Graphical Research takes a look at the VPN Market and the top trends boosting the industry demand through 2027.
According to a recent study from market research firm Graphical Research, the global Virtual Private Network market size is set to register a significant growth during the forecast timeframe driven by the rising number of government initiatives and policies to encourage companies to use innovative yet reliable internet security measures.
Several regions across the globe are witnessing a tremendous rise in the number of internet users. In addition, the Covid-19 pandemic boosted the adoption of VPN solutions as the demand for a remote working setup increased among organizations to contain the spread of the virus.
Following are the trends expanding the global Virtual Private Network market size from 2021 to 2027:
1. North America (regional valuation may cross US$25bn) adoption of cloud infrastructure grows:
The North America VPN market share is expected to showcase promising growth as the number of cyber-attacks increases, which may create a robust demand for secure cloud infrastructure. In addition, many organizations are adopting a cutting-edge IT infrastructure and are using smart platforms, such as SaaS and PaaS, which will create a high need for cloud computing technologies. Cloud-based technologies simplify IT management to a great extent and provide innovative yet reliable security solutions, which will drive the use of high-end VPN services.
Use of remote access connectivity rises:
Remote access connectivity captured more than 30% of the regional VPN industry in 2020 as cloud computing platforms are finding a high use across a variety of sectors. Remote access VPNs offer a secure access to corporate resources with the help of an encrypted tunnel across the internet.
Various technological advancements are being introduced in remote access VPN technologies which, along with the universality of the internet, is likely to permit companies to safely and cost-effectively expand their networks across the region.
US VPN market size expands significantly:
The US is set to hold a share worth more than US$17bn in the regional VPN market by 2027. The need for a high-speed internet connection is growing among consumers across the US. Additionally, the government is introducing initiatives to support the adoption of a safe internet connection. The Federal Communication Commission (FCC) has rolled back the net neutrality rules, stimulating VPN solutions in the country.
2. Europe (regional valuation may exceed US$20bn)
Strong internet security propels VPN hardware demand:
VPN hardware captured more than 35% of the regional market in 2020. Customers are opting for internet-powered devices, and the virtual traffic is growing exponentially every year. Organizations are also using VPN routers to upgrade their internet security infrastructure.
The router plays a key role in improving firewall protection and offers safe access to authorized users. The firewall protection in VPN routers acts as a kill switch and provides split tunnel capabilities, which prevents users from accessing certain websites. In addition, VPN routers can protect several devices and keep the network safe from WebRTC and DNS leaks, which will foster their demand among end-users.
MPLS VPN gains momentum:
Based on type, multiprotocol label switching (MPLS) VPN held over 30% of the Europe Virtual Private Network market in 2020. However, the number of security issues and failures are increasing due to a weak internet security system.
Moreover, Bring Your Own Device (BYOD) solutions are being extensively adopted by end-users to manage their day-to-day operations efficiently. In addition, businesses across a wide range of sectors are trying to go global with their products and services, which may increase the need for a reliable data connection, driving the adoption of MPLS VPN.
High application of VPN solutions in BFSI sector:
BFSI applications held more than 30% of the regional VPN market in 2020. The demand for digitizing the products and services offered by the sector is growing among consumers to facilitate ease of operation. Companies are increasingly adopting advanced technologies to introduce innovative services and enhance customers’ overall experience.
Many financial institutes have started installing VPN software to protect portable devices from unauthorized use and offer a safe and reliable connection across the bank’s branches. Besides, mobile payments, online wallet solutions, and fintech services have gained immense popularity among customers, thereby increasing the use of VPN software in the BFSI sector.
3. Asia Pacific (regional valuation may go past US$30bn):
China VPN market share grows:
China is anticipated to hold a share worth over US$10bn in the Asia Pacific Virtual Private Network market by 2027. The concept of digitization is gaining momentum among several sectors and a wide range of products and services are expected to undergo digitization.
Also, a large number of cloud and digital mobility solutions are being extensively implemented by the country’s SMEs. Furthermore, the governing bodies are taking conscious efforts to increase the security of the network infrastructures by formulating cybersecurity programs and policies, which will boost the implementation of VPN services.
Internet Protocol VPN robustly used in SMEs:
Internet Protocol VPN captured more than 20% of the regional market in 2020. The demand for high-speed internet connectivity is rising at a strong rate. In addition, SMEs are highly conscious about their budget and costs, which compels them to seek cost-effective network solutions.
IP VPN providers have identified this need and are offering a single network that is capable of supporting multiple devices and can be accessed from anywhere. Advantages, such as reduced cost, data throttling, network scalability, and improved security, among others, will favor the use of IP VPN solutions.
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The global VPN market outlook will be empowered by the strong presence of well-known organizations, including Symantec Corporation, Cisco Systems, BlackBerry LTD, Citrix Systems, Cohesive Network, and Nord VPN, among several others. The companies are developing safe and reliable VPN hardware, software, and services for end-users in healthcare, manufacturing, IT, BFSI, and government sectors. IP, MPLS, cloud, and mobile VPN are some of the most widely deployed models that utilize site-to-site, extranet, and remote access connections to enhance their performance.