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

According to a report by Dell'Oro Group, the Secure Access Service Edge (SASE) market experienced 22 percent year-over-year growth in the second quarter of 2025, reaching $2.7 billion. This growth stemmed from enterprises transitioning to AI-ready branch architectures that integrate Software-Defined Wide Area Network (WAN) (SD-WAN) and Security Services Edge (SSE).

Senior Director, Enterprise Security and Networking at Dell'Oro Group, Mauricio Sanchez, noted that the combined increase of 27 percent in Software-Defined Wide Area Network (SD-WAN) and 19 percent in SSE illustrates the importance of both networking and security components in driving growth. He explained, “Vendors delivering both SD-WAN and SSE capabilities now generate 84 percent of SASE revenue, reflecting the market's confidence in integrated approaches.”

The report highlighted strong growth among top vendors. Cisco led with a 52 percent increase in revenue, attributed to customers moving to Catalyst 8k and Meraki SD-WAN from older Intelligence, Surveillance, and Reconnaissance (ISR) routers. Meanwhile, Palo Alto Networks recorded a 73 percent rise in SD-WAN revenue, securing the second spot for the first time. In the SSE segment, Palo Alto Networks' revenue rose by 35 percent, while Netskope grew by 29 percent.

Despite a decline in the Access Router market by 15 percent due to the shift towards SD-WAN solutions, branch networking revenue, which includes Access Routers and SD-WAN, increased by 13 percent, marking the first instance of double-digit growth since the third quarter of 2023.