Market Overview:

The Global VPN Software Market Will Be Valued At $1.7 Billion In 2022. The Demand For VPN Software Is Expected To Grow Further At A CAGR Of 13.6% To Reach $4.71 Billion By 2030.

A virtual private network (VPN) is an encrypted connection from a device to a network over the internet. The encrypted connection facilitates the secure transmission of sensitive data, prevents unauthorized traffic monitoring, and enables the user to work remotely. The virtual private network provides consumers with private Internet access, web security, and global remote access for large corporations, multinational corporations, and electronic devices.

Instead of utilizing a dedicated private connection, a virtual network is established between geographically disparate networks and end consumers over a public shared network such as the Internet. In a Virtual Private Network (VPN) software system, data is transmitted as if through a dedicated connection. VPN isolates the private network by forming a virtual communication network, greatly reducing the possibility of the system being attacked by the outside world. VPN network, communication network selection independent choice. With VPN software, users can choose an isolated Internet Protocol (IP) address space. In addition, VPN software can be used to circumvent restrictions and local blackouts, as well as to stream live events. VPN software increases network security and scalability in this manner.

COVID-19 Impact:

The COVID-19 pandemic has had a significant impact on the market for virtual private networks (VPNs). As more individuals began working from home and utilizing the internet for remote communication and collaboration, the demand for VPNs increased significantly. This is due to the fact that VPNs provide a secure and private connection to the internet, enabling users to remotely access sensitive information without concern of it being intercepted or compromised.

In addition, VPNs can be used to circumvent geographical restrictions and access content that may be forbidden in a specific location. Consequently, during the COVID-19 pandemic, many VPN service providers have seen a significant increase in sales and usage.

Market Dynamics:

Latest Trends:

The widespread adoption of private networks in a variety of industries is the primary force driving the global market. With the penetration of high-speed internet connection paving the way for conducting seamless business activities across numerous sectors, the risks of cyber-attacks and data breaches are rising, thereby leading to the increased utilization of VPNs worldwide. Thus, the significant demand to protect business transactions and data is driving businesses to adopt highly secure technologies, creating lucrative growth opportunities in the VPN market. Also, the shifting preference toward video and web conferencing solutions for communication amid the ongoing pandemic among enterprises is propelling the VPN market toward growth. Other factors, such as the widespread adoption of media streaming services, the rising demand for online and remote education, the escalating incidences of theft of financial and personal information, continuous product innovations, and extensive research and development (R&D) activities conducted by key market players, are also driving market growth.

Growth Drivers:

There are a number of key drivers for the VPN software market. Firstly, the increasing need for organizations to secure their data and communications from external threats is a major driver. Secondly, the growing trend of employees working remotely is also driving demand for VPNs. Thirdly, the increasing use of public Wi-Fi locations is a significant factor, as VPNs can prevent malicious actors from intercepting users' data. Increasing user awareness of the benefits of VPNs also drives demand, as more users recognize the potential of these tools to improve their online privacy and security.

• Increased Use of Mobile and Wireless Devices

Increased use of mobile and wireless devices is one of the main factors driving the expansion of virtual private networks. As business and corporate employees can connect to their corporate networks and access various business applications from anywhere in the world using their mobiles, laptops, tablets, and other electronic devices, security has become a major concern. The report on the Global Virtual Private Networks Market provides a comprehensive analysis of the market.

During the forecast period, the substantial increases in the number of cyberattacks and the rising demand for cloud-based safety solutions are anticipated to drive the demand for virtual private networks. Businesses of all sizes and operating in a variety of industries are persistently searching for effective information management resources and secure connectivity between business divisions.

Restraining Factors:

• Encryption and Rerouting Processes Slow Down the Internet Speed

VPN technology encrypts and reroutes Internet connections via a VPN server. Encryption and rerouting procedures frequently slow the network's overall speed. This factor is anticipated to restrain adoption among some organizations and consumers and to have a negative impact on market revenue growth to some degree. In addition, a lack of technical expertise and the high cost of VPN connections are anticipated to impede revenue growth over the forecast period.

• Low Awareness of Mobile Security Solutions

One of the restraints present which is limiting the growth of the Virtual Private Networks Market like in developing nations, mobile security solutions are poorly known. Many businesses and organizations struggle to maintain a balance between cost and security requirements and necessities. The high cost of VPN in emerging nations is another factor impeding the expansion of the Virtual Private Networks Market.

Challenges:

• Budget constraints
• The need to support numerous operating systems slows VPN functionality
• Reluctance to adopt various VPN solutions

Opportunities:

• Surge in Acceptance of Private Clouds

In the future years, the global cloud Virtual Private Network (VPN) market is anticipated to expand rapidly. This expansion can be ascribed to a number of factors, including the increased demand for cloud VPN technologies in security products and services, the rising adoption of secure remote access, and the expanding acceptance of private clouds.

• Technological advancements

Increasing exponential growth in global IP traffic and cloud traffic, among other factors, drives the market for private network services. Furthermore, rising technological advancements and modernization in the field of network services will open up new opportunities for the private network services market during the forecast period.

