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The VPN market size is forecast to increase by USD 47.83 billion, at a CAGR of 16.28% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The increasing adoption of bring-your-own-device (BYOD) policies in organizations is driving the demand for VPN solutions, as they enable secure remote access to corporate networks. Another trend is the growing popularity of cloud-based services, which require VPNs for secure data transfer and access. However, the market also faces challenges from open-source VPN solution providers, which offer free alternatives to commercial VPNs. Despite this competition, the market is expected to continue its growth trajectory due to the increasing need for secure data transfer and access in the digital age.
VPN services have gained significant traction in today's digital world, offering online privacy and security to companies and individuals alike. With the rise of remote work and virtual collaboration, the demand for reliable and high-speed connectivity has become a priority. VPNs provide a secure and encrypted connection, ensuring data management and protection against cyber-attacks, even on public internet connections. Enterprises, particularly in sectors like BFSI, have embraced VPN services for their productivity benefits. Cloud-based security solutions have further boosted the adoption of VPNs, enabling seamless integration with IP, multiprotocol label switching, frame relay, and other network technologies. Service quality is a crucial factor, with minimal packet loss and high-speed connectivity being essential for effective virtual collaboration among clients.
VPNs are increasingly deployed in cloud-based environments, offering asynchronous transfer mode and network access control features. IP address masking and other advanced security measures further enhance the security benefits of VPN services. As companies continue to prioritize data protection and connectivity, the market for VPN services is expected to grow steadily.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The commercial segment is estimated to witness significant growth during the forecast period. The global market witnessed substantial growth in 2023, with the commercial segment leading the charge. This segment's dominance can be attributed to the heightened priority given to online privacy and security in business environments. With the rise of remote work and virtual collaboration, companies are increasingly adopting VPN services to ensure secure data transmission and protect user data from cybercriminals and cyberattacks. VPN technologies, such as encryption, multihop, and server infrastructure, offer features that cater to the demands of the regulatory environment, including compliance with security regulations and data privacy legislation. The increasing number of cyber threats, including malware, system anomalies, and data breaches, further underscores the importance of VPNs in the commercial sector.
Additionally, cloud-based security solutions and collaboration tools have become essential for businesses, making VPNs a cost-effective and fault-tolerant solution for secure networking. The manufacturing sector, finance and insurance, healthcare organizations, educational institutions, and e-learning platforms are among the industries that stand to benefit significantly from VPN solutions.
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The commercial segment was valued at USD 11.69 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North American market is poised for significant expansion over the forecast period, driven by the escalating demand for cybersecurity solutions in response to the increasing instances of cyberattacks and data breaches in IT businesses. The proliferation of the bring your own device (BYOD) policy and the Internet of Things (IoT) devices are further fueling market growth. To mitigate these risks, regulatory bodies are enforcing stringent data security and consumer privacy regulations. In addition, the digital transformation wave is gaining momentum across key industries such as BFSI, healthcare, and retail, leading to increased adoption of secure and reliable Virtual Private Network (VPN) technologies, like MPLS and Network Access Control (NAC) offered by providers such as Atlas VPN, to ensure secure and encrypted data transfer.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising popularity of bring-your-own-device (BYOD) policy is the key driver of the market. VPN services have become increasingly essential in today's business landscape, particularly with the rise of remote work and virtual collaboration. Companies are adopting VPN technologies to ensure online privacy and security for their employees and user data. With the growing number of cyber-attacks, data breaches, and malware threats, the demand for VPN solutions has increased. VPNs offer encryption, multihop connectivity, and server infrastructure that protect user data from cybercriminals and system anomalies. The regulatory environment is also pushing for VPN adoption, with stringent security regulations and consumer privacy legislation. Industries such as healthcare organizations, educational institutions, e-learning, finance and insurance, manufacturing, and the finance sector are heavily investing in cloud-based security solutions, including VPNs.
