SD-WAN Market Slows in Q1 2020

  • Dell'Oro Group

REDWOOD CITY, CA — According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide SD-WAN market continued to expand in the first quarter of 2020, but the 24 percent year over year growth rate was well below the 64 percent annual growth for 2019. The top five vendors, Cisco, VMware, Silver Peak, Versa and Fortinet saw their combined revenue share climb above 60 percent in 1Q 2020.

"Demand for SD-WAN held up well in the first quarter, but supply chain disruptions induced by the COVID-19 pandemic caused a sharper deceleration in vendor revenue growth," said Shin Umeda, Vice President at Dell'Oro Group. "We still expect the SD-WAN market to grow by double-digits this year, but with so much macroeconomic uncertainty, strong performance won't be a shoo-in for all vendors," added Umeda.

Additional highlights from the 1Q 2020 Router & Carrier Ethernet Switch (CES) Report:

  • Supply chain disruptions accounted for the majority of the Service Provider (SP) Router and CES Switch market decline in 1Q 2020.
  • The SP Router and CES market in China showed a modest decline in 1Q 2020, but upgrades for 5G infrastructure are expected to drive strong demand over the rest of 2020.

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