SD-WAN market for large enterprises is worth $3b: report

SD-WAN is expected to overtake MPLS in the coming years. 

The global SD-WAN market for large multinational enterprises is valued at $3b, accounting for only 5% of the total market, a report found. 

In its WAN Market Size Report, the TeleGeography also found that MPLS continued to dominate global enterprise networking, accounting for 29% of the market. It is currently worth $17b. 

“SD-WAN adoption is ramping up globally, but MPLS still remains the dominant networking technology. It’s interesting to note that DIA market share is larger than SD-WAN. The market for internet underlay services is slightly larger than overlay,” TeleGeography Senior Manager Greg Bryan said. 

“Overall, the WAN market has diversified and, across geographies, the pricing differences within product sets vary considerably. For example, compared to other well-developed countries, the U.S. is a more expensive local access and broadband market.”

MPLS and access loops connecting to MPLS PoPs accounted for 60% of the market for large multinational enterprise WANs. MPLS and DIA port charges remained the largest contributor at $33.6b, followed by local access charges at $22.1b.

Despite this, TeleGeography expected the SD-WAN will continue to grow and eventually overtake MPLS. 

“Currently, MPLS exceeds SD-WAN, although we expect a considerable shift in the next few years as businesses demand better flexibility, reliability, and cloud access,” Bryan saod. 

“Moving forward, reliance on MPLS and private access from customer sites to MPLS PoPs will lessen, and we predict that this is likely to have a material impact on the business of selling corporate networks.”


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