Virtual Private Network (VPN) Market is Likely to Rise at 22.04% CAGR By 2032

Published Date : 31 Aug 2023

The global virtual private network (VPN) market size was exhibited at USD 48.94 billion in 2022 and is projected to attain around USD 358.64 billion by 2032, growing at a CAGR of 22.04% during the forecast period 2023 to 2032.

Virtual Private Network Market Size and Growth Rate From 2023 To 2032

A virtual private network (VPN) is a service or technology that allows users to create a secure connection over the internet to another network or the internet as a whole. The VPN market refers to the industry of companies that provide VPN services and technology to consumers and businesses. These companies may offer VPN services, such as remote access, site-to-site connectivity, and secure communications for specific applications or industries. The VPN market is a rapidly growing industry as more and more people and businesses rely on the internet for communication and data transfer. The increasing demand for secure and private internet access and the growing number of cyber threats have led to the adoption of VPN services.

According to a market research report, the global VPN market size will likely grow from USD 42.80 billion in 2022 to USD 106.80 billion by 2025, at a CAGR of 20.2% during the forecast period. The increasing adoption of remote working, the growing number of cyber-attacks, and strict data privacy regulations are some of the major factors driving the growth of the VPN market.

The VPN market can be segmented into services, such as remote access, site-to-site, and others. Remote access is the most widely adopted VPN service, as it allows employees to access the company's network securely from any location. The market can also be segmented by vertical, such as healthcare, BFSI, government, and others.

Report Highlights:

  • By component, the need for VPN services will continue to be driven by the continuously evolving nature of work and virtual private networks. The solution segment had the highest revenue share in 2022, with almost 66%. Over the forecast period, the services segment will likely post a sizable CAGR.
  • The remote access category generated the most revenue by type, with a 37% revenue share in 2022. This is explained by the rise in the market's number of franchised dealers. Over the past few years, mobile VPN device proliferation has driven the demand for remote virtual private network solutions.
  • By Deployment mode, the cloud segment had the highest revenue share (75%) in 2022. This is due to a trend toward cloud-based deployment to cut expenses and maintenance. To give private on-premise access and a secure gateway to cloud services, leading market players are now offering virtual private clouds.
  • By End-user, the commercial category contributed 77% of total revenue for virtual private networks in 2022. This results from growing worries about creating a secure network, and virtual private networks also assist in lowering risks throughout the entire data lifecycle. The alluring qualities like cost-effectiveness and fault-tolerant resource availability will likely fuel the virtual private network solution's commercial adoption.
  • By region, virtual private network connections and remote desktops have significantly increased since the COVID-19 pandemic's introduction. North America had the most significant revenue share (37%) in 2022. Asia Pacific will likely experience the highest growth of CAGR over the projection period.

Virtual Private Network (VPN) Market Report Scope:

Report Coverage Details
Market Revenue in 2023 USD 59.73 Billion
Projected Forecast Revenue in 2032 USD 358.64 Billion
Growth Rate from 2023 to 2032 CAGR of 22.04%
Largest Market North America
Base Year 2022
Forecast Period 2023 To 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Regional Snapshot:

The virtual private network (VPN) market can be segmented by region into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America will likely hold the largest share of the VPN market in 2022 due to the presence of many established players in the region. The U.S. is the major contributor to North America's VPN market growth, and Europe will likely grow at the highest CAGR during the forecast period due to the increasing adoption of remote working, the rising number of cyber-attacks, and strict data privacy regulations.

The second-largest economy in the world, China, is forecast to grow at a CAGR of 17.4% from 2023 to 2032 to hit a projected market value of US$12.9 billion. Japan and Canada are two more notable geographic markets, with growth rates for each country forecasted to be 12.8% and 12%, respectively, between 2022 and 2032. Germany is predicted to expand within Europe at a growth rate of about 12.1% CAGR. By 2032, the market in Asia-Pacific will likely reach USD 9.5 billion, with nations like India, Australia, and South Korea leading the way.

Market Dynamics:

Market Drivers:

BYOD's growing popularity will encourage the services component segment's growth

The services sector, which in 2022 accounted for around 30% of the market's virtual private network, is expected to expand significantly. The popularity of BYOD and the rise in mobile device usage drive up VPN service demand. BYOD rules are receiving a significant push from VPN service providers in enterprises looking to increase their level of agility. Additionally, there has been a substantial increase in businesses asking service providers to maintain their network infrastructure and enable remote connection.

Growing customer preference will drive robust growth for the extranet connectivity sector.

From 2023 to 2032, the extranet market will likely expand at a CAGR of about 20%. Businesses increasingly use the extranet to build strong customer relationships and gain a competitive advantage. Only authorized vendors, clients, partners, and external users have controlled access to an extranet. Additionally, it offers protected access from outside to a limited number of shared resources.

Increasing cybercrime rates to support the growth of the mobile VPN market

By 2032, the mobile VPN market is projected to generate close to 20% of total revenue, driven by an increase in cybercrime. Due to cyberattacks, many businesses now use mobile VPN solutions to protect their resources. This virtual private network provides customers with ongoing services and can easily switch between various access technologies, private networks, and public networks.

Digital record keeping and cloud migration to boost healthcare sector income

Due to the increasing number of healthcare businesses using cloud technology, the healthcare segment will likely expand by over 25% between 2023 and 2032. Healthcare institutions are also shifting to digital patient records for convenient, easy access, prompting them to use VPN services to protect data security. Administrators can assure safety by assigning data access of different levels to individual users through the centralized platform of cloud management where the VPN keeps data.

Internet usage is increasing, which will boost market growth in Latin America.

Due to the region's rising smartphone adoption, the Latin American virtual private network market will likely increase by more than 25% until 2032. Smartphones have increased internet usage and the number of cyberattacks, which is changing the business environment. The GSMA predicts that the economic contribution of the mobile ecosystem of Latin America will increase by much more than USD 30 B by 2025.

Major Key Players:

  • Cisco Systems, Inc.
  • Opera Norway AS
  • BM Corporation
  • Google LLC
  • Citrix Systems, Inc.
  • Avast Software s.r.o.
  • NetMotion Software

Market Segmentation:

By Component

  • Services
  • Solution

By Type

  • Remote Access 
  • Extranet
  • Site-to-site
  • Others

By Deployment Mode

  • Cloud
  • On-premise

By End-Use

  • Individual
  • Commercial

Buy this Research Report@

You can place an order or ask any questions, please feel free to contact at | +1 9197 992 333