Dell'Oro Group Reports 22% Growth in AI-Ready SASE Market for Q2 2025

Surge in AI-Ready SASE Market

The latest report from Dell'Oro Group reveals an impressive surge in the Secure Access Service Edge (SASE) market, showcasing a remarkable growth of 22% year-over-year, reaching a total revenue of $2.7 billion for the second quarter of 2025. This uptick in revenue marks the third consecutive quarter of growth, driven primarily by enterprises opting for AI-driven branch solutions that meld SD-WAN (Software-Defined Wide Area Networking) and SSE (Security Service Edge).

Driving Factors Behind Revenue Growth

According to Mauricio Sanchez, Senior Director for Enterprise Security and Networking at Dell'Oro Group, enterprises are clearly prioritizing AI-ready branch strategies. The significant growth in SASE revenue coincides with notable increases in key components: SD-WAN revenues increased by 27%, and SSE saw a growth of 19%. This reflects the dual engines of networking and security propelling the market's acceleration.

As Sanchez pointed out, vendors now providing both SD-WAN and SSE functionalities are generating a substantial 84% of total SASE revenues, indicating a strong market preference for integrated service offerings.

Insights into the SD-WAN and SSE Markets

Delving deeper into the report highlights, the SD-WAN segment experienced strong performances from key players like Cisco and Palo Alto Networks. Cisco, which maintains its status as the top vendor in this space, saw its revenues skyrocket by 52% year-over-year as customers shifted from traditional ISR access routers to newer Catalyst 8k and Meraki SD-WAN platforms. Meanwhile, Palo Alto Networks achieved a remarkable 73% growth rate year-over-year, clinching the second spot in revenue through successful software monetization for its SD-WAN solutions.

In parallel, SSE revenue registered a 19% year-over-year increase, marking the third consecutive quarter of positive growth. Major contributors to this sector included Palo Alto Networks, up 35%, and Netskope, which grew by 29% during the same period.

The report paints a picture of a shifting landscape in the Access Router market, which saw a decline of 15% due to the ongoing transition towards SD-WAN technologies. However, the combined revenue from branch networking, which accounts for both Access Router and SD-WAN, grew by 13%, representing the first instance of double-digit growth since the third quarter of 2023.

The Future of SASE and SD-WAN

As companies continue to invest in advanced networking solutions that cater to the demands of digital transformation, the forecasts for SASE market growth remain high. Organizations are increasingly recognizing the value of integrating security into their networking strategies, and as a result, this segment of the technology market looks set for continued advancement and expansion.

Stakeholders looking to dive deeper into the SASE and SD-WAN landscapes can access the full report from Dell'Oro Group, which includes comprehensive revenue analysis, technology classifications, and unit sales details for the Access Router market.

To learn more or purchase the report, interested parties can contact Dell'Oro Group directly at [email protected].

As technological innovations further affect enterprise strategies, SASE is expected to remain a focal point, driving networking and security solutions into the future efficiently and securely.

Conclusion

The rapid growth in the SASE market signifies a pivotal shift in how enterprises are adapting their IT infrastructure to meet the demands of modern cybersecurity and networking needs. As highlighted in the Dell'Oro report, the trajectory suggests that investment in AI-ready architectures will only elevate, pushing market dynamics into a new era of integrated service offerings that redefine the landscape of digital enterprise.

For further information regarding this exciting market evolution, you can connect with Dell'Oro Group at +1.650.622.9400 or visit their website.