Secure Access Service Edge Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Secure Access Service Edge Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The secure access service edge market was valued at USD 6.74 billion in 2023, and it is expected to record a CAGR of 20.48% and reach a value of USD 22.89 billion by 2028. SASE signifies a paradigm shift in network access security. It combines network and security features, like Firewall-as-a-service (FWaaS) and SD-WAN, further combined with network-as-a-service (NaaS) into a single cloud-native service. With this convergence, distributed workforces and cloud-based applications will be protected and connected in a scalable, flexible, and secure manner.

Key Highlights

• SASE improves security in SDN environments, thereby completing software-defined networking (SDN) systems. Dynamic network configuration is made possible by SDN, and SASE guarantees that these networks are secure as they change in order to meet the changing requirements. SASE will protect IoT devices and the data they generate as the Internet of Things (IoT) develops further. In the context of the IoT, secure communications and data protection are essential.
• In addition, cloud-based SASE may witness a surge in terms of adoption. For instance, the Flexera 2022 State of the Cloud Report states that 80% of enterprise respondents indicated adopting Microsoft Azure for public cloud usage. AWS, Microsoft Azure, and Google Cloud, which are known hyper scalers, are among the leading cloud computing platform providers across the world. Every firm uses at least one public or private cloud. At least one public cloud is used by 96% of respondents, while at least one private cloud is used by 84% of respondents. About 80% of the participants said that they use hybrid cloud systems.
• The growing usage of the public cloud is boosting cloud spending for businesses of all kinds; cloud spending is already a significant aspect of IT budgets. About 77% of companies stated that their annual cloud spending value surpasses USD 12 million, and 80% of them stated that the value exceeds USD 1.2 million. As SMBs have fewer and smaller workloads, their overall cloud costs are cheaper.
• The market players are concerned about the difficulty in maintaining proper regulatory compliance while offering clients SASE services and executing expenses. Sometimes, vendors find it difficult to safeguard their technology, keep running smoothly, and comply with all applicable laws and regulations. Vendors' non-compliance with rules and standards can adversely affect their services and jeopardize clients' business operations. By adhering to the accepted standards and best service-delivery practices, they offer programs and services to prioritize them. Vendors need help to keep up with the evolving technologies and government regulations.
• The growth in investment strategies in a larger share of businesses across the world will accelerate the adoption of secure access service edge in supporting business growth. In the post-COVID-19 era, there will be a significant increase in the number of vendors with single-vendor SASE offerings. New SD-WAN purchases in the post-COVID-19 era will be part of a single-vendor SASE offering.

Secure Access Service Edge Market Trends

Large Enterprises will Hold Major Market Shares

• Increased adoption of edge computing, the shift to cloud infrastructure, and a surge in remote work have challenged many traditional network architectures and security models. Large enterprises with access to larger IT budgets and skilled employees are rapidly adapting to this market reality.
• Large enterprises with a distributed workforce model find the traditional WAN architectures with rigidly limited VPN aggregation capacity inadequate for most work-from-anywhere (WFA) workflows. Existing security models and fixed digital transformation investments have slowed down the adoption of SASE among large enterprises over the last few years.
• The global market is witnessing an expansion in new IT infrastructure. Large enterprises that combine security and networks into a single cloud platform are proliferating. As a result, Malware-as-a-service has moved to large-scale operations against exposed IoT and OT in hospitals, oil and gas fields, electrical grids, transportation services, and corporate networks. Threat actors require significant research efforts to uncover and exploit the configuration of operating environments and embedded IoT and OT devices.
• According to the Microsoft Digital Defense Report 2022, Ransomware attacks pose a significant threat to critical infrastructure. Large businesses are targeted by criminals, thereby leveraging a growing cybercriminal ecosystem. High-profile ransomware incidents involving critical infrastructure, healthcare, and IT service providers have drawn considerable attention. In February 2022, an attack on company security affected the payment processing systems of multiple gas stations in northern Germany. Similarly, in May 2022, such an attack caused flight delays and cancellations for one of India's largest airlines. In the same year, Microsoft mitigated approximately 2,000 distributed denial-of-service (DDoS) attacks daily and thwarted the largest-ever DDoS attack in history.
• In a connected digital world, devices communicate online with larger systems, collecting voluminous data and creating visibility to bring business opportunities to large enterprises. This situation also opens the doors for cyber threats, making the cybercrime business worth multi-billion dollars. IoT devices such as computers, routers, printers, web cameras, and remote management devices are at a security risk. These devices are critical to many organizations' operations; hence, they can quickly become a liability and security risk. The rapid adoption of IoT solutions in almost every industry has increased the number of attack vectors and the risk exposure of organizations. Attacks against remote management devices, attacks via the web, and attacks on databases are most prevalent among large enterprises.
• The aforementioned incidents are likely to boost the adoption of the network-as-a-service (NaaS) in large enterprises due to its ability to stand out from other secure networking strategies. Rather than relying on data center security, SASE has a direct approach as the overall traffic from the users' devices is inspected at a nearby point of presence before being sent to its final destination. This makes it an ideal option for protecting distributed workforces and data in the cloud. In modern cloud-centric large enterprises, users, devices, and applications require secure access while working from anywhere. Legacy systems cannot tolerate the bandwidth needed to provide this flexibility. However, SASE can do so while maintaining enterprise-level security for users and devices at any location, which bolsters the demand in this segment.

