Global Virtual Private Network Market Size, Share & Industry Trends Analysis Report By Offering (Solution and Services), By Deployment Mode (Cloud and On-premise), By End User, By Type, By Regional Outlook and Forecast, 2023 - 2029
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Get in-depth analysis of the COVID-19 impact on the Virtual Private Network Market
Market Report Description
The Global Virtual Private Network Market size is expected to reach $101.3 billion by 2029, rising at a market growth of 15.1% CAGR during the forecast period.
A VPN, or virtual private network, enables a user to safely and secretly connect to a hidden network over the internet. A VPN is a technological advancement that improves a user's online privacy and security. All Internet traffic and conversations are routed through the established VPN tunnel. Using public Wi-Fi while traveling, sending sensitive information, and even perusing entertainment options may all be done more safely with a VPN.
VPN software protects the user's data by hiding the IP address of the user's device, encrypting the data, and sending it through secure networks to servers in other states or even abroad. The online data transmission is hidden and shielded from unwanted parties with a VPN connection. Anyone who has internet access and is interested can read unencrypted data. Cybercriminals as well as hackers are unable to decipher this data when a VPN is used.
This necessitates the need for an encryption key to read the data. Without one, it would take a computer millions of years to crack the code using a brute-force attack. Online activities are disguised even on public networks with a VPN. In essence, VPN servers operate as online proxies. The precise location is unknown since the demographic location data originates from a server in another nation. The majority of VPN services also do not keep records of online activity. Access to regional web content isn't necessarily universal.
Services and websites frequently provide material that needs access from particular geographical locations. Local servers in the nation are used by standard connections to pinpoint the location. Therefore, users cannot view domestic content while away from home and international content at home. By switching to a server in a different nation, users can "change" their location using VPN location spoofing.
COVID-19 Impact Analysis
Virtual private network (VPN) sales suffered severely during the beginning of the COVID-19 pandemic. However, the need for VPNs significantly increased as more people started working remotely from their homes. Due to several factors, including an increase in cyberattacks, a greater emphasis on data security, and an increase in expenditure on networking infrastructure, the virtual private network market saw increased spending. Most of this growth was attributed to the rapid adoption of the work-from-home culture. Hence, the market experienced significant growth during and after the pandemic.
Market Growth Factors
Increasing use of wireless and mobile devices propelling the need for remote access
Organizations are introducing more mobile electronics into the workplace due to falling pricing for consumer electronics and data subscriptions. When employees use mobile devices for work, maintaining secure and enduring connections is essential. Most employees can now connect to their corporate networks and use any business application from anywhere due to mobile applications for cell phones, tablets, laptops, and netbooks. Employee usage of applications is also higher than anticipated. Enterprises use these VPN solutions to boost efficiency and productivity as more mobile or wireless device apps become available, causing the virtual private network market to expand.
Rising Integration of managed VPN with the cloud
As a consequence of technical breakthroughs, the cloud has experienced innovation. In addition, because of its high data availability, portability, scalability, and flexibility, cloud-based businesses have seen rapid growth. By developing partnerships with such cloud service providers, VPN solution providers may take advantage of the increasing opportunities to integrate the cloud with their services. In addition, these collaborations also help to address the problem of cyber security threats and breaches since virtual networking provides secure access to a network. The market will grow due to rising virtual networking demand as more businesses connect the cloud with VPNs.
Market Restraining Factors
Issues pertaining to funding cuts and lack of virtualization
Many businesses have dramatically reduced their spending due to the post-pandemic expansion of the international economy. These investment reductions have had a significant impact on IT across many international institutions, limiting the industry outlook. The total information security sector's growth has been significantly impacted by the funding cuts, which have also slowed sales cycles. Information security products and services are particularly impacted by enterprises' rising reluctance to purchase or maintain premium VPN services. These factors may limit the growth of the virtual private network market throughout the forecasted period.
