The Secure Access Service Edge (SASE) market is projected to reach nearly $16 B by 2028, representing a 13 percent compound annual growth rate (CAGR), according to a new report from Dell'Oro Group. Security Service Edge (SSE) revenue is expected to maintain a robust double-digit CAGR and outpace SD-WAN's single-digit CAGR over the next five years (2023–2028).
"The divergence in growth between SSE and SD-WAN highlights a shift in enterprise priorities," said Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell'Oro Group. "As enterprises become increasingly cloud- and mobile-first, the demand for integrated security solutions is driving the rapid adoption of SSE. Despite an expected slowdown in SD-WAN growth, the overall SASE market remains strong and poised for continued expansion," added Sanchez.
Additional highlights from SASE and SD-WAN 5-Year July 2024 Forecast Report:
- SSE Market Resilience: Despite macroeconomic challenges that have lengthened sales cycles that are expected to slow growth in 2024, the SSE market is anticipated to accelerate in 2025 due to improved purchasing sentiment.
- SD-WAN Market Adjustments: Near-term growth is being impacted by post-pandemic spending digestion and macroeconomic concerns, while long-term growth is expected to be influenced by the market's maturing state and slower transitions from access routers to SD-WAN solutions.
- Single-Vendor SASE Dominance: Single-vendor SASE solutions are expected to represent over 85 percent of the market by 2028, driven by enterprises' preference for integrated, one-stop solutions that simplify deployment and management.
- Unified SASE Growth: Unified SASE solutions, a segment of single-vendor SASE, are forecasted to grow at a remarkable 19 percent revenue CAGR. This growth is driven by smaller enterprises seeking tightly integrated networking and security solutions that offer greater simplicity.
- Decline in Access Router Revenue: Revenue from access routers is expected to drop below $1 B by 2028, a double-digit CAGR decline due to the transition towards SD-WAN solutions.
