Virtual Private Network Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 17.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Virtual Private Network Market Analysis
The virtual private network market is expected to register a CAGR of 17.2% over the forecast period.
- The growth of the virtual private network (VPN)market is attributed to the increased demand for VPN services due to the increasing importance of online privacy and security and the rise of remote work and virtual collaboration.
- The trend towards remote work is likely to continue even after the pandemic subsides, and as a result, the use of VPNs for remote work is expected to remain high. Companies realize that remote work can be an effective and efficient way of doing business, and VPNs are an essential tool for ensuring the security and productivity of remote workers.
- A significant rise in cyber-attacks and a surge in demand for cloud-based security solutions are expected to boost the virtual private network market. VPN offers a secure and encrypted connection that protects against various threats.
- Furthermore, many companies and organizations must comply with data privacy and security regulations. Thus, growing adoption from such companies drives demand for VPN solutions and services. VPN helps to ensure compliance with these regulations by providing a secure and encrypted connection.
- The high price of the mobile VPN is responsible for hampering the growth of the VPN market. Also, the regulatory environment for VPN services varies by country, with some countries restricting or banning VPN use altogether. This can impact the growth potential and competitive landscape in the market.
- VPN providers are constantly developing new technologies and features to improve their services' speed, security, and ease of use. This includes advanced encryption with new features like multihop, server infrastructure, and user interfaces. For instance, in January 2023, Surfshark launched a new dynamic multihop feature nexus for its VPN. With this new feature, instead of the usual setup of passing the user's internet connection through a single server, its traffic gets routed through a whole network of servers rather than a single VPN tunnel.
- COVID-19 positively impacted the VPN market. With more people working from home due to the pandemic, there was a surge in demand for VPN services. Many companies set up VPNs to enable their employees to access company networks and data from home securely. The increased demand for VPNs also led to more competition in the market, with many new players entering the market.
Virtual Private Network Market Trends
Growing Number of Cyberattacks to Increase Demand for VPN
- The growing number of cyberattacks worldwide is one of the key drivers for the growth of virtual private network (VPN) adoption, as it provides a secure and encrypted connection that protects user data and activity from cyberattacks. With the increasing frequency and sophistication of cyberattacks, many individuals and businesses are turning to VPNs to ensure online security.
- The increase in cyberattacks is attributed to more agile hackers and ransomware who focused on exploiting collaboration tools used by remote workers and schools and educational institutions that shifted to e-learning during the pandemic, as well as a significant increase in attacks on healthcare organizations.
- The growth in cyberattacks globally has led to an increased awareness of online security and the need for secure online connections. As a result, VPN adoption is expected to grow as individuals and businesses look for ways to protect their online activity and data.
- According to IBM, in 2022, the Asia-Pacific region was the most attacked for the second consecutive year, accounting for 31% of all incidents remediated worldwide. The manufacturing sector topped the list of industries attacked in the region with 48% of cases, followed by finance and insurance with 18%.
- Malware was the most frequent cyberattack in financial and insurance organizations between October 2021 and September 2022. The attack vector hit about 40% of the world's organizations. According to Orange Cyberdefense, system anomalies came in second, with 20% of organizations reporting such cyberattacks, followed by network and application anomalies with 23%.
North America Expected to Hold Major Market Share
- The North American region is anticipated to dominate the virtual private network (VPN) market. Due to its service and IT-led industry, demand for high-end services, and need for privacy, the United States is fed by the rising rate of cybercrime, data breaches, and strong demand.
- The increasing number of cyber-attacks on enterprises across various business verticals is responsible for the growth of this market. This encourages organizations to implement VPN solutions to shield their company resources from unsanctioned access. There is a huge demand for VPNs due to the increasing rate of cybercrime, which is propelling the market growth.
- According to IBM, as of 2022, the average data breach cost in the United States amounted to USD 9.44 million, up from USD 9.05 million in 2021. At the same time, the global average cost per data breach was USD 4.35 million in 2022. This shows the frequency of data breaches and cyber-attacks significantly increased in the United States, leading organizations to adopt secure and advanced solutions to protect their data.
- Several states in the United States have enacted data privacy regulations, such as consumer privacy legislation. These regulations require companies to implement measures to protect personal data, including virtual private networks, further creating demand in the country.
- In addition, the government of North America has launched several cybersecurity initiatives to protect critical infrastructure and businesses from cyberattacks. This has raised awareness of cybersecurity threats and the need for secure online access, contributing to adopting VPNs.
Virtual Private Network Industry Overview
The virtual private network market is highly fragmented and has many prominent players. These players are undergoing strategic initiatives such as mergers, acquisitions, partnerships, product innovation, and others, helping to propel the market's growth.
In November 2022, RadioIP, one of the leaders in secure mobile communications, selected NextNav, the leader in vertical location positioning, to empower its industry-leading VPN solutions with mission-critical z-axis location intelligence.
Further, in June 2022, NordVPN announced a new feature called Meshnet, allowing users to connect directly to other devices instead of routing their traffic through a VPN server, solidifying the company's stance as an industry leader.
Virtual Private Network Market Leaders
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Microsoft Corporation
-
Cisco Systems Inc.