Based on offering, the virtual private network market is characterized into solution and services. The services segment procured a considerable growth rate in the virtual private network market in 2022. The constant evolution of virtual private networks and work will continue to drive the demand for VPN services. The virtual private network can protect a remote connection with the help of VPN services. Customers on a tight budget can compare prices in real-time online owing to the vendors' offerings, which aids in their decision-making process.
Deployment Mode Outlook
By deployment mode, the virtual private network market is divided into cloud and on-premise. The on-premises segment garnered a remarkable growth rate in the virtual private network market in 2022. Instead of utilizing server space or the cloud, the on-premises deployment approach for virtual private networks enables the installation and execution of software on systems housed inside an enterprise.
End User Outlook
Based on end user, the virtual private network market is segmented into commercial users and individual users. The individual users segment acquired a substantial revenue share in the virtual private network market in 2022. Users can connect securely to a distant network over the internet using a VPN. This technique is used more frequently by those who need access to websites that are limited by region or want to hide their browsing habits when using public Wi-Fi.
On the basis of type, the virtual private network market is classified into remote access VPN, site-to-site VPN, and others. The remote access VPN segment acquired the largest revenue share in the virtual private network market in 2022. This can be explained by the increase in franchised dealers on the market. Extranets are expected to have significant growth in the coming years. The expansion is mostly attributable to the rising utilization of extranets by businesses for the purpose of publishing confidential data on public networks.
|Market size value in 2022||USD 38.6 Billion|
|Market size forecast in 2029||USD 101.3 Billion|
|Historical Period||2019 to 2021|
|Forecast Period||2023 to 2029|
|Revenue Growth Rate||CAGR of 15.1% from 2023 to 2029|
|Number of Pages||243|
|Number of Table||413|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Offering, Deployment Mode, End User, Type, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region wise, the virtual private network market is analysed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded the largest revenue share in the virtual private network market in 2022. This region spends a lot of money on network security, so the market there is expanding. The market expansion in North America is also fuelled by the substantial presence of leading market vendors here. Additionally, the demand for virtual private network is primarily driven by rising demand from industries like BFSI and telecom, as well as other industry verticals.
Free Valuable Insights: Global Virtual Private Network Market size to reach USD 101.3 Billion by 2029
KBV Cardinal Matrix - Virtual Private Network Market Competition Analysis
The major strategies followed by the market participants are acquisitions. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the forerunner in the Virtual Private Network Market. Companies such as IBM Corporation, Cisco Systems, Inc., and Check Point Software Technologies Ltd. are some of the key innovators in the Virtual Private Network Market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., Absolute Software Corporation (NetMotion Software), Gen Digital, Inc., Nord Security, Radio IP Software and Golden Frog, GmbH
Strategies deployed in Virtual Private Network Market
» Partnerships, Collaborations and Agreements:
- Feb-2023: Juniper Networks expanded its partnership with IBM, a technological corporation, to provide an integrated RAN management platform. With this expansion of partnership, integrating IBM’s network automation offerings with Juniper’s Radio Access Network (RAN)optimization and Open Radio Access Network (O-RAN) technology power develop an integrated RAN management platform that would be helpful for IBM to empower communications service providers (CSPs) in the delivery improved experience to mobile users through advanced automation.
- Feb-2023: Microsoft collaborated with Infosys; an Information Technology company based in India. This collaboration helps boost enterprise cloud transformation journeys globally. The alliance would benefit enterprises by bringing the best of Infosys Cobalt's cloud portfolio and Microsoft's cloud computing technologies.
- Feb-2023: Microsoft partnered with Amdocs, a provider of software and services to media and communications companies, to announce the latest customer engagement platform. The platform would empower service providers to enhance their engagement and end-user experiences and journeys in all channels and applications.
- Nov-2022: Juniper Networks formed a partnership with PT IndoInternetTbk (Indonet), a digital infrastructure provider, to modernize, automate, and facilitate the expansion of the network infrastructure of PT IndoInternetTbk across Indonesia.
