Secure Access Service Edge Market Size, Share & Trends Analysis Report By Component (Platform, Services), By Application (IT & Telecom, Healthcare), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The global secure access service edge market size was valued at USD 665.9 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 36.4% from 2021 to 2028. The growth can be attributed to the rising preference for remote working due to the COVID-19 pandemic, which has triggered the need for a robust security framework that can potentially ensure secure access to data on the go. Advances in cloud computing technologies are helping in enhancing business productivity and strengthening security network management. Having realized the benefits of cloud computing, businesses are aggressively adopting a cloud-based IT infrastructure. As such, the growing adoption of cloud-based IT systems and solutions also bodes well for the growth of the market over the forecast period.

Secure access service edge (SASE), a new term in the security landscape, has been gaining immense popularity. Existing enterprise network architectures incorporate several access points for the data housed across different applications, servers, and cloud platforms. Managing and securing these networks and access to such scattered data can be a complex and challenging task. The continued adoption of the latest technologies and growing adoption of the BYOD trend across organizations are making that task further challenging. At this juncture, SASE can potentially unify networking and security capabilities into a single platform or framework.

In the current scenario, where applications are distributed across multiple clouds, the legacy solutions or the conventional VPN model does not deliver adequate security and rather increases the risk of cyberattacks. This has triggered the need for a security framework that can potentially ensure secure data traffic throughout the entire communication cycle. SASE framework can extend the capabilities of perimeter security to edge security. As a result, it extends the security access framework closer to the user instead of implementing security within the networks and thereby helps in establishing a more secure approach to prevent unauthorized access. The concept can also be synchronized easily with the business rules of an organization and subsequently allow IT professionals to dynamically allow or deny access to users.

The continued shift from data centers toward cloud services and the subsequent pressure on cloud services are prompting organizations to adopt multiple security solutions. However, managing all these security solutions is turning out to be a complex task, especially when it comes to providing secure access to cloud services. Moreover, despite adding additional security solutions, the network security architecture remains ineffective and vulnerable to cyber threats. SASE framework can combine network security features of FWaaS, SWG, and ZTNA along with the WAN capabilities into a unified platform that can potentially address all these challenges. Hence, the adoption of SASE frameworks is expected to gain traction over the forecast period.

The COVID-19 pandemic has prompted several businesses to adopt remote working and reframe their security frameworks. The demand for cloud-based solutions and services and robust security solutions have particularly gained traction in the wake of the pandemic. However, having realized that the existing legacy network security architectures and conventional VPNs would not be able to deliver the necessary security support, several enterprises are opting for SASE, given its features that can support network security and access security. Several cloud security vendors have also realized the potential of SASE and are considering a market foray.

Component Insights

The platform segment dominated the market in 2020 and accounted for more than 70% of the overall revenue share. The segment is expected to continue dominating the market over the forecast period in line with the growing demand for a unified solution that can securely connect users and devices in a simplified manner. Enterprises of all sizes planning to implement network security and upgrade network access architecture are anticipated to opt for SASE platforms. Continued digital business transformation, growing preference for SaaS applications, and the need to control access to sensitive data stored on the cloud also bode well for the growth of the segment.

The services segment is anticipated to exhibit the fastest CAGR over the forecast period. The growth can be attributed to the growing demand for consultation and training services while implementing SASE frameworks. The growth of the services segment can also be attributed to the fact that SASE vendors assess the business's existing IT network infrastructure while implementing SASE frameworks. The partnerships managed service providers and security vendors are striking mutually to provide integrated managed security and network services are also anticipated to drive the growth of the segment over the forecast period.

Applications Insights

The IT & telecom segment dominated the market in 2020 and accounted for over 20% of the overall revenue share. IT companies continued to scout for unified and secure networking and access solutions as part of their efforts to switch to a cloud-based infrastructure and introduce digital applications to drive business growth. On the other hand, telecom companies also continued to spend aggressively on robust security frameworks as their services are mostly related to data transfer. The increasing awareness about the potential benefits of adopting SASE frameworks is expected to drive the growth of the segment over the forecast period.

The healthcare segment is expected to register the fastest CAGR over the forecast period. Continued innovation and implementation of telehealth services and analytics to facilitate effective communication between patients and healthcare providers are expected to drive the demand for secure network infrastructure services from the incumbents of the healthcare industry vertical. The increasing instances of cyberattacks on the healthcare IT infrastructures are particularly driving the need for advanced security frameworks that can ensure easy and convenient communication between patients are caregivers while ensuring the security of critical patient data and protection of patient privacy. Such factors are expected to drive the demand for SASE frameworks in the healthcare industry over the forecast period.

Regional Insights

North America accounted for the highest revenue share of more than 48% in 2020 and is expected to continue dominating the global market over the forecast period. Continued advances in technology, aggressive spending on IT infrastructure, and growing adoption of cloud services are encouraging emerging market players to make a foray into the regional market. The rising instances of cyberattacks targeting large enterprises and the adverse impact of these cyberattacks on the overall business are particularly driving the organizational IT spending across North America.

Asia Pacific is expected to register a CAGR of over 40% over the forecast period. The aggressive spending on ensuring the security of the IT infrastructure by organizations in China, India, and Japan is expected to drive the growth of the regional market. The growing digital workforce and continued adoption of the BYOD trend by enterprises in Asia Pacific are also among the major factors driving the regional market. The security framework policies being pursued, especially across Southeast Asia, in the wake of the growing risks of cyberattacks on critical IT infrastructures, are also expected to drive the growth of the regional market.

Key Companies & Market Share Insights

The global market is concentrated with the presence of standalone SASE vendors and network security providers. Several security vendors are partnering with SD-WAN providers to make a foray into the market, thereby intensifying the competition further. For instance, in March 2021, AT&T partnered with Fortinet, Inc. to expand its managed security services portfolio and deliver managed SASE solutions to enterprises. The partnership envisaged combining SD-WAN functions with essential network security functions and 24/7 management.

The increasing number of M&A deals and new product launches are equally intensifying the competition. Several network security vendors and Content Delivery Network (CDN) vendors are adding SASE functionalities to their existing security solutions as a part of the efforts to make a foray into the market. For instance, in July 2020, Fortinet, Inc. acquired OPAQ Networks, a networking and cloud security solution provider based in the U.S. Fortinet, Inc. envisaged leveraging the acquisition to integrate OPAQ Networks’ ZTNA solution with its Security Fabric and enhance its SASE cloud security platform. Some of the prominent vendors operating in the secure access service edge market include:

• Barracuda Networks, Inc.

• Cato Networks

• Check Point Software Technologies Ltd.

• Cisco

• Hewlett Packard Enterprise Development LP

• McAfee, LLC

• Open Systems

• Palo Alto Networks

• Versa Networks, Inc.

• VMware, Inc.

Secure Access Service Edge Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2028. For the purpose of this study, Grand View Research has segmented the global secure access service edge market report on the basis of component, application, and region:

• Component Outlook (Revenue, USD Million, 2020 - 2028)

  • Platform

  • Services

• Application Outlook (Revenue, USD Million, 2020 - 2028)

  • IT & Telecom

  • BFSI

  • Manufacturing

  • Retail & E-commerce

  • Healthcare

  • Government

  • Energy & Utilities

  • Others

• Regional Outlook (Revenue, USD Million, 2020 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA