As per a newly released report by Dell’Oro Group, a reliable provider of market insights in the telecommunications, security, networks, and data center sectors, the comprehensive SASE market in the third quarter of 2023, inclusive of SD-WAN and SSE (security service edge) solutions, experienced a robust 33 percent increase in revenue, reaching $2.2 billion. This achievement establishes a new record. Over the past ten quarters, the segments involving SSE and SD-WAN within the SASE market have almost doubled, underscoring enterprises’ consideration of both networking and security aspects within the realm of SASE.
“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,” added Sanchez.
Additional highlights from the 3Q 2023 SASE and SD-WAN Quarterly Report:
- Zscaler retook from Cisco the number one revenue spot in overall SASE and was the first to exceed $400M in quarterly revenue.
- The top 5 overall SASE vendors were Zscaler, Cisco, Palo Alto Networks, Broadcom(Symantec), and Fortinet.
- 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.
About the Report
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.