May 22, 2024

Virtual Private Network Market is Estimated to Witness High Growth Owing to Cryptographic Advancements

The virtual private network (VPN) market allows users to connect to private networks over the internet or public telecommunications network in a secure manner through encrypting the data being transmitted. VPNs are widely used by corporate employees to securely access their office network remotely, as well as by individuals to shield their internet connection activities from surveillance or content restrictions. The advantages of VPNs include enhanced privacy and anonymity online, ability to access region-restricted content, and protection against hackers on public networks. The growing cases of cybercrimes and increasing focus on data privacy have driven the demand for VPN services from both enterprise and individual users.

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, ExpressVPN, Proton VPN, NordVPN, CyberGhost.

The key opportunities in the Virtual Private Network Market Size include increasing adoption of cloud-based VPNs among SMEs due to reduced upfront costs, rising penetration of BYOD and flexible work arrangements driving telecommuter VPN usage, and growing focus on multi-cloud and hybrid IT infrastructure necessitating universal access controls across networks.

Recent advancements in VPN cryptographic protocols such as IKEv2 and WireGuard have enabled faster connectivity establishment and increased security over legacy protocols. Growing strategic partnerships between VPN providers and IT infrastructure platforms will help VPN networks scale effectively across multi-cloud environments.

Market Drivers
The key drivers boosting the virtual private network market include growing preference for encrypted internet browsing to ensure privacy and anonymity, rising trend of remote and flexible working models among organizations necessitating secure remote access solutions, increasing adoption of cloud computing raising the need for VPNs to unify access controls across hybrid networks, stringent data privacy regulations worldwide mandating encryption of user data transfers, and proliferation of IoT and connected devices expanding the attack surface for cybercriminals.

Current Challenges in Virtual Private Network Market

The Virtual Private Network market is facing various challenges currently. With increased security threats from cyber attackers, keeping virtual private networks secure has become a major challenge for companies and users. Regular software updates need to be released by VPN providers to patch security vulnerabilities in a timely manner. Ensuring seamless connectivity across devices and locations is another challenge due to unreliable internet connections globally. Many companies still use legacy VPN systems that do not support new security standards and remote access needs of the modern hybrid work environment. Transitioning to cloud-based VPN platforms requires skills and budget investment for many small businesses. High costs of premium VPN subscriptions also limit the adoption rates for personal and non-essential use cases. Overall, security, connectivity, compatibility and pricing are some key areas that need attention from the VPN market stakeholders.

SWOT Analysis
Strength: Provides secure remote access to internal networks from any location; Established encryption standards ensure data privacy.
Weakness: Reduced speeds due to encryption overhead; Single point of failure if server goes offline.
Opportunity: Growing remote and hybrid workforce boosting demand; Integration with cloud platforms opens new use cases.
Threats: Vulnerabilities in implementation can be exploited by attackers; Free open-source VPN alternatives eat into profits.

Geographical Regions
North America currently dominates the global VPN market in terms of value, with United States being the largest country. This is due to high technology adoption rates and digitization of enterprises. Another major region is Europe with Germany, United Kingdom and France among top country markets. The Asia Pacific region is expected to be the fastest growing over the forecast period with China and India emerging as high potential countries. Higher internet penetration and expansion of remote work culture would drive the VPN market growth in developing regions of Latin America, Middle East and Africa over the coming years.

The VPN market in North America is currently facing steady growth while the Asia Pacific region is witnessing exponential surge in demand. Countries like China, India, Indonesia, Vietnam and Philippines are showing remarkably high adoption rates as companies expand digitally and support remote working models post pandemic. Rapid infrastructure development and availability of affordable internet plans are propelling the Asia Pacific region to emerge as the fastest growing geographical area for virtual private networks over the next five to seven years.

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