The Global Virtual Private Network Market size is expected to reach $101.3 billion by 2029, rising at a market growth of 15.1% CAGR during the forecast period.
A VPN, or virtual private network, enables a user to safely and secretly connect to a hidden network over the internet. A VPN is a technological advancement that improves a user's online privacy and security. All Internet traffic and conversations are routed through the established VPN tunnel. Using public Wi-Fi while traveling, sending sensitive information, and even perusing entertainment options may all be done more safely with a VPN.
VPN software protects the user's data by hiding the IP address of the user's device, encrypting the data, and sending it through secure networks to servers in other states or even abroad. The online data transmission is hidden and shielded from unwanted parties with a VPN connection. Anyone who has internet access and is interested can read unencrypted data. Cybercriminals as well as hackers are unable to decipher this data when a VPN is used.
This necessitates the need for an encryption key to read the data. Without one, it would take a computer millions of years to crack the code using a brute-force attack. Online activities are disguised even on public networks with a VPN. In essence, VPN servers operate as online proxies. The precise location is unknown since the demographic location data originates from a server in another nation. The majority of VPN services also do not keep records of online activity. Access to regional web content isn't necessarily universal.
Services and websites frequently provide material that needs access from particular geographical locations. Local servers in the nation are used by standard connections to pinpoint the location. Therefore, users cannot view domestic content while away from home and international content at home. By switching to a server in a different nation, users can "change" their location using VPN location spoofing.
Virtual private network (VPN) sales suffered severely during the beginning of the COVID-19 pandemic. However, the need for VPNs significantly increased as more people started working remotely from their homes. Due to several factors, including an increase in cyberattacks, a greater emphasis on data security, and an increase in expenditure on networking infrastructure, the virtual private network market saw increased spending. Most of this growth was attributed to the rapid adoption of the work-from-home culture. Hence, the market experienced significant growth during and after the pandemic.
Organizations are introducing more mobile electronics into the workplace due to falling pricing for consumer electronics and data subscriptions. When employees use mobile devices for work, maintaining secure and enduring connections is essential. Most employees can now connect to their corporate networks and use any business application from anywhere due to mobile applications for cell phones, tablets, laptops, and netbooks. Employee usage of applications is also higher than anticipated. Enterprises use these VPN solutions to boost efficiency and productivity as more mobile or wireless device apps become available, causing the virtual private network market to expand.
As a consequence of technical breakthroughs, the cloud has experienced innovation. In addition, because of its high data availability, portability, scalability, and flexibility, cloud-based businesses have seen rapid growth. By developing partnerships with such cloud service providers, VPN solution providers may take advantage of the increasing opportunities to integrate the cloud with their services. In addition, these collaborations also help to address the problem of cyber security threats and breaches since virtual networking provides secure access to a network. The market will grow due to rising virtual networking demand as more businesses connect the cloud with VPNs.
Many businesses have dramatically reduced their spending due to the post-pandemic expansion of the international economy. These investment reductions have had a significant impact on IT across many international institutions, limiting the industry outlook. The total information security sector's growth has been significantly impacted by the funding cuts, which have also slowed sales cycles. Information security products and services are particularly impacted by enterprises' rising reluctance to purchase or maintain premium VPN services. These factors may limit the growth of the virtual private network market throughout the forecasted period.
Based on offering, the virtual private network market is characterized into solution and services. The services segment procured a considerable growth rate in the virtual private network market in 2022. The constant evolution of virtual private networks and work will continue to drive the demand for VPN services. The virtual private network can protect a remote connection with the help of VPN services. Customers on a tight budget can compare prices in real-time online owing to the vendors' offerings, which aids in their decision-making process.
By deployment mode, the virtual private network market is divided into cloud and on-premise. The on-premises segment garnered a remarkable growth rate in the virtual private network market in 2022. Instead of utilizing server space or the cloud, the on-premises deployment approach for virtual private networks enables the installation and execution of software on systems housed inside an enterprise.
Based on end user, the virtual private network market is segmented into commercial users and individual users. The individual users segment acquired a substantial revenue share in the virtual private network market in 2022. Users can connect securely to a distant network over the internet using a VPN. This technique is used more frequently by those who need access to websites that are limited by region or want to hide their browsing habits when using public Wi-Fi.
On the basis of type, the virtual private network market is classified into remote access VPN, site-to-site VPN, and others. The remote access VPN segment acquired the largest revenue share in the virtual private network market in 2022. This can be explained by the increase in franchised dealers on the market. Extranets are expected to have significant growth in the coming years. The expansion is mostly attributable to the rising utilization of extranets by businesses for the purpose of publishing confidential data on public networks.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 38.6 Billion |
| Market size forecast in 2029 | USD 101.3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2029 |
| Revenue Growth Rate | CAGR of 15.1% from 2023 to 2029 |
| Number of Pages | 243 |
| Number of Table | 413 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Offering, Deployment Mode, End User, Type, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the virtual private network market is analysed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded the largest revenue share in the virtual private network market in 2022. This region spends a lot of money on network security, so the market there is expanding. The market expansion in North America is also fuelled by the substantial presence of leading market vendors here. Additionally, the demand for virtual private network is primarily driven by rising demand from industries like BFSI and telecom, as well as other industry verticals.
Free Valuable Insights: Global Virtual Private Network Market size to reach USD 101.3 Billion by 2029
The major strategies followed by the market participants are acquisitions. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the forerunner in the Virtual Private Network Market. Companies such as IBM Corporation, Cisco Systems, Inc., and Check Point Software Technologies Ltd. are some of the key innovators in the Virtual Private Network Market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., Absolute Software Corporation (NetMotion Software), Gen Digital, Inc., Nord Security, Radio IP Software and Golden Frog, GmbH
By Offering
By Deployment Mode
By End User
By Type
By Geography
The Market size is projected to reach USD 101.3 billion by 2029.
Rising Integration of managed VPN with the cloud are driving the Market in coming years, however, Issues pertaining to funding cuts and lack of virtualization restraints the growth of the Market.
IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., Absolute Software Corporation (NetMotion Software), Gen Digital, Inc., Nord Security, Radio IP Software and Golden Frog, GmbH
The Commercial Users market generated the high revenue in the Global Virtual Private Network Market by End User in 2022; thereby, achieving a market value of $73.9 billion by 2029.
The Solution market is leading the segment in the Global Virtual Private Network Market by Offering in 2022; thereby, achieving a market value of $74.2 billion by 2029.
The North America market dominated the Market by Region in 2022; thereby, achieving a market value of $34.4 billion by 2029.
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