Dell’Oro Group: SSE to Outpace SD-WAN Revenue Nearly Two to One

The Secure Access Service Edge (SASE) market is projected to reach nearly $16 B by 2028, representing a 13 percent compound annual growth rate (CAGR), according to research by the Dell’Oro Group. Security Service Edge (SSE) revenue is expected to maintain a robust double-digit CAGR and outpace SD-WAN’s single-digit CAGR over the next five years (2023–2028).

“The divergence in growth between SSE and SD-WAN highlights a shift in enterprise priorities,” said Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell’Oro Group. “As enterprises become increasingly cloud- and mobile-first, the demand for integrated security solutions is driving the rapid adoption of SSE. Despite an expected slowdown in SD-WAN growth, the overall SASE market remains strong and poised for continued expansion.”

According to the Redwood City, California-based researcher’s SASE and SD-WAN 5-Year July 2024 Forecast Report, the SSE market is anticipated to accelerate in 2025 due to improved purchasing sentiment, despite macroeconomic challenges that have lengthened sales cycles. Meanwhile, in the SD-WAN space, near-term growth is being impacted by post-pandemic spending digestion and macroeconomic concerns, while long-term growth is expected to be influenced by the market’s maturing state and slower transitions from access routers to SD-WAN solutions.

The report also suggests that single-vendor SASE solutions are expected to represent over 85 percent of the market by 2028, driven by enterprises’ preference for integrated, one-stop solutions that simplify deployment and management. Unified SASE solutions, a segment of single-vendor SASE, are forecasted to grow at a remarkable 19 percent revenue CAGR. This growth is driven by smaller enterprises seeking tightly integrated networking and security solutions that offer greater simplicity.

On the down-side, revenue from access routers is expected to drop below $1 B by 2028, a double-digit CAGR decline due to the transition towards SD-WAN solutions.

The Dell’Oro Group SASE and SD-WAN 5-Year Forecast Report offers a complete industry overview with tables covering SASE by technology (SSE versus SD-WAN) and implementation (unified versus disaggregated) as far back as 2019. SSE has further segmented across SWG, CASB, ZTNA, and FWaaS technologies. In addition, the report provides historical data as far back as 1995, covering revenue, port/unit shipment, and average selling prices for access routers.

Channel Impact^®
The report is a useful tool for partners deciding where to allocate resources for the near future.