Enterprises Reopening Their Wallets for Branch Modernization and AI-driven Security Upgrades
REDWOOD CITY, Calif. – June 10, 2025 – 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 global Secure Access Service Edge (SASE) revenue rose 17 percent year-over-year (Y/Y) to $2.6 billion in the first quarter of 2025, propelled by a 21 percent Y/Y jump in single-vendor deployments as enterprises prioritized more straightforward purchasing, tighter policy management, and lower operating costs made possible by tightly integrated next-generation SD-WAN and cloud-security platforms.
“Enterprises have returned to growth mode, and the $2.6 B SASE market’s 17 percent jump underscores how quickly buyers are consolidating networking and security stacks around SASE platforms,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “The 21 percent rebound in SD-WAN spend signals that branch modernization is back, while advanced AI services are accelerating SSE adoption,” Sanchez added.
Additional highlights from the 1Q 2025 SASE and SD-WAN Quarterly Report:
- Single-vendor SASE solutions: Grew 21 percent Y/Y, significantly outperforming multi-vendor solutions, which experienced a meager 3 percent increase.
- Security Service Edge (SSE): Revenue was up 15 percent Y/Y; Palo Alto Networks outgrew the segment fourfold with a 44 percent leap.
- SD-WAN: Revenue climbed 21 percent Y/Y as Cisco gained seven share points on Catalyst 8000 and Meraki momentum.
- Access Routers: Spending fell to $317 M, down 16 percent Y/Y, confirming the migration toward integrated SASE overlays.
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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