Rising Cyber Risks, Zero-Trust Adoption, And Cloud-Delivered Security Demand Are Driving Strong Momentum In the Security Service Edge Market, According to Astute Analytica
Security Service Edge market is accelerating as organizations urgently dismantle outdated perimeter defenses. The shift is driven by the necessity of Zero Trust security to protect distributed workforces and multi-cloud environments from increasingly sophisticated threats.
Chicago, Sept. 29, 2025 (GLOBE NEWSWIRE) — The global security service edge market was valued at US$ 2.9 billion in 2024 and is expected to reach US$ 24.6 billion by 2033, growing at a CAGR of 26.8% during the forecast period 2025–2033.
The rising demand for Security Service Edge (SSE) solutions is not just a trend but a strategic turning point in cybersecurity. Organizations increasingly view external expertise as a permanent necessity rather than a temporary fix. The staggering financial impact of cyber incidents—averaging US$14,500 for phishing attacks and US$18,750 for denial-of-service incidents—highlights why businesses are opting for trusted providers with proven response capabilities. A landmark 2025 survey, which included input from 713 IT and cybersecurity leaders, highlights an undeniable trend. A commanding 79% of organizations now plan to implement a Security Service Edge (SSE) platform within the next 24 months. A figure representing a significant acceleration from the 69% of organizations that held similar 24-month implementation goals back in 2024. The urgency is palpable, with nearly half of these organizations, specifically 45%, moving to adopt SSE within the next year, underscoring its pivotal role in modern security strategies.
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The rapid adoption is directly tied to broader strategic initiatives. In 2025, 62% of organizations now classify a comprehensive Secure Access Service Edge (SASE) strategy as a key corporate initiative. An important increase from the 59% who viewed SASE with the same strategic importance in 2024. For the majority, SSE is the logical and practical entry point into this modern security framework. Indeed, 59% of organizations confirm they begin their SASE journey with the foundational implementation of an SSE platform, solidifying its position as the cornerstone of contemporary network security.
Key Findings in Security Service Edge Market
| Market Forecast (2033) | US$ 24.6 billion |
| CAGR | 26.8% |
| Largest Region (2024) | North America (39.22%) |
| By Component | Bicycles (61%) |
| By Enterprise Size | Large Enterprises (68%) |
| By End Users | BFSI (32%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Cloud-Native Architectures Dominate as Enterprises Abandon Legacy Hardware Security Models
The architectural preferences within the Security service edge market have clearly crystallized around cloud-native solutions. In 2025, a decisive 70% of organizations now favor SSE solutions that are built on public cloud architectures, prizing their inherent scalability and flexibility. This preference marks a steady climb from 65% in 2024. Furthermore, a significant majority of organizations, 61%, are now expressing a clear preference for a single-vendor SASE solution that effectively unifies both SSE and SD-WAN components into one manageable platform, signaling a move away from fragmented, multi-vendor approaches.
The financial data corroborates this seismic shift away from traditional hardware in the Security service edge market. In 2024, the cloud-based deployment segment already accounted for a majority 56.49% of the SSE market. Looking ahead, revenue from cloud- and software-delivered network security controls is projected to see a robust 20% increase in 2025. In stark contrast, revenue from legacy hardware-based security appliances is expected to decline by 2% during the same period. The most telling statistic is that virtual and SaaS-based network security solutions captured an overwhelming 78% of all new spending in 2025, leaving little doubt about the future direction of enterprise security investment.
Zero Trust Principles Emerge as the Unwavering Foundational Driver for Security Service Edge (SSE) Market
The philosophy of Zero Trust, which mandates verification for every access request, has become the primary catalyst for SSE adoption. In 2025, 46% of organizations identified Zero Trust Network Access (ZTNA) as the critical starting point for their SSE adoption journey. A notable increase from the 44% of organizations that prioritized ZTNA as their initial entry point into the framework in 2024. Underscoring its importance, SSE platforms are now considered the single most critical technology for successfully implementing a Zero Trust framework, according to 34% of survey respondents in 2025.
