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2020

Virtual Private Network Market

Virtual Private Network Market Size, Share, Competitive Landscape and Trend Analysis Report by Component (Solution and Services), Type (Remote Access VPN, Site-to-Site VPN, and Others), Deployment (Cloud and On-premise), and End User (Commercial Users and Individual Users): Global Opportunity Analysis and Industry Forecast, 2020-2027

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Author's: Vishwa Gaul | Vineet Kumar
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Virtual Private Network Market Statistics: 2027

The global virtual private network (VPN) market was valued at $25.41 billion in 2019, and is projected to reach $75.59 billion by 2027, growing at a CAGR of 14.7% from 2020 to 2027. A VPN can be defined as a way to offer secure communication between members of a group through the use of public telecommunication infrastructure, maintaining privacy through the use of a tunneling protocol and security procedures. VPNs mask users’ internet protocol (IP) address so their online actions are virtually untraceable. VPN solutions & services establish secure and encrypted connections to provide greater privacy. VPNs provisioned using technologies, such as Frame Relay and Asynchronous Transfer Mode (ATM) virtual circuits (VC), have been available for a long time. However, from last few years, IP and Multiprotocol Label Switching (MPLS)-based VPNs have become more common.

Increase in data security concerns, rise in advanced & complex cyber threats, and upsurge in usage of mobile & wireless devices within organizations are the major factors that fuel the growth of the virtual private network market. In addition, increase in need for remote accessibility propels the growth of this market. However, lack of expertise in virtualization is expected to hinder the VPN market growth. On the contrary, increased adoption of private clouds is expected to provide lucrative opportunities for the virtual private network market growth in the coming years.

Virtual-Private-Network-(VPN)-Market-2020-2027

On the basis of component, the solution segment dominated the overall virtual private network market size in 2019. This is attributed to the advantages of virtual private network solution such as hiding online identity, bypassing geo-blocks, preventing bandwidth throttling, avoiding online price discrimination, accessing region-blocked services, providing network scalability and offering cheaper leased-line alternatives.

According to end user, the commercial users segment accounted for the highest virtual private network market share in the global market in 2019. This is attributed to growing focus on establishing secure networking environment for businesses, increasing number of data breaches, and escalating cyber threats.

In 2019, North America accounted for the highest virtual private network market share, due to high spending on network security in this region. In addition, large presence of key market vendors in North America also propels the market growth in this region. Moreover, increase in demand from sectors, such as BFSI and telecom, among other industry verticals in North America acts as the key driving factors of the North America virtual private network market.

The emergence of COVID-19 is expected to have a considerable impact on the growth of the virtual private network market. The spending on the virtual private network industry is expected to upsurge compared to the spending planned before this pandemic, owing to multiple factors such as rise in number of cyber-attacks, increase in focus of offering data security especially after the rapid adoption of work from home culture, and growth in spending on networking infrastructure. After the COVID-19 outbreak, many organizations have started preferring private networks over public network usage. For instance, according to information published by ExpressVPN in March 2020, over 20% rise in private network usage in Mexico was indicated along with additional usage of up to 2 hours per day for business private networks compared to the pre-pandemic stage.

Virtual Private Network Market
By Component
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Virtual private network Solution segment is projected as one of the most lucrative segments during the forecast period.

In addition, fraudulent activities by hackers also accelerated during this pandemic while corporate companies as well as individual users are being affected by such activities. Therefore, with the emergence of COVID-19, the use of virtual private network is expected to enable enterprises and individual users to establish a safe & secure connection on internet and maintain privacy of the critical data even while working remotely during the pandemic period.

The report focuses on the growth prospects, restraints, and the global virtual private network market trends. Moreover, the study includes Porter’s five forces analysis of the industry to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the growth of the virtual private network market.

Virtual Private Network Market
By Type
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Remote Access VPN segment accounted for the highest market share in 2019.

Segment review

The global virtual private network market is segmented into component, type, deployment, end user, and region. By component, it is divided into solution and services. According to type, the virtual private network market is segregated into remote access VPN, site-to-site VPN, and others. Depending on deployment, it is categorized into on-premise and cloud. As per end user, it is fragmented into commercial users and individual users. Commercial users are further classified into sub-segments such as BFSI, telecom & IT, government, healthcare, manufacturing and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the global virtual private network market analysis include Avast Software S.R.O., Checkpoint Software Inc., Cisco System Inc., Golden Frog GmbH, IBM Corporation, Juniper Networks Inc., Microsoft Corporation, NetMotion Software Inc., NordVPN, and Radio IP Software Inc.

Virtual Private Network Market
By Deployment Mode
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Cloud deployment mode segment accounted for the highest share in 2019.

