VIRTUAL PRIVATE NETWORK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

Virtual private network market is estimated to be valued at US$ 57.2 Bn in 2024 and is expected to reach US$ 194.7 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 19.1% from 2024 to 2031.

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The demand for VPNs is growing steadily as remote and hybrid work models have become common due to increased digitalization and smartphone usage. With growing concern for online security and privacy, there has been a tangible rise in the adoption of VPNs by both enterprises and individuals. As cyberthreats continue to increase in number and sophistication, the need amongst organizations to ensure secure Investing more in VPN services and solutions will be a priority for companies as they aim to provide their employees with better network access and smooth connectivity. Increased uptake of cloud services and widespread digital transformation across industries has also contributed to the rising reliance on virtual private networks.

Increasing demand for secure connectivity from remote workforce

There has been increase in the number of people working remotely as well as an increase in the adoption of bring-your-own-device policy among companies. This has accelerated the need for secure connectivity solutions that can provide access to internal networks, applications and resources to employees working outside the traditional office setup. With workforce becoming distributed, there is a growing emphasis on providing secure access to virtual work environments and collaboration tools. Many organizations rely on VPN technology to enable their workers to securely access private networks through public internet connections while on the move. VPN software installed on devices like laptops and smartphones allows remote employees to stay productive from any location and access critical data and systems privately and encrypted. This provides businesses continuity and flexibility while also meeting security and compliance needs. The rise of cloud-based SaaS applications and willingness of companies to support flexible work arrangements boosts demand for easy to deploy and manage VPN services among small and medium scale enterprises with distributed operations.

The rise of remote work brought on by the pandemic has highlighted the importance of VPN services for many companies. With more people expected to work remotely at least part-time even post-pandemic, the market continues to expand. Consumer use of VPNs has also increased as people look for safer options to access public Wi-Fi networks and browse privately on their personal devices outside home and office premises. The proliferation of internet-connected devices and "work from anywhere" culture is acting as a driver for further growth of virtual private network market.

For instance, in 2022, IBM  is a multinational technology company known for providing a wide range of computer hardware, software, and consulting services. reported that the average cost of a data breach in the U.S. rose to US$ 9.44 million, compared to US$ 9.05 million in 2021. Globally, the average cost per data breach was US$ 4.35 million in 2022. These figures indicate a notable increase in the occurrence of data breaches and cyber-attacks in the U.S., prompting organizations to invest in more secure and advanced solutions to safeguard their data.

Market Concentration and Competitive Landscape

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With growing reliance on internet-based technologies and outsourcing of IT infrastructure, the need to protect sensitive data and ensure privacy compliance has become imperative for businesses across all industries and sizes. Stricter data privacy laws like the California Consumer Privacy Act (CCPA) and the European Union's General Data Protection Regulation (GDPR) have raised the compliance bar, prompting organizations to overhaul their security strategies and deploy solutions that can demonstrate end-to-end encryption and access controls. Virtual private networks have emerged as an effective tool to enable secure data transfer and meet the privacy and security expectations of both customers and regulators.

For instance, from October 2021 to September 2022, financial and insurance companies experienced malware attacks most frequently, affecting approximately 40% of global organizations. System anomalies ranked second, reported by 20% of organizations, followed by network and application anomalies at 23%, according to Orange Cyberdefense.

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One of the major challenge for the market is rising security and privacy concerns of users. As more users adopt VPNs to browse securely and access georestricted content, threat actors have also increased their efforts to breach into VPN networks. Maintaining user trust and ensuring none of their personal data is compromised during transit is crucial for VPN providers. Another challenge is the growing competition in the market. With the emergence of new players regularly, VPN companies need to continuously invest in developing better features to attract and retain users.

Market Opportunities: Exploring Potential in the Data Center Construction Market

The market also presents several opportunities for growth. More industries mandating work from home and rise of stricter online regulations will motivate increased adoption of VPNs globally. Emergence of newer technologies around edge computing and decentralized protocols may allow VPN providers to expand use cases

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In terms of component, solution segment is estimated to contribute the highest share of 65.0% of the virtual private network market, owing to growing demand for enhanced security and network flexibility across various industry verticals. As organizations continue to embrace digital transformation and hybrid work models, the need for advanced networking and connectivity solutions has ramped up significantly. Solutions including SD-WAN, firewalls, and remote access VPN software have allowed businesses to establish secure, scalable networks that support seamless remote access for employees. These offer a wide range of features such as load balancing, traffic segmentation, enhanced connectivity resiliency as well as superior access control and policy management. This has simplified day-to-day operations for IT teams while improving the overall security posture. As a result, most businesses prefer turnkey solutions over piecemeal services to meet their current and future connectivity requirements in a cost-effective manner. Growing demand for zero-trust architectures and network automation is expected to further fuel the dominance of solutions in the VPN market landscape.

Insights, By Type- Surge in Demand for Secure Remote Connectivity Services

Remote Access segment is estimated to contribute the highest share of 31.4% in 2024 of the virtual private network market, owing to the rapid growth of flexible work models. As the COVID-19 pandemic pushed more employees to work from home, there was a significant surge in demand for reliable and secure remote connectivity services last year. Remote Access VPNs have emerged as an effective way for organizations to extend corporate network access to offsite users via encrypted tunnels. These ensure that home and mobile users can access business-critical applications and resources with the same level of security as if these were inside the corporate perimeter. Advanced features such as multi-factor authentication, app-based access and granular policy controls have simplified remote connectivity while enforcing robust security. The proliferation of cloud applications and SaaS tools has also led to rising usage of client and browser-based VPNs for seamless cross-platform connectivity. The prominence of remote and hybrid work arrangements is likely to sustain this momentum for remote access VPNs even in the post-pandemic world.

