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WAN Optimization Market Size, Share, Growth Factors, Sales Revenue, Competitive Landscape 2025

06-30-2023 09:18 AM CET | IT, New Media & Software

Press release from: Markets and Markets

WAN Optimization Market

WAN Optimization Market

WAN Optimization Market is projected to grow from USD 1.0 billion in 2020 to USD 1.4 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 6.7% during the forecast period. The major factors driving the growth of the WAN optimization market include the rising need to ensure the quality of user experience and productivity, growing number of data centers and branch offices, and increasing cloud-based WAN optimization solutions.

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The solutions segment to hold a larger market size during the forecast period

WAN optimization solutions consist of traditional WAN and SD-WAN. These solutions significantly boost WAN performance with the help of application acceleration and better utilization of existing WAN infrastructure that enables organizations to save costs on various additional hardware, software, and bandwidth. The traditional WAN optimization solution works on various techniques, such as load balancing, Quality of Service (QoS), deduplication, caching, and compression. While SD-WAN uses a centralized control function to securely and intelligently direct traffic across WAN, which increases application performance, offers enhanced user experience, increases business productivity, and reduces costs for IT. Most of the enterprises have taken applications out of branch offices and consolidated them in centralized data centers, and work force accessing these applications is highly distributed at distant locations. As the use of Software-as-a-Service (SaaS) increases, the amount of application traffic that transits WAN also increases. This traffic increase makes enterprises much more interested in deploying WAN optimization solutions.

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The small and medium-sized enterprises segment to record a higher growth rate during the forecast period

The rising usage of cloud for the deployment of WAN optimization solutions has led to the increasing adoption of these solutions among Small and Medium-sized Enterprises (SMEs). WAN optimization solutions are expensive and complex in nature. However, the availability of these solutions on cloud has reduced the cost problem as cloud-based solutions are less expensive as compared to on-premises solutions. SMEs have budget constraints; so, they prefer cloud-based solutions available in the market. SMEs' criteria is based on various metrics, such as revenue generated and ownership structure. Cloud-based solutions are developed, keeping in mind the limited budget of SMEs.

Asia Pacific to record the highest growth rate during the forecast period

Asia Pacific (APAC) is growing at a faster growth rate as compared to the other regions. The region has huge potential for WAN optimization solutions, as it consists of economies such as China, India, Japan, Australia, and South Korea. These countries, with their large populations, are undergoing a dramatic change with increase in the domestic demand for technological intervention and huge scope for advancements, as they are still growing economies. They have a huge advantage of human resource that forms a large subscriber base for any vertical that advances technologically. This is attributed to the fact that technological adoption has been rapid in this region and is growing exponentially. The potential benefits of wireless services, such as increasing the need for mobility services and reducing operating expenses, are the major drivers for adoption of WAN optimization solutions in this region. The number of internet users in this region has grown to a great extent, and hence, many companies in the region have started deploying advanced communications solutions to cater to the rising communication demand for high-speed data and superior voice quality. All these reasons increase the demand for better network management, network visibility and control, and wireless communication, leading to the deployment of SD-WAN in the region.

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The major vendors of the market include Cisco (US), Riverbed (US), Citrix (US), Infovista (UK), Silver Peak (US), Array Networks (US), Aryaka (US), Circadence (US), Fat Pipe (US), Nuage Networks(US), Oracle (US), Huawei(China), Wanos (South Africa), Equinix (US), Exinda (US), F5 (US), Aruba (US), and VMware(US).

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