MPLS and SD-WAN Market Size, Share, Growth, and Industry Analysis, By Types (MPLS, SD-WAN), By Applications (Telecom, Enterprise IT) , and Regional Insights and Forecast to 2035

MPLS and SD-WAN Market Size

The Global MPLS and SD-WAN Market continues to demonstrate steady expansion driven by enterprise network modernization and cloud-centric connectivity models. The market size was valued at USD 9.14 billion in 2025 and is projected to reach USD 9.76 billion in 2026, reflecting increasing adoption across enterprises and service providers. The market further expanded to USD 10.43 billion in 2027 and is forecasted to grow significantly to USD 17.66 billion by 2035. This growth represents a CAGR of 6.81% during the forecast period from 2026 to 2035. Nearly 62% of enterprises prioritize application-aware networking, while around 58% emphasize secure traffic routing, supporting sustained demand for MPLS and SD-WAN solutions globally.

The US MPLS and SD-WAN market shows strong growth momentum due to advanced IT infrastructure and early adoption of hybrid WAN architectures. Approximately 69% of large US enterprises operate multi-location networks requiring optimized connectivity. Around 64% of organizations prefer hybrid WAN models combining MPLS reliability with SD-WAN flexibility. Nearly 57% of enterprises focus on centralized network management, while about 53% prioritize enhanced security features. Additionally, close to 49% of US enterprises are expanding SD-WAN deployments to support cloud applications and remote work environments, reinforcing long-term market growth.

Key Findings

• Market Size: The market expanded from $9.14 billion in 2025 to $9.76 billion in 2026 and is projected to reach $17.66 billion by 2035, growing at 6.81%.
• Growth Drivers: About 62% adoption driven by cloud usage, 58% focus on secure routing, and nearly 54% demand for application performance optimization.
• Trends: Nearly 61% hybrid WAN adoption, 56% centralized orchestration usage, and around 52% preference for software-defined networking models.
• Key Players: Cisco Systems, VMware, Fortinet, Nokia, Juniper Networks & more.
• Regional Insights: North America holds 38%, Europe 27%, Asia-Pacific 25%, and Middle East & Africa 10% market share, reflecting infrastructure maturity differences.
• Challenges: Around 48% face integration complexity, 44% interoperability issues, and nearly 41% experience skilled workforce limitations.
• Industry Impact: Nearly 59% of enterprises report improved network efficiency and 55% experience enhanced application visibility.
• Recent Developments: Around 57% of vendors enhanced security features, while 49% focused on AI-driven traffic optimization advancements.

The MPLS and SD-WAN market is the increasing coexistence strategy rather than full replacement. Nearly 63% of enterprises deploy SD-WAN as an overlay on existing MPLS networks to balance reliability and agility. Around 51% of organizations leverage policy-based routing to dynamically shift traffic based on application priority. Additionally, about 47% of enterprises integrate WAN analytics with security platforms to gain real-time visibility. This hybrid operational approach enables organizations to maximize legacy investments while gradually transitioning toward software-driven networking architectures.

MPLS and SD-WAN Market Trends

The MPLS and SD-WAN market is undergoing a structural shift driven by enterprise-wide digital transformation, hybrid networking models, and cloud-centric application usage. More than 68% of large enterprises are now operating in multi-cloud or hybrid environments, increasing dependence on intelligent traffic routing and application-aware networking. Around 72% of organizations report prioritizing application performance over raw bandwidth, which has accelerated the integration of SD-WAN overlays with existing MPLS backbones. Approximately 61% of enterprises prefer a hybrid WAN model where MPLS handles mission-critical workloads while SD-WAN manages cloud and SaaS traffic.

Security-led networking is another defining trend, with nearly 59% of enterprises embedding firewall, encryption, and segmentation features directly into WAN architectures. Centralized orchestration is gaining traction, as about 64% of network teams favor single-pane management to reduce operational complexity. From a deployment perspective, software-based WAN solutions account for nearly 70% preference due to flexibility and faster provisioning. Additionally, over 55% of enterprises cite improved network visibility and analytics as a key factor influencing MPLS and SD-WAN adoption. The market is also seeing increased adoption among mid-sized enterprises, contributing nearly 46% of new SD-WAN deployments, highlighting broader market penetration and sustained demand.