Insights, By Deployment Mode- Cloud Dominates the VPN Market by Deployment Mode

Cloud segment is estimated to contribute the highest share of 69.8% for 2024 in the virtual private network market majorly due to compelling benefits such as scalability, agility and reduced capital expenditure. Cloud-deployed VPNs are proving more flexible in accommodating spikes in network traffic and unforeseen usage demands. These optimize resource utilization with pay-as-you-go pricing models and enable organizations to avoid upfront hardware procurement costs. Cloud providers also ensure VPN solutions are always up-to-date with the latest features and security patches through their automated update mechanisms. Managing networking functions through centralized web-based consoles further eases the administrative burden on in-house IT staff. These factors, coupled with the legacy of security, resilience and reliability of cloud infrastructure, have helped solidify its dominance over on-premise deployments for virtual private networks. As hybrid infrastructure models take center stage, the prominence of the cloud deployment mode for VPN looks set to continue its upward trajectory in the future as well.

Regional Insights

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North America has established itself as the dominant region with 51.4% market share in the market. With strong presence of leading VPN providers like ExpressVPN, NordVPN and CyberGhost, the region enjoys early adoption of new VPN technologies by both individual and corporate users. Also, increased awareness about online privacy and security concerns has propelled the demand for VPNs over the last few years. Most of the top VPN service providers are headquartered in the U.S. that provides them an advantage over others in understanding the regional requirements better and launching customized plans accordingly. Further, the high spending power of consumers coupled with high broadband and internet penetration makes North America an attractive and lucrative market.

One of the fastest growing regions for VPNs is Asia Pacific. With countries like China, India, Japan and South Korea driving the internet usage, the demand for circumventing government censorship and unlocking geoblocks has boosted the appeal of VPNs. The availability of low-cost plans from VPN providers targeting price sensitive markets like India and Indonesia is a big attraction. VPN imports and exports are also increasing steadily within Asia Pacific countries as cross-border internet activities grow. While China stands apart due to its Great Firewall, other developing nations present massive potential as their internet and mobile subscribers base multiplies exponentially over the coming years. The fast adoption of advanced technologies and increasing digitalization of industries is likely to make Asia Pacific

Market Report Scope

Key Developments

• In January 2023, Etisalat is a multinational telecommunications company headquartered in the United Arab Emirates (UAE) teamed up with Huawei Technologies is a multinational technology company headquartered in Shenzhen, Guangdong, China. to test and implement 5G portable private network multi-access edge computing (MEC) capabilities. Etisalat UAE aimed to offer a 5G alternative to traditional VPN services as part of its standalone commercialization initiative. This initiative sought to enhance remote work experiences for UAE businesses, leading to better connectivity and increased productivity.
• In November 2022, RadioIP is a technology company specializing in providing networking solutions for mobile and remote environments. announced a partnership with NextNav, a top provider of vertical location positioning technology. Their collaboration aims to improve RadioIP's VPN solutions by integrating mission-critical z-axis location intelligence. By utilizing NextNav's expertise, first responders and security agencies can ensure the safety and accurate positioning of their personnel.
• In February 2022, Nokia is a multinational telecommunications and information technology company headquartered in Finland. launched the world's first commercial 5G Edge Slicing deployment in partnership with mobile operators Cellcom and Telia. Nokia's edge-slicing solution enables operators to deliver secure, reliable, and high-performance VPN services to enterprise customers over existing commercial 4G/5G networks.
• In September 2021, Kape Technologies, a U.K.-based cybersecurity company, finalized the acquisition of Express VPN service from Express VPN International Ltd for a significant sum of USD 936 million. This strategic acquisition expanded Kape Technologies' presence in the commercial digital privacy sector and doubled its customer base from 3 million to 6 million.

*Definition: Virtual Private Network (VPN) Market allows companies to create a secure connection over a public network, such as the internet. It extends a private network across a public network and enables users to send and receive data across shared or public networks as if their computing devices were directly connected to the private network. VPNs are widely adopted by enterprises and individuals to protect

Market Segmentation

•  Component Insights (Revenue, USD BN, 2019 - 2031)
  • Services
  • Solution
•  Type Insights (Revenue, USD BN, 2019 - 2031)
  • Remote Access
  • Extranet
  • Site-to-site
  • Others
•  Deployment Mode Insights (Revenue, USD BN, 2019 - 2031)
  • Cloud
  • On-premise
•  End-use Insights (Revenue, USD BN, 2019 - 2031)
  • Individual
  • Commercial
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Cisco system Inc.
  • Fortinet FortiClient
  • Palo Alto Networks GlobalProtect
  • Check Point Endpoint Remote Access VPN
  • SonicWall VPN
  • Juniper Networks Pulse Secure
  • Citrix Gateway
  • OpenVPN Access Server
  • F5 BIG-IP Access Policy Manager
  • Barracuda CloudGen Access
  • Zscaler Private Access
  • NetMotion Mobility
  • WatchGuard IPSec VPN
  • Hideman VPN for Business
  • Perimeter 81
  • Key Players
  • ExpressVPN
  • Proton VPN
  • NordVPN
  • CyberGhost