- Feb-2022: Nord Security signed an agreement with Surfshark, a consumer cybersecurity enterprise, for merger. In accordance with the agreement, both companies would be merged to form a new company namely, Cyberspace, an integration of capabilities of both companies in providing innovative and powerful cybersecurity solutions enabling business to combat against online threat challenges.
- Jul-2021: Microsoft corporation expanded its partnership with NEC Corporation, a developer of telecommunications equipment and related software and services, to support organizations' customers and public sectors in augmenting the growth rate of cloud embracement and digital transformation. With this expansion, unifying the power of Microsoft Azure, and Microsoft 365 with NEC’s network and IT capabilities would empower Microsoft to help industries and businesses' customers through workplace and workforce transformation.
- Jun-2021: IBM collaborated with GK Software, a cloud services vendor. Under this collaboration, the companies aimed to accelerate advanced and cutting-edge retail built over the hybrid cloud technology from Red Hat and IBM. Moreover, this collaboration would also help businesses quickly innovate and adopt the digital era.
» Product Launches and Product Expansions:
- Oct-2022: Check Point Software introduced Quantum IoT Protect, an autonomous IoT threat prevention software. Quantum IoT Protect offers automatic zero trust protection, threat avoidance, firmware scanning, and on-device runtime security for businesses. Combining the new offering with Check Point’s Quantum ‘Titan’ release R81.20 would deliver powerful and advanced network security.
- Sep-2022: Check Point Software Technologies released Check Point Horizon platform, an Industry-leading Security Operations Solutions and Services portfolio with prevention first approach. The launch would aim to improve defense across the cloud, network and endpoints and secure future cyber-attacks.
- Jul-2022: IBM released an advanced and future generation IBM Hyper Protect Virtual Servers-IBM Hyper Protect Virtual Servers for Virtual Private Cloud (VPC), an addition to IBM’s Confidential Computing solution suite. The latest addition is developed to safeguard cloud-based applications with open container initiative (OCI) deployments using confidential computing. IBM Hyper Protect Virtual Servers for VPC would be developer-friendly and generated to utilize open-container initiative images with a standard user interface to support in handle and monitor in the Virtual Private Cloud (VPC) Infrastructure of IBM Cloud.
- Feb-2022: Juniper announced the launch of Secure Edge firewall as a service, a firewall-as-a-service inclusion to the Juniper Networks' Secure Access Service Edge line up. Secure Edge firewall as a service offers the same user- and application-based accessibility, secure system, anti-malware software and enhanced web access capabilities helping in the simplifying operations, easing out installing updates and declining the latency rate.
- Jan-2022: Checkpoint unveiled Quantum Lightspeed Firewalls, an addition to Check Point Quantum suite, to bring advanced network security offerings. Quantum Lightspeed Firewall would deliver efficient performance to firewall offering Hyper-fast data centre security with multiple times firewall throughput of Up to 3 Tbps per system / 800 Gbps per single gateway and lower latency.
- May-2021: Juniper Networks, Inc. released updates to its Apstra 4.0 software. The new Apstra 4.0 features connectivity templates for managing connections to attached systems and Enterprise SONiC integrations. The new capabilities of Apstra 4.0 would enable network operations teams to be effective in deployment and integration and bring cloud-like operations to the data centre.
» Acquisitions and Mergers:
- Sep-2022: Gen Digital Inc. formerly NortonLifelock inc. signed a merger with Avast, cross-platform internet security applications services provider, to enhance Cyber Safety offerings enabling NortonLifeLock to serve better consumers and SMBs worldwide. With this merger, the integrating capabilities of NortonLifeLock in offering consumer cyber safety solutions and Avast's expertise in delivering digital security and privacy products, would enable NortonLifeLock to provide consumers and SMBs the innovative and powerful Cyber Safety services better. Moreover, both companies would be combined to form a new company, namely, Gen Digital.
- Mar-2022: Microsoft acquired Nuance, an American multinational computer software technology corporation, providing aid to businesses in achieving the targeted goals through cloud-driven and optimized AI solutions. Through this acquisition, Combining the Nuance’s high-quality conversation AI and cutting-edge intelligence with Microsoft’s secure Cloud-based solutions would allow Microsoft to offer its customers customized and credible industry cloud services.
