Dell’Oro finds COVID-19 pandemic to slow SD-WAN market growth in 2020

The worldwide sales of SD-WAN technologies are forecasted to grow at double-digit rates over each of the next five years to surpass $3.2 billion in 2024.

According to a recently published report by the telecom market research firm, Dell’Oro Group, COVID-19 pandemic is expected to slow SD-WAN market growth in 2020, but the demand is projected to accelerate as the pandemic subsides in the following years of the forecast horizon.

The report indicates that software services account for the vast majority of SD-WAN revenue today and is expected to continue increasing its contribution over the next five years. Also, service provider deployments of SD-WAN for managed services are projected to grow faster than those of enterprises, says the report.

Commenting on the report analysis, Shin Umeda, Vice President at Dell’Oro Group, says, “SD-WAN offers a compelling reason for businesses to upgrade their WAN infrastructures, which is something we haven’t seen in many years. There is no doubt that COVID-19 has created a major bump in the road, but the fundamental drivers for SD-WAN adoption have not changed, and may even be enhanced if work from home solutions can be incorporated."