Gartner Research

Forecast Analysis: Enterprise Networking Connectivity Growth Trends, Worldwide

Published: 20 September 2019

ID: G00385103

Analyst(s): Lisa Unden-Farboud, To Chee Eng, Gaspar Valdivia, Susanna Silvennoinen, Grigory Betskov


Cloud and digital business are transforming enterprise IT architectures and requirements on WAN services. Service providers’ ability to support hybrid IT with cost-efficient connectivity, as well as agile and flexible data network services, will be key to compete for a flat $145 billion market.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Maturity of SD-WAN Products and Service Offerings
    • Forecast Assumption: By year-end 2023, 60% of enterprises will have implemented SD-WAN, up from less than 20% in 2019, to increase network agility and enhance support for cloud applications.
  • Influencing Factor: Shift in Enterprise WAN Topologies
    • Forecast Assumption: By 2023, 30% of enterprise locations will use internet-only WAN connectivity, up from less than 10% in 2019, to reduce bandwidth’s cost.
  • Influencing Factor: Cloud and Multicloud Adoption
    • Forecast Assumption: By 2023, more than 50% of large organizations will connect to cloud providers using direct cloud connectivity from their WANs, up from 10% in 2019.
  • Influencing Factor: Use Cases Demanding High Bandwidth and Low-Latency Connections
    • Forecast Assumption: Through 2022, more than 75% of enterprises adopting a cloud-first strategy will continue to host business-critical applications in traditional data center environments.

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