Moreover, these technologies enable secure access to sensitive information, ensuring compliance with regulatory requirements. Mobile VPNs have gained popularity due to the increasing use of personal devices in the workplace. Remote workers, in particular, benefit from VPNs as they can securely access corporate resources from anywhere. Collaboration tools and online security are integral to productivity, and VPNs play a crucial role in enhancing both. In conclusion, VPNs are no longer a luxury but a necessity in today's business world, providing organizations with advanced security features, encryption, and user interfaces to mitigate cyberattacks and safeguard user data.
The growing popularity of cloud-based services is the upcoming trend in the market. VPN services have become increasingly essential in today's digital world, particularly for organizations that prioritize online privacy and security. With the rise of remote work and virtual collaboration, the need for secure and reliable VPN solutions has grown. Companies of all sizes, from small and medium enterprises to large corporations, are adopting VPN technologies to protect user data from cyberattacks and ensure compliance with security regulations. In the regulatory environment, VPNs provide an additional layer of security for cloud-based data, which is increasingly common in industries such as finance and insurance, healthcare organizations, educational institutions, and the manufacturing sector.
Further, VPNs offer features such as encryption, multihop, and server infrastructure to mitigate threats like malware, system anomalies, and cybercrime. User interfaces have also improved, making VPNs more accessible to remote workers and easier to integrate with collaboration tools. The demand for VPN services continues to grow, fueled by consumer privacy legislation and the increasing number of data breaches. Mobile VPNs have further expanded the reach of these solutions, enabling secure access to corporate networks from anywhere, at any time.
Threat from open-source VPN solution providers is a key challenge affecting the market growth. The market experiences significant growth due to the increasing demand for online privacy and security. With the rise of remote work and virtual collaboration, companies are increasingly relying on VPN services to ensure productivity and data security. However, the market faces challenges from open-source VPN providers, such as Libreswan, OpenVPN, and OpenConnect, which offer free solutions for enterprises. These companies provide a range of VPN tools and applications for desktop platforms like Linux, Mac, and Windows, as well as mobile applications for Android and iOS. Small and medium-sized enterprises (SMEs) are the primary consumers of open-source VPN solutions due to their cost-effectiveness.
However, the regulatory environment continues to evolve, with increasing cyber-attacks, data privacy concerns, and security regulations driving the need for VPN technologies, features such as encryption, multihop, and server infrastructure, and user-friendly interfaces. In addition, the growing use of collaboration tools, cloud-based security solutions, and the increasing number of remote workers, educational institutions, e-learning, healthcare organizations, manufacturing sector, finance and insurance industries, malware, system anomalies, and cybercrime further boosts the demand for VPN services.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Absolute Software Corp. - The company offers sophisticated VPN network services, meticulously engineered to safeguard your digital experience.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
VPN services have gained significant traction in today's digital world, with the increasing need for online privacy and security. Companies, remote workers, educational institutions, healthcare organizations, and various sectors including finance and insurance, manufacturing, and e-learning, are adopting VPNs to ensure productivity, secure virtual collaboration, and comply with security regulations. The regulatory environment is increasingly stringent, with cyber-attacks, data breaches, malware, system anomalies, and cybercrime posing significant threats to user data. VPN technologies, featuring encryption, multihop, server infrastructure, and user interfaces, offer protection against these threats. Cloud-based security solutions have further fueled the demand for VPN services. The use of mobile VPNs has expanded the market's reach, enabling secure access to corporate networks from anywhere.
VPN providers continue to innovate, offering advanced features and technologies to meet the evolving needs of consumers and businesses alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.28% |
Market Growth 2024-2028 |
USD 47.83 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.3 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Absolute Software Corp., AirVPN, Alphabet Inc., Array Networks Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Cloud Software Group Inc., Gen Digital Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Kape Technologies Plc, McAfee LLC, Microsoft Corp., NCP engineering GmbH, Nord Security, Oracle Corp., Proton AG, Sectra AB, and Ziff Davis Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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