The Latin American software defined wide area network (SD-WAN) market is expected to reach $219.4 million by 2023, according to Intelligence.
Rising adoption of cloud-based applications and need for simplified enterprise network management are the major drivers of the market in the region.
Insights on market segments
Based on offering, the Latin American SD-WAN market is classified into solution and service. SD-WAN solution category accounted for more than 80% of the market revenue in 2017 and is expected to contribute a larger revenue share during the forecast period. This can be attributed to growing need for deploying reliable infrastructure to overcome shortcomings of internet network connection such as limited bandwidth availability and prioritization of data routing.
In the Latin American SD-WAN market, SD-WAN solution category is further categorized into WAN infrastructure and SD-WAN control and overlay; between the two, WAN infrastructure held a larger revenue share in SD-WAN solution market, accounting for more than 65% share in 2017. This can be attributed to the benefits of WAN infrastructure, including advanced management and monitoring of customer-oriented network infrastructure on a larger scale through protocols, routing technologies, optimal performance measures, traffic control, and device reporting.
What are the factors impacting the growth of this market?
- Growing adoption of cloud-based applications and demand for effective network management by enterprises are key growth drivers for the market
- Growing demand for intelligent pathway control is offering lucrative opportunities for the market players
Increasing migration of the Latin American enterprises from traditional WAN infrastructure to cloud-based applications, is resulting in increasing demand for SD-WAN solutions. Due to high maintenance cost and complex architecture of convectional network, enterprises are in need for secure, affordable, and ease of WAN management. In Latin America, organizations are continuously expanding for greater customer reach, which has increased the demand for effective network management.
How is the market growing, geographically?
Market is projected to witness the fastest growth in Chile
During the forecast period, the Latin American SD-WAN market is projected to witness the fastest growth in Chile, owing to the rising use of technology by the public sector and growing information technology (IT) and telecom industry, which is one of the fastest growing industries in Chile. Further, the retail banking sector is also growing in the country, which has led to deployment of SD-WAN solutions for retail banking in order to maintain high level of network security and quality operations, including front office and back office operations. This is achieved by implementation of interoperability among different branches of the sector and optimum data transfer policies.
SD-WAN market competitiveness
Mergers and acquisitions were the key activities observed in the Latin American SD-WAN market. For instance, Cisco Systems Inc. broadened its segment portfolio through the acquisition of Viptela Inc., a SD-WAN technology provider, in August 2017, which is expected to consolidate its market position in the region.
Some of the key players operating in the Latin American SD-WAN market are Cisco Systems Inc., Citrix Systems Inc., Silver Peak Systems Inc., CloudGenix Inc., Ecessa Corporation, Riverbed Technology Inc., Mushroom Networks Incorporated, VMware Inc., Gluware Inc., Elfiq Networks, and Aryaka Networks Inc.
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