Virtual Private Network Market: Innovations in Encryption and Security Protocols

The global virtual private network market size is expected to reach USD 151.92 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 17.7% from 2023 to 2030.  The rising level of cybersecurity threats is expected to drive the growth of the market over the forecast period. While high-speed data networks are being rolled out and connected devices are proliferating continuously, data security and privacy protection are emerging as major issues, as people visiting public places are often logging into unsecured Wi-Fi networks. Individuals are particularly targeted by hackers when they enter into vulnerable hotspots and log on to unsecured networks. This is driving the adoption of Virtual Private Networks (VPNs) and leverage the encryption provided by the VPN technology to protect people from malicious activities.

The rising adoption of VPN solutions across several industry verticals and the growing security concerns are some of the significant factors that are driving the growth of the market. For an organization, a virtual private network can potentially encrypt any data to secure the organizational resources when the data is being transferred over a public internet connection. Thus, a VPN subsequently helps in saving expenses by eliminating the need for leased lines. A VPN also helps in improving operational efficiency. For instance, Brown Bear Corporation, which deals with utility, environmental, and manufacturing applications, uses a VPN solution to allow the company’s staff to connect to the Brown Bear store or the office to reduce the drive time and increase the management efficiency.

Gather more insights about the market drivers, restrains and growth of the Global Virtual Private Network Market

VPNs help in bypassing internet censorship. Since VPN services encrypt complete data, the government is unable to censor a VPN connection, thereby allowing both commercial users and individual users to access sites that would otherwise be impassable. Hence, companies and citizens often turn to VPN solutions to overcome enforced censorship and access the sites that are blocked in any particular country. As a result, although countries, such as China, and Russia, among others, have imposed strict restrictions on VPNs; these restrictions have increased awareness about VPNs rather than restraining the growth of the market.

Virtual Private Network Market Report Highlights

• The market is anticipated to witness significant growth over the forecast period, owing to rising security concerns across numerous end-use industries

• The continued research and innovation by technology companies are driving the adoption of advanced technologies in various industry verticals, such as BFSI, healthcare, retail, telecommunications, among others

• North America is expected to emerge as one of the leading regional markets owing to the aggressive spending on R&D and the high adoption of VPN solutions in the telecommunications industry. Asia Pacific is expected to witness substantial growth over the forecast period

• The software segment accounted for the largest revenue share of 49.6% in 2022. It is expected to grow at the fastest CAGR over the forecast period

• The cloud segment accounted for the largest revenue share of 73.0% in 2022 and is expected to grow at the fastest CAGR over the forecast period

Key Companies & Market Share Insights

All the vendors are focusing on increasing their customer base to gain a competitive edge in the market. They are pursuing several strategic initiatives, such as strategic partnerships, collaborations, acquisitions, and mergers. For instance, in January 2023, Cloudflare, Inc. announced its expanded collaboration with Microsoft, focusing on facilitating the deployment, automation, and enhancement of Zero Trust security for customers. As part of this partnership, a key objective was to ensure that VPNs are available in every region. By achieving this, whenever users connect to the secure network service, they would be directed to a local data center. Furthermore, the IP address used for browsing data will be geographically aligned with the user’s actual region, resulting in improved security and a more seamless browsing experience.

List of Key Players in Virtual Private Network Market

• Avast Software s.r.o.
• BlackBerry Limited.
• Cisco Systems, Inc.
• Citrix Systems, Inc.
• CyberGhost S.R.L.
• Google LLC
• IBM Corporation
• Absolute Software Corporation.
• Opera Holdings
• WatchGuard Technologies, Inc.

Order a free sample PDF of the Virtual Private Network Market Intelligence Study, published by Grand View Research.