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Radio IP Software Inc.
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IBM Corporation
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Check Point Software Technologies Limited
*Disclaimer: Major Players sorted in no particular order
Virtual Private Network Market News
- January 2023: In collaboration with Huawei Technologies, Etisalat UAE announced the deployment and testing of 5G portable private network multi-access edge computing (MEC) functionality. Etisalat would offer a 5G-based replacement for traditional VPN as part of the stand-alone 5G and MEC commercialization program, enhancing remote work experiences for UAE companies.
- May 2022: Microsoft planned to introduce a built-in VPN feature with its Edge browser. This new VPN would be powered by Cloudflare and offer limited free data to the users. The new feature would serve as a dedicated browser VPN. Its security functionalities include encrypting browser traffic even when visiting HTTP websites and changing IP addresses and online locations.
- February 2022: Nokia announced the world's first commercial deployment of 5G Edge Slicing with mobile operators Cellcom and Telia. Nokia's innovative Edge Slicing solution enables operators to provide next-generation, secure, reliable, and high-performance VPN services to enterprise customers over commercial 4G and 5G networks.
Virtual Private Network Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Growing Number of Cyber-Attacks
- 5.1.2 Increasing Adoption of VPN Solutions Across Multiple Business Verticals
-
5.2 Market Restraints
- 5.2.1 Lack of VPN Standardization and Data Protection
6. MARKET SEGMENTATION
-
6.1 By Component
- 6.1.1 Hardware
- 6.1.2 Software & Services
-
6.2 By Type
- 6.2.1 Hosted
- 6.2.2 IP
- 6.2.3 MPLS
- 6.2.4 Cloud
- 6.2.5 Mobile
-
6.3 By End-user Industry
- 6.3.1 BFSI
- 6.3.2 Healthcare
- 6.3.3 IT
- 6.3.4 Government
- 6.3.5 Manufacturing
- 6.3.6 Other End-user Industries
-
6.4 By Geography
- 6.4.1 North America
- 6.4.1.1 The United States
- 6.4.1.2 Canada
- 6.4.2 Europe
- 6.4.2.1 United Kingdom
- 6.4.2.2 Germany
- 6.4.2.3 France
- 6.4.2.4 Rest of Europe
- 6.4.3 Asia-Pacific
- 6.4.3.1 China
- 6.4.3.2 India
- 6.4.3.3 Japan
- 6.4.3.4 Australia
- 6.4.3.5 Rest of Asia-Pacific
- 6.4.4 Latin America
- 6.4.4.1 Mexico
- 6.4.4.2 Brazil
- 6.4.4.3 Rest of Latin America
- 6.4.5 Middle East & Africa
- 6.4.5.1 United Arab Emirates
- 6.4.5.2 Saudi Arabia
- 6.4.5.3 Rest of Middle-East & Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Microsoft Corporation
- 7.1.2 Cisco Systems Inc.
- 7.1.3 Check Point Software Technologies Limited
- 7.1.4 Radio IP Software Inc.
- 7.1.5 IBM Corporation
- 7.1.6 NetMotion Software Inc.
- 7.1.7 Golden Frog GmbH
- 7.1.8 Avast Software S.R.O.
- 7.1.9 CyberGhost S.A. (Kape Technologies PLC)
- 7.1.10 Array Networks Inc.
- 7.1.11 Citrix Systems Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Virtual Private Network Industry Segmentation
A virtual private network (VPN) is the programming that creates a safe and encrypted channel over a relatively less secure network, such as the public internet. VPN makes use of tunneling protocols to encrypt data at the sending end and to ensure decryption at the receiving end. To fortify security, the originating and receiving network addresses are also encrypted.
The virtual private network market is segmented by component (hardware and software & services), type (hosted, IP, MPLS, cloud, and mobile), end-user industry (BFSI, healthcare, it, government, manufacturing, and other end-user industries), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Hardware | |
| Software & Services | ||
| By Type | Hosted | |
| IP | ||
| MPLS | ||
| Cloud | ||
| Mobile | ||
| By End-user Industry | BFSI | |
| Healthcare | ||
| IT | ||
| Government | ||
| Manufacturing | ||
| Other End-user Industries | ||
| By Geography | North America | The United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| By Geography | Latin America | Mexico |
| Brazil | ||
| Rest of Latin America | ||
| By Geography | Middle East & Africa | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle-East & Africa |
Virtual Private Network Market Research FAQs
What is the current Virtual Private Network Market size?
The Virtual Private Network Market is projected to register a CAGR of 17.20% during the forecast period (2024-2029)
Who are the key players in Virtual Private Network Market?
Microsoft Corporation, Cisco Systems Inc., Radio IP Software Inc., IBM Corporation and Check Point Software Technologies Limited are the major companies operating in the Virtual Private Network Market.
Which is the fastest growing region in Virtual Private Network Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Virtual Private Network Market?
In 2024, the North America accounts for the largest market share in Virtual Private Network Market.
What years does this Virtual Private Network Market cover?
The report covers the Virtual Private Network Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Virtual Private Network Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Virtual Private Network Industry Report
Statistics for the 2024 Virtual Private Network market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Virtual Private Network analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
