Virtual Private Network (VPN) Market Size By Component (Hardware, Software, Services), By Type (IP, MPLS (Multiprotocol Label Switching), Cloud VPN, Mobile VPN), By Connectivity (Site-to-Site, Remote Access, Extranet), By Application (Consumer [Smartphones, Tablets, Laptops/PCs], Commercial [BFSI, Healthcare, IT, Government, Manufacturing], Service Providers), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Virtual Private Network (VPN) Market size exceeded USD 30 billion in 2020 and is poised to grow at a CAGR of over 15% from 2021 to 2027. The growing demand to protect enterprise resources and endpoint devices accessing the enterprise network from external threats during the COVID-19 pandemic is supporting the market expansion.
 

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Moreover, the VPN market growth is attributed to the proliferation of internet services across the globe. Most internet users use mobile devices to access the Internet. Mobile devices are not immune from this trend and both consumers & organizations are looking for products to secure transactions conducted on the Internet from outside the organization. These vulnerabilities are enabling companies to deploy VPN solutions to protect the enterprise network and devices from external threats.
 

Hardware component segment dominates the Canadian market share

In Canada, hardware segment held a VPN market share of over 40% in 2020, due to the high demand for VPN routers across enterprises. The hardware component segment comprises VPN routers that deliver highly secure, high-performance & reliable connectivity to the Internet, other offices, and employees working remotely. The router protects the company network from online intruders with firewall protection and network address translation. They are compatible with a wide variety of devices including modern houses, smart TVs, gaming consoles, activity trackers, and e-readers.
 

Growing demand for virtual appliances is driving the adoption of cloud solutions in UK

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In the UK market, cloud VPN market is projected to garner a revenue of more than USD 1 billion by 2027, registering 20% growth rate. This can be credited to the growing adoption of cloud computing platforms across the country.
 

The cloud virtual network segment is growing on account of increasing adoption of virtual appliances. Virtual applications require high engine speeds compared to conventional technologies. This expensive component increases the overall cost of the products and services. Cloud technology allows a company to provide cost-effective solutions, which can easily enhance the performance speed of the core infrastructure instead of investing heavily in upgrading computing devices.
 

Site-to-site is adopted by major enterprises in Chine due to its cost-effectiveness

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The site-to-site segment in China virtual private network (VPN) market is anticipated to generate significant revenue by 2027, attributed to the cost-effectiveness offered by site-to-site connectivity. Site-to-Site VPN is used to connect networks placed at different locations using the Internet.
 

The solutions incorporated in the site-to-site virtual network helps in connecting various branches or remote offices to the network headquarters wherein each site is equipped with a VPN gateway including routers, security appliances, and firewalls. Key drivers of the site-to-site connectivity segment include an increase in the adoption of virtual networks and growing investments in networking solutions by companies.
 

Rising digitalization across the healthcare industry

In Germany VPN market, the healthcare sector is estimated to expand at 20% CAGR during the forecast period, led by the growing adoption of cloud technology and digital recordkeeping. VPN is used in the healthcare industry to link multiple sites and to eliminate redundancies in record keeping. The need for advanced security measures and operational efficiencies is driving the adoption of virtual network technology in the healthcare segment. Healthcare establishments are employing virtual WANs with VPN-enabled firewall hardware devices to boost the security levels of different locations.
 

North America will dominate the market share

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North America VPN market held around 25% revenue share in 2020. The growing frequency of cybersecurity issues across businesses from various industry verticals is fueling the market demand.
 

In March 2020, in wake of the current COVID-19 outbreak, the U.S. Cybersecurity & Infrastructure Security Agency has issued guidelines for enterprises on the usage of VPN solutions. Due to an increase in employees working remotely, there is a possibility of cyberattacks. To counter this, government agencies are taking supportive initiatives.
 

Continuous upgrade of the existing solutions is a major growth strategy adopted by leading market players

Some of the key players operating in the virtual private network (VPN) market are AirVPN, AnchorFree GmbH, Anthasoft SA DE CV, Array Networks, Inc., Avast Software s.r.o., BlackBerry Limited, Buffered Ltd., Check Point Software Technologies Ltd., Cisco Systems, Inc., Citrix Systems, Inc., Columbitech, Cryptzone, CyberGhost S.A., ExpressVPN, Golden Frog GmbH, Google LLC., IBM Corporation, Juniper Networks, Microsoft Corporation, Mudhook Marketing, Inc., NCP Engineering GmbH, NetMotion Software, NordVPN,  OPENVPN Inc., Opera Software, Safer Social Ltd., Smith Micro Software, Inc., TunnelBear Inc.,  WatchGuard Technologies, Inc., and Windscribe Limited.
 

Companies are focusing on the continuous upgrading of their VPN solutions to improve product capabilities. For instance, in November 2020, Microsoft Azure integrated new features in its VPN Gateway. These features include the high availability for RADIUS servers in point-to-site VPNs and support for customer virtual network locations without any need for static IP. This upgrade helped the company to offer an improved virtual network solution for its enterprise customers.
 

The VPN market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Component

• Hardware
• Software
• Service

Market, By Type

• IP VPN
• MPLS
• Cloud VPN
• Mobile VPN

Market, By Connectivity

• Site-to-Site
• Remote Access
• Extranet

Market, By Application

• Consumer
  • Smartphones
  • Tablets
  • Laptops and PCs
• Commercial
  • BFSI
  • IT
  • Healthcare
  • Manufacturing
  • Government
  • Others
• Service Provider

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • UAE
  • Saudi Arabia