A traditional WAN router is connected to one single WAN link using private leased lines. If this single connection fails, it will affect business operations due to the suspension of services. To address this shortcoming, software-defined WAN (“SD-WAN”) emerged

as an alternative, replacing expensive leased lines by using multiple affordable wired or wireless WAN connections. According to Quocirca, the following key market drivers and factors affect the demand for SD-WAN routers:

New Opportunities for SMEs

To respond swiftly to capture market share and gain profits, SMEs are increasingly using applications in their business operations that require reliable and secure Internet and network connections.

While traditional leased private line solutions provide stable connections, the initial setup time is long and both setup and data usage are costly. As an alternative, SD-WAN solutions provide a lower cost, fast, flexible and improved connectivity through the bandwidth bonding capabilities of SD-WAN routers.

SD-WAN Supports Increased Mobility

Vehicle connectivity is a fast growing area of development with unique challenges. Quocirca estimates that there will be approximately 250 million connected vehicles by 2020, an increase from approximately 50 million in 2015. Moving vehicles will frequently switch between 3G and 4G LTE connections whilst also moving through the coverage areas of multiple operators.

In-vehicle computing devices require reliable Internet data connectivity to support everything from basic telemetry to critical data for emergency vehicles, tracking in freight haulage and Internet connectivity for passengers. When deployed in vehicles, wireless SD-WAN routers can provide reliable connectivity for black boxes, Internet access, entertainment and mobile enterprise applications.

Internet-as-a-Service

In addition to SD-WAN router vendors, the SD-WAN router market consists of providers of software, cloud, and managed services. They offer Internet-as-a-Service in a package that includes multiple WAN connections, bonding technology to increase bandwidth and reliability, and cloud-based management platforms.

As these service providers do not have their own SD-WAN routers, they source for SD-WAN routers from the SD-WAN hardware vendors in order to enable their services. The emergence of these service providers has driven the demand for SD-WAN routers.

A Growing Opportunity

Due to the increase in the utilisation of Internet by organisations and the general reduction in the subscription cost of Internet services, according to Quocirca, the monthly business Internet traffic volume is forecast to grow from approximately 5,800 petabytes to approximately 24,7000 petabytes with a CAGR of 23%.

Continued expansion of business Internet traffic volume will drive the demand for wide area network connectivity for organisations. The technology of SD-WAN enables and facilitates organisations to establish connections among their branches in various locations. It is believed that SD-WAN will be a preferred connectivity solution due to the aforementioned cost benefits and flexibility advantages.