Understanding Single-Vendor SASE Market Trends for 2024

SASE Market Dynamics and Zscaler’s Strategic Move in 2024

In 2024, the Secure Access Service Edge (SASE) market is undergoing a significant transformation, driven by a noticeable shift towards single-vendor solutions. These solutions are designed to address multiple challenges associated with traditional WAN (Wide Area Network), offering a more streamlined approach to optimizing and securing WAN connectivity. This shift is setting the stage for a new era in network and security management.

Zscaler’s Strategic Entry into SD-WAN

One of the key developments in this evolving landscape is Zscaler’s strategic move into the SD-WAN (Software-Defined Wide Area Network) market. Zscaler, traditionally known for its robust security service edge (SSE) capabilities, has now launched its own SD-WAN solution. This entry marks a pivotal shift for the company, positioning it as a leading player in the SASE domain. By integrating SD-WAN with its existing security offerings, Zscaler aims to meet the growing demand for comprehensive, single-vendor SASE solutions.

According to a recent report by the Dell’Oro Group, Zscaler’s move into SD-WAN has significantly bolstered the presence of single-vendor SASE solutions. In the first quarter of 2024, these solutions represented 80% of the total SASE revenue, underscoring their dominant position in the market. This dominance is largely driven by the growing preference for solutions that consolidate multiple network and security functions into a single offering.

Future Projections for SD-WAN and SASE

Looking ahead, Gartner predicts a notable trend in the SD-WAN market. By 2027, it is anticipated that 65% of new SD-WAN purchases will be part of a single-vendor SASE offering, a significant increase from 20% in 2024. This projection highlights a continued shift towards integrated solutions that offer both network and security functionalities from a single vendor.

Mauricio Sanchez, Senior Research Director for Enterprise Networking and Security at Dell’Oro Group, has pointed out that Zscaler’s SD-WAN strategy is primarily a defensive move. It aims to retain existing customers who might be tempted by single-vendor solutions offered by competitors. Sanchez notes that this trend reflects a broader industry pattern where vendors seek to expand their serviceable addressable market (SAM) by adding either SD-WAN or SSE capabilities to become single-vendor SASE providers.

Key Trends in SASE and SD-WAN for 2024

Several key trends are shaping the SASE and SD-WAN markets in 2024:

1. Market Growth: The SD-WAN market experienced substantial growth, reaching over $5 billion by the end of 2023, with a market penetration of 60%. Forecasts indicate that this market will continue to expand at a compound annual growth rate (CAGR) of 14.6%, potentially reaching $8 billion by 2026. IDC, while slightly more conservative, predicts a 10.1% CAGR, with the market expected to grow to $7.5 billion by 2027.

2. Global Expansion: According to TeleGeography, 61% of the 5,000 largest global enterprises were expected to have SD-WAN installed at their sites by the end of 2023. This figure is projected to increase to 81% by 2026. Both SD-WAN and SASE are expected to see rapid adoption worldwide in 2024, driven by the need for more agile and secure network solutions.

3. Feature Consolidation: The consolidation of SD-WAN and SASE features is anticipated to unlock new opportunities in the small and mid-sized business (SMB) markets. By combining multiple functionalities into a single solution, vendors can address the specific needs of SMBs, which often require cost-effective and scalable network solutions.

4. AI Enhancement: Artificial Intelligence (AI) is set to play a crucial role in enhancing both SD-WAN and SASE technologies. AI-driven analytics and automation will improve network performance, security, and operational efficiency, making these technologies even more valuable to enterprises.

5. Blurring Lines Between SD-WAN and SASE: As enterprises deal with an expanding edge network, the distinction between SD-WAN and SASE is expected to blur. Both technologies will increasingly overlap, leading to more integrated solutions that address various aspects of network management and security.

6. Zero Trust Approach: The zero trust security model will underpin new approaches to connectivity and unified security. By assuming that threats can originate from anywhere, zero trust emphasizes continuous verification and stringent access controls, providing a robust framework for securing modern network environments.

Overall, the shift towards single-vendor SASE solutions reflects a growing demand for streamlined, integrated approaches to network and security management. As the market continues to evolve, companies like Zscaler are positioning themselves to lead this transformation by offering comprehensive solutions that address the complex challenges of traditional WAN environments.