The global virtual private network market is expected to grow from $38.56 billion in 2021 to $45.89 billion in 2022 at a compound annual growth rate (CAGR) of 19.0%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $91.20 billion in 2026 at a CAGR of 18.7%.
Major players in the virtual private network (VPN) market are Check Point Software Technologies, Cisco Systems, Golden Frog, Juniper Networks, Microsoft Corporation, Safer Social Ltd., Avast, Citrix Systems, Columbitech, Google, IBM Corporation, NetMotion Software, WatchGuard Technologies, Array Networks, NCP Engineering, BlackBerry, Smith Micro Software and GZ Systems Ltd.
The virtual private network (VPN) market consists of sales of VPN software and solutions by entities (organizations, sole traders, and partnerships) that provides an encrypted connection over the internet from a device to a network. The encrypted connection helps in the secure transmission of sensitive data, protects against unauthorised traffic monitoring, and allows the user to work remotely. The virtual private network gives users private internet access, web security, and global remote access for multinational corporations, large corporations, and electronic devices.
The main types of virtual private network are IP VPN, cloud VPN, mobile VPN and multiprotocol label switching (MPLS). IP VPN stands for internet protocol virtual private network, which uses a private connection to each remote site to avoid using the public internet. The various types of components in virtual private network are solution and services.
The different connectivity types include site-to-site, remote access, extranet and is deployed in different modes such as cloud, on-premise. Virtual private network is implemented in several vertical such as BFSI, manufacturing, healthcare, telecom and IT, government and others.
North America was the largest region in the virtual private network market in 2021. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Growing technological advancements are gaining the popularity in the virtual private network (VPN) market. The virtual private network providers are increasing investments in VPN technologies to provide fast and uninterrupted internet connectivity and remote accessibility.
For instance, in 2020, Microsoft Corporation, a US-based technology company has integrated advanced features in its VPN Gateway. This Microsoft Azure VPN Gateway connects the user’s surrounding networks via site-to-site VPNs, similar to how the user connects to a remote branch office. In operating systems such as Linux and Windows, this feature allows an end-user from a remote location to maintain user profiles in the central database.
The increasing cyberattacks is expected to drive the growth of the virtual private network market in the coming years. Cyberattacks have been ranked as the fifth most important threat in 2020 and are expected to become the new norm in both the public and commercial sectors. Additionally, cyberattacks are anticipated to develop even more in 2021, with IoT cyberattacks alone projected to double by 2025. VPN technologies are being adopted by major corporations as they securely transfer data and reduce the risk of cyberattacks.
For instance, according to the World Economic Forum’s 2020 Global Risk Report, cybercrime has increased 600% as a result of the COVID-19 outbreak, encompassing everything from theft and embezzlement to data hacking and destruction. Therefore, the rising cyberattacks propels the growth of the virtual private network market.
The countries covered in the virtual private network (VPN) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.