Enterprises shift focus from expansion to optimization, with a rebound anticipated in 2025. #pressrelease
September 17, 2024
According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the worldwide Secure Access Service Edge (SASE) market posted 10 percent year-over-year (Y/Y) revenue growth in 2Q 2024, marking the lowest rate since Dell'Oro Group started tracking SASE in 1Q 2019. Economic pressures, including inflation and tighter corporate budgets, have temporarily slowed market expansion, leading enterprises to focus on optimizing existing investments rather than concentrating on new deployments. Despite this slowdown, the report forecasts a rebound over the next four quarters, with market growth expected to begin recovering in the forthcoming quarters.
Additional highlights from the 2Q 2024 SASE and SD-WAN Quarterly Report:
The global SASE market, combining SD-WAN and Security Service Edge (SSE) technologies, again topped $2 billion for the fifth consecutive quarter, but the 10 percent Y/Y growth was the slowest rate since tracking commenced in 1Q 2019.
The top SASE vendors with a revenue share greater than 5 percent were Zscaler, Cisco, Palo Alto Networks, Broadcom, Fortinet, and Netskope.
SD-WAN growth slowed to 1 percent Y/Y as enterprises focused on optimizing existing deployments, but recovery is anticipated as branch transformation projects are expected to restart.
The SSE market saw solid growth of 17 percent Y/Y, although this is the first time growth has dipped below 20 percent since tracking started in 1Q 2019.
Single-vendor SASE solutions grew nearly twice as fast as multi-vendor solutions, with sequential growth of 5 percent compared to 3 percent for multi-vendor approaches.
Access Router market revenue dropped 28 percent Y/Y due to economic pressures and the enterprise shift to SD-WAN.
Read the full press release here.
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