Virtual Private Network Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Type (Remote Access VPN, Site-to-Site VPN, Others), By Deployment (On-premise, Cloud), By End-User (Commercial Users, Individual Users, Government, Telecommunication, Manufacturing, Healthcare, BFSI, Utilities, Others), By Application (Consumer, Commercial, Service Provider) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global virtual private network market size was valued at USD 33.12 billion in 2021, envisioned to reach USD 101.31 billion buy 2030, growing at a CAGR of 15% during the forecast period. 

A Virtual Private Network or VPN permits a user to connect to a secret network on the internet securely and privately. A virtual private network is a technological innovation that enhances the user's online safety and confidentiality. It establishes a VPN tunnel through which all Internet traffic and communications are routed. Traveling and using public Wi-Fi, communicating sensitive information, and even browsing Netflix's entertainment selections may all be performed more securely with a VPN. VPN software safeguards the user's data by concealing their device's IP address, encrypting the data, and routing it across secure networks to servers located in distant states or even foreign countries.

The primary drivers driving the advancement of the virtual private network market are:

• An increase in data security concerns.
• An increase in advanced and complex cyber threats.
• An increase in enterprises' use of mobile and wireless devices.

In addition, the growing demand for remote access drives the expansion of this market. However, a lack of virtualization expertise is anticipated to limit the growth of the VPN industry. In contrast, the growing penetration of private cloud software is expected to create attractive growth prospects for the VPN industry in the coming years.

Market Dynamics

Global Virtual Private Network Market Drivers

The Increasing Use of Mobile and Wireless Devices Along with the Growth in Advanced and Complex Cyber-Threats

The declining cost of consumer devices and data plans has prompted businesses to use a more significant number of mobile devices. While employees use mobile devices for work-related functions, connections must remain safe and stable. Through mobile applications on their cellphones, laptops, tablets, and netbooks, most employees can connect to their corporate networks and access any business application from anywhere. As many business transactions are completed via mobile devices, privacy and security become a big problem. As more mobile devices enter the office, it is anticipated that mobile VPN technology and other mobile security solutions will become essential components.

In addition, the VPN industry is growing as businesses implement BYOD (bring your device) policies to improve performance while decreasing expenses. The private network tool validates that the remote workforce is securely linked to company networks and protects BYOD devices from dangerous cyberattacks. The internet has evolved into a universal business platform. As a result, the internet has become a target for theft and fraud. Mobile devices are not susceptible to this trend, and consumers and businesses seek technologies to safeguard online transactions outside the enterprise.

Cybercriminals have proved they can exploit consumers connected via hotspots or unsecured connections, while corporations have little resistance against such attacks. Enterprises must be equipped for these zero-day assaults since hackers continuously search for new weaknesses to exploit. Using encrypted connections and implementing the organization's policies on mobile endpoints prevent these attacks.

Global Virtual Private Network Market Restraints

Lack of Virtualization Expertise May Impede Growth

Virtualization is developing and expanding throughout data centers; thus, there is a considerable need for the skills necessary for its deployment and operation. In addition, virtualization technology has revolutionized how data centers are managed and has become an essential technology for several enterprises. However, selecting how to construct and deploy one's assets and operate them continuously is challenging. Finding employees with the requisite skills or knowledge may not be easy. How virtualization fits into the entire service management movement is a further question. During the forecast period, the virtual private network market share expansion may be hampered by such reasons.

Global Virtual Private Network Market Opportunities

The Increasing Demand for Remote Accessibility to Boost Market Opportunities

Since the advent of the pandemic, businesses have shifted their digitalization priorities and concentration in response to alterations in-network requirements. VPN connections are required for employees working virtually and are frequently the first step taken by the IT department to enable a virtual workforce. The capacity to retrieve data at all times is crucial for remote personnel. In addition, the ability to access the internet via improved wireless technology has enabled downloading applications onto mobile devices. In addition, employees utilize a more significant number of applications than was initially envisaged. As more apps become accessible for mobile or wireless equipment, businesses adopt VPN applications to promote efficiency and productivity, expanding the market for VPNs.

Regional Analysis

The region-wise segmentation of the global virtual private network market includes North America, Europe, Asia Pacific, and LAMEA.

North America and the Asia Pacific Will Dominate the Regional Market

North America will command the market with the largest share while growing at a CAGR of 13.12%. One of the main markets for virtual private networks in the United States. In addition, the region is anticipated to lead the virtual private network market due to its preeminence with sustainable and well-established economies, like the United States, which allow it to invest in research and development activities in the virtual private network field, thereby contributing to the development and innovation of new technologies. North American businesses have utilized virtual private networks to maintain market competitiveness. In North America, cloud deployment of virtual private networks has experienced significant growth and is anticipated to continue dominating in the foreseeable future.

