SASE market sizzles with 38 percent revenue growth in 2Q 2023

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 overall SASE market – consisting of SD-WAN and SSE (security service edge) solutions – bucked economic uncertainty with 38 percent year-over-year (Y/Y) revenue growth in 2Q 2023. Quarterly revenue broke through the $2 billion marker to set a new record. Quarterly revenue has doubled in just ten quarters as enterprises go all in to improve networking and security services in the mobile- and cloud-first era.

“Even though sales cycles are longer and additional budget scrutiny is the norm in the current macroeconomic environment, we were pleasantly surprised with the strength of the SASE market,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group. Beyond the argument around SASE’s superior architecture to provide users secure access to cloud-based applications from anywhere, we see SASE pushing into end-to-end network application monitoring and data protection realms that together substantially raise customer appeal. While many customers look to SD-WAN and SSE’s SWG, CASB, ZTNA, and FWaaS functionality as table stakes, vendors that show more and can deliver value to adjacent areas stand to distinguish themselves in a crowded market,” added Sanchez.

Additional highlights from the 2Q 2023 SASE and SD-WAN Quarterly Report:

• Cisco retook from Zscaler the number one revenue spot in overall SASE after losing it for the first time in 1Q 2023.
• Top 5 Overall SASE vendors were Cisco, Zscaler, Palo Alto Networks, Broadcom(Symantec), and Fortinet.
• Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 70 percent Y/Y and represented over half the SASE market.
• Top 5 single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.

Dell’Oro