Segmentation Analysis:

Based on the Component:

The market is segmented into Solutions and Services. The solution segment is expected to value the largest market share of reporting for more than 50% by 2029. Over the last few years, virtual private network solutions have gained a lot of interest among business vendors and individual solution providers. The demand for VPN services is anticipated to be driven by the ever-changing nature of work and the evolving commercial requirements for virtual private networks. Management, reporting, and control are common features of virtual private network solutions. In an effort to increase sales of VPN solutions, purveyors have collaborated with mobile VPN vendors and NAC solution providers in recent years. Utilizing a virtual private network, VPN services are designed to secure a remote connection. Furthermore, suppliers are allowing buyers to compare rates in real-time online, assisting cost-conscious purchasers in evaluating the VPN services available before making a purchase decision. At the same time, technological advancements combined with economies of scale are likely to enable providers to lower their costs even more and accelerate their expenditures in other sectors.

A typical virtual private network solution includes control features, reporting, and management. In an effort to promote sales of VPN solutions, vendors have collaborated with mobile VPN vendors and NAC solution providers over the past few years. The purpose of VPN services is to enable the virtual private network to secure remote connections. Besides, vendors are allowing buyers to compare the prices online in real-time, thereby helping cost-conscious buyers in assessing the VPN services on offer before making a buying decision. The demand for remote access and site-to-site connectivity has progressively increased to facilitate communication. Bandwidth and data comparability are optimized via remote access and site-to-site connections. Demand for remote virtual private network solutions has been driven in recent years by the proliferation of mobile VPN devices and the rising need for remote accessibility. In addition, technological advancements and economies of scale are anticipated to enable providers to further reduce their cost structure and accelerate investments in other areas.

• Solutions 
• Services

Based on the Type:

The market is segmented into Site-to-site, Remote Access, Extranet, and Others. Extranet type segment is expected to grow rapidly at a CAGR of 15.4% during the forecast period 2022-2029. The increased use of extranet by businesses to post private information on public networks can be ascribed to the growth. Furthermore, businesses are putting increasing emphasis on extending their internal web applications to their partners and customers. 

The remote Access segment is expected to grow rapidly at a CAGR of 14% during the forecast period 2022-2029. The demand for remote access and site-to-site connectivity has progressively increased to facilitate communication. Bandwidth and data comparability are optimized via remote access and site-to-site connections. Demand for remote virtual private network solutions has been driven in recent years by the proliferation of mobile VPN devices and the rising need for remote accessibility.

In recent years, the demand for remote virtual private network solutions has been fuelled by the proliferation of mobile VPN devices and the rising demand for remote accessibility. Compliance with security regulations can be facilitated by remote access for businesses.

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

Based on the Deployment Mode:

The market is segmented into Cloud, and On-premise. The Cloud Deployment Mode segment is anticipated to grow at a CAGR of 17.6% between 2022 and 2029. This is a result of the growing preference for cloud-based deployment, which reduces costs and maintenance. Prominent market participants offer virtual private clouds to provide a secure gateway and private on-premise access to cloud resources. For example, IBM Corporation announced the deployment of an on-premises VPN gateway to a cloud VPN built within a VPC in December 2018. 

Over the past five years, cloud-based VPN has experienced tremendous growth as it affects the business, technology, and information technology sectors. This has led to an increase in global expenditure on cloud computing. The user and device on the other end of a VPN connection are presumed to be secure. Cloud VPN greatly improves employee accessibility by offering virtual private branch exchange capability while preserving the cost management that companies want.

Vendors offer virtual private clouds to assist businesses in building a private cloud computing environment on shared public cloud infrastructure. These services are intended to provide enterprise clients with granular control over permitting or restricting access to particular resources via specific applications or IP addresses.

Cloud-based storage, virtual servers, and networking resources can be dynamically deployed to help VPC clients adapt to changing business requirements. Due to the decreased expenses and maintenance, businesses can concentrate on their core competencies and essential business goals.

• Cloud
• On-premise

Based on end-user:

Based on end-user, the global Virtual Private Network (VPN) market is segmented into service providers, telecom and IT, government and public utilities, healthcare, retail, and others.

The telecom and IT segment reported for the largest revenue share during 2021. New rising demands by the Telecomm industry for security and fast VPN networks gave rise to demand for cloud VPN which is driving revenue growth of this segment. Many operators and vendors are adopting cloud-native technologies such as cloud VPN in the telecommunications industry, while public cloud and IT companies have been using them for some time. 

• Service Providers
• Telecom and IT
• Government and Public Utilities
• Healthcare
• Retail
• Others

Regional Insights:

Between 2015 and 2025, it is anticipated that North America will possess a large market share. In the near future, it is anticipated that the European Union's virtual private network (VPN) software market will mirror that of North America. The United States, Canada, and the remainder of North America are included in the country-level analysis of North America. The analysis and projections for VPN software in Europe include country-level analysis for the United Kingdom, Germany, France, and the remainder of Europe.

Asia-Pacific consists of India, China, Japan, Australia, and the Remainder of Asia-Pacific. Virtual Private Network (VPN) software analysis and projections for the GCC countries, South Africa, and the remainder of the Middle East and Africa are presented in the Middle East and Africa segment.

