Distributed Cloud Market to Reach $17 Billion in 2028Distributed Cloud Market to Reach $17 Billion in 2028

Expect the distributed cloud networking market to grow fourfold by 2028, driven by companies' ongoing transition to hybrid cloud as well as AI-powered tools and software demands.

According to new data from Dell'Oro Group, distributed cloud networking will grow from a value of $4 billion to $17 billion in 2028. This growth will be accompanied by the multicloud networking market reaching $6 billion in 2028 and WAN as a service topping $8 billion around the same time. Dell'Oro expects a 50% compound annual growth rate for secure access service edge (SASE) during the same period.

Dell'Oro's Mauricio Sanchez

"The integration of AI across enterprise IT and the adoption of multicloud strategies have created unprecedented challenges for traditional WAN architectures," said Mauricio Sanchez, senior director of 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.

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Hybrid Cloud Growth in Near Term

Dell'Oro says the growth is expected to favor the EMEA and APAC market. While North America will remain the largest region for WAN, the research firm says EMEA and APAC will see the most growth through 2028 due to regional cloud expansions and new edge computing investments.

The growth in the cloud networking market is accompanied by an anticipated surge in SASE, which Dell'Oro predicted in August will reach $16 billion in 2028. WAN is also expected to play a significant role in the future of the MSP market in 2025, offering tools for flexibility and sustainability overall.