Enterprises Are Consolidating Investments Around Strategic Vendors
REDWOOD CITY, Calif., March 19, 2025 -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the global Secure Access Service Edge (SASE) market reached $2.6 B in 4Q 2024, achieving 14 percent year-over-year (Y/Y) revenue growth. The market showed notable improvement, especially within the SD-WAN segment, driven by a recovery from earlier inventory corrections caused by pandemic-induced overbuying. Robust Cisco sales also played a key role in this rebound, signaling a shift toward recovery and increased optimism heading into 2025.
"The SASE market is recalibrating after years of explosive growth, but the fundamental demand for integrated, scalable security and networking solutions remains strong," said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell'Oro Group. "Enterprises are shifting their strategies from rapid expansion to optimization, consolidating investments around strategic vendors, and signaling a pivot toward long-term, stable market expansion," added Sanchez.
Additional highlights from the 4Q 2024 SASE and SD-WAN Quarterly Report:
- Single-vendor SASE solutions grew 77 percent Y/Y, significantly outperforming multi-vendor solutions, which experienced a sharp decline of 56 percent. Among the top ten vendors by revenue, only four—Broadcom, Cato Networks, Cisco, and Palo Alto Networks—maintained a relatively balanced revenue distribution between SD-WAN and SSE (at least a 70/30 split), highlighting the complexity of penetrating both the networking and security shares of customer wallet.
- SD-WAN revenue rebounded to 17 percent growth in 4Q 2024, marking a pivot after several quarters of slower growth.
- Security Service Edge (SSE) revenue increased 16 percent in 2024, reflecting continued enterprise investment in cloud security despite broader macroeconomic headwinds.
- Total branch networking spending (SD-WAN and access routers) increased 9 percent in 4Q 2024, reversing recent quarterly declines and indicating improved enterprise confidence heading into 2025.
- Vendor consolidation continued, as the top six vendors (Zscaler, Cisco, Palo Alto Networks, Broadcom, Fortinet, Netskope) represented 71 percent of the market in 2024, up from 64 percent in 2023, reflecting enterprises' growing preference for offerings from fewer, trusted vendors.
The Dell'Oro Group SASE & SD-WAN report includes manufacturers' revenue covering the SASE and Access Router markets. In addition, the report analyzes the SASE market from two perspectives: technology (SD-WAN networking and SSE security) and implementation (unified and disaggregated). The report also provides unit information for the Access Router market. To purchase this report, please contact us at dgsales@delloro.com.
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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