- Feb-2022: Juniper took over WiteSand, a cloud-based zero trust Network Access Control (NAC) solutions provider, to offer enhanced experiences with networks. With this acquisition, leveraging the potential of WiteSand cutting-edge technology in offering cloud-driven zero trust Network Access Control (NAC) solutions would allow Juniper to provide advanced NAC solutions delivering improved experiences to Juniper's customers' network users.
- Feb-2022: Check Point acquired Spectral, an Israel-based developer-focused security toolset provider. With this acquisition, Spectral's capabilities in offering developer-centric security solutions would enable Check Point to advance cloud security automation beneficial in serving cloud developer a robust open-source offering.
- Aug-2021: Check Point Software took over Avanan, a cloud email security enterprise. Through this acquisition, Avanan's expertise in providing businesses the solutions to protect their businesses with cyber-attacks while using cloud-email platforms would be leveraged by Check Point to provide customers cutting-edge and robust cyber security prevention offerings.
- Jul-2021: Cisco took over Socio Labs, an American based technological platform developed to power the modern hybrid events. Through this acquisition, the inclusion of Socio Labs, to Cisco suite, would allow Cisco to empower event organizers with the capability of generating high-level virtual, in person and hybrid events.
- May-2021: Absolute Software Corporation took over NetMotion Software, Inc., a connectivity, and security solution provider. The acquisition enables the company to bring together a resilient network and power of self-healing devices and applications to offer the next generation of Endpoint Resilience, enable businesses to maximize technology functionality, and prioritize a secure user experience.
- Feb-2021: Cisco completed the acquisition of IMImobile PLC, a cloud communication software and services provider. With this acquisition, integrating the power of IMImobile solution with Webex Contact Center would enable Cisco to deliver a powerful Customer Experience as a Service (CXaaS offering, facilitating organizations to provide their customers a better experience.
- Jan-2021: Cisco took over Banzai Cloud, a privately held company headquartered in Budapest, Hungary. Through this acquisition, the Banzai Cloud team would expand Cisco’s expertise and abilities through its demonstrated experience with the entire end-to-end cloud-native application, deployment, and runtime, development, and security progress.
Scope of the Study
Market Segments Covered in the Report:
By Deployment Mode
By End User
- Commercial Users
- Individual Users
- Remote Access VPN
- Site-to-Site VPN
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- Microsoft Corporation
- Cisco Systems, Inc.
- Juniper Networks, Inc.
- Check Point Software Technologies Ltd.
- Absolute Software Corporation (NetMotion Software)
- Gen Digital, Inc.
- Nord Security
- Radio IP Software
- Golden Frog, GmbH
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North America Virtual Private Network Market Report 2023-2029
Europe Virtual Private Network Market Report 2023-2029
Asia Pacific Virtual Private Network Market Report 2023-2029
What would be the size of this Market by 2029?
The Market size is projected to reach USD 101.3 billion by 2029.
What are the key driving factors and challenges in this Market?
Rising Integration of managed VPN with the cloud are driving the Market in coming years, however, Issues pertaining to funding cuts and lack of virtualization restraints the growth of the Market.
What are the major top companies in the competitive landscape?
IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., Absolute Software Corporation (NetMotion Software), Gen Digital, Inc., Nord Security, Radio IP Software and Golden Frog, GmbH
Which segment shows a high revenue share of this Market in 2022?
The Commercial Users market generated the high revenue in the Global Virtual Private Network Market by End User in 2022; thereby, achieving a market value of $73.9 billion by 2029.
Which segment is leading the Market in 2022?
The Solution market is leading the segment in the Global Virtual Private Network Market by Offering in 2022; thereby, achieving a market value of $74.2 billion by 2029.
Which region dominated the Market in 2022?
The North America market dominated the Market by Region in 2022; thereby, achieving a market value of $34.4 billion by 2029.