MPLS and SD-WAN Market Dynamics

OPPORTUNITY

"Expansion of Cloud-Driven Enterprise Networks"

Cloud application traffic now represents nearly 67% of total enterprise WAN traffic, creating strong opportunities for MPLS and SD-WAN integration. About 58% of enterprises are redesigning their WAN architecture to support SaaS, IaaS, and PaaS workloads. Nearly 62% of IT leaders report that SD-WAN improves cloud application responsiveness, while 54% highlight reduced dependency on centralized data centers. Additionally, close to 49% of enterprises plan to expand branch connectivity using SD-WAN-enabled hybrid WANs, indicating strong opportunity for service providers and solution vendors to deliver scalable, cloud-optimized networking models.

DRIVERS

"Rising Demand for Application Performance and Network Agility"

Approximately 71% of enterprises identify application performance as the primary driver for MPLS and SD-WAN adoption. Nearly 66% of organizations report challenges with traditional WAN architectures in supporting real-time applications such as video collaboration and VoIP. SD-WAN adoption has helped about 60% of enterprises improve traffic prioritization, while 57% report faster branch deployment times. Furthermore, nearly 52% of enterprises emphasize the need for agile WAN solutions to support remote and hybrid work models, reinforcing sustained demand across multiple industry verticals.

RESTRAINTS

"Complex Integration with Legacy Network Infrastructure"

Despite growing adoption, around 48% of enterprises face challenges integrating SD-WAN with existing MPLS infrastructure. Nearly 44% of organizations report operational complexity due to multi-vendor environments, while 39% struggle with interoperability issues between legacy routers and modern SD-WAN platforms. Approximately 41% of IT teams highlight skill gaps in managing hybrid WAN environments, increasing dependency on managed service providers. These integration hurdles can slow deployment timelines and limit full optimization, acting as a restraint on seamless market expansion.

CHALLENGE

"Managing Network Security and Performance Consistency"

Maintaining consistent security and performance across distributed WAN environments remains a key challenge. Nearly 56% of enterprises express concerns about enforcing uniform security policies across multiple locations. About 47% report difficulties in monitoring real-time application performance across hybrid WANs. Additionally, 43% of organizations identify increased network visibility requirements as a challenge when scaling SD-WAN deployments. Balancing cost efficiency with high availability is another concern, with nearly 38% of enterprises indicating challenges in ensuring predictable performance for latency-sensitive applications.

Segmentation Analysis

The MPLS and SD-WAN market segmentation highlights clear adoption differences based on network type and end-use application. Enterprises are increasingly selecting WAN architectures based on performance sensitivity, cloud dependency, scalability, and operational flexibility. While MPLS continues to play a critical role in latency-sensitive and regulated environments, SD-WAN adoption is accelerating due to software-driven control, traffic optimization, and cost efficiency. On the application side, telecom service providers focus on managed and hybrid WAN offerings, while enterprise IT teams prioritize secure connectivity for distributed branches, remote users, and cloud workloads. This segmentation structure reflects how organizations balance reliability, agility, and visibility while modernizing their network infrastructure.

In terms of type, the market is divided between MPLS and SD-WAN, each contributing differently to overall revenue share and growth momentum. By application, telecom and enterprise IT segments show distinct demand patterns based on service delivery models and internal network transformation initiatives.

By Type

MPLS

MPLS remains a trusted networking solution for enterprises requiring predictable performance, low latency, and high reliability. Nearly 54% of large enterprises continue to rely on MPLS for mission-critical applications such as ERP systems, financial transactions, and voice communications. Around 49% of regulated industries prefer MPLS due to its controlled routing and consistent quality of service. Despite slower adoption compared to software-based alternatives, MPLS still accounts for approximately 45% of total WAN deployments, supported by enterprises prioritizing stability over flexibility. Integration with SD-WAN overlays has further extended its relevance in hybrid WAN architectures.

MPLS accounted for approximately USD 4.02 Billion in market size during 2025, representing nearly 44% of the total MPLS and SD-WAN market share. This segment is projected to grow at a CAGR of around 4.9% over the forecast period, supported by continued demand for secure and deterministic connectivity in enterprise core networks.

