VPN market size worth $120 Bn by 2027
Published Date: May 24, 2021 Authors: Ankita Bhutani, Preeti Wadhwani
Virtual Private Network Market size is expected to surpass USD 120 billion by 2027, according to a new research report by Global Market Insights, Inc.
The need for secure access to business applications and other resources over internet connectivity is supporting the VPN market growth. Growing concerns related to cyber & malicious attacks along with data breaches are spurring the demand for virtual private network solutions & services across the market. Enterprises operating across diverse industry verticals are leveraging VPN solutions & services to enhance security infrastructures.
Growing demand for robust network security to propel the software segment growth
The VPN market growth from softwares is projected to grow at above 20% CAGR through 2027 owing to industry-wide demand for VPN software and strategic development initiatives. For instance, in March 2021, OpenVPN Inc. added a new functional capability into its Cloud VPN offering, which includes sophisticated routing logic and component. This addition allows enterprises to manage virtual private network security and routing in public & private environments.
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The need for distributed network connectivity is anticipated to drive demand for MPLS VPN in the market
The MPLS segment is estimated to capture over 35% of the VPN market share by 2027. The enterprise-wide need to support connectivity between distributed corporate sites and data center facilities is fueling the segment growth. Moreover, advanced functional capabilities along with the ability to ensure the quality of services for applications, such as video conferences, are enabling the market expansion.
Browse key industry insights spread across 300 pages with 412 market data tables and 39 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), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Enterprise-wide demand for cost-effective and extended network reach is enhancing the significance of remote access
The remote access segment is estimated to register growth rate of around 20% through 2027. A virtual private network allows enterprises to provide the remote workforce with secure remote access to corporate resources. The enterprise-wide work from home and BYOD trends are enabling the demand for VPN solutions in the market. Several enterprises are also developing integrated solutions to facilitate enhanced remote connectivity. For instance, in January 2020, OpenVPN Inc. unveiled its Access Server over Oracle Cloud Marketplace. The Access Server features a built-in P2S VPN solution and extends the remote connectivity capability with additional security & scalability.
Smartphone segment is growing significantly due to the increasing mobile subscribers
In the smartphones segment, the VPN market growth is poised to see significant growth from 2021 to 2027 impelled by expansive smartphone adoption and internet usage. According to the statistics available on the Telecom Regulatory Authority of India, as of June 2020, there were approximately 725.38 million wireless internet subscribers and used mobile devices. Virtual private networks provide smartphone users with private and secure connectivity. With the proliferation of smartphones, the demand for VPN solutions and services is forecast to increase significantly.
Expansive internet users and strategic growth activities across Asia Pacific
Asia Pacific VPN market is slated to account for more than USD 35 billion revenue by 2027 driven by extensive internet penetration and use of smartphone devices. Companies are also collaborating with regional enterprises to expand their business reach. For instance, in January 2020, ExpressVPN partnered with Dynabook to provide internet security solutions to its global customers. Under this partnership, ExpressVPN installed its virtual private network solution across Dynabook’s laptop offerings including Satellite Pro L50. This helped the company to enhance its market position and reach potential customers.
Focus on organic growth strategies by key players to augment market share
The industry players are focusing on new product development and innovation strategies. For instance, in March 2021, Untangle Inc. unveiled version 3.0 of its SD-WAN router. The latest iteration of this router also features WireGuard VPN integration to enable encrypted VPN connection. This launch helped the company to serve enterprises with virtual private network solutions to manage remote and interoffice connectivity, contributing to the market revenue.
Some of the key VPN 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.
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