SD-WAN sales to hit $2.2 billion by 2022

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According to the latest report, SD-WAN sales could hit $2.2 billion by 2022.

According to the SD-WAN study from Dell’Oro Group, caught by SDXCentral.com, SD-WAN will continue to be quite a popular technology, hitting sales of $2.2 billion by 2022, which is a 35 percent compounded annual growth rate (CAGR).

In addition to SD-WAN, the same report suggest that the revenue from software components, which includes a controller and virtual network functions (VNFs), will grow twice as fast as hardware side, with revenue rising at a 41 percent CAGR during the next five years. This is a significantly higher than 21 percent CAGR on the hardware side.

The report also states that enterprises will be major customers as companies will deploy and manage their own SD-WAN offerings or use resellers or system integrators. On the other hand, service provider managed SD-WAN services will grow at a faster rate with an expected average annual rate of 40 percent in the next five years.

The report also suggests that there is a minor slowdown in the market due to recent two major acquisitions, which should be cleared in the second half of the year. These two include Cisco’s $610 million acquisition of Viptela and VMWare’s acquisition of VeloCloud. This is due to the fact that customers are waiting to see how these two companies will integrate SD-WAN into their own product offerings.

The report from Dell’Oro lines up with earlier predictions from other research analysts, which all suggest that SD-WAN market will grow significantly in the next few years.

 

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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.