WAN optimization refers to the techniques used to improve data-transfer efficiencies across wide-area networks (WAN); it aids in increasing the efficiency between two data points over the networks. The growing use of cloud and virtual WAN optimization controllers is propelling the WAN optimization market forward. The various benefits that WAN optimization provides, such as more reliable and faster recovery; it also has the ability to increase network response time capabilities, thereby increasing demand for WAN optimization and driving market growth.
Various changes in IT and business requirements are driving a demand for greater flexibility in WAN capabilities, boosting the growth of the WAN optimization market. Because of increased data traffic over the network, optimization technologies have grown in importance, positively impacting the growth of the WAN optimization market. However, the high initial investment associated with WAN optimization is the primary impediment to market growth. The expansion of enterprises and data centres is expected to fuel the growth of the WAN optimization market.
The global WAN Optimization market size was predicted to reach over USD 1.9 billion in 2020 and projected to grow at a CAGR of 8.5% over the forecast period. The rapidly increasing demand for solutions that assist businesses in efficiently monitoring and managing data centre networks is driving the growth. Furthermore, in the midst of the COVID-19 outbreak, businesses all over the world have allowed their employees to work from home. Allowing employees to work from home has enabled business organisations to invest in IT infrastructure and, as a result, wide area network (WAN) optimization solutions for remotely monitoring each employee's work.
Furthermore, several large corporations have Strategic Business Units (SBU) located all over the world. Employees of these companies work on a common platform, where many employees working from remote locations struggle to deliver good Quality of Service (QoS) due to inefficient bandwidth distribution on the network when accessing centralized applications.
WAN Optimization Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 1.9 billion|
|Growth Rate||CAGR of 8.5% during 2021-2028|
|Segment Covered||Component, Deployment Type, End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Riverbed Technology, Allot Communication Ltd., Silver Peak System INC, Citrix Systems, INC., Array Networks, INC., Cisco Systems, INC.,F5 Networks, INC., Radware Ltd., Streamcore., Juniper Networks Inc., Acacia Communications Inc. , Amphenol Corporation among others.|
Key Segments of the Global WAN Optimization Market
Component Overview, 2019-2028 (USD Billion)
- Traditional WAN
- Professional Services
- Managed Services
End User Type Overview, 2019-2028 (USD Billion)
- Large enterprises
Deployment Type Overview, 2019-2028 (USD Billion)
Regional Overview, 2019-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global WAN Optimization market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global WAN Optimization market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the WAN Optimization industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Component, service, and Deployment Type. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global WAN Optimization market. The report will benefit every stakeholder involved in the WAN Optimization market.
- Managers within the WAN Optimization industry looking to publish recent and forecasted statistics about the global WAN Optimization market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global WAN Optimization market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Most cloud-based applications require high bandwidth and low latency to function properly. Latency, bandwidth constraints, and packet losses are unavoidable in large-scale WAN deployments. WAN optimization allows enterprises and service providers to save money and cut costs by lowering bandwidth requirements and increasing user efficiency by reducing the effects of latency and distance between branch offices, data centres, and the cloud.
There are a plethora of data optimization technologies available. Data caching is a technique for storing frequently used information on a localhost or server in order to make it more accessible in the future. Caching reduces the network's load by removing the need for data to travel back and forth from its origin to its destination. Data deduplication detects and removes redundant copies of recurring data. This reduces the amount of data that must be transmitted over a WAN for remote backups, replication, and disaster recovery. Data compression techniques are used to reduce the size of data in order to use less bandwidth.
Based on the Component segment, the market is classified into Solution, Services. In 2019, the solution segment accounted for largest revenue. This is due to the increased deployment of software-defined wide area networks (SD-WAN) among enterprises worldwide. SD-WAN and traditional WAN are both included in WAN optimization solutions. SD-WAN is a virtual network architecture that allows businesses to take advantage of a variety of network services such as Long Term Evolution (LTE), 5G, Multiprotocol Label Switching (MPLS), and broadband services.
End Use Type Segment
Based on the End Use Type, the market is segmented into SMEs, Large enterprises. In 2019, the large enterprises segment accounted for more than 70% of the market. This is due to the widespread use of WAN optimization software by large technology companies, banks, hospitals, and e-commerce retailers. The use of these solutions has assisted these businesses in lowering their total cost of ownership and overcoming latency issues while improving network efficiency. Furthermore, large enterprises use software from multiple vendors for a variety of applications. WAN optimization solutions provide the interoperability required for various software to operate in unison.
Deployment Type Segment
Based on the Deployment Type, the market is segmented into On-premises, and cloud. In 2019, the on-premise segment accounted for largest revenue. This is due to a significant increase in the implementation of on-premise solutions across large enterprises to securely access and transmit data within the premise. On the contrary, due to the high licence and maintenance costs associated with on-premise installations, demand for on-premise solutions is expected to grow at a relatively slow pace during the forecast period.
The North American market is open to the adoption of WAN optimization solutions. Because of the growing demand for the next-generation 5G network, the region is seeing a surge in demand for SD-Wan solutions. Because of the rapidly changing technological landscape, enterprises in the region are shifting to manage SD-WAN services. North American telecom providers are integrating various toolsets to provide services for both accelerating and monitoring application performance. Major North American WAN optimization vendors are developing new technologies that make WAN optimization more efficient and cost-effective.
The major players of the global WAN Optimization market are Riverbed Technology, Allot Communication Ltd., Silver Peak System INC, Citrix Systems, INC., Array Networks, INC., Cisco Systems, INC.,F5 Networks, INC., Radware Ltd., Streamcore., Juniper Networks Inc., Acacia Communications Inc. , Amphenol Corporation among others. Renowned companies are offering new and modern WAN Optimization. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic Services and Solution and to remain competitive in the global market.