The Distributed Cloud Networking (DCN) market is projected to grow from $4 billion in 2023 to $17 billion by 2028, a compound annual growth rate (CAGR) of 34%. This is what Dell’Oro Group forecast in a recently published report.
According to the research firm, while North America remains the largest market, the highest growth rates are expected in Europe, the Middle East and Africa (EMEA), Asia–Pacific (APAC), and the Caribbean and Latin America (CALA), supported by regional cloud expansion and edge computing investments.
Technologies such as hybrid cloud environments, AI-powered workloads, and software-defined networking solutions will also drive this growth.
“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 of Enterprise Security and Networking at Dell’Oro Group. “DCN offers a much-needed reimagining of the enterprise WAN, aligning security, scalability, and performance with modern IT requirements.
The report also indicates that multi-cloud networking revenues will reach over $6 billion by 2028, driven by the complexity of hybrid environments and the need for seamless cloud-to-cloud connectivity. WAN-as-a-Service and SASE Integration are also expected to massively contribute to the market.
“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 prioritising agility, automation, and integration will emerge as market leaders,” Sanchez concluded.
