Dell’Oro Group: SASE Market Running Hot

The overall 3Q 2023 SASE market – consisting of SD-WAN and SSE (security service edge) solutions – grew a vigorous 33 percent revenue to $2.2B, which set a new record, according to the Dell’Oro Group, a Redwood City, California-based market researcher. The SSE and SD-WAN portions of the SASE market have nearly doubled in the last ten quarters, according to the report, indicating that enterprises are thinking about both sides (networking and security) of the SASE coin.

“Although other networking and security technology markets have started to show clear struggles in a volatile macroeconomic environment, enterprises know they need to continue to invest for the future that will have hybrid work and cloud-based applications as the norm, and for many, SASE is the right approach,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group. “While SASE still has an on-premises hardware component, we see those vendors emphasizing delivering network and security services from the cloud starting to stand out.”

Among the highlights, the top five overall SASE vendors were Zscaler, Cisco, Palo Alto Networks, Broadcom (Symantec), and Fortinet, with Zscaler retaking from Cisco the number one revenue spot in overall SASE and was the first to exceed $400M in quarterly revenue.

Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 60 percent Y/Y and represented over half the SASE market. The top 5 single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.

The overall SASE market is on track to surpass $8B for the full year 2023.

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.

Channel Impact^®
The data provide useful indicators for where MSPs and other channel partners should place their bets, leading into 2024.