Virtual Private Network (VPN) Market (By Component: Services, Solution; By Type: Remote Access, Extranet, Site-to-site, Others; By Deployment Mode: Cloud, On-premise; By End-Use: Individual, Commercial) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global virtual private network (VPN) market size was exhibited at USD 48.94 billion in 2022 and is projected to hit around USD 358.64 billion by 2032, growing at a CAGR of 22.04% during the forecast period 2023 to 2032.

Key Pointers:

• By geography, the North America generates more than 38% of revenue share in 2022. 
• By component, the solution segment generates more than 67.0% of revenue share in 2022.
• By type, the remote access segment captured more than 38% of revenue share in 2022. 
• By deployment mode, the cloud segment accounted highest revenue share at 76% in 2022. 
• By end-use, the commercial segment captured more than 78% of total revenue share in 2022.

Virtual Private Network (VPN) Market Report Scope

The growing concerns over the security of the data being transferred over a public internet connection are expected to drive the growth. A virtual private network (VPN) provides an encrypted connection that allows consumers to connect to the internet over public connections. Several organizations rely on these secure connections to ensure that only designated users can access their networks remotely. However, the pandemic has changed this dynamic and has triggered a huge demand from the end-users using VPN services. Industry experts expect this rise in the demand to lead to challenges, which need to be addressed by both VPN providers and enterprises.

A virtual private network ensures full-time, high-speed, and secure connectivity. Over the years, high-speed, persistent internet connections have become more expensive than those used merely for accessing emails. Hence, enterprises seldom build in additional capacity to accommodate provisional spikes in usage. Using a virtual private network does not require permanent links between end nodes, which are often associated with contract negotiations and monthly fees. Another significant advantage of the VPN solution, over frame relays or leased lines, is that virtual private networks do not require any specialized equipment. In other words, a VPN can potentially serve as an economical source of encryption, tunneling, authentication, and access control services and technologies to carry traffic over a managed IP network, internet, or a provider’s backbone.

The significant upsurge in the number of cyberattacks and the rise in demand for cloud-based security solutions is expected to drive the demand for virtual private networks over the forecast period. Enterprises of all sizes and operating in various industries and industry verticals are aggressively looking for effective means of data management and secured connectivity between different business units. Enterprises also require uninterrupted connectivity for maintaining collaboration with partners and customers globally. At this juncture, VPNs can potentially offer excellent service quality in terms of keeping the most crucial traffic flowing for businesses and avoiding packet loss. Particularly for IT and telecommunications companies, it is getting necessary to minimize costs and improve the quality of business functions to survive in a competitive business environment. Hence, the demand for VPN solutions from the incumbents of the IT & telecommunications industry is expected to increase over the forecast period.

Several end-use industries have started integrating VPNs into their business processes to streamline their operations. The adoption of virtual private networks is increasing as VPNs are helping end-user organizations in becoming result-oriented and more efficient. The growing adoption of VPN is encouraging new entrants to consider a market foray with niche application-specific solutions and services. Market incumbents are also pursuing various strategic initiatives to gain competitive advantages.

North America accounted for the largest revenue share of 38% in 2022 owing to the rapid growth in the demand from telecommunications and BFSI, among other industries and industry verticals in the U.S. The European market also accounted for a notable market share and is expected to witness steady growth. On the other hand, Asia Pacific is projected to register the highest CAGR over the forecast period in line with the increasing adoption of VPN solutions and services in China, India, and other Asian countries.

China is currently dominating the Asia Pacific region with a rising number of organized players with mobile VPN services. As there are various government policies and regulations regarding popular websites, offering the virtual private network as a solution provided a number of opportunities for entrepreneurs in China, Indonesia, and other Asian countries. Additionally, using VPN services has availed easy networking, and streaming in Asian countries. Using the virtual private network also ensures users about the encryption of their data and protection from hackers. These are the factors that have become significant driving factors to boost the demand for VPN solutions and services in Asian countries.

Remote working has been the new normal for almost all IT enterprises. Since the emergence of the COVID-19 pandemic, there has been a significant increase in the use of remote desktops and virtual private network (VPN) connections. The increase in remote employees and multiple devices is driving the demand for improved visibility and management. Furthermore, the remote users are now able to log in to different networks, that makes central management difficult. Along with managing these devices, enterprises also want to activities of monitor mobile workers on wireless connections.

Some of the prominent players in the Virtual Private Network (VPN) Market include:

• Cisco Systems, Inc.
• Opera Norway AS
• BM Corporation
• Google LLC
• Citrix Systems, Inc.
• Avast Software s.r.o.
• NetMotion Software

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Virtual Private Network (VPN) market.

By Component

• Services
• Solution

By Type

• Remote Access 
• Extranet
• Site-to-site
• Others

By Deployment Mode

• Cloud
• On-premise

By End-Use

• Individual
• Commercial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)