WAN Optimization Controller Market

Market Overview

Global WAN optimization controller market by hybrid network optimization is expected to grow at CAGR 14.4% during the forecast period 2019–2026.

Increasing adoption of cloud services has increased the demand for the global WAN optimization controller market. Cloud-based enterprise application has witnessed significant adoption owing to well-developed telecommunication infrastructure. In addition, to leverage business opportunities and improve customer experience, organizations have incorporated enterprise application solutions, which have significantly contributed to the cloud computing market growth. Companies are increasing their use of Software-as-a-Service and other forms of cloud computing. This, in turn, is increasing the amount of application traffic and transits in the WAN. Therefore, various organizations are deploying WAN optimization controllers. For instance, According to Enterprise Management Association, Inc., 84% of the enterprise network teams have increased their collaboration with WAN providers and support teams.

Increasing number of data centers and virtual WAN optimization controllers is further fueling the market growth. However, high deployment and management cost of the WAN optimization controllers may hinder the market growth.

Segmental Analysis

Global WAN optimization controller market is segmented by type and application.

By type, the market is segmented into hybrid network optimization and network traffic accelerating and monitoring. The network traffic accelerating, and monitoring growth is driven by congestion in the network data and growing need for monitoring of the network consumption and traffic. WAN accelerators increase productivity by speeding up the process of accessing mission-critical applications and business data.

On the basis of application, the market is segmented into CSP’s, network operator and enterprise.  CSP’s provide navigation through SLA complexities and monetizes the data network. Ever-increasing rate of fixed-line date and mobile usage is forcing telecom service providers to try a wide range of new network optimization methods. Such as, Info Vista offers efficient drive testing (TEMS) and real-time reporting and analytics on business applications (Ipanema). It offers complete network lifecycle management.  Network virtualization, provided by Juniper in the telecom market, helps the carriers in making more efficient use of disparate networks and improve overall hardware utilization rates.

Regional Analysis

Geographically, the global WAN optimization controller market is segmented into four regions: North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).

North America is dominating the global WAN optimization controller market. The market is maturing rapidly and gaining momentum in the region. The U.S. is the largest contributor to the global WAN optimization controller market. Large scale implementation of the WAN optimization solutions by the service providers and the enterprises in the country is driving the demand for the market in the region. Telecom providers in the region are collaborating with the manufacturers and are providing services for both accelerating and monitoring application performance, typically by integrating different toolsets. For instance, NTT America is providing WAN optimization and acceleration services based on Riverbed's technology along with network and application performance monitoring capabilities from Fluke Networks.

Europe ranked second in the global WAN optimization controller market. Major players in the European region are contributing a significant share in terms of production of the WAN optimization controllers. Europe based WAN optimization controller market is mainly influenced by increased customer adoption and rapid international expansion in the region. Various multinational companies are expanding their business in Europe. For instance, in 2018, Silver Peak (U.S. based company) and KDDI Europe formed a global strategic partnership to bring one-stop tiered managed SD-WAN optimization services in Europe.

Asia Pacific is experiencing the positive growth in the global WAN optimization controller market. Rapidly developing internet and technologies in the data centers and control rooms, especially in government agencies and financial institutions are significantly contributing to region’s WAN optimization controller market. For instance, in 2018, new Chinese policy came into practice, in which the Chinese government mandates commercial Chinese ISPs, otherwise unregistered SD-WAN & VPN traffic will be blocked.  Site-to-site connectivity across MPLS or private line remained unaffected by this new policy. Therefore, WAN optimization controller market is experiencing the growth in the region.

LAMEA holds the least share for the global WAN optimization controller market. Increasing demand for digital signage in retail, financial systems, hospitality, and transportation, among other sectors is projected to propel the South America WAN optimization controller market growth during the forecast period. The Middle East and Africa is projected to witness considerable growth in the global WAN optimization controller market.  Strong economic growth in the countries such as Saudi Arabia, the UAE, and others are driving the demand for data management solutions in both private and public sectors and driving the demand for the market.

WAN Optimization Controller Market Segmentation

By Type

• Hybrid Network Optimization
• Network Traffic Acceleration and monitoring

By Application

• CSP’s
• Network Operators
• Enterprise

By Regions

North America

• U.S.
• Canada
• Mexico

Europe

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia-Pacific

LAMEA

• Brazil
• Saudi Arabia
• South Africa
• Rest of LAMEA