The global virtual private network market size was valued at USD 30.05 billion in 2020 and is anticipated to grow at a CAGR of 17.4% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing concerns regarding the security and privacy of data transfer on the public internet in the population.
The virtual private network (VPN) gives an encrypted connection for the consumers, which permits them to establish connection to the internet on the public connections. The VPN ensures full-time, secure connectivity coupled with high-speed. As over the period of time the usage of internet has increased significantly, the companies build in supplementary capacity to accommodate conditional spikes in usage. The use of virtual private network is free from permanent links between end nodes, which reduces the cost. Other advantage of the VPN solution, is that it doesn’t need any specialized equipment. AVPN has the potential to serve as economical source of tunneling, encryption, authentication, along with access control technologies and services to manage traffic over internet, managed IP network, and a provider’s backbone.
The enterprises of different industries are extensively finding effective methods of secured connectivity and data management of several business units. A VPN offers great service quality in regards to maintaining traffic flowing for businesses also preventing packet loss. The telecommunications and IT companies, it is essential to diminish costs and develop the quality of functions of businesses to endure in a competitive business environment.
The COVID-19 pandemic has impacted on the technology industry substantially. Organizations of all levels are implementing work-from-home concept to reduce the risk of disease spread. The organizations are aggressively adopting a virtual private network to guarantee a protected work-from-home environment for employees. Also the rise in fraudulent activities in the pandemic has boosted the need of secured network. As a result, organizations are selecting virtual private network to bolster their security and secure the privacy of the users.
Market Trends, Drivers, Restraints, and Opportunities
- The considerable increase in the cases of cyberattacks as well as the surge in demand for cloud-based security solutions is major driver of the market in the coming years.
- The preference of VPN solutions in the officials of the IT & telecommunications industry is increasing significantly which is propelling the market over the forecast period.
- Growing number of startups in the market is a key market driver in the forecast period.
- Absence of expertise in virtualization is proving to be a restraint for the VPN market growth in the near future.
- Surge in acceptance of private clouds is anticipated to offer tremendous opportunities for the virtual private network market during the forecast period.
Scope of the Report
The report on the global virtual private network market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Virtual Private Network Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Solutions and Services), Types (Site-to-site, Remote Access, Extranet, and Others), Deployments (Cloud and On-premises), and End-users (Commercial and Individual)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Avast Software s.r.o.; BlackBerry Limited; Cisco Systems, Inc.; Citrix Systems, Inc.; CyberGhost S.R.L.; Google LLC; IBM corporation; NetMotion Software; Opera Group Company; and WatchGuard Technologies, Inc.
Market Segment Insights
Solutions segment is expected to grow at a rapid pace
Based on components, the global virtual private network market is bifurcated into solutions and services. The solutions segment is expected to grow at a rapid pace. The segment showed revenue share of 64% in year 2020. The segment has gained significant popularity among individual solutions providers and commercial vendors. The dynamic nature of the VPN market is anticipated to drive the segment growth in the near future.
The VPN solutions includes reporting, control features, and management. The rising collaboration of VPN vendors with mobile VPN vendors as well as NAC solution providers is boosting the sales of the VPN solutions.
Remote access segment is projected to expand at a considerable CAGR
On the basis of types, the global market is classified as site-to-site, remote access, extranet, and others. The remote access segment is projected to expand at a considerable CAGR. The segment witnessed revenue share of 35.8% in year 2019. This is attributed to the factors of rising amount of franchised dealers. The demand of remote access and site-to-site connectivity has been rising constantly to guarantee continuous connectivity. Site-to-site connection and remote access confirm data and bandwidth comparison optimization. The introduction of mobile VPN devices and the rising necessity for remote accessibility has been boosting the demand for remote VPN solutions in the recent years. Remote access assists companies to comply with security regulations.
The extranet segment is estimated to demonstrate good growth in the near future owing to the increasing usage of the extranet in the organizations for posting of private information on the public networks.
Cloud segment is estimated to grow at a substantial rate
On the basis of deployments, the market is segregated into cloud and on-premises. The cloud segment is estimated to grow at a substantial rate. This is because of the increasing demand for cloud deployment as it reduces the cost and maintenance. The key market players are providing the secure platform as well as private on-premises gateway to cloud resources.
The private cloud vendors assists organizations to establish a cloud computing atmosphere on the public cloud infrastructure. Cloud infrastructure resources, are virtual servers, storage, and networking, which can be used dynamically to assists VPC consumers in accepting the changes as per their business demands. The decline in costs as well as reduced maintenance permits the organizations to concentrate on achieving key business goals and core competencies.
Commercial segment is anticipated to flourish at a substantial pace
Based on the end-users, the global market is divided into commercial and individual. The commercial segment is anticipated to flourish at a substantial pace owing increasing concern about implementation of protected network. Furthermore, it assists in reducing the risks in the complete data lifecycle. Fault-tolerant and cost-effectiveness along with redundant of resources are the driving factors for the acceptance of commercial virtual private network solutions.
As the companies has permitted the use of remote devices has resulted in increased connection of employees in the corporate network. Moreover, ability to access several business applications from different locations and with various devices, such as computers, laptops, tablets, and netbooks. These factors are contributing for the segment growth in the coming years.
North America is anticipated to constitute a key market share
In terms of regions, the global virtual private network market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
North America is anticipated to constitute a key market share owing to the growing demand from BFSI and telecommunication in the region. North America market shows revenue share of 35.1% in year 2019 and is anticipated to continue same growth in the near future.
Asia Pacific market is estimated to show lucrative growth in the forecast period. This is attributed to rising use of VPN services and solutions in countries, such as India, China, and others. The presences of several government initiatives and regulations for websites, which are offering huge opportunities for the market to grow in the region. The benefits offered by the use of VPN such as easy networking and streaming for the Asian region is boosting the market in the region.
Segments Covered in the Report
The global virtual private network market has been segmented on the basis of
- Remote Access
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Avast Software s.r.o.
- BlackBerry Limited
- Cisco Systems, Inc.
- Citrix Systems, Inc.
- CyberGhost S.R.L.
- Google LLC
- IBM corporation
- NetMotion Software
- Opera Group Company
- WatchGuard Technologies, Inc
The key players in the global virtual private network market are Avast Software s.r.o.; Citrix Systems, Inc.; CyberGhost S.R.L.; Cisco Systems, Inc.; Opera Group Company; Google LLC; IBM corporation; BlackBerry Limited; NetMotion Software; and WatchGuard Technologies, Inc.. These key players have adopted a series of market strategies including new product launching, entering into partnership, collaboration, and production expansion to enhance their market position and expand their consumer base.