Category

Virtual Private Network (VPN) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Applications (Consumer, Commercial, Others), By Component (Solutions, Service, Hardware), By Types (Site-to-site VPN, Remote Access VPN, Extranet VPN, Access VPN, Others), By Organization Size (Small & Medium-Sized Enterprises, Large Enterprises), By Deployment (Cloud, On-Premise), And Geography - Forecasts From 2021 To 2026

Published: Apr 2021 | Report Code:  KSI061612259 | Pages:  119

The virtual private network market is projected to grow at a CAGR of 8.56% to reach a market size of US$67.060 billion in 2026 from US$37.740 billion in 2019.

The virtual private network is defined as the way to offer secure communication between the group members through the application of the public telecommunication infrastructure. It maintains privacy through security procedures and tunnelling protocols. VPN is extending a private network across the public network thus giving access to the users to send and receive the data across public or shared network assuming the device is directly connected to the private network. Consumers are increasingly adopting the virtual private network solutions across the industry verticals globally especially during the period of the pandemic, this is the major factor that is driving the market growth of the virtual private network. Further increase in the demand for VPNs is due to the increase in cybercrimes, VPN masks the users’ internet protocol (IP) to provide a secure and private network for the individuals to access.

virtual private network market

However, the high price of the mobile virtual private network is expected to hamper the growth of the virtual private network market. VPNs are carrying data to the different servers before transferring the user to the desired webpage but are witnessing some performance and speed issues that are restraining the market demand of the Virtual Private Network during the forecasted period.

Market players of the virtual private network that are included in the report are Microsoft, ExpressVPN, Cisco, CyberGhost VPN, KeepSolid Inc, Pango Inc, Windscribe Limited, TunnelBear LLC, NordVPN, Golden Frog, GmbH, Radio IP Software, and ZenMate.

Market Drivers

Market drivers of the virtual private network include rise in cybercrimes and data breaches, increase adoption of VPN across multiple businesses vertical, and growing adoption of Bring Your Own Device (BYOD) and enterprise mobility.  Many online servers are acquiring VPN service providers to provide their own VPN service to others. VPN solutions and services are establishing secure and encrypted connections to prevent cybercrimes and provide greater privacy. Due to the emergence of trends such as Bring Your Own Devices (BYOD) the market of virtual private networks is growing to help the organization encrypt the organisation's data on the employee’s device. For instance, according to a survey by Cisco, 69% of the IT decision-makers favoured Bring Your Own Device (BYOD) as the optimistic addition to the workplace policy which saves worker’s time. In the IT sector of the USA, it was estimated that BYOD adopted witnessed a surge of 44.42% over the past three years (2016-2018). Virtual Private Network scans the device for malware to shield the sensitive data of the company from any unauthorized access. Many of the end-use industries are incorporating VPNs into their business process to streamline their operations and to become more efficient and result-oriented. The surge in adoption is motivating new entrants into the market and is pursuing various strategic initiatives to gain a competitive advantage. For instance, Brown Bear Corporation uses VPN by allowing the Supervisory staff to connect via VPN to the office or the brown bear store to increase the management efficiency and reduce the drive time.

Segment Analysis

The market of the virtual private network by application is segmented as consumers, commercial, and others. Where consumers are further classified as Smartphones, Tablets and Laptops & PCs. The commercial is further classified as BFSI, Healthcare, IT & Telecom, Government, Manufacturing, and others. The commercial segment holds a significant revenue share mainly on account of rising the concerns regarding establishment of the secure network. Further, the fault-tolerant, redundant resource available and cost-effectiveness features of the virtual private network are expected to drive the commercial adoption of the virtual private network solutions.

Virtual Private Network market by component is segmented as Solutions, Service, and Hardware. Hardware is contributed to a considerable market share mainly on account of high demand for the virtual private network (VPN) routers among the service providers and enterprises.

While types the market of the virtual private network is segmented as Site-to-site VPN, Remote Access VPN, Extranet VPN, Access VPN, and Others. The remote access segment accounts for a significant revenue share due to the surge in the number of franchised dealers in the market.

