A study by Grand View Research finds that the global wide area network optimization market size is estimated to reach USD 4.88 billion by 2027, registering a CAGR of 9.5% from 2020 to 2027. The growing need for efficient network optimization across business organizations is the major factor in driving the market growth. Moreover, in a bid to achieve improved Quality of Services (QoS) and productivity on their existing network, companies across the globe are increasingly deploying WAN optimization.
The ongoing COVID-19 pandemic has compelled several business organizations and educational institutions to shut their operations temporarily. The closure of educational institutes has necessitated students to use virtual offerings for learning. In a bid to offer a unified digital learning experience to students, universities and institutions have been forced to deploy robust network infrastructure, necessitating the need for network monitoring and thereby driving demand for WAN optimization. Similarly, several enterprises have allowed their employees to work from home till the pandemic is contained, thereby necessitating a reliable and effective network monitoring to help minimize latency in the network and deliver an agile response to employees and clients. Consequently, the COVID-19 outbreak is expected to have a positive impact on market demand.
Key highlights from the report include:
- In 2019, North America accounted for a market size of USD 914.60, attributed to the presence of a number of large enterprises and data centers;
- The SD-WAN optimization solution segment is estimated to witness significant growth from 2020 to 2027, owing to the rapid deployment of SD-WAN across enterprises globally. The SD-WAN helps businesses to enhance their application performance and offers an enhanced user experience;
- Cloud-based WAN optimization solutions segment is expected to witness remarkable growth over the forecast period on the back of benefits associated in terms of accessibility offered and infrastructure cost;
- Increasing awareness regarding cost-benefit associated with a cloud-based business model has led to the increasing adoption of cloud-based WAN optimization across large, medium, and small enterprises in the Asia Pacific. Increasing adoption of cloud-based, especially across verticals including IT and telecom, healthcare, and retail is expected to help the region expand at a CAGR of 10.5% over the forecast period.
With the introduction of the next-generation 5G network, many businesses and service providers are investing heavily in high-speed cloud-RAN (C-RAN) and core network deployments. While C-RAN helps service providers to reduce huge costs associated with the infrastructure, the high-speed network needs continuous monitoring to ensure operational performance through minimal downtime. Thus, imminent need to minimize the downtime and thereby improve operational performance is expected to drive demand for WAN optimization among business organizations.
Moreover, with the advent of edge computing and its increased adoption across industry verticals, small-scale data center establishments are on the rise. To attain optimal computation and ensure unified communication during the data exchange process between data centers, businesses are increasingly deploying WAN optimization.