The SD-WAN security market revenue totaled ~USD 2.5 Billion in 2022. The SD-WAN security market is expected to reach ~USD 20.5 Billion by 2033, growing at a CAGR of 21.2% for 2023 and 2033.
| Report Attributes | Details |
|---|---|
| SD-WAN Security Market Projected year (2033) Value | USD 20.5 Billion |
| SD-WAN Security Market estimated year (2023) Value | USD 3.0 Billion |
| SD-WAN Security Market CAGR% (2023 to 2033) | 21.2% |
| Top 5 Vendor Market Share | Around 35% |
SD-WAN security market currently represents about 25% of sales of total network security market. SD-WAN security is based largely on the utilization of IP security (IPsec), next-generation firewalls (NGFWs), VPN tunnels, and the micro-segmentation of applications traffic. Network administrators centrally organize and manage these security elements through network security software that permits granular visibility into the network.
The blend of WAN virtualization and the practice of positioning applications in the cloud have expanded the network perimeter. This necessitates security serviceability to be at an organization’s headquarters, branch locations, and the cloud.
Growing demand from enterprises to improve network security is driving the SD-WAN security market. SD-WAN security solutions offers a total security stack for prevention against web attacks; therefore, it is highly utilized in the enterprises to strengthen network security.
| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 21.2% |
| Jul to Dec (H2), 2021 (A) | 22.1% |
| Jan to Jun (H1),2022 Projected (P) | 21.6% |
| Jan to Jun (H1),2022 Outlook (O) | 22.8% |
| Jul to Dec (H2), 2022 Outlook (O) | 23.9% |
| Jul to Dec (H2), 2022 Projected (P) | 22.7% |
| Jan to Jun (H1), 2023 Projected (P) | 24.1% |
| BPS Change: H1,2022 (O) - H1,2022 (P) | (+) 120 |
| BPS Change: H1,2021 (O) - H1,2022 (A) | (+) 160 |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+)120 |
| BPS Change: H2, 2021 (O) - H2, 2022 (A) | (+)180 |
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The SD-WAN security demand is estimated to grow at 21.2% CAGR between 2023 and 2033 in comparison with 19.1% CAGR during historic period of 2018 to 2022 as the adoption of traditional WAN was more in the historic period.
Traditional WAN offered a conventional method of controlling wide area network. Scaling of traditional network is very difficult as it requires a proper advanced planning together with needed network infrastructure to set up and run. Security issues and management difficulties are the major issues in traditional WAN.
Traditional WAN does not offer low cost and high-speed connectivity and it fails to offer a better flexibility in WAN management. To overcome this challenge, the adoption of SD-WAN security is rising as it offers high performance with regards to application in cloud. It also offers constant prevention against all internal and external threats, from branches to SaaS (Software as a Service).
The network firewall segment in the global SD-WAN security market is expected to have dominant market share of 38.2% in 2022. Owing to high adoption of network security solutions among enterprises, North America is currently dominating the global SD-WAN security market.
As enterprise environments continue to develop, three fundamental shifts are increasing the demand for a new variety of SD-WAN security solutions:
In the year 2020, Palo Alto Networks had launched a next generation SD-WAN security solution that offers essential branch services, like security, networking and more, from the cloud.
Through Machine Learning (ML), organizations can remove network trouble tickets and enhance the end user experience by enabling a rise in WAN bandwidth for a lower price than legacy SD-WAN solutions. With the help of next-generation security solutions, enterprises can secure their data and improves network security, this factor is boosting the market growth.
Next generation SD-WAN provides three clear advantages:
Principal Consultant
Next-Generation Firewall (NGFW) is a primary element of SD-WAN security. Deployed at branches as well as headquarters, an NGFW is an enhanced and virtualized version of traditional hardware-based firewalls.
An NGFW runs multiple Virtual Network Functions (VNFs), like intrusion detection and protection, application awareness, URL and web content filtering, antivirus prevention, and malware detection. Thus, with the help of the next-generation firewall enterprises can make sure all devices, users, and locations are prevented, the advanced security threats and vulnerabilities are identified and protected, and scalability is attained.
| Countries | BPS Change (H2'22 (O) - H2'22 (P)) |
|---|---|
| USA | (+)128 |
| United kingdom | (+)122 |
| Japan | (+)118 |
| India | (+)121 |
| China | (+)116 |
The shift towards remote work has increased the demand for secure, reliable, and flexible network solutions that can support a distributed workforce in the USA drove the BPS change of (+)128 BPS units for H2’22(O)-H2’22(P)
The Indian government's push towards digital transformation has increased the demand for secure, reliable, and flexible network solutions that saw a BPS change of (+)121 units. The growing use of cloud services has led to an increase in WAN traffic in the United kingdom saw a BPS change of (+)122 units
SD-WAN offers improved network performance and reliability, making it an attractive solution in China witnessed a BPS change of (+)116 units. The combination of remote work, cloud adoption, improved network performance, and cybersecurity in Japan allowed a BPS change of (+)118 units.
Exponential Growth Likely in the USA as More Enterprises Move to Automation
The SD-WAN demand in the USA is estimated to grow by 8.4X during the predicted period. In the USA, SD-WAN security providers are concentrating on offering intrusion detection and intrusion protection system that helps in identifying, analyzing and act against irregular deviation from intelligent attacks based on user behavior.
In the USA, SD-WAN security solutions are utilized by many leading enterprises because they can prevent application traffic from threats within the enterprises and from outside by supporting a full stack of security solutions included in SD-WAN like next-gen firewalls, URL filtering, cloud security and malware prevention.
