The Secure Access Service Edge (SASE) market surged 22 percent year-over-year (Y/Y) in 2Q 2025 to $2.7 B. This marked the third consecutive quarter of accelerating growth, fueled by enterprises upgrading to AI-ready branch architectures that blend SD-WAN and Security Service Edge (SSE).
“With SASE revenue climbing 22 percent Y/Y in 2Q 2025, enterprises are clearly prioritizing AI-ready branch strategies. SD-WAN’s 27 percent rise and SSE’s 19 percent gain show both the networking and security SASE engines driving this re-acceleration,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “Vendors delivering both SD-WAN and SSE capabilities now generate 84 percent of SASE revenue, reflecting the market’s confidence in integrated approaches,” added Sanchez.
Additional highlights from the 2Q 2025 SASE and SD-WAN Quarterly Report:
- SD-WAN was driven by strong results from Cisco and Palo Alto Networks. Cisco, the top-ranked vendor by revenue share, which grew 52 percent Y/Y as customers shifted to Catalyst 8k and Meraki SD-WAN from legacy ISR access routers. Palo Alto Networks’ SD-WAN followed closely, achieving the number two revenue spot for the first time with an impressive 73 percent Y/Y rise on the back of successful SD-WAN software monetization.
- SSE revenue increased 19 percent Y/Y, marking the third straight quarter of accelerating growth. Leading contributors included Palo Alto Networks (up 35 percent Y/Y) and Netskope (up 29 percent Y/Y).
- The Access Router market dropped 15 percent due to the shift to SD-WAN. However, branch networking revenue (calculated as Access Router plus SD-WAN) grew robustly by 13 percent, representing the first time since 3Q 2023 that it achieved double-digit growth.
