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Market Definition
A VPN (Virtual Private Network) provides an encrypted connection for consumers to connect to the public internet connections. Several organizations worldwide rely on these secure connections to ensure that only designated users have access to their networks remotely.
Market Insights
The Global Virtual Private Network (VPN) Market is projected to grow at a CAGR of around 17% during the forecast period, i.e., 2023-28. The growth of the market is projected to be driven mainly by the ever-rising concerns across enterprises over the security of the data being transferred over a public internet connection, the mounting number of cyberattacks, and the burgeoning demand for cloud-based security solutions. Enterprises of all sizes operating in various end-user verticals are increasingly seeking effective means of data management & secured connectivity between different business units, along with uninterrupted connectivity in order to maintain collaboration with clients & partners globally.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 17% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA | |
| Key Companies Profiled | Avast Software s.r.o., Citrix Systems, Inc., NordVPN, Radio IP Software, CyberGhost S.R.L, Cisco Systems, Inc., IBM Corporation, Google LLC, NetMotion Software, Juniper Networks, Checkpoint Software Inc., Opera Norway AS, WatchGuard Technologies, Inc., Microsoft Corporation, BlackBerry Limited, Array Networks, Inc., TunnelBear Inc |
| Unit Denominations | USD Million/Billion |
VPNs offer excellent service quality in terms of keeping the most critical traffic flowing for businesses while avoiding packet loss and ensuring full-time, high-speed, & secure connectivity. Using a virtual private network does not require permanent links between end nodes, which are often associated with contract negotiations & monthly fees. Another significant advantage of VPNs over frame relays or leased lines is that they do not require any specialized equipment and thus can potentially serve as an economical source of tunneling, encryption, authentication, as well as access control services to carry traffic over a managed IP network or internet.
As a result, it is becoming crucial to minimize costs and improve the quality of business functions, particularly for the companies operating in the IT & Telecom sector, in order to survive in a competitive business environment. Therefore, the dramatically rising demand for VPN solutions from across the IT & telecommunications industry would drive the virtual private network (VPN) market globally through 2028. Several companies worldwide operating in different end-user verticals have started integrating VPNs into their business processes in order to streamline their operations and become more efficient & result-oriented.
Market Dynamics
Key Driver: Rapidly Rising Instances of Cyber Attacks across Different End-User Verticals
The ever-growing incidence of cyberattacks worldwide as people visiting public places log into unsecured Wi-Fi networks has raised severe safety concerns and, in turn, created the need for deploying virtual private networks across several businesses since hackers target persons who join susceptible hotspots & gain access to unsecured networks. Hence, the need for the implementation of VPNs and powering the encryption offered by them in order to defend the public from malicious action are driving the Global Virtual Private Network (VPN) Market.
Growth Restraint: Restrained Spending by Businesses Post-Pandemic
After the advent of Covid-19, many organizations have dramatically cut down their expenditure. Among all industries, the IT sector has been severely hit by this reduced spending, which, in turn, has notably slowed down sales cycles and disrupted the expansion across the overall information security industry, as organizations are becoming more hesitant about acquiring or continuing paid VPN solutions or services. Hence, these aspects are hampering the growth of the Global Virtual Private Network (VPN) Market.
Market Segmentation
Based on Type:
Of them all, remote access & site-to-site accounted for the largest share of the Global Virtual Private Network (VPN) Market. It owes to the rapidly increasing number of franchised dealers in the market and the mounting need for ensuring seamless connectivity. Remote access & site-to-site connections provide optimized bandwidth & data comparison. The growing proliferation of mobile VPN devices and the rising requirements for remote accessibility are driving the demand for remote VPN solutions worldwide, which are helping organizations in complying with security regulations.
Based on Deployment:
Here, the cloud segment holds a prominent market share, owing mainly to the growing need of companies to reduce maintenance & costs. The leading players in the industry are providing enterprises with cloud-based VPN solutions integrated with a secure gateway and private on-premise access to cloud resources, thereby helping them establish a private cloud computing environment on shared public cloud infrastructure. With these solutions, organizations have control over granting or blocking access for customers to particular resources through specific applications or IP addresses.
Also, cloud infrastructure resources, including storage, virtual servers, & networking, can be deployed dynamically to help customers adapt to the changes according to their business requirements. Moreover, benefits like reduced costs and lower maintenance are also instigating enterprises to adopt cloud-based VPN solutions so they can focus on attaining core competencies & prime business goals. Hence, these aspects are driving the demand for virtual private cloud solutions and, in turn, spurring growth in the Global Virtual Private Network (VPN) Market.
Regional Landscape
On the geographical front, the Global Virtual Private Network (VPN) Market expands across:
Among all regions globally, North America is projected to dominate the Virtual Private Network (VPN) Market during 2023-28. It ascribes to its service & IT-led sector, coupled with the mounting demand for high-end services and the ever-increased need for user privacy, owing to which the US is witnessing rapidly rising instances of cybercrime & data breaches across various enterprises, and thus strong demand for VPN solutions. As a result, organizations are increasingly adopting secure & advanced VPN solutions to protect their data & business resources from unsanctioned access.
Several enterprises in the US have enacted data privacy regulations like consumer privacy legislation, which require them to implement different measures to protect personal data, including VPNs. In addition, the US government has launched several cybersecurity initiatives toward shielding critical infrastructure & businesses from data breaches & cyberattacks, which, in turn, has raised awareness of cybersecurity threats and the need for secure online access, i.e., augmenting the adoption of VPN solutions across various end-user verticals, especially IT & Telecom and BFSI sectors and driving the North America Virtual Private Network (VPN) Market.
Recent Developments in the Global Virtual Private Network (VPN) Market
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Frequently Asked Questions
A. The Virtual Private Network (VPN) Market is projected to grow at a CAGR of around 17% during 2023-28.
A. The ever-growing incidence of cyberattacks across various organizations worldwide is the prime aspect projected to drive the Virtual Private Network (VPN) Market through 2028.
A. Avast Software s.r.o., Citrix Systems, Inc., NordVPN, Radio IP Software, CyberGhost S.R.L, Cisco Systems, Inc., IBM Corporation, Google LLC, NetMotion Software, Juniper Networks, Checkpoint Software Inc., Opera Norway AS, WatchGuard Technologies, Inc., Microsoft Corporation, BlackBerry Limited, Array Networks, Inc., and TunnelBear Inc. are the key players operating in the Virtual Private Network (VPN) Market.
A. Limited spending by businesses after the Covid-19 pandemic has restrained the growth of the Virtual Private Network (VPN) Market.
A. Remote Access & Site-to-Site solutions would generate remunerative opportunities for the leading players in the Virtual Private Network (VPN) Market over the forecast years.
A. Globally, North America would provide lucrative prospects to the Virtual Private Network (VPN) Market during 2023-28.
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