Analysis of the VPN software market in Brazil, Mexico, and the remainder of South America.

Geographically, the global VPN Software market has been analysed in various regions like North America, Europe, Asia-Pacific, Latin America, Middle East, and India. The global region is dominating this market in the upcoming future.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries

• Denmark
• Finland
• Iceland
• Sweden
• Norway

• Benelux Union
  • Belgium
  • The Netherlands
  • Luxembourg
• Rest of Europe

• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia-Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Key Vendors:

Competitive landscape of the global Virtual Private Network (VPN) market is separated with many key players operating on global and regional levels. Key players are involved in the product development and strategic alliances to expand their respective product portfolios and gain a robust position in the global market. Major players in the market include:

• Google

Google is a multinational company focusing on advertising, search, platforms and operating systems, enterprise and hardware products. Google Search, Google Chrome, Google Docs, Google Calendar, Google Photos, Google Meet, Google Drive, Google Finance, Google Play Books, Google News, Google Earth, Google Ad Manager, Google Play, AdMob, Google Maps, AdSense, Gmail, and Google Groups are all products of Google and YouTube are among the products and services included in its portfolio. The corporation operates in the Americas, Europe, Asia-Pacific, Africa, and the Middle East. Google's headquarters are located in Mountain View, California.

• Microsoft Corporation

Microsoft is the largest software developer in the globe. The corporation, founded by Bill Gates and Paul Allen in 1975, is best known for its software products, such as the Microsoft Windows operating system, Microsoft Office, and Internet Explorer. Microsoft is also well-known for its hardware products, such as the Microsoft Surface touch-screen personal computer and the Xbox video game console line.

• Cisco Systems

Whether in business, education, philanthropy, or creativity, Cisco (NASDAQ: CSCO) enables individuals to make powerful connections. Cisco hardware, software, and service offerings are used to construct the Internet solutions that make networks possible, allowing for simple access to information from anywhere in the world. A modest group of computer scientists from Stanford University founded Cisco in 1984.

• Oracle Corporation

We are a cloud technology company that provides computing infrastructure and software to organizations worldwide to help them innovate, uncover efficiencies, and become more effective. We also developed the world's first and only autonomous database to assist in the organization and security of our clients' data. Oracle Cloud Infrastructure offers enhanced productivity, security, and cost savings. It is designed to facilitate the migration of workloads from on-premises systems to the cloud, as well as between the cloud, on-premises, and other clouds.

• Amazon

Amazon is governed by four principles: customer obsession as opposed to competitor concentration, passion for invention, commitment to operational excellence, and long-term thinking. It is motivated by the excitement of creating technologies, devising products, and delivering services that improve people's lives. It opens to new methods of doing things, make quick decisions, and have no fear of failure and having the scope and capabilities of a large company, and the spirit and passion of a small one.

• Nord Security

Nord Security is a leading global provider of digital security and privacy solutions for organizations and individuals. Today, the products are utilized by millions of customers across the globe and are lauded by the industry's foremost cybersecurity experts and media channels.

• GoodAccess

GoodAccess is a cloud-based VPN service that permits secure remote access to corporate networks, enterprise systems, and cloud resources. It provides cloud VPN, a zero-trust network, and a software-defined perimeter, among other features. The business was established in 2009 in Usti nad Labem, Czech Republic.

• IBM Corporation

IBM is a multinational technology company based in Armonk, New York. In 1911, the Computing-Tabulating-Recording Company was established (CTR). IBM is one of the largest IT companies in the globe, with operations in over 170 nations. Well-known IBM hardware and software products include computers, servers, storage systems, and networking equipment. In addition, it provides consulting, technology, and business services such as cloud computing, data analytics, and artificial intelligence (AI)

• Huawei

Huawei Technologies Co Ltd (Huawei), a subsidiary of Huawei Investment & Holding Co Ltd, provides information and communication technology infrastructure and smart devices (ICT). The company offers laptops, tablets, routers, wearables, headphones, enterprise wireless products, enterprise optical transmission and access products, networking products, cloud computing products, and networking products.

Strategic Developments:

• In July 2020 - Mozilla introduced its paid VPN service for Android and Windows devices. This VPN provides a 'no-logging' policy that enables users to keep their system information, such as IP address, browsing activity, session duration, timestamp, and DNS request, confidential.
• In March 2019 - Opera introduced a new Internet browser for android users. This browser comes with a built-in VPN that uses 256-bit encryption algorithms which helps to build an encrypted and private connection between multiple devices and a remote VPN server.

Scope of Report:

Conclusion:

• A comprehensive analysis that incorporates an evaluation of the parent market.
• Significant shifts in market dynamics.
• Segmentation of the market to the second or third level.
• The historical, current, and anticipated market size in terms of both value and volume.
• Reporting and analysis of recent developments in the industry.
• The market shares and strategies of major competitors.
• Emerging suitable markets and segments.
• An objective evaluation of the market's trajectory.
• Recommendations to corporations for enhancing their market position.