SD-WAN

SD-WAN is gaining rapid traction as organizations adopt cloud-first strategies and distributed work models. Nearly 63% of enterprises report improved application visibility after SD-WAN deployment, while about 58% highlight faster branch rollout capabilities. SD-WAN solutions now manage close to 55% of enterprise WAN traffic, driven by dynamic path selection and centralized orchestration. Around 61% of mid-sized enterprises prefer SD-WAN due to lower dependency on dedicated circuits and enhanced agility. Security-integrated SD-WAN architectures are also influencing adoption, with nearly 52% of deployments including built-in encryption and segmentation features.

SD-WAN generated approximately USD 5.12 Billion in revenue during 2025, accounting for nearly 56% of the total market share. This segment is expected to expand at a CAGR of about 8.3% from 2025 to 2035, driven by cloud adoption, remote workforce enablement, and demand for software-defined networking.

By Application

Telecom

The telecom segment plays a vital role in the MPLS and SD-WAN market through managed WAN services and hybrid connectivity offerings. Nearly 57% of telecom operators provide bundled SD-WAN and MPLS services to enterprise customers. About 51% of service providers focus on value-added services such as network monitoring and analytics. Telecom-driven deployments account for approximately 48% of large-scale WAN rollouts, particularly for multi-location enterprises. The segment benefits from strong enterprise outsourcing trends and demand for end-to-end managed connectivity solutions.

The telecom application segment generated nearly USD 4.30 Billion in market revenue during 2025, representing around 47% of the total market share. This segment is projected to grow at a CAGR of approximately 6.1%, supported by rising adoption of managed hybrid WAN services.

Enterprise IT

Enterprise IT teams are increasingly adopting MPLS and SD-WAN solutions to support internal digital transformation initiatives. Around 62% of enterprises deploy SD-WAN directly under IT-led network modernization programs. Nearly 59% of organizations report improved operational efficiency through centralized WAN management. Enterprise IT-driven deployments emphasize security, application performance, and scalability, particularly for distributed branch networks. This segment continues to grow as enterprises reduce dependency on legacy architectures and invest in software-driven connectivity.

Enterprise IT accounted for approximately USD 4.84 Billion in revenue during 2025, capturing nearly 53% of the total market share. This segment is expected to grow at a CAGR of about 7.4% over the forecast period, driven by cloud migration and remote workforce expansion.

MPLS and SD-WAN Market Regional Outlook

The regional outlook for the MPLS and SD-WAN market reflects varying levels of digital maturity, enterprise network modernization, and cloud adoption across global regions. North America leads due to advanced IT infrastructure and early adoption of software-defined networking. Europe follows with strong enterprise compliance requirements and hybrid WAN models. Asia-Pacific shows rapid expansion fueled by digital enterprises and cloud investments, while the Middle East & Africa region demonstrates steady growth supported by telecom infrastructure upgrades and regional digitization initiatives. Based on regional contribution, North America accounts for 38% of the market, Europe 27%, Asia-Pacific 25%, and Middle East & Africa 10%, totaling 100% of global market share.

North America

North America represents the most mature MPLS and SD-WAN market, driven by widespread cloud adoption and enterprise digital transformation. Nearly 69% of enterprises in the region use hybrid WAN architectures combining MPLS and SD-WAN. About 64% of organizations prioritize application-aware routing and centralized orchestration. Security-integrated WAN solutions are adopted by nearly 58% of enterprises. High demand from BFSI, healthcare, and technology sectors continues to support market stability and innovation.

North America accounted for approximately USD 3.71 Billion of the MPLS and SD-WAN market in 2026, representing around 38% of the global market share, driven by advanced enterprise networking requirements and managed service adoption.

Europe

Europe demonstrates strong adoption of MPLS and SD-WAN driven by regulatory compliance and cross-border enterprise operations. Around 61% of enterprises rely on MPLS for secure data transmission, while 56% have implemented SD-WAN overlays. The region shows high demand for network reliability, with nearly 53% of organizations focusing on quality-of-service optimization. Adoption is particularly strong in manufacturing, government, and financial services sectors.

Europe generated approximately USD 2.64 Billion in market size during 2026, accounting for nearly 27% of the global market share, supported by steady enterprise network modernization.

Asia-Pacific

Asia-Pacific is experiencing rapid expansion in the MPLS and SD-WAN market due to growing digital enterprises and cloud investments. Nearly 66% of enterprises in the region are expanding branch connectivity. About 59% prioritize SD-WAN for cost optimization and scalability. Adoption is particularly strong among IT services, e-commerce, and manufacturing sectors. Increasing data center development further supports regional demand.

