WAN Market Intelligence

Industry Outlook & Drivers

Market Outlook on WAN

The MPLS market is expected to grow at a CAGR of around 4–5 percent from 2016 to 2021 globally. Asia-Pacific is expected to be the fastest growing market with a growth rate of 7–8 percent

• MPLS-based solutions have been the most preferred WAN connectivity model for enterprises in the Australian market and are the default transport mode for business critical applications.
• Increase in cloud-based services and mobile workforce has exposed the limitations of traditional rigid networks and has contributed to decline in MPLS-based WAN services market over the past.

Australian Market

• Increase in demand for managed wireless LAN services is expected to be driven by requirement arising from more than 25 percent of Australian enterprises
• Strong growth of SD-WAN is expected in the Australian enterprise connectivity market space. Key drivers include cost reduction and bandwidth optimization initiatives

WAN Usage Distribution – Australia

• Almost all data traffic, generated by mission critical applications, are transported by WAN connectivity
• Enterprises also leverage their WAN to support a major proportion of data traffic from cloud-based services and video collaboration solution

Market Analysis: Future Landscape

• Agility, flexibility, and scalability are gaining prominence, due to the proliferation of mobile devices within enterprise network, cloud computing, big data analytics, and expected penetration of IoT.
• Enterprises are expected to adopt a hybrid approach to their WAN to support multiple endpoints connected through different technologies within the same network. Hybrid WAN network deployments are expected to reduce the cost of services by around 30–35 percent.

Global SD-WAN Market

• Software-based SD-WANs will increase agility, visibility, and the overall operation efficiency and are expected to grow at a CAGR of 60–65 percent from 2016 through 2021
• Through strategic partnership, acquisitions and mergers, SD-WAN solution vendors and telecom service providers are offering transformational network solutions to enterprise buyers
• Macquarie Telecom offers SD-WAN-based network solution through VeloCloud's SD-WAN platform; similarly, Telstra offers SD-WAN functionalities through Cisco's platform

Key Market Drivers

• Simplification of network management and increase in operational efficiency
• Increase visibility and control of the network.
• Software-based architecture increases ease of automation in networks
• Increase in agility and performance to support cloud-based workload.