Consequently, legacy technologies are being rapidly phased out in the Security service edge market. In 2024, a significant 66% of organizations expressed a strong desire to replace their antiquated VPN concentrators with modern SSE and ZTNA capabilities. By 2025, those intentions solidified into action, with 62% of those organizations confirming they now have active plans in place to eliminate their legacy VPNs entirely. Confidence in older security models has eroded completely, with confidence in monitoring employee access under these old models scoring a low 5.3 out of 10 in 2025, while confidence in tracking third-party user access scored an even lower 4.9 out of 10.
Strategic Prioritization of Core SSE Components Defines Modern Implementation Roadmaps
Within the broader framework, organizations are demonstrating clear priorities when deploying core components of the Security service edge market. Following ZTNA, the Secure Web Gateway (SWG) stands as the second most prioritized component, with 30% of organizations choosing it as their implementation starting point in 2025. The Cloud Access Security Broker (CASB) is the initial focus for a further 24% of organizations in the same year. These figures reveal a methodical, phased approach to building a comprehensive security edge based on immediate needs.
A wider view of broader SASE technology adoption in 2025 provides additional context on component integration. The data shows SWG technology is currently being adopted by 48% of organizations, making it a highly prevalent security control. Firewall-as-a-Service (FWaaS) is being actively implemented by 43% of organizations as they move security functions to the cloud. The adoption rate for CASB technology specifically stands at 38%, while Data Loss Prevention (DLP) technology is being adopted by 34% of organizations as part of their comprehensive SASE and SSE strategies.
A Consolidated Trio of Leaders Solidifies Dominance in a Maturing Market
The competitive landscape of the Security service edge market is maturing rapidly, with a distinct group of leaders cementing their positions. An analysis of the Gartner Magic Quadrant for SSE in both 2024 and 2025 reveals remarkable consistency at the top. Three vendors—Zscaler, Netskope, and Palo Alto Networks—were consistently placed in the coveted “Leaders” quadrant across both years. The total number of vendors recognized in the 2025 Gartner Magic Quadrant for SSE was 9, a slight consolidation from the 10 vendors that were recognized in the 2024 report.
The differentiation among these leaders is a key focus in the Security service edge (SSE) market. For 2025, Gartner ranked Netskope as number 1 for its “completeness of vision” for the third consecutive year, highlighting its strategic foresight. In the same 2025 report, Zscaler ascended to the number 1 position for its “ability to execute,” demonstrating market-leading delivery. Zscaler also significantly improved its position on the vision axis, moving from the number 3 spot in 2024 to number 2 in 2025. Market consolidation is a powerful force, with the top 6 SASE vendors, including the SSE leaders, accounting for a massive 72% of the total market revenue in late 2024.
Strategic Investments and Acquisitions Fuel Unprecedented Innovation Across the Ecosystem
The vibrancy of the Security service edge market is fueled by a dynamic investment landscape. During the first quarter of 2025 alone, 75 startups operating in related technology fields collectively raised over $2 billion in funding. In that same quarter, 6 technology companies successfully raised at least $100 million each in their funding rounds. High-profile examples from 2024 and 2025 include AI security startup Anterior securing a $20 million Series A investment and OpenRouter, a platform connecting AI applications, raising $40 million in its Series A round.
Large-scale investments and strategic acquisitions further highlight the market’s momentum. In August 2025, First Due, a public safety technology company reliant on secure access, secured a massive $355 million growth investment. Similarly, GenAI tax research platform Blue J raised $122 million in a Series D funding round in August 2025. Mergers and acquisitions are also shaping the competitive field. In a key strategic move in early 2024, SSE leader Zscaler acquired microsegmentation provider Airgap Networks to directly enhance its platform’s Zero Trust capabilities.
