#United States #Redwood City #Dell'Oro Group #SASE #Zscaler

Market Consolidation in the SASE Sector

According to a recent study from the Dell'Oro Group, the global Secure Access Service Edge (SASE) market reached a valuation of $2.4 billion in the third quarter of 2024. This pivotal report sheds light on the dominance of the top six vendors in the sector—Zscaler, Cisco, Palo Alto Networks, Broadcom, Fortinet, and Netskope—each capturing over 5% of revenue share. Collectively, these firms now hold 72% of the market, marking a significant seven-point increase from Q3 2023.

Market Dynamics

The increasing control of these vendors underscores an evolving industry landscape where enterprises are gravitating towards established players that offer integrated solutions combining networking and security. This transition reflects a maturation process in the SASE market, driven in part by current economic uncertainties.

Mauricio Sanchez, Senior Director for Enterprise Security and Networking at Dell'Oro Group, noted, "The SASE market is entering a new maturity phase. As organizations seek trusted, integrated solutions amidst economic challenges, leading vendors are increasingly capturing investments, paving the way for sustained leadership and innovation."

Key Market Highlights

1. Leading Vendors:
- Zscaler attained the highest market share at 21%.
- Other significant players include Cisco, Palo Alto Networks, Broadcom, Fortinet, and Netskope.

2. Overall SASE Market Growth:
- While overall market revenue increased, it recorded the slowest growth rate since tracking commenced in the first quarter of 2019. This incremental growth occurred despite a notable double-digit growth rate reported by the top six vendors, indicative of an overarching consolidation trend within the market.

3. SD-WAN Insights:
- The Software-Defined Wide Area Network (SD-WAN) segment exhibited only a 1% year-over-year growth, as companies optimized existing setups instead of launching new initiatives. Cisco remains the market leader with a 31% share.

4. SSE Growth:
- Secure Service Edge (SSE) revenues increased by 14% year-over-year, a surge propelled by enhanced demand for advanced security solutions. Zscaler led this segment with an impressive 34% share, followed closely by Palo Alto Networks and Broadcom.

Looking Ahead to 2025

Forecasts for 2025 suggest a potential uptick in growth compared to 2024; however, it is anticipated that momentum will not revert to the vigorous expansion witnessed during the pandemic. A rebound in enterprise investments coupled with wider acceptance of integrated cloud security and networking solutions is projected to advance the market.

About the Report

The Dell'Oro Group provides a detailed exploration of the SASE and SD-WAN landscape, analyzing market dynamics from both a technological standpoint (including SD-WAN networking and SSE security) and implementation approach (unified vs disaggregated). For those interested in acquiring the full report, inquiries can be directed to the Dell'Oro Group.

For more information on Dell'Oro Group and their market insights, you can reach them at +1.650.622.9400 or visit their website at delloro.com.