The Secure Access Service Edge (SASE) market surged 22% year-over-year (Y/Y) to $2,7-billion in second quarter of 2025, according to a new report from Dell’Oro Group.
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% rise and SSE’s 19% gain show both the networking and security SASE engines driving this re-acceleration,” says Mauricio Sanchez, senior director: enterprise security and networking at Dell’Oro Group.
“Vendors delivering both SD-WAN and SSE capabilities now generate 84% of SASE revenue, reflecting the market’s confidence in integrated approaches.”
Additional highlights from the 2Q 2025 SASE and SD-WAN Quarterly Report include:
- SD-WAN was driven by strong results from Cisco and Palo Alto Networks. Cisco, the top-ranked vendor by revenue share, which grew 52% 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% Y/Y rise on the back of successful SD-WAN software monetization.
- SSE revenue increased 19% Y/Y, marking the third straight quarter of accelerating growth. Leading contributors included Palo Alto Networks (up 35% Y/Y) and Netskope (up 29% Y/Y).
- The Access Router market dropped 15% due to the shift to SD-WAN. However, branch networking revenue (calculated as Access Router plus SD-WAN) grew robustly by 1%, representing the first time since 3Q 2023 that it achieved double-digit growth.