Moreover, enterprises in this area are shifting from on-premise to cloud-enabled virtual private networks due to their superior scalability and availability, consequently propelling market expansion. In addition, the availability of this software on mobile devices, like smartphones and tablets, is anticipated to contribute to the development of the virtual private network market in North America. The pace of adoption of modern technologies such as artificial intelligence, cloud computing, and big data analytics is highest in North America. The adoption of virtual private network software that integrates artificial intelligence by service providers is driving the expansion of this market.

Asia Pacific will hold USD 37 billion, growing at a CAGR of 17.7%. It is anticipated that the deployment of cloud-enabled virtual private network software will increase in the Asia-Pacific region as a result of the rising popularity of high-speed internet connections, such as 4G connections, the ever-increasing penetration of smartphones, the growing popularity of e-commerce companies, the changing customer purchase patterns, and the intense and growing competition among retail vendors in the region. These systems have led to substantial information exchange on the internet and mobile networks, allowing businesses to collect vast amounts of information regarding customer interactions. In addition, many retail analytics vendors with a significant presence in North America are expanding their operations in Asia-Pacific, creating lucrative market opportunities.

Segmental Analysis

The global virtual private network market is classified based on component, type, deployment, end-user, and region.

Based on components, the segments include solution and service. 

The solution segment is expected to advance at a CAGR of 13.1% and hold the largest market share. The solution section covers several VPN systems and software. These solutions securely connect an end-user to a remote private network and its assets. The VPN solution is the most cost-effective and secure way to link distant workers and offices to a company's network. Companies in the retail industry are currently shifting their attention from exploratory and descriptive analytics to automated decision-making backed by modern analytics and machine learning.

The service segment will hold the second-largest share. The majority of virtual private network services are professional and controlled. Professional services include implementation, training and support, and consulting services. Implementation services guarantee full virtual private network planning, installation, and configuration. The rise of the service segment during the forecast period is attributable to the fact that services lower the time and costs involved with optimizing systems during the first phase of implementation.

Based on type, the segments include remote access VPN, site-to-site VPN, and others.

Remote Access VPN Type Segment to Hold Prime Share Due To Increasing Employee Numbers Worldwide

The remote access VPN segment is projected to grow at a CAGR of 16.12% and hold the largest market share. In a remote access VPN, users are linked to a private network, allowing remote access to the services and resources of the private network. This VPN type permits many users and is ideally suited for business and personal users. Increasing employee numbers worldwide and the flexibility afforded by remote access VPN to operate from anywhere fuel the expansion of this market segment.

The other segment will hold the second-largest share. This sector consists of extranet VPN solutions. These VPNs connect customers, partners, providers, or communities of interest to an enterprise's intranet over a shared infrastructure. Is the implementation of firewalls to intranet VPNs needed to shield the internal network? This segment's growth is driven by the requirement to carefully and securely share classified data on the corporate network with designated outsiders, such as suppliers and customers.

Based on deployment, the segments include cloud and on-premise.

The cloud segment is expected to advance at a CAGR of 13.8% and hold the largest market share. Cloud-based deployment of the virtual private network is a software licensing and delivery strategy in which an application is hosted by a vendor or service provider, and access to the application and its functionality is remotely distributed as a service. The critical element influencing the adoption of cloud-based virtual private network technologies by SMEs and some large businesses has been a paradigm shift from on-premise to cloud-based deployment models.

The on-premise segment will hold the second-largest share. The on-premise deployment model for virtual private networks allows software installation and application execution on systems located on the premises of an organization, as opposed to using server space or the cloud. The on-premise deployment is widely considered advantageous for large enterprises, despite requiring substantial investment to implement, as well as the purchase of interconnected servers and system management software.

Based on end-user, the segment includes commercial users and individual users. 

The commercial users segment is projected to grow at a CAGR of 14.5% and hold the largest market share. This group comprises business VPN users from various industries, including BFSI, manufacturing, healthcare, telecom & IT. Businesses in these industries utilize a VPN to provide remote employees access to internal applications and data or establish a single shared network between many office sites. The market for commercial users is driven by the necessity of facilitating distant workers' access to the office network. Using a VPN, remote workers can connect to the office network from any location with an Internet connection.

The individual users will hold the second-largest share. VPN enables users to establish a secure internet connection to a remote network. Individuals who require access to region-restricted websites or who wish to conceal their browsing activity on public Wi-Fi are increasingly adopting this technology. The market for the virtual private network is mainly driven because internet users are becoming more educated and concerned about data privacy.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• In 2022, Avast Software SRO upgraded its customers from Avast Business Antivirus Pro Plus to Avast Ultimate Business Security Product. 
• In 2022, Avast Software SRO announced the USD Protection available in the Avast Business Hub, Avast Business Premium, and Avast Ultimate Business Security products.