The global VPN software market is set to reach a valuation of USD 1.7 Billion in 2023. The VPN software market is projected to further grow at a CAGR of 14.1% to reach USD 7.2 Billion by 2033.
| Attributes | Details |
|---|---|
| VPN Software Market Estimated Value (2023) | USD 1.7 Billion |
| VPN Software Market Projected Value (2033) | USD 7.2 Billion |
| Market Value-based CAGR% (2023 to 2033) | 14.1% |
| Market Top 5 Vendor Market Share | 50% |
Total sales of VPN software will represent nearly 12% of the global network security market, globally. Virtual Private Networks (VPNs) software enables users to connect to secure, and private networks. It is an integrated platform that offers various technologies such as tunneling, multiprotocol label switching (MPLS), and network encryption, among others. It is also used to describe a communication network. VPN software solutions can be implemented in the OpenVPN cloud on end-user devices, servers, and appliances.
A Virtual Private Network (VPN) is a way to extend a private network through a public network such as the internet. VPN software providers are majorly focusing on two solutions such as IPSec (IP Security Protocol) and OpenVPN that improve network security and scalability.
The global VPN software market is estimated to expand at a considerable pace over the forecast period due to the growing need to access private networks remotely and the increasing incidence of cyber-attacks.
| Market Statistics | Details |
|---|---|
| Jan - Jun (H1), 2021 (A) | 13.6% |
| Jul - Dec (H2), 2021 (A) | 13.9% |
| Jan - Jun (H1),2022 Projected (P) | 13.9% |
| Jan - Jun (H1),2022 Outlook (O) | 14.2% |
| Jul - Dec (H2), 2022 Outlook (O) | 14.6% |
| Jul - Dec (H2), 2022 Projected (P) | 14.3% |
| Jan - Jun (H1), 2023 Projected (P) | 14.8% |
| BPS Change: H1,2022 (O) - H1,2022 (P) | (+)30 |
| BPS Change: H1,2021 (O) - H1,2022 (A) | (+)60 |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+)30 |
| BPS Change: H2, 2021 (O) - H2, 2022 (A) | (+)70 |
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Virtual Private Networks (VPNs) are software and services used to attain security and confidentiality for data in motion by means of encryption and access controls. A remote-access VPN secures connections for remote users, such as mobile users or telecommuters, to corporate LANs over shared service provider networks.
Sales of VPN software are projected to grow at a 14.1% CAGR between 2023 and 2033, in comparison with the 11.8% CAGR registered during 2018 to 2022.
VPN software providers use corporate VPNs to provide secure, encrypted, and remote access to the company's internal network available for employees. Employees can use the corporate network to access apps, files, printers, and other business resources at the workplace.
The demand for cloud-based VPN software is increasing among enterprises across various industries to provide remote-access VPN. The growing need to help users access their organization's applications, migrate access to cloud providers, reduce third-party dependencies, improve security resources, and reduce latency issues will continue driving sales of cloud-based VPN.
Further, increasing implementation of cloud-based VPN software in the government, banking, financial services, and insurance (BFSI), and IT & telecom industries is boosting VPN software sales across the globe.
Cloud-based VPN software offers various benefits such as a secure internet network, preventing data throttling, hiding private information, avoiding bandwidth throttling, improved efficiency, and network scalability. Surging adoption of cloud-based VPN for improving network security and enabling network encryption will continue augmenting the growth in the market.
Growing Demand for Secure Internet Network in the USA is Fueling Sales of VPN Software
As per FMI, the total demand for VPN software in the USA is expected to account for over 80.3% of the North American market share through 2033. VPN software providers in the USA are utilizing VPN services for various applications such as consumer, commercial, and other services.
Increasing demand for secure Internet network connections across the country is creating opportunities for growth in the VPN software market. It offers different features such as plentiful server locations, integrated kill switch, anonymous DNS servers, support for OpenVPN, and router support at lower prices. The reliability of such features is expected to boost sales of VPN software in the USA
Growing Trend of Remote Work in Japan is Boosting VPN Software Sales
Demand for VPN software in Japan is expected to rise at an impressive 18.0% CAGR over the forecast period. The rising incidence of cyber-attacks and the growing adoption of cloud-based VPN software is expected to boost the market in the forthcoming years.
Moreover, VPN software can be utilized for unblocking websites, local blackouts, bypassing restrictions, and streaming live events. In such ways, VPN software improves network security and scalability.
The existence of many organizations with innovative and progressive IT network infrastructure, developments in new technologies, and increased acceptance of Software-as-a-service (SaaS) and Platform-as-a-service (PaaS) platforms are all driving demand for cloud computing technology.
