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Distributed Cloud Networking Market Expected to Climb to $17 Billion by 2028
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%, according to Dell'Oro Group.
The increase is led by enterprises' transition to hybrid cloud environments, the rise of AI-powered workloads, and the greater demand for elastic, software-defined networking solutions, according to the analysts.
"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.
Sanchez further states, "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."
The highest growth rates are expected in EMEA, APAC, and CALA, supported by regional cloud expansion and edge computing investments.
Dell'Oro also stated that WAN-as-a-Service (WANaaS) will account for over $8 billion to the market by 2028 as enterprises transition from away from MPLS architectures to software-defined middle-mile solutions that can be scaled.