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), COVID19 Impact Analysis, 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 projected to grow at around 15% CAGR from 2021 to 2027. Proliferation of internet services across the globe is likely to fuel the industry growth.
 

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According to the International Telecommunication Union (ITU), in 2019, individuals using the internet crossed the 4 billion mark. 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.
 

The recent COVID-19 outbreak resulted in quarantine restrictions that increased the number of employees working from home. The growing demand to protect enterprise resources and endpoint devices accessing the enterprise network from external threats during the pandemic is supporting the demand for VPN solutions.
 

Hardware segment is expected to dominate the Canadian market

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In Canada, the hardware segment held over 40% of the virtual private network market share in 2020 due to the high market demand for VPN routers across enterprises. 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. The routers encrypt any type of data traffic irrespective of the devices used.
 

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

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The UK cloud VPN market is anticipated to garner a revenue of more than USD 1 billion by 2027 and is poised to observe a 20% CAGR through 2027. Growing adoption of cloud computing platforms is forecast to foster the countries market revenue. The cloud VPN is rising on account of the increasing usage 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.
 

In China, site-to-site is accepted by major enterprises owing to its cost-effectiveness

The site-to-site connectivity segment in China is set to generate significant revenue by 2027 driven by the cost-effectiveness offered by site-to-site connectivity. 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 site-to-site connectivity include an increase in the adoption of virtual networks and growing investments in networking solutions by companies.
 

Rising digitalization across the healthcare industry is supporting the German VPN market growth

In Germany, the healthcare segment is estimated to witness around 20% CAGR till 2027 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 augmenting the usage 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 is predicted to dominate the virtual private network market

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North America virtual private network market held a market share of over 25% in 2020 in the global market impelled by increasing cyberattacks in the region. The region witnessed a rapid surge in the number of cyberattacks. The growing frequency of cybersecurity issues across businesses from various industry verticals is supporting the market growth. 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

Major companies operating in the VPN market 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.
 

Some of the major virtual private network market players 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.
 

This market research report on virtual private network (VPN) 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