Dell’Oro: Distributed Cloud Networking Market Will Accelerate to $17 Billion

Published On: February 2, 2025Categories: Buzz

The Distributed Cloud Networking market is projected to grow from $4 billion in 2023 to $17 billion by 2028, achieving a compound annual growth rate (CAGR) of 34 percent, according to the Redwood City, California-based Dell’Oro Group. This growth is driven by enterprises’ transition to hybrid cloud environments, the rise of AI-powered workloads, and the increasing demand for elastic, software-defined networking solutions, according to the company’s research.

“The integration of AI across enterprise IT and the adoption of multi-cloud strategies have created unprecedented challenges for traditional WAN architectures,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “Distributed Cloud Networking offers a much-needed reimagining of the enterprise WAN, aligning security, scalability, and performance with modern IT requirements.

“As businesses adapt to AI-driven workloads and hybrid workforce models, the shift to service-centric, cloud-native networking will define the next decade of enterprise transformation. Vendors prioritizing agility, automation, and integration will emerge as market leaders,” added Sanchez.

The report also predicts that multi-cloud networking revenues will reach over $6 billion by 2028, fueled by the complexity of hybrid environments and the need for seamless cloud-to-cloud connectivity. WANaaS will contribute over $8 billion to the market by 2028 as enterprises transition from rigid MPLS architectures to scalable, software-defined middle-mile solutions. The SASE segment within Distributed Cloud Networking is forecasted to grow at a 50 percent CAGR, reflecting enterprises’ prioritization of secure, user-edge connectivity integrated with WANaaS and multi-cloud frameworks.

As-a-service solutions are expected to dominate the market, accounting for 79 percent of total revenues between 2024 and 2028, signaling a clear shift from hardware-centric to subscription-based architectures. While North America remains the largest market, the highest growth rates are expected in EMEA, APAC, and CALA, supported by regional cloud expansion and edge computing investments.

Channel Impact®
The report highlights how Distributed Cloud Networking solutions address the demands of AI-powered workloads, hybrid cloud environments, and edge computing. The report includes forecasts through 2028, vendor analysis, and insights into market dynamics, such as the shift to service-centric architectures and integrating multi-cloud networking, WANaaS, and SASE solutions.

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