Dell'Oro Group Reports 22% Increase in Q2 2025 SASE Revenue

A recent report from Dell'Oro Group indicates that the Secure Access Service Edge (SASE) market saw a 22 percent increase year-over-year in Q2 2025, reaching $2.7 billion. This growth is attributed to enterprises adopting AI-ready branch architectures that combine Software-Defined Wide Area Network (WAN) (SD-WAN) and Security Services Edge (SSE).

Market Insights

Mauricio Sanchez, Senior Director for Enterprise Security and Networking at Dell'Oro Group, highlights that the combined growth of 27 percent in Software-Defined Wide Area Network (SD-WAN) and 19 percent in SSE underscores the role of integrated networking and security solutions in market expansion. He stated, “Vendors delivering both SD-WAN and SSE capabilities now generate 84 percent of SASE revenue, reflecting the market's confidence in integrated approaches.”

Vendor Performance

The report also details notable revenue increases among leading vendors. Cisco reported a 52 percent revenue growth attributed to customer transitions from older Intelligence, Surveillance, and Reconnaissance (ISR) routers to Catalyst 8k and Meraki SD-WAN solutions. Palo Alto Networks achieved a 73 percent increase in SD-WAN revenue, marking its first time in second place, while its SSE revenue rose by 35 percent. Additionally, Netskope saw a 29 percent growth in the SSE segment.

Market Trends

Although there was a 15 percent decline in the Access Router market due to the shift towards SD-WAN, the overall branch networking revenue—including Access Routers and SD-WAN—grew by 13 percent, representing the first double-digit growth since Q3 2023.

This Blog Signals brief reflects a timely, fact-based summary of the original blog post, providing insights relevant for enterprise IT leaders and decision-makers.