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

The latest report from Dell’Oro Group indicates a 22% year-over-year increase in Secure Access Service Edge (SASE) revenue during the second quarter of 2025, reaching $2.7 billion. This growth is significant for IT decision-makers focusing on AI-ready branch architectures.

Market Performance Overview

The SASE market has shown consistent growth, attributed to businesses adopting integrated Software-Defined Wide Area Network (WAN) (SD-WAN) and Security Services Edge (SSE) solutions. Both Software-Defined Wide Area Network (SD-WAN) and SSE contribute to this trend, with SD-WAN growing by 27% and SSE by 19% year-over-year.

Key Vendors and Revenue Contributions

Cisco led the SD-WAN sector, reporting a revenue increase of 52% year-over-year, primarily due to customer transitions to Catalyst 8k and Meraki SD-WAN. Palo Alto Networks achieved second place in revenue, with a 73% year-over-year rise, benefiting from successful SD-WAN software strategies.

In the SSE segment, Palo Alto Networks and Netskope were leading vendors, posting increases of 35% and 29% year-over-year, respectively. The increasing revenue from these companies emphasizes a trend toward integrated service offerings.

Router Market Dynamics

The Access Router market experienced a 15% decline as enterprises shift towards SD-WAN solutions. However, when combining Access Router and SD-WAN revenues, branch networking revenue notably grew by 13%, marking a return to double-digit growth for the first time since the third quarter of 2023.

Conclusion

This report illustrates a growing marketplace for AI-driven SASE solutions, reflecting enterprise priorities towards modern networking and security strategies. The insights, drawn from Dell’Oro Group's comprehensive analysis, provide critical perspectives for IT leaders navigating evolving technology landscapes.