Large scale investments for infrastructure modernization and increasing adoption of automation technologies like artificial intelligence (AI) and internet of things (IoT) is also driving the market growth in the USA
SD-WAN Security Solutions Demand to Soar in the United kingdom
Europe is predicted to remain one of the most attractive markets during the forecast period. According to the study, the United kingdom is estimated to grow by 10.2X during the forecast period. In the United kingdom enterprises are implementing SD-WAN security solutions because it offers enhanced user experience via secure direct internet cloud access and offers constant prevention against cyber threats.
SD-WAN security offers centralized visibility and control for all internal, inbound, and outbound traffic. It also offers benefits like reduced complexity, lower costs, and make bench communications safer, they help business become more responsive and agile, these features offered by the SD-WAN security drive the adoption of the solution in the United kingdom
Demand for Deployment in Complex IT Infrastructure of Japan to Soar
The sales revenue in Japan is estimated to grow at an impressive rate of around 25.3% CAGR between 2022 and 2033. In Japan, IT sector is rising rapidly. Along with this, adoption of network security solutions is increasing at a high growth rate. Dependence on networks is growing and this has led to rise in adoption of network security solutions.
Due to businesses increasing robustly, complexity in IT infrastructure is also increasing, that companies are unable to manage and control. As a result, companies in the Japan are adopting network security solutions to withstand cyber-attacks.
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Network Firewall to Emerge as Preferred Solution
The network firewall segment is expected to account for higher market share in the coming years. This segment is anticipated to grow by absolute opportunity of USD 6,151.2 Million by the end of 2033.
The development of the network security firewall market is driven by various factors, like increasing demand for network security and privacy, modernization of digital transformation in the telecommunication industry, administrative regulations, and real-time streaming analysis are stimulating demand for network firewalls.
The rapid utilization of web applications, increasing adoption of cloud technologies, and growing demand for security services to reduce the risk of cyber-attacks are also driving the development of the network firewall segment.
Demand from Large Enterprises to Account for Maximum Sales
The large enterprises segment is expected to grow by 7.2X during forecast period. Along with this, the segment is anticipated to showcase a strong CAGR growth over the forthcoming years owing to rapid digitization.
In order to prevent the data and information from cyber threats and security breaches, the deployment of SD-WAN security solutions is increasing across various end–use enterprises.
SD-WAN security solutions offers smooth and secure direct connectivity to cloud providers and end points, improving the cloud experience. It offers high levels of security to businesses, protects data loss from unwanted intrusions, which increases business productivity and agility and lowers IT prices. Therefore, large enterprises are adopting network security solutions to prevent their data.
IT and Telecom Industry to Remain Primary End User
IT and Telecom industry is estimated to grow at highest CAGR of 21.9% during the forecast period. The worldwide adoption of cloud services is captivating Telecom ISVs (Independent Software Vendors) to turn to SD-WAN security solutions for simpler deployment, easier management, and faster connections.
Offering the best mixture of price, performance, and flexibility as compared to traditional, data center approaches, SD-WAN security solutions has become a captivating choice for telecom ISVs to meet the demand of today’s advanced digital businesses, it can easily and dynamically manage multiple connections types across the network, enhance application performance, flexibility, and end-user experience, and guarantee a high level of service security and quality.
SD-WAN security market players are focusing on various strategies for increasing their investments in research and development to support future technologies. In addition, several companies are acquiring and entering into partnership with other companies to develop their own SD-WAN security to serve the customers and reduce the churn rate.
| Attribute | Details |
|---|---|
| Market value in 2022 | USD 2.4 Billion |
| Market CAGR 2023 to 2033 | 21.2% |
| Share of top 5 players | Around 35% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Segments Covered | Solution, Enterprise Size, Industry and Region |
| Key Companies Profiled | Cisco Systems; Fortinet; alo Alto Networks; Zscaler; Check Point Software Technologies; Aryaka Networks; Forcepoint; Sophos; McAfee; Juniper Networks; VMware; Citrix; Hillstone Networks |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global industry is expected to reach a valuation of USD 3.0 billion by the end of 2023.
Cisco Systems, Fortinet and Palo Alto Networks are the leading SD-WAN security market players.
The network firewall is the leading segment in the SD-WAN security market.
Over the historical period from 2018 to 2022, the SD-WAN Security market registered a 19.1% CAGR.
Japan’s SD-WAN security is expected to surge at a 25.3% CAGR from 2023 to 2033.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Pricing Analysis 5. Global Market Demand (Value in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market Background 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution 7.1. Network Firewall 7.2. DDoS Detection and Mitigation 7.3. Secure Web Gateways 7.4. Session Border Controller (SBC) 7.5. Network Encryption 7.6. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 8.1. Small and Medium-sized Enterprises (SMEs) 8.2. Large Enterprises 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry 9.1. IT & Telecom 9.2. BFSI 9.3. Healthcare 9.4. Manufacturing 9.5. Retail 9.6. Government 9.7. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. East Asia 10.5. South Asia Pacific 10.6. Middle East and Africa 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. South Asia & Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Key Countries Analysis- Market 18. Market Structure Analysis 19. Competition Analysis 19.1. Cisco Systems 19.2. Fortinet 19.3. Palo Alto Networks 19.4. Zscaler 19.5. Check Point Software Technologies 19.6. Aryaka Networks 19.7. Forcepoint 19.8. Sophos 19.9. McAfee 19.10. Juniper Networks 19.11. VMware 19.12. Citrix 19.13. Hillstone Networks 20. Assumptions and Acronyms Used 21. Research Methodology
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SD-WAN Security Market
