution for a modern network.

There have been significant movements in the SD-WAN service market, with a recent rise in providers like VeloCloud, Versa, CloudGenix, Cybera, Viptela, and others.

Recently, Cisco has jumped into SD-WAN market with the purchase of Viptela, which was closely followed by the VMware’s acquisition of the VeloCloud.

You can find the full „Worldwide SD-WAN Forecast, 2017–2021“ IDC report over at its official site.


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Slobodan Simic is foremost an IT enthusiast who discovered his knack for writing, which lead to becoming both an IT journalist and later an Editor for a number of publications. He has been covering anything from the consumer- and professional-oriented hardware to software markets and networks. With a focus on chasing down leads, making sure that fresh content is ready for publishing, as well as keeping up with the evergrowing and evolving IT world, writing has become more of his passion rather than just a job.