Enterprise Adoption Fuels Robust Growth in SSE and SD-WAN
REDWOOD CITY, Calif. – June 13, 2024 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Secure Access Service Edge (SASE) market experienced a remarkable 23 percent revenue growth in 1Q 2024, marking its seventeenth consecutive quarter of over 20 percent growth. This sustained increase underscores the ongoing shift towards SASE solutions as enterprises prioritize mobile- and cloud-first environments. Revenue growth eclipsing 20 percent in both the Security Service Edge (SSE) and SD-WAN segments is a significant driver of this trend, as enterprises seek comprehensive solutions to enhance security and streamline network management in a digital-first world.
“Enterprises worldwide are increasingly leaning towards comprehensive SASE solutions to address the complexities of remote work and cloud integration,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group. “Our latest report indicates that this trend is persisting, driven by the need for integrated and scalable secure network frameworks.”
Additional highlights from the 1Q 2024 SASE and SD-WAN Quarterly Report:
- The global SASE market, combining SD-WAN and SSE technologies, again topped $2 billion for the fourth consecutive quarter, showcasing a 23 percent growth rate.
- North America remained the largest revenue contributor, accounting for over half of the global market. However, regions like EMEA and APAC exhibited faster growth rates, signaling broader global enterprise adoption of SASE solutions.
- Single-vendor SASE solutions dominated the market, representing 80 percent of the total SASE revenue, bolstered by Zscaler’s recent entry into the SD-WAN market.
- The unified SASE market continues to appeal to the mid-market with its simplified networking and security integration as evidenced by Cato Networks’ 48 percent revenue growth.
- Zscaler remained the overall SASE revenue leader and extended its share to become only the second SASE vendor with 20 percent or more revenue share since Cisco in 3Q 2019.
- SSE revenue grew by 24 percent year-over-year, its lowest-ever growth rate. However, key players like Zscaler, Palo Alto Networks, and Netskope saw a combined revenue rise of 38 percent year-over-year, reflecting strong customer demand for comprehensive security solutions.
The Dell’Oro Group SASE & SD-WAN report includes manufacturers’ revenue covering the SASE and Access Router markets. In addition, the report analyzes the SASE market from two perspectives: technology (SD-WAN networking and SSE security) and implementation (unified and disaggregated). The report also provides unit information for the Access Router market. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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