Virtual Private Network (VPN) Market Analysis

Virtual Private Network (VPN) Market Analysis

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.

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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. 
 

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.
 

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.
 

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.
 

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.