Virtual Private Network (VPN) Market Size By Component (Hardware, Software, Services), By Type (IP, MPLS (Multiprotocol Label Switching), Cloud VPN, Mobile VPN), By Connectivity (Site-to-site, Remote Access, Extranet), By Application (Consumer [Smartphones, Tablets, Laptops/PCs], Commercial [BFSI, Healthcare, IT, Government, Manufacturing], Service Providers), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 - 2026
The virtual private network market is slated to pick up significant momentum in coming years owing to the rising incidences of cybercrime and online frauds. A VPN network is a connection method or programming which is used to add security and privacy to private as well as public networks. For example, like the internet, and Wi-Fi Hotspots.
It also uses tunneling protocols in order to encrypt information at sending end as well as decrypt it at receiving end. The sending and receiving end network addresses are also encrypted so as to provide extra security.
Virtual private networks are utilized to give remote corporate employees, business travelers, and gig economy freelance workers access to software applications which are facilitated on proprietary networks. While gaining access through a VPN to a restricted resource, it is ensured that the user is authorized to utilize the VPN app and can offer one or more authentication factors, like biometric data, password security, or security token.
Virtual private network (VPN) market is bifurcated in terms of component, type, connectivity, application, and regional landscape.
Based on type, the VPN market is classified into cloud VPN, IP, mobile VPN, and MPLS. Among these, the mobile VPN segment will exhibit a CAGR of over 18% through 2026 due to increasing demand for cloud security.
With respect to application, the VPN market is segmented into consumer, service providers, and commercial application segment. The consumer segment is further classified into Laptops/PCs, tablets, and smartphones. Among these, the tablets will witness a CAGR of over 10% by 2026 due to better portability as compared to laptops and larger display than smartphones. The Laptops/PCs segment held a market share of over 30% in 2019 due to extensive use of VPN software in traditional PCs.
The commercial application segment is further categorized into government, manufacturing, BFSI, healthcare, and IT & Telecom. The BFSI sector held a market share of over 40% in 2019 due to increasing use of VPN solutions for safeguarding financial transactions. IT & Telecom segment will exhibit a growth rate of nearly 12% CAGR through 2026 due to increasing use of IP and MLPS VPN for cost reduction.
The government sector is likely to observe a CAGR of over 15% through 2026 due to rising incidents of cyberattacks and malware intrusion on federal networks. Manufacturing application segment will witness over 14% CAGR through 2026 due to increasing need for securing IoT networks.
From a regional frame of reference, the APAC VPN market held around 25% market share in 2019 due to rapidly increasing internet penetration and rising awareness about cybersecurity. Middle East & Africa VPN market is likely to exhibit a CAGR of around 13% due to rising case of cyberattacks and online frauds.
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