The Secure Access Service Edge (SASE) market will grow by more than $16 billion by 2028, according to a new report from Dell’Oro Group, representing a compound annual growth rate (CAGR) of 12%.
The research firm attributed the expected growth to rising demand for integrated networking and security solutions tailored for the hybrid work environment.
SD-WAN and SASE are closely linked, and both are being driven by two important trends for enterprise customers — the move to cloud services and the rise of remote workers triggered by the COVID-19 pandemic.
SD-WAN services enable a company to improve network performance and reduce costs by providing two types of connectivity to individual locations – typically MPLS for mission critical traffic and less costly direct internet access (DIA) for less critical traffic. SD-WAN technology allocates traffic between the two types of connections based on pre-established parameters and based on network conditions at any point in time.
SASE adds an extra level of security to services of that nature.
Dell’Oro Group also expects the single-vendor SASE segment to grow at a faster 17% revenue CAGR and represent a more significant portion of the overall SASE market than multi-vendor SASE solutions, due to a shift in enterprise preference towards streamlined, one-stop solutions.
Other report findings include:
- The SD-WAN market is set to exceed $6 billion by 2028, thanks to the shift towards SD-WAN-optimized solutions and away from traditional access router solutions.
- The single-vendor SASE market is forecasted to outperform multi-vendor SASE, with revenue growing at a CAGR of 17%
- Access router revenue is expected to fall from $2 billion last year to less than $1 billion 2028 due to the transition towards SD-WAN solutions.
“The SASE market is not just growing; it’s transforming how enterprises approach their network and security architecture. As businesses adapt to the new normal of hybrid work and distributed applications, integrating networking and security into a cohesive, cloud-native solution becomes paramount. SASE is not a trend; it’s the future of enterprise connectivity and security,” Mauricio Sanchez, Dell’Oro Group senior director, enterprise security and networking, said in a prepared statement.
“Looking at the numbers, it’s clear that SASE is becoming a cornerstone of modern enterprise infrastructure. With a projected market size of over $16 billion by 2028, we are witnessing a paradigm shift. Organizations are rapidly moving away from traditional models to embrace SASE’s efficiency, scalability, and security.”