The Secure Access Service Edge (SASE) market is projected to reach nearly US$16 billion by 2028, representing a 13% compound annual growth rate (CAGR). 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), according to market research firm Dell’Oro Group.
“The divergence in growth between SSE and SD-WAN highlights a shift in enterprise priorities,” says Dell’Oro Group senior director of enterprise security and networking Mauricio Sanchez.
"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,” adds Sanchez.
The SASE and SD-WAN 5-Year July 2024 Forecast Report highlighted the following:
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.
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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 %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% 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 US$1 billion by 2028, a double-digit CAGR decline due to the transition towards SD-WAN solutions.