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Zscaler Captures Overall SASE Revenue Crown

REDWOOD CITY, Calif. – March 7th, 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 reached a significant milestone in 2023, breaking the $8 B barrier with 31 percent growth to $8.4 B. The increasing necessity for secure cloud and remote work solutions largely fueled the robust growth. As businesses globally adjust to a digital-first environment, the heightened investment in SASE highlights a shift towards integrated security frameworks. Zscaler’s new revenue leadership position in the SASE market underscores the dynamic nature of the cybersecurity industry, with innovation and customer needs driving competitive shifts.

“As enterprises worldwide navigate the complexities of remote work and cloud integration, the preference for comprehensive SASE solutions becomes more pronounced,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group. “The market growth in 2023 highlights the importance of SASE in modern cybersecurity strategies and reflects the industry’s confidence in these platforms to provide robust, scalable protection,” added Sanchez.

Additional highlights from the 4Q 2023 SASE and SD-WAN Quarterly Report:

  • The SSE (Secure Service Edge) segment of the SASE market crossed the significant threshold of $4 B by maintaining an impressive year-over-year growth rate of over 30 percent for the fourth consecutive year.
  • The SD-WAN segment saw its revenue surpass $3 B. However, after six years of growth of over 30 percent per year, the increase slowed to 28 percent in 2023, indicating a post-pandemic recalibration of enterprise spending.
  • Single-vendor SASE solutions surged ahead of multi-vendor offerings, driven by vendor consolidation and a growing enterprise preference for single-vendor engagements.
  • The six leading SASE vendors—Zscaler, Cisco, Palo Alto Networks, Symantec/Broadcom, Fortinet, and Netskope—accounted for 65 percent of the market revenue, highlighting a consolidation trend and suggesting the market’s move towards maturity.

About the Report

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.

About Dell’Oro Group

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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