Managed SSE Services Experience Surging Demand Amidst Growing Security Complexity
As SSE platforms grow in sophistication, a thriving ecosystem of Managed Service Providers (MSPs) has emerged in the Security service edge market. For 2025, revenue for MSPs is projected to grow by at least 12%, a surge driven primarily by relentless demand for advanced cybersecurity and cloud services. The managed services market in the United Kingdom alone is projected to reach a volume of £1.67 billion by 2029. This growth is also powered by the explosion of connected devices, with the number of Internet of Things (IoT) devices expected to grow from 13.2 billion currently to over 34.7 billion by 2028.
Enterprise budget planning reflects this trend toward outsourced expertise. In 2024, 43% of organizations reported plans to increase their security budgets, with a significant portion of that increase earmarked for managed services. While that figure adjusted slightly from 2024, where 47% of organizations planned budget increases, another key statistic emerged. A notable 46% of companies anticipate their security spending to remain flat in 2025, a factor that significantly increases the appeal of efficient and expert managed services. Reflecting this, the services segment held the single largest share of the 2025 Security service edge market components.
Sustained Innovation and Intellectual Property Filings Signal a Robust Future
The long-term health and innovative capacity of the tech sector supporting the Security service edge market can be quantified through patent data. In fiscal year 2024, the United States Patent and Trademark Office (USPTO) issued a total of 326,921 patents across all industries. For the period ending November 30, 2024, the number of granted U.S. patents grew to an impressive 368,597. Semiconductor technology, a critical underpinning of cloud infrastructure, was the leading field for patents granted in 2024, with a total of 67,118. Artificial Intelligence-related patent grants also soared, reaching 54,022 in 2024.
Leading technology companies are driving this wave of innovation. Samsung, a major global innovator and component supplier, led all companies with 10,084 granted U.S. patents in 2024. As of October 2024, the USPTO had published at least 147,164 patent filings for the fiscal year, with Samsung again emerging as the top filer with 6,660 published patent applications during that period. A healthy and active patent landscape provides a strong foundation for the continued evolution of features and capabilities across the broader technology ecosystem.
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User Experience and Hybrid Work Models Redefine Modern Security Imperatives
The demand boom in the Security service edge market is inextricably linked to modern work dynamics. A 2024 survey of 631 cybersecurity professionals found that an overwhelming 94% of their organizations were operating as primarily hybrid or fully remote. A separate 2025 report confirmed this, with 71% of organizations identifying as having a hybrid work model. Data from 2024 revealed that consistent hybrid work arrangements were in place at 76% of organizations, while fully remote work environments had surged by an astounding 80% compared to the previous year, and fully in-office work declined by 50%. This distributed workforce relies on cloud services, with 45.2% of EU enterprises using them, primarily for email hosting (82.7%) and file storage (68.0%).
In this new paradigm, security cannot compromise productivity, making user experience paramount. By 2025, an overwhelming 93% of IT leaders considered Digital Experience Monitoring (DEM) to be a crucial component of their SSE solution. Among those leaders, 33% rate DEM as “very important,” showing a dramatic increase in perceived importance from 2024. The 2024 SSE Adoption Report showed that simplified IT management (18%) and improved user experience at the edge (21%) were already highly valued benefits. With technical limitations like the maximum of 6 concurrent SSE connections per domain on HTTP/1.1, performance monitoring is critical. Leaders like Netskope, through its Kadiska acquisition, and Zscaler, by unifying its consoles, are heavily investing in DEM, proving that seamless user experience is a non-negotiable success factor in the modern Security service edge market.
Global Security Service Edge Market Major Players:
- Broadcom
- 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
- Other Prominent Players
Key Market Segmentation:
By Component
- Solution
- Services
By Organization Size
- Large Organization
- SME’s
By End User
- BFSI
- IT & Telecom
- Retail & E-commerce
- Healthcare
- Government
- Manufacturing
- Energy & Utilities
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
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