North America will Hold a Significant Share

• The United States is a developed economy with a significant inclination toward implementing and accepting advanced technology, development in network automation, and surge in cloud-based services, thereby contributing to the secure access service edge market. The growing digitization among end-user industries and the presence of prominent market vendors, like Cisco Systems Inc., Vmware Inc., Palo Alto Networks, Versa Networks Inc., and Akamai Technologies, are contributing to the growth of the market.
• Security is moving toward cloud computation due to the rapid acceleration of the digital transformation of businesses. The significant adoption of cloud services in several end-user industries necessitates securing the network infrastructure and reducing complexity to improve speed and agility. This is expected to create substantial growth opportunities for market vendors in the coming years.
• The United States is home to three major cloud service providers: Amazon Web Services, Microsoft's Azure, and Google Cloud. It is also considered to be the hub for major technological innovations such as 5G, autonomous driving, IoT, Blockchain, artificial intelligence, and gaming. Integrating SASE capabilities converges zero trust security capabilities into enterprise architectures, which is paramount in achieving a trusted network security posture. Thus, SASE solutions are analyzed to transform the end-users' networks and security architectures to reduce cyber risks, costs, and complexities.
• Canada is at the forefront of cloud adoption. Many organizations are deploying a mix of public, private, and edge clouds. With the advent of hybrid work and the rise of cloud transformation, the demand for security services that expand beyond the network perimeter is increasing, thereby positively impacting the growth of the market in the country. In addition, stringent data protection and regulatory legislation in the country are further driving the demand for SASE solutions in end-user industries.
• The market demand is expected to rise significantly due to increasing automation and the deployment of connected devices. The network-as-a-service (NaaS) model benefits small businesses by offloading day-to-day equipment maintenance and focusing on tasks such as customer service. With a large base of small businesses in Canada, NaaS is expected to become a significant trend in the coming years.

Secure Access Service Edge Industry Overview

The vendors in the secure access service edge market are moderately consolidated with an array of services. However, major vendors like VMware, Palo Alto Networks, Versa Networks Inc., and Cisco Systems Inc. are highly preferred network service providers for various end users in various regions.

• August 2023 - Palo Alto Networks, Orange Business, and Orange Cyberdefense partnered to deliver a cloud-native managed security access service edge (SASE) solution to global enterprises. As organizations accelerate cloud adoption to accommodate hybrid work and deliver new products and services to their customers, their digital attack surface has expanded over time. The new partnership provides the industry's most complete AI-powered SASE solutions, advisory and consultant services, and global managed network, security, and digital services. Organizations using this offering can maximize their SASE transformation's return on investments (ROI).
• The vendors in the secure access service edge market are moderately consolidated with an array of services. However, major vendors like VMware, Palo Alto Networks, Versa Networks Inc., Cisco Systems Inc. are highly preferred network service providers for various end users in various regions.urely as digital experience monitoring innovations ensure optimal end-to-end user experiences.

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