According to a Dell’Oro Group report. worldwide Distributed Cloud Networking (DCN) revenue is projected to reach $21-billion by 2029, representing a compound annual growth rate (CAGR) of 30% over the five-year forecast period.
DCN captures the platforms and services that deliver consistent connectivity, policy enforcement, and telemetry from users, across the WAN, to distributed cloud and application edges spanning branch sites, data centres and public clouds, and the category is gaining relevance as hybrid architectures and AI-era traffic patterns increase the operational penalty for fragmented control planes.
“DCN buyers are moving beyond isolated upgrades and are prioritizing architectures that reduce operational seams across connectivity, security, and telemetry so that incident response and change control can follow a single thread,” says Mauricio Sanchez, senior director: enterprise security and networking at Dell’Oro Group.
“What makes DCN distinct is that it links user-to-application experience with where policy and visibility are enforced, which is why application-adjacent controls are now influencing WAN decisions that used to be driven primarily by transport,” said Sanchez.
Additional highlights from the Distributed Cloud Networking five-year forecast report include:
- Cloud/Application Edge: This pillar remains the fastest-growing part of DCN as enterprises push application-aware steering, consistent policy, and unified telemetry closer to workloads across public cloud, private data centre and edge environments. As application delivery paths become more dynamic, buyers are favoring platforms that simplify policy placement, accelerate troubleshooting, and reduce handoffs between networking and security teams.
- WAN Middle Mile: Middle-mile capabilities remain foundational because performance outcomes depend on more than last-mile access, particularly when critical applications traverse multiple networks and cloud on-ramps. Enterprises and service providers continue to prioritize predictable transport, resiliency, and operational accountability, reinforcing the importance of backbone reach, cloud adjacency, and end-to-end service assurance.
- User/WAN Edge: The user edge continues to evolve as secure access, SD-WAN, and policy enforcement converge, creating demand for consistent user-to-application controls that remain portable across sites, remote users, and cloud resources. Buyers increasingly expect the user edge to integrate tightly with middle-mile and application-edge capabilities so that policy intent and experience telemetry remain coherent from entry point to workload.