The market of the virtual private network by the organization size is segmented as Small & Medium-Sized Enterprises and Large Enterprises,

Virtual Private Network market by deployment is classified as Cloud and On-Premise. The cloud segment accounts for the considerable revenue share which can be due to the rise in the preference for cloud-based deployment to reduce cost and maintenance. For instance, IBM announced the launch of the on-premise VPN gateway in December 2018 to a cloud VPN created within VPC. The virtual private cloud is highly adopted by the enterprise to aid in establishing the private cloud computing environment on shared public cloud infrastructure.

Regional Analysis

The market of the virtual private network by region is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America accounts for the significant revenue share due to the rise in the demand from the industry verticals such as telecommunications and BFSI.  Further, the high spending on network security and the large presence of the key market players is driving the market growth in this region. While Asia Pacific is projected to have the highest growth over the forecasted period due to the increase in the adoption of VPN solutions and services in the countries such as India and China. China is witnessed to dominate the region due to the rise in the number of organized players with mobile VPN services. Also, various policies and regulations by the government regarding the popular website and offering VPN as the solution is creating opportunities for the market players in China, Indonesia and other countries.

COVID-19 Impact

The outbreak of covid-19 has the people confined to homes due to the closed down of offices, colleges, and schools and halted transportation thus virtually bringing social and economic life to a grinding halt. Thus, to adjust and cope with the abrupt cessation of all the operational activities the organization and education shifted to a remote working model.  Millions of the employees and students were shifted to work and study from home due to the lockdown and stay-at-home orders. Early 2021 had lifted the lockdown and the industry was emerging from the lockdown and was getting to their pre-covid-19 cases. However, due to the second wave of coronavirus spread the companies and colleges & schools are extending their remote study and work options.  88% of IT companies globally shifted their employees over the last eight months to work-from-home (WFH) amidst the pandemic. Pandemic is creating ‘Work from Home’ culture normal and is expected to last beyond the pandemic crisis globally.  VPN is the key technology playing a crucial role to enable remote operations and it is witnessing a massive increase in adoption during the first quarter of 2020. Thus, the surging number of remote and mobile workers is boosting the demand for VPN.

Virtual Private Network Market Scope:

Report Metric Details
 Market size value in 2019  US$37.740 billion
 Market size value in 2026  US$67.060 billion
 Growth Rate  CAGR of 8.56% from 2019 to 2026
 Base year  2019
 Forecast period  2021–2026
 Forecast Unit (Value)  USD Billion
 Segments covered  Applications, Component, Types, Organization Size, Deployment, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered  Microsoft, ExpressVPN, Cisco, CyberGhost VPN, KeepSolid Inc, Pango Inc,   Windscribe   Limited, TunnelBear LLC., NordVPN, Golden Frog, GmbH, Radio IP   Software, ZenMate
 Customization scope  Free report customization with purchase.

 

Segmentation:

  • By Applications
    • Consumer
      • Smartphones
      • Tablets
      • Laptops & PCs
    • Commercial
      • BFSI
      • Healthcare
      • IT & Telecom
      • Government
      • Manufacturing
      • Others
    • Others
  • By Component
    • Solutions
    • Service
    • Hardware
  • By Types
    • Site-to-site VPN
    • Remote Access VPN
    • Extranet VPN
    • Access VPN
    • Others
  • By Organization Size
    • Small & Medium-Sized Enterprises
    • Large Enterprises
  • By Deployment
    • Cloud
    • On-Premise
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • Spain
      • United Kingdom
      • France
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • South Africa
      • Others
    • Asia Pacific
      • China
      • Japan
      • Australia
      • India
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the virtual private network (VPN) market size by 2026?
A1. The virtual Private Network (VPN) Market is projected to reach a market size of US$67.060 billion in 2026.


Q2. What are the growth prospects for the virtual private network market?
A2. The global virtual private network market is projected to grow at a CAGR of 8.56% over the forecast period.


Q3. What is the size of the global virtual private network (VPN) market?
A3. Virtual Private Network (VPN) market was valued at US$37.740 billion in 2019.


Q4. What factors are anticipated to drive the virtual private network market growth?
A4. Consumers are increasingly adopting the virtual private network solutions across the industry verticals globally especially during the period of the pandemic, this is the major factor that is driving the market growth of the virtual private network.


Q5. Which region holds the largest market share in the virtual private network market?
A5. North America accounts for a significant share in the virtual private network market due to the rise in the demand from the industry verticals such as telecommunications and BFSI. 

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