Asia-Pacific accounted for approximately USD 2.44 Billion of the global market in 2026, representing around 25% of total market share, driven by large-scale enterprise expansion and cloud networking needs.

Middle East & Africa

The Middle East & Africa region shows steady growth in MPLS and SD-WAN adoption supported by telecom infrastructure development and digital transformation initiatives. Around 52% of enterprises are upgrading legacy WAN architectures. Approximately 47% of organizations focus on improving connectivity for remote and distributed locations. Adoption is rising in sectors such as energy, government, and logistics, contributing to gradual market expansion.

Middle East & Africa represented nearly USD 0.98 Billion in market size during 2026, accounting for about 10% of the global MPLS and SD-WAN market share, supported by enterprise connectivity modernization.

List of Key MPLS and SD-WAN Market Companies Profiled

Investment Analysis and Opportunities in MPLS and SD-WAN Market

Investment activity in the MPLS and SD-WAN market continues to strengthen as enterprises modernize network infrastructure. Nearly 64% of organizations are increasing budget allocation toward hybrid WAN deployments. About 58% of enterprises prioritize software-defined networking investments to enhance flexibility and reduce operational complexity. Managed SD-WAN services attract close to 46% of new enterprise investments due to lower in-house maintenance requirements. Additionally, around 52% of investors focus on security-integrated WAN solutions, reflecting rising demand for encrypted and segmented traffic management. Emerging opportunities exist in multi-cloud networking, where nearly 61% of enterprises seek optimized connectivity solutions. Telecom operators also represent a strong opportunity segment, contributing nearly 49% of infrastructure-focused investments aimed at expanding managed WAN service portfolios.

New Products Development

New product development in the MPLS and SD-WAN market is centered on automation, security integration, and analytics-driven performance optimization. Nearly 57% of newly launched SD-WAN solutions include built-in security features such as firewall and traffic segmentation. Around 54% of vendors focus on AI-based traffic optimization tools to enhance application performance. Cloud-native SD-WAN platforms now represent close to 48% of new product rollouts, enabling faster deployment and scalability. Additionally, approximately 51% of vendors are developing centralized management dashboards to improve network visibility. Edge computing compatibility is another development focus, with nearly 42% of products supporting distributed edge connectivity for latency-sensitive applications.

Developments

• Cisco expanded its SD-WAN orchestration capabilities in 2024, enhancing centralized control and application visibility. Nearly 63% of enterprise users reported improved traffic prioritization and policy enforcement after deployment.

• VMware introduced enhanced security integration within its SD-WAN offerings, enabling unified threat management. Around 58% of enterprises noted better network protection and reduced security incidents.

• Fortinet upgraded its secure SD-WAN solutions to support advanced encryption and segmentation. Approximately 55% of deployments achieved improved compliance and data protection outcomes.

• Juniper Networks enhanced AI-driven WAN analytics tools, improving real-time monitoring. Nearly 49% of customers experienced reduced network downtime and faster issue resolution.

• Nokia expanded its managed SD-WAN service capabilities for telecom operators, supporting hybrid WAN models. Around 46% of service providers reported improved enterprise customer retention.

Report Coverage

This report provides comprehensive coverage of the MPLS and SD-WAN market by analyzing market structure, competitive landscape, segmentation, regional performance, and technology trends. It evaluates strengths such as high reliability and predictable performance, adopted by nearly 54% of enterprises for critical workloads. Weaknesses include integration complexity, reported by approximately 48% of organizations managing hybrid WAN environments. Opportunities are highlighted through rising cloud adoption, with about 61% of enterprises increasing reliance on cloud-based applications. Threats include cybersecurity risks, as nearly 43% of enterprises express concerns regarding consistent policy enforcement across distributed networks.

The report also examines deployment trends, where hybrid WAN architectures account for nearly 59% of enterprise networks. Regional analysis outlines adoption variations driven by infrastructure maturity and enterprise digitalization. Competitive analysis highlights vendor differentiation through security integration, automation, and analytics, with over 52% of vendors focusing on value-added features. Overall, the report delivers actionable insights for stakeholders seeking strategic planning, investment evaluation, and competitive positioning within the evolving MPLS and SD-WAN market.