Cloud computing simplifies IT management while also providing enhanced security solutions. Increasing adoption of cloud computing applications will fuel sales.
Growing Concerns Regarding Cyber Security are Spurring Demand for VPN Software
Sales of VPN software in India are expected to grow at a prolific 21.4% CAGR between 2023 and 2033. The increasing need secure remote access, the development of a remote work security policy, and the rising demand for cloud communication solutions are spurring demand in the market.
In the past few years, the trend of digitizing workspaces has fueled demand for remote solutions in enterprises, which further is creating opportunities for growth in the VPN software market. VPN software suppliers in India are offering cloud-based VPN for remote access. Such developments are expected to bode well for the market in the forthcoming years.
Demand for Cloud-based VPN Software to Remain High
By deployment mode, the cloud-based VPN software segment is set to expand at a CAGR of 15.5% from 2023 to 2033. Cloud VPN allows businesses to move their VPN hosting to the cloud in order to increase access to their existing cloud services.
Enterprises have started adopting and deploying cloud-based applications to deliver better experiences and improve productivity, mobility applications, and remote access. Due to this factor, many countries around the globe are moving toward the deployment of VPN software, which is expected to drive sales in this segment.
Adoption of VPN Software in Small and Mid-Size Enterprises Will Gain Momentum
In terms of enterprise size, the small and medium-sized enterprises (SMEs) segment is forecast to expand at a CAGR of 16.3% over the forecast period.
Moreover, VPN software solutions are supreme for SMEs businesses for connecting remote offices and workers to a company network at a low cost without compromising security. SMEs are rapidly adopting VPN software to find better ways to innovate their business and gain a competitive advantage.
As per FMI, the commercial application segment is expected to account for 42% of the total market share by 2033. VPNs can securely connect a user to an organizational internal network or to the public internet. There are two types of VPN connectivity that are used in commercial applications such as remote access VPNs and site-to-site VPNs.
Growing demand for remote access VPN across various organizations worldwide will continue pushing sales in this segment over the assessment period.
Applications of VPN Software in IT and BFSI Sectors Will Gain Traction
Based on industry, the market is segmented as IT & telecom, retail, government, healthcare, BFSI, manufacturing, and others.
Sales in the BFSI segment are projected to increase at a CAGR of 18.1% during the forecast period. However, the IT and telecom industry segment accounted for the largest market share of 21.9% in 2022.
IT and telecommunication and BFSI sectors are the largest adopters of cloud-based VPN technology currently. VPN software helps the BFSI industry in running various kinds of applications more efficiently on a rationally private and secure network. It is also easy to manage high uptime for different businesses in the banking, financial, and risk management industry.
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The VPN software providers are improving their existing products and are launching new products for existing as well as new markets. This strategy helps the company diversify its product offerings and enhance its customer base & user experience.
For instance:
| Attributes | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East & Africa |
| Key Countries Covered | The USA, Canada, Brazil, Mexico, Germany, the United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa, and South Africa |
| Key Segments Covered | Deployment Mode, Enterprise Size, Application, Industry, and Region |
| Key Companies Profiled |
Cisco Systems, Inc.; GZ Systems Ltd.; Nord Security; CactusVPN; NCP Engineering GmbH; Netgear Inc.; Huawei Technologies Co., Ltd.; Array Networks, Inc.; Microsoft Corporation; Virtela; Robustel; Singtel; Oracle Corporation; Contemporary Controls; Sophos |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Growing demand for secure internet networks is fueling sales.
The growing trend of remote work in Japan is boosting VPN software sales.
The market is valued at USD 680 million in 2023.
Demand for cloud-based VPN Software is mostly preferred.
The market is forecast to register a CAGR of 14.1% through 2033.
| Estimated Size, 2024 | USD 10,579.2 million |
|---|---|
| Projected Size, 2034 | USD 27,942.7 million |
| Value-based CAGR (2024 to 2034) | 10.2% |
| Estimated Market Size (2024E) | USD 2,764.6 million |
|---|---|
| Projected Industry Value (2034F) | USD 9,033.2 million |
| Value-based CAGR (2024 to 2034) | 12.6% |
| Market Value (2023) | USD 39,407.4 million |
|---|---|
| Market Anticipated Value (2033) | USD 116,338.4 million |
| Market Growth Rate (2023 to 2033) | 11.4% CAGR |
| Estimated Market Value (2022) | USD 25219.8 Million |
|---|---|
| Forecasted Market Value (2032) | USD 75553 Million |
| Market CAGR (2022 to 2032) | 10.9% |
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