April 23, 2024

Virtual Private Network Market is in Trend by Increasing Data Privacy and Security Concerns

VPNs allow users to establish secure and encrypted connections to another network over the internet. They offer privacy and anonymity to users surfing the internet and accessing restricted overseas websites by hiding their geographic location and IP addresses. The increasing concerns regarding data privacy and security, especially with more people working remotely due to the ongoing pandemic, have accelerated the adoption of VPN services and solutions.

The Global Virtual Private Network Market is estimated to be valued at US$ 194.7 Bn in 2024 and is expected to exhibit a CAGR of 19.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Virtual Private Network market are 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.

The growing need for secured and private network access is one of the major factors driving the demand for VPN services. With more employees telecommuting and adopting flexible work models, enterprises are increasingly relying on VPN solutions to enable secure remote access. Advancements in VPN technology allowing seamless and faster connectivity on any device from any location is further supporting its adoption.

Geographically, the North American region dominates the global Virtual Private Network Market Size due to stringent data privacy regulations and the presence of leading VPN providers in the region. However, the Asia Pacific region is expected to exhibit the highest growth over the forecast period supported by growth in VPN compatible mobile users and spend on telecom and data services in developing markets. Major VPN providers are also investing in partnerships and collaborations to expand their geographical footprint.

Market Key Trends
The rising adoption of cloud-based and wireless remote access VPN technologies present significant growth opportunities for VPN vendors. The integration of VPN functionalities into endpoint protection and network access control solutions is another key trend allowing organizations to streamline and remotely manage user access. Increasing deployment of advanced authentication methods such as multifactor authentication by VPN providers has also improved the security of VPN connections. There is also a rising demand for next-gen VPNs offering enhanced threat protection against malware and ransomware with seamless visibility and control over connected devices and applications. Overall, the comprehensive benefits of enhanced privacy and secure remote access will continue driving the virtual private network market during the forecast period.

Porter’s Analysis
Threat of new entrants: New VPN providers find it difficult to enter the market due to high switching costs for customers and established network of existing players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes however switching costs and security concerns keep their power in check.

Bargaining power of suppliers: VPN providers have high bargaining power over suppliers of networking hardware and software as they can choose from multiple technology providers.

Threat of new substitutes: Substitutes like virtual private LAN service pose minimal threat as they do not provide the easy seamless connectivity of VPNs.

Competitive rivalry: Intense competition among major players to capture more market share.

Geographical Regions
North America accounts for the largest share of the VPN market in terms of value owing to high internet penetration, digitization of work processes and cybersecurity awareness.

The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing internet usage, rapid urbanization and digital transformation of industries in countries like China and India.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it