SASE revenue rises 22% to $2.7 billion in Q2 2025, Dell’Oro Group reports

The recent analysis from Dell’Oro Group reveals a 22% year-over-year revenue rise in Secure Access Service Edge (SASE) during the second quarter of 2025, totaling $2.7 billion. This update is relevant for IT leaders focusing on AI-integrated branch structures.

Market Performance Overview

The SASE market is experiencing steady expansion, largely driven by increased utilization of Software-Defined Wide Area Network (WAN) (SD-WAN) and Security Services Edge (SSE) technologies. Software-Defined Wide Area Network (SD-WAN) has shown a 27% increase, while SSE recorded a 19% rise compared to last year.

Key Vendors and Revenue Contributions

Cisco topped the SD-WAN market with a 52% year-over-year revenue growth, attributed to enhanced customer adoption of its Catalyst 8k and Meraki offerings. Palo Alto Networks ranked second, reporting a 73% increase in revenue due to effective SD-WAN solutions.

In the SSE market, Palo Alto Networks and Netskope led with revenue gains of 35% and 29%, respectively, highlighting a trend towards comprehensive service offerings.

Router Market Dynamics

The Access Router market has faced a 15% downturn as organizations increasingly favor SD-WAN alternatives. However, when Access Router and SD-WAN earnings are consolidated, branch networking revenue increased by 13%, indicating a return to double-digit growth for the first time since the third quarter of 2023.

Conclusion

This report indicates a developing market for AI-aligned SASE solutions, underscoring enterprise focus on innovative networking and security practices. The insights derived from Dell’Oro Group's research provide useful information for IT leaders navigating technological advancements.