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.

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 a 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 workers’ time. In the IT sector of the USA, it was estimated that BYOD adoption 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 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.

virtual private network (vpn) market

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 a 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.

The Virtual Private Network market by component is segmented as Solutions, services, and Hardware. Hardware is contributed to a considerable market share mainly on account of the high demand for 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 witnessing dominance in 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 on Virtual Private Network (VPN) Market

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 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. The pandemic is creating a ‘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. 

1.Introduction

1.1.Market Definition

1.2.Market Segmentation

 

2.Research Methodology

2.1.Research Data

2.2.Assumptions

 

3.Executive Summary

3.1.Research Highlights

 

4.Market Dynamics

4.1.Market Drivers

4.2.Market Restraints

4.3.Porters Five Forces Analysis

4.3.1.Bargaining Power of Suppliers

4.3.2.Bargaining Power of Buyers

4.3.3.The threat of New Entrants

4.3.4.Threat of Substitutes

4.3.5.Competitive Rivalry in the Industry

4.4.Industry Value Chain Analysis

 

5.Virtual Private Network (VPN) Market Analysis, By Application

5.1.Introduction

5.2.Consumer

5.2.1.Smartphones

5.2.2.Tablets

5.2.3.Laptops & PCs

5.3.Commercial

5.3.1.BFSI

5.3.2.Healthcare

5.3.3.IT & Telecom

5.3.4.Government

5.3.5.Manufacturing

5.3.6.Others

5.4.Others

 

6.Virtual Private Network (VPN) Market Analysis, By Component

6.1.Introduction

6.2.Solutions

6.3.Service

6.4.Hardware

 

7.Virtual Private Network (VPN) Market Analysis, By Types

7.1.Introduction

7.2.Site-to-site VPN

7.3.Remote Access VPN

7.4.Extranet VPN

7.5.Access VPN

7.6.Others

 

8.Virtual Private Network (VPN) Market Analysis, By Organization Size

8.1.Introduction

8.2.Small & Medium Sized Enterprises

8.3.Large Enterprises

 

9.Virtual Private Network (VPN) Market Analysis, By Deployment

9.1.Introduction

9.2.Cloud

9.3.On-Premise

 

10.Virtual Private Network (VPN) Market Analysis, by Geography

10.1.Introduction

10.2.North America 

10.2.1.North America Virtual Private Network (VPN) Market Analysis, By Application, 2019 to 2026

10.2.2.North America Virtual Private Network (VPN) Market Analysis, By Component, 2019 to 2026

10.2.3.North America Virtual Private Network (VPN) Market Analysis, By Types, 2019 to 2026

10.2.4.North America Virtual Private Network (VPN) Market Analysis, By Organization Size, 2019 to 2026

10.2.5.North America Virtual Private Network (VPN) Market Analysis, By Deployment, 2019 to 2026

10.2.6.By Country

10.2.6.1.United States

10.2.6.2.Canada

10.2.6.3.Mexico

10.3.South America 

10.3.1.South America Virtual Private Network (VPN) Market Analysis, By Application, 2019 to 2026

10.3.2.South America Virtual Private Network (VPN) Market Analysis, By Component, 2019 to 2025

10.3.3.South America Virtual Private Network (VPN) Market Analysis, By Types, 2019 to 2026

10.3.4.South America Virtual Private Network (VPN) Market Analysis, By Organization Size, 2019 to 2026

10.3.5.South America Virtual Private Network (VPN) Market Analysis, By Deployment, 2019 to 2026

10.3.6.By Country

10.3.6.1.Brazil

10.3.6.2.Argentina

10.3.6.3.Others

10.4.Europe 

10.4.1.Europe Virtual Private Network (VPN) Market Analysis, By Application, 2019 to 2026

10.4.2.Europe Virtual Private Network (VPN) Market Analysis, By Component, 2019 to 2025

10.4.3.Europe Virtual Private Network (VPN) Market Analysis, By Types, 2019 to 2026

10.4.4.Europe Virtual Private Network (VPN) Market Analysis, By Organization Size, 2019 to 2026

10.4.5.Europe Virtual Private Network (VPN) Market Analysis, By Deployment, 2019 to 2026

10.4.6.By Country

10.4.6.1.Germany

10.4.6.2.Spain

10.4.6.3.United Kingdom

10.4.6.4.France

10.4.6.5.Others

10.5.The Middle East and Africa 

10.5.1.Middle East and Africa Virtual Private Network (VPN) Market Analysis, By Application, 2019 to 2026

10.5.2.Middle East and Africa Virtual Private Network (VPN) Market Analysis, By Component, 2019 to 2025

10.5.3.Middle East and Africa Virtual Private Network (VPN) Market Analysis, By Types, 2019 to 2026

10.5.4.Middle East and Africa Virtual Private Network (VPN) Market Analysis, By Organization Size, 2019 to 2026

10.5.5.Middle East and Africa Virtual Private Network (VPN) Market Analysis, By Deployment, 2019 to 2026

10.5.6.By Country

10.5.6.1.Saudi Arabia

10.5.6.2.South Africa

10.5.6.3.Others

10.6.Asia Pacific 

10.6.1.Asia Pacific Virtual Private Network (VPN) Market Analysis, By Application, 2019 to 2026

10.6.2.Asia Pacific Virtual Private Network (VPN) Market Analysis, By Component, 2019 to 2025

10.6.3.Asia Pacific Virtual Private Network (VPN) Market Analysis, By Types, 2019 to 2026

10.6.4.Asia Pacific Virtual Private Network (VPN) Market Analysis, By Organization Size, 2019 to 2026

10.6.5.Asia Pacific Virtual Private Network (VPN) Market Analysis, By Deployment, 2019 to 2026

10.6.6.By Country

10.6.6.1.China

10.6.6.2.Japan

10.6.6.3.Australia

10.6.6.4.India

10.6.6.5.Others

 

11.Competitive Environment and Analysis

11.1.Major Players and Strategy Analysis

11.2.Emerging Players and Market Lucrativeness

11.3.Mergers, Acquisitions, Agreements, and Collaborations

11.4.Vendor Competitiveness Matrix

 

12.Company Profiles

12.1.Microsoft

12.2.ExpressVPN

12.3.Cisco

12.4.CyberGhost VPN

12.5.KeepSolid Inc

12.6.Pango Inc

12.7.Windscribe Limited

12.8.TunnelBear LLC.

12.9.NordVPN

12.10.Golden Frog, GmbH

12.11.Radio IP Software

12.12.ZenMate

Microsoft

ExpressVPN

Cisco

CyberGhost VPN

KeepSolid Inc

Pango Inc

Windscribe Limited

TunnelBear LLC.

NordVPN

Golden Frog, GmbH

Radio IP Software

 ZenMate

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