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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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI2756
  • Published Date: Oct 2022
  • Report Format: PDF

How big is VPN Market?

Virtual Private Network (VPN) Market size valued at USD 45 billion in 2022 and is estimated to grow at around 20% CAGR from 2023 to 2032. Driven by growing instances of cybercrimes and data thefts, due to the increasing proliferation of wireless devices and digital infrastructures across industries.
 

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Growing instances of cyberattacks on businesses have increased the need for encrypted networks that facilitate secure transmission of sensitive data. This need has subsequently transformed a once niche field of virtual private networks into a vast market with significant potential for growth. A VPN only permits authorized systems to decode the information being transmitted through the network. The cost-effective nature of VPN services, coupled with their enhanced security and accessibility, are positively impacting business growth as well. Additionally, the need for online anonymity has also created growth avenues for the VPN market share.
 

Constrained spending amid slow economic growth to hinder the industry expansion

With the global economy expanding a post-pandemic slump, many businesses have drastically cut down their spending. Across a number of global organizations, IT has been severely hit by these spending cuts, which is hindering industry outlook. The spending cuts have notably slowed down sales cycles and disrupted growth across the overall information security market. Information security product and services are particularly affected as organizations are growing more hesitant on acquiring or continuing paid VPN services.
 

High security and performance to foster hardware component segment

The hardware segment held 40% of the VPN market share in 2022. The growth can be credited to the highly secure, efficient, and dependable connectivity services offered by hardware vendors to remote working employees, and offices. VPN routers offer high data protection to multiple devices and ensure high security against WebRTC and DNS leaks. The routers also offer an integrated firewall that works like a kill-switch alongside split tunnel functionalities to restrict user access to certain websites.
 

Growing adoption of virtual appliances in enterprises to bolster cloud VPN segment

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The cloud VPN segment is anticipated to witness 25% growth through 2032, on account of the increasing adoption of virtual appliances across organizations. Virtual appliances need high engine speeds, which increases the overall cost of products and services. However, cloud technology enables enterprises to deliver cost-effective solutions that can easily spur the overall performance of the core infrastructure. It helps enterprises cut their expenditures on upgrading computing devices. 
 

Affordability to augment site-to-site connectivity segment growth

As per the report, the site-to-site connectivity segment captured more than 40% of the virtual private network market share of in 2022. The affordability of site-to-site connectivity is predominantly encouraging its deployment among corporates as well as service providers. Site-to-site connectivity is also hassle-free as it eliminates the need for individual VPNs for every system, which further contributes towards the higher consumer inclination for connectivity. It also helps avoid security concerns by establishing reliable connections between networks, which further propel its adoption.
 

Attractive offerings and 24x7 customer support to outline consumer application segment growth

With regard to the application spectrum, the consumer segment will observe a growth rate of above 25% through 2032, fueled by the appealing offerings delivered by service providers at a personal level. Factors such as 24x7 customer support, trail services, and advanced security encryptions that complement the overall functionalities of the products are also boosting the segment outlook. Leading vendors are also offering affordable VPN services with decent speeds and a user-friendly interface to attract customers and grow revenues.
 

Growing proliferation of smartphone internet users to push smartphones consumer segment

The smartphone segment is expected to register 30% gains from 2023 to 2032, attributed to the increasing number of users that access the internet using smartphones. The growth is predominantly impelled by an increasing need to access the internet from various locations worldwide. According to a 2020 report by the GSM Association, approximately 3.8 billion people were using mobile internet in 2019-2020. With the digital shift triggered by COVID-19 the number is likely to have drastically grown. This increase in the adoption of smartphones is set to contribute towards segment growth.
 

Growing smartphone and internet penetration to strengthen APAC market

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The Asia Pacific VPN market size is predicted to grow at over 25% CAGR through 2032 led by the increasing penetration of internet-enabled devices and smartphones in the region. Furthermore, increasing digital transformation initiatives in the region, along with the rapid adoption of prominent digital and cloud mobility solutions by SMBs, is also slated to drive the regional market share.
 

Partnerships and collaborations to define the competitive landscape

The list of contenders in the VPN industry includes names such as Check Point Software Technologies Ltd., Cisco Systems, Inc., CyberGhost S.A., ExpressVPN, and Google LLC., among others. Many enterprises are focusing of establishing long-standing partnerships to sustain their industry standing.
 

Impact of COVID-19 pandemic on market trends

The COVID-19 pandemic had a positive impact on the global VPN market share. There was an increase in remote working and virtual services due to lockdowns. The usage of digital solutions was greatly magnified during the COVID-19 pandemic. The pandemic forced people to stay at home and promoted the remote working trend, thereby enhancing the uptake of VPN solutions by commercial organizations worldwide.
 

The market research report on virtual private network (VPN) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032, for the following segments:

Market Size, By Component

  • Hardware
  • Software
  • Service

Market Size, By Type

  • IP VPN
  • MPLS
  • Cloud VPN
  • Mobile VPN

Market Size, By Connectivity

  • Site-to-Site
  • Remote Access
  • Extranet

Market Size, 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
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia
       
Authors: Preeti Wadhwani, Smriti Loomba

Frequently Asked Questions (FAQ) :

The market size of virtual private network is surpassed USD 45 billion in 2022 and is expected to record over 20% CAGR during 2023 to 2032.
The APAC virtual private network market is anticipated to register more than 25% of the growth rate through 2032, driven by the surging penetration of internet-based devices and smartphones in the region.
Some of the major contenders operating in the global market are AnchorFree GmbH, AirVPN, Array Networks, Inc., Anthasoft SA DE CV, BlackBerry Limited, Avast Software s.r.o., Check Point Software Technologies Ltd., Buffered Ltd., Citrix Systems, Inc., Cisco Systems, Inc., Cryptzone, Columbitech, and CyberGhost S.A., among others.
The site-to-site connectivity segment held approximately 40% of the market share in 2022 and is estimated to record considerable growth in the coming years.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 30
  • Tables & Figures: 478
  • Countries covered: 21
  • Pages: 320
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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