Global VPN Market worth over $70bn by 2026
Published Date: April 20, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Virtual Private Network (VPN) Market size is set to surpass USD 70 billion by 2026, according to a new research report by Global Market Insights, Inc.
A VPN provides online privacy and anonymity by establishing a private network from public internet connection. VPNs mask the IP address of users to ensure that all online activities and data transmission are virtually untraceable. In addition, these services establish secure and encrypted connections to provide greater privacy than even a secured Wi-Fi hotspot. This helps organizations to ensure enterprise data security and compete effectively in the dynamic market.
Rise in cybercrime and data breaches to surge the uptake of private network solutions
The VPN market has witnessed a growing demand for protection against malicious web attacks and cyberthreats. Businesses are increasingly becoming vulnerable to hacking, loss of private information, and even financial frauds.
VPNs are designed to encrypt information before it goes through a network, mitigating potential attacks and making online financial transactions safer. This also leads to increased market competitiveness by preventing potential financial losses caused by cyberattacks. In addition, stringent government regulations on securing enterprise networks are expected to create new market opportunities for virtual private networks.
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Need for online privacy the primary reason driving software segment market growth
The software segment is poised to grow at nearly 16% CAGR during the forecast timeline due to increasing stress on maintaining online anonymity and privacy. Private network software allows computers to exchange keys with a remote server through which all the data is encrypted and kept secure from unauthorized access. Private network software also helps users to browse the internet without being tracked, monitored, and identified.
Browse key industry insights spread across 294 pages with 385 market data tables and 43 figures & charts from the report, “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” in detail along with the table of contents:
Rising trend of virtualization technologies augmenting the growth of cloud VPN
The cloud virtual private network segment is predicted to register a steady growth rate of 20% till 2026. The increasing adoption of cloud services as enterprises focus on lowering their initial expenditure has accentuated the market growth of the segment. Cloud VPN vendors offer the pay as you go system to their clients for the services procured. Additionally, cloud-based private network solutions also provide an easy access to the latest updates and create a highly secure environment for customers or business purposes.
Spike in market demand for site-to-site tools for reducing WAN-related costs
In 2019, the site-to-site connectivity segment held a share of over 45% in the global market. Key drivers for site-to-site market growth include an increase in adoption of private networks and growing investments in networking solutions by companies.
Large enterprises are adopting site-to-site connectivity as an efficient solution for the ever-increasing WAN costs, connecting remote users & integrating partners, suppliers, and customers into their network. A surge in the adoption of site-to-site private networks by SMEs due to their affordability is expected to further spur market growth.
Growing adoption of virtual private networks in Latin America to counter increasing cyberthreats and malware attacks
The Latin America VPN market is estimated to attain a CAGR of over 15% through 2026 led by increasing number of internet users and growing number of cyberattacks in the region have underpinned the importance of secure private networks. Leading enterprises in the region including Cisco and Mexican Telecom have made hefty investments in virtual private network technologies to secure their digitalized solutions & services. positively impacting the regional market growth.
Increasing adoption of mobile VPN across the consumer segment will aid the market expansion
The consumer application sector will observe around 18% gains from 2020 to 2026, with mobile private networks accounting for over 55% of segmental market share in 2019. The market growth is characterized by increase in public Wi-Fi usage, particularly since the decrease of cellular plan data usage and improved connection speeds. Mobile private network solutions help to secure connection against hackers and safeguard the privacy of the user accessing the internet through a public network.
Focus on network capacity expansion by key players to augment market share
The virtual private network (VPN) market landscape is characterized by new server additions and capacity expansion for serving clients across diverse geographical regions. For instance, in April 2020, ProtonVPN, a Swiss cybersecurity vendor, added eight new private network servers in Mexico. The expansion into Mexico was a part of the company’s strategy to add more servers to help Mexican remote workers deal with COVID-19 lockdowns. The growing popularity of VPN as a service, which is being offered by leading industry players, such as AWS, Orange, and Oracle, has also intensified the competitive landscape.
Some of the key players operating in the industry include 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., Golden Frog GmbH, Google LLC., IBM Corporation, Juniper Networks, Microsoft Corporation, Mudhook Marketing, Inc., NCP Engineering GmbH, NetMotion Software, Opera Software, Safer Social Ltd., Smith Micro Software, Inc., TunnelBear Inc., Watchguard Technologies, Inc. and Windscribe Limited.
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