Top impacting factors

Upsurge in usage of mobile and wireless devices

Dropping prices for consumer devices and data plans have driven organizations to adopt more mobile devices into their workplace. Keeping connections secure and persistent is a necessity while employees are using mobile devices for working purposes. Currently, most of the employees can access any business application and connect to their corporate networks from anywhere through mobile applications in smartphones, laptops, tablets, and netbooks. As more and more work transactions are processed through mobile devices, security becomes a major concern. Mobile VPN technology and other mobile security products are expected to be crucial components as more mobile devices enter the workplace. Furthermore, the VPN market is witnessing growth as enterprises are adopting BYOD polices to increase performance while reducing costs. Private network tool confirms that remote workforce is securely connected to enterprise networks accompanied by protecting BYOD devices from malicious cyber-attacks.

Rise in advanced and complex cyber threats

The internet has become a universal platform for conducting business. As a result, attackers have targeted the internet to conduct theft and fraud. Mobile devices are not immune from this trend and both consumers and organizations are looking for products to secure transactions conducted on internet from outside the organization. Even though mobility allows workers to exhibit improved productivity, organizations have become more concerned about hackers accessing corporate networks by posing as remote employees. Cybercriminals have demonstrated that they can easily take advantage of users connecting through hotspots or through unsecured connections while organizations have little defense against these kinds of attacks. Hackers are constantly looking for new vulnerabilities to exploit, and enterprises need to be prepared for these zero-day attacks. Using encrypted sessions and enforcing organizational policies on the mobile endpoint help to prevent these attacks.

Virtual Private Network Market
By End User
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Commercial Users segment is projected to be one of the most significant segments during the forecast period.

Growing need for remote accessibility

As a result of COVID-19, companies have already begun to shift their digital transformation priorities and focus to handle changes in network needs. VPN connections are essential for employees when working remotely and are often the IT team’s first stage in enabling a virtual workforce.

For remote employees, the ability to access data at all times is critical. Businesses have facilitated their employees to be able to log on from any location. The ability to access the internet through enhanced wireless technologies has allowed applications to be downloaded onto mobile devices. In addition, employees use more applications than originally intended. As more applications are available for mobile or wireless devices, enterprises utilize these VPN applications to increase efficiency and enhance productivity, thereby driving the growth of the VPN market.

Virtual Private Network Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 17.4% during 2020-2027.

Key benefits for stakeholders

  • This study includes the analytical depiction of the virtual private network market forecast and trends to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and virtual private network market opportunity.
  • The current market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the virtual private network market.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the virtual private network market.

Virtual Private Network Market Report Highlights

Aspects Details
Virtual Private Network Market By Component
By Component
  • Solution
  • Services
Virtual Private Network Market By Type
By Type
  • Remote Access VPN
  • Site-to-Site VPN
  • Others
Virtual Private Network Market By Deployment
By Deployment
  • Cloud
  • On Premise
Virtual Private Network Market By End User
By End User
  • Commercial Users
  • Individual Users
Virtual Private Network Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

RADIO IP SOFTWARE INC, NORDVPN, IBM CORPORATION, MICROSOFT CORPORATION, AVAST SOFTWARE S.R.O., CISCO SYSTEMS INC, GOLDEN FROG, GMBH, NETMOTION SOFTWARE INC, CHECKPOINT SOFTWARE INC., JUNIPER NETWORKS

Analyst Review

A Virtual Private Network (VPN) is a service that facilitates users to connect to the internet via an encrypted tunnel to ensure user’s online privacy and protect sensitive data. A VPN is usually used to secure connection to public Wi-Fi hotspot, hide IP address, and make the browsing private.

The adoption of virtual private network has increased over time, owing to the rise in need for ensuring secure work environment, surge in number data breaches, and increase in adoption of BYOD trend across various industries. In addition, increase in focus on digital transformation & advancing networking infrastructure boosts the growth of the global VPN market.

Furthermore, increase in economic strength of developing nations, such as China, India, and others, is expected to provide lucrative opportunities for the market growth. North America is expected to dominate the market during the forecast period. Moreover, emerging countries in Asia-Pacific are projected to offer significant growth opportunities during the forecast period. The global players focus on product development and increase their geographical presence, owing to rise in competition among local vendors in terms of features, quality, and price. In addition, these players adopt various business strategies to enhance their product offerings and strengthen their foothold in the market.

Proliferation of mobile devices and increase in internet connectivity in Asia-Pacific & LAMEA further escalate the demand for predictive analytics in these regions. Moreover, surge in cloud adoption, work from home trend, and increase in investment in data security are expected to boost the growth of the VPN market in the coming years. Moreover, the outbreak of the COVID-19 pandemic in 2020 led to innovation of VPN solution to combat the COVID-19 crisis and help corporate as well as individual users to form secure connections while using internet. 

 
 

Author Name(s) : Vishwa Gaul | Vineet Kumar

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Virtual Private Network Market

Global Opportunity Analysis and Industry Forecast, 2020-2027