9.3.7.3Vertical

SD-WAN & Network Virtualization

Vendors of software-defined WAN and network virtualization products.

Market snapshot

These figures describe Networking Equipment (9.3.7), the segment that SD-WAN & Network Virtualization sits within — not SD-WAN & Network Virtualization on its own.

Market size
~$41B
Growth
~3.4%CAGR (2017–22, nominal)
Companies
~1,200
FragmentationConsolidatedEstimate

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 334210 (telephone apparatus) + 334220 (radio/TV/wireless communications equipment) + 334290 (other communications equipment); AI-networking demand has accelerated since 2022.

Business model & economics

Revenue model

Networking-hardware sales plus software and support

Key economics

Recurring revenue
Moderate

hardware plus recurring software/support

EBITDA margin
Strong

scaled hardware-plus-software economics

Capex intensity
High

Characteristics

  • Led by Cisco, Arista, Juniper.
  • AI data-center networking a major growth driver.
  • High-speed optics and software-defined networking.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiIowaKentuckyMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandTexasMaryland

Networking equipment manufacturing concentrates in Maryland and Texas.

MarylandTexas

U.S. Census Bureau — 2022 County Business Patterns (employment by state), NAICS 334210. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Networking majors
  • Hyperscalers & data-center buyers
  • Optics & component acquirers

What’s driving deals

  • AI/data-center networking demand.
  • High-speed optics and disaggregation.
  • Cloud and 5G networking.

Find SD-WAN & Network Virtualization acquisition targets

Search Acquisera’s index for companies classified under SD-WAN & Network Virtualization (9.3.7.3) and build a targeted deal pipeline.

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