SD-WAN Up 27 Percent and SSE 19 Percent While Router Spending Slides
REDWOOD CITY, Calif. – September 9, 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 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.
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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