SD-WAN Market Trends, Opportunities and Forecast (2024-2032)

In October 2022, SITA announced a new partnership with Versa Networks, the recognized secure access service edge (SASE) leader, which will launch SITA Connect Go, a multi-tenant edge Secure SD-WAN (Software-Defined Wide Area Network) solution designed specifically for the air transport ind

Ø Cloud Adoption: The increasing adoption of cloud services accelerates the SD-WAN market as it enables companies to connect the distributed networks better and manage the complexities of the networks across geographical locations.

Ø Cost Efficiency: As compared to traditional WAN solutions, SD-WAN solutions will also lower the overall cost since it has better bandwidth utilization.

Ø Enhanced Performance: SD-WAN enhances application experience and optimizes network flexibility, enabling a better response to today’s enterprise needs, work from home, and DX.

Ø Security Integration: Security solutions in SD WAN also tackle issues of security threats and compliance therefore enhancing the market acceptance of solutions.

Ø Regional Growth: SD-WAN is growing faster in the U. S. and Asia-Pacific region because of the developed IT infrastructure, rising investments in the new generation technologies, and rapidly demanding cost-effective and elastic networking solutions.

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According to a new report by UnivDatos, the SD-WAN market is expected to reach USD 78 Billion in 2032 by growing at a CAGR of 35%. Owing to the increasing use of cloud-based applications and services, there is a demand for new cost-effective and efficient solutions for managing cloud traffic, such as SD-WAN. The shift towards more employees telecommuting or being part of a distributed team must have consistent, secure, and efficient connectivity, which SD-WAN offers. Moreover, partnerships and collaborations with cloud service providers are becoming increasingly common. Therefore, partnerships with leading cloud providers and SD-WAN suppliers can provide seamless interconnectivity with on-premises infrastructure and clouds. In October 2022, SITA announced a new partnership with Versa Networks, the recognized secure access service edge (SASE) leader, which will launch SITA Connect Go, a multi-tenant edge Secure SD-WAN (Software-Defined Wide Area Network) solution designed specifically for the air transport industry.

Here are five examples of government regulations, laws, and legal frameworks that influence the SD-WAN market:

Security Considerations

·        SD-WAN isn’t only limited to segmentation though and often comes with features such as Next-Generation-Firewall (NGFW) and Intrusion Prevention Systems (IPS) for protecting against breaches, Cloud Access Security Broker (CASB) and Secure Web Gateway (SWG) for secure integrations of cloud service utilization and IPsec and AES for encrypted data transfer, improving confidentiality and protecting business intellectual property. This means that SD-WAN enables compliance via industry standards and regulations, encryption, and tunneling for data protection requirements like NIST 800-53 and NIST 800-82 for ICS.

Cisco SD-WAN leverages third-party cloud services. Customers can choose the region-specific data center appropriate for their environment (Australia, Brazil, Germany, India, Ireland, Japan, Singapore, USA).

·        Cisco has invested in several transfer mechanisms to enable the lawful use of data across jurisdictions. In particular:

o  Binding corporate rules

o  EU-US Privacy Shield Framework

o  Swiss-US Privacy Shield Framework

o  APEC cross-border privacy rules

o  EU standard contractual clauses.

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The impact of SD-WAN resources has been identified to be high for the Asia-Pacific area. Some of how this impact has been felt include:

Asia-Pacific is expected to grow with a significant CAGR in the forecast period (2024-2032). The increasing inclination towards cloud services and digital transformations in the region necessitates flexible and scalable networks. The continuing infrastructural development and the rising investments in IT telecommunications also contribute to the growth of the SD-WAN market. It has been observed that as firms in the Asia-Pacific region industry improve network performance and cut down operating costs, SD-WAN becomes an ideal solution for the same which helps the region’s technological revolution. On June 20, 2024, Tata Communications launched a Unified/ Single-Vendor Hosted Secure Access Service Edge (SASE) for global enterprises. With Asian-Pacific enterprises shifting from traditional WAN environments towards hybrid and multi-cloud solutions. Also, with the growing popularity of the work-from-home culture and the increase in the number of internet-enabled devices in developing economies, enhanced and effective networking becomes mandatory. 

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Gagan Rao

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