DUBLIN–(BUSINESS WIRE)–The Virtual Private Network (VPN) – Global Market Trajectory & Analytics” has been added to the ResearchAndMarkets.com offering.
The global virtual private network (VPN) market is projected to reach $77.1 billion by 2026
Amid the COVID-19 crisis, the global Virtual Private Networks (VPN) market, which was valued at US$44.6 billion in 2022, is projected to reach a revised size of US$77.1 billion by 2026 and growing at a CAGR of 15.3% over the analysis period.
Therefore, the need to protect business data and transactions is driving companies towards highly secure technologies, thus offering significant growth opportunities for the VPN market. Increasing instances of data theft, both financial and personal, coupled with compromised internet security necessitate VPNs to enable a secure, encrypted connection.
The growing number of cyber attack cases is another important factor pushing many companies to switch to VPN technology. In today’s insecure cyber environment, more and more industry verticals are adopting VPN services to ensure complete protection of their data in transit. As the ongoing COVID-19 pandemic impacts business operations, organizations are increasingly turning to internet-based services for business continuity reasons.
This consequently drives the adoption and expansion of VPNs. The trend toward enterprise mobility and the need to provide ubiquitous access to enterprise networks, particularly for remote workers, is also fueling the adoption of VPNs. With around 45% of users using their mobile devices for both personal and work purposes, the adoption of VPN has gained traction among organizations looking to provide secure access for their employees.
Multiprotocol Label Switching, one of the segments analyzed in the report, is expected to grow at a CAGR of 15.4% to reach US$42.7 billion by the end of the analysis period. After a thorough analysis of the business impact of the pandemic and the economic crisis it caused, growth in the cloud segment is adjusted to a revised CAGR of 17.3% for the next 7 years.
This segment currently accounts for 18.2% share of the global virtual private network (VPN) market. The growing need for secure and multi-site connectivity and increasing cloud migration create a steady demand for Multiprotocol Label Switching (MPLS) VPN solutions.
Real-time applications such as Voice over IP (VoIP), video conferencing and business-critical banking apps are particularly well supported by MPLS VPN solutions. A cloud-based VPN provides users, including third-party users and subscribers, with access to a global VPN over the public network. The increasing adoption of virtual technologies and devices in application delivery, networking and security products and services is driving growth in the cloud VPN market.
The US market is estimated at US$16.5 billion in 2022, while China is expected to reach US$11.2 billion by 2026
The US virtual private network (VPN) market is valued at US$16.5 billion in 2022. The country currently has a 34.83% share of the world market. China, the second largest economy in the world, is forecast to reach an estimated market size of US$11.2 billion in 2026, representing a CAGR of 17.4% over the analysis period.
Other notable geographic markets include Japan and Canada, which forecast growth of 12% and 12.8%, respectively, over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.1% CAGR, while the rest of the European market (as defined in the study) will reach $12.9 billion by the end of the analysis period.
Developed countries are the leading regional markets for VPN worldwide. In North America, the VPN market continues to grow due to the increased risk of cybercrime and the resulting need to protect corporate data. Widespread adoption of digital technologies and increasing incidents of cyber attacks are increasing the demand for VPN services.
Europe is another important regional market for VPN, with the widespread adoption of advanced digital technologies in the region fueling the market growth. The large number of companies and growth in internet user base, especially amid the ongoing COVID-19 pandemic, is stimulating the VPN market in Europe. Increasing use of the internet for personal and business purposes, economic growth and industrialization are all contributing to the increasing adoption of VPNs in Asia Pacific.
IP segment projected to reach $17.4 billion by 2026
The IP VPN market is experiencing strong growth, driven primarily by the technology’s significant cost benefits. IP services also help simplify the overall design of private networks and ensure high quality of service for mission-critical operations. Because of this, IP VPN is emerging as a lucrative option for businesses looking to reduce their network expenses.
In the global IP segment, the US, Canada, Japan, China and Europe will drive the 13.8% CAGR estimated for this segment. These regional markets, totaling $6.6 billion in market size, will reach a projected size of $16.3 billion by the end of the analysis period. China will remain one of the fastest growing in this cluster of regional markets.
Led by countries like Australia, India and South Korea, the Asia-Pacific market is expected to reach US$1.9 billion by 2026, while Latin America is set to grow at a CAGR of 12.1% over the analysis period.
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