SASE revenue rises 22% to $2.7 billion in Q2 2025, Dell’Oro Group reports
Companies mentioned
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.
Blog post, originally published at delloro.com.