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Virtual Private Network (VPN) - Global Market Trajectory & Analytics

  • ID: 4845864
  • Report
  • October 2020
  • Region: Global
  • 666 pages
  • Global Industry Analysts, Inc
COVID-19 Accelerates Work From Home Revolution. VPN Usage Spirals to an all Time High of 27.1% in 2020

The global market for Virtual Private Network (VPN) is expected to witness unprecedented spurt in growth in the year 2020 to the tune of 27.1%. By the year 2027, the market is projected to reach US$107.5 billion trailing a CAGR of 17.2% over the analysis period 2020 through 2027. The COVID-19 pandemic confined people to homes, closed down offices, halted transport, and virtually brought social and economic life to a grinding halt. To cope with the abrupt cessation of all operational activities, the world shifted gears to a remote working mode almost overnight. Millions of employees were migrated to work from home (WFM) models initially as a result of shelter-in-place orders. Although countries are emerging from lockdowns, second of wave infections & voluntary social distancing measures are resulting in companies extending WFM options for their employees. Over the last eight months, 88% of IT companies worldwide migrated their employees to work-from-home (WFH) during the pandemic. 92% of teams in Asia-Pacific have implemented WFH since the outbreak highlighting the need to flatten the curve in countries with less than adequate healthcare resources. 45% of employees cite COVID-19 as the trigger for rapid adoption of remote working strategies. 72% of companies plan to shift a portion of their staff permanently to a WFH model. Over 70% of companies plan to permanently offload over 35% of their workforce to WFM roles to reduce worker density at offices.

In the United States, in the pre-pandemic period only 5% to 7% of the country's workforce was working from home (WFH) although over 58% held jobs compatible with remote work. However, over 35% to 40% will work from home multiple-days-a-week by the end of 2021. The pandemic is creating a global 'Work-At-Home' culture which will very likely last beyond the crisis. Against this backdrop, every company needs a well-thought-out work-at-home and business continuity plan. Digital transformation is now visible in all industrial sectors. Telehealth will replace doctor visits by 2025; by 2021 new home constructions will include co-working spaces highlighting the permanence of remote working; supply chain 4.0 will reach 100% adoption by 2025; eCommerce will account for 60% of retail spending by 2020 and block chain & tokenization will be integrated into financial services by 2023.Digital technologies provide productivity, security, efficiency, agility, workforce re-skilling, and customer experience advantages, all of which are vital during times of crisis like the current pandemic. The pandemic is helping test the effectiveness of digital solutions and in the post pandemic world digital innovation will accelerate even further. A key technology playing a crucial role in enabling remote operations is VPN and the technology has witnessed massive increase in adoption in the 1st quarter 2020. In other words, the astounding spike in the number of remote and mobile workers over the last couple of months has brought VPN infrastructures into the spotlight.

Virtual private networks (VPNs) securely connect remote workers to an organization's internal network. VPNs have been experiencing over 150% growth in the 1Q 2020 & the trend is expected to continue in the coming months, albeit at a more stable rate. VPN usage has spiked in parallel to the increase in COVID-19 infections. In Italy, USA, Spain, Germany, Iran and France, VPN usage in March 2020 increased by 175.2%, 132.5%, 62.1%, 48.4%, 51.9%, 47.4% respectively. Companies are upgrading VPN capacity by transitioning towards a software-based service. A software-based perimeter can be employed to monitor the security and quality of wireless connections and for monitoring activity of users. In the event a user has a poor connection or accesses a suspicious website, the VPN software comes into play. The users of the VPN can have an indefinite number of conditions and implement actions on the basis of such conditions. Customers can create rules related to access, and the software implements such rules by restricting certain kinds of activities or connections, such as visiting gambling sites at work. Risk tolerance varies from company to company, with hospitals and banks being highly stringent. Split tunnel or full tunnel is another VPN management strategy. A split tunnel can aid in saving bandwidth and safeguard the sensitive information of a company. However, this method makes corporate networks more vulnerable to security risks. But when a full tunnel VPN is used, the entire traffic is scrutinized. And to this traffic, various security tools such as anti-malware and anti-virus software are applied. The full tunnel method also offers improved visibility as to the actions of the user. But one of the main drawbacks of full tunnel is that it results in significant cost to the user's gateway, and can affect connectivity for the customers. A cloud-based VPN in comparison facilitates easier scaling-up, especially for newer organizations which do not maintain physical hardware on the premise. Gateways that are intended for a specific number of users will not be capable of supporting full tunnel traffic. Split tunnel has lower monitoring options, with managers only being able to witness the period for which an employee remains connected to the VPN. But with full tunnel, companies can view when an employee is connected to the VPN and also what the person is accessing.

Competitors identified in this market include, among others:
  • Cisco Systems, Inc.
  • Cohesive Networks
  • Contemporary Control Systems, Inc.
  • CyberGhost S.A. (Romania)
  • Golden Frog GmbH
  • Google Cloud Platform
  • Guangzhou Robustel Technologies Co., Ltd.
  • Huawei Technologies Co., Ltd.
  • Microsoft Corporation
  • NCP Engineering GmbH
  • NETGEAR, Inc.
  • NordVPN
  • Oracle Corporation
  • PureVPN
  • Safer Social Ltd
  • SingTel (Singapore Telecommunications Ltd.)

The global analysis and forecast periods covered within the report are 2020-2027 (Current & Future Analysis) and 2012-2019 (Historic Review). Research estimates are provided for 2020, while research projections cover the period 2021-2027.
Note: Product cover images may vary from those shown
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • COVID-19 Pandemic Provides Strong Push for Virtual Private Networks (VPNs)
  • EXHIBIT 1: Threat to Security and Privacy: Increase in Cyberattacks and Hacking amidst COVID-19 Pandemic
  • VPN Adoption Surges as COVID-19 Pandemic Leads to a Rise in Remote Work and WFM Culture
  • EXHIBIT 2: Average Weekly Increase in VPN Usage in March-2020
  • An Introduction to Virtual Private Network (VPN)
  • Types of VPNs
  • Global Market for Virtual Private Network (VPN): Prospects & Outlook
  • Hardware Captures a Significant Share of VPN Market
  • EXHIBIT 3: Global VPN Market by Component (in %) for 2020E
  • MPLS Segment Leads the VPN Market
  • Large Enterprises Capture Major Market Share
  • EXHIBIT 4: Global SSL VPN Market by Enterprise Size (in %) for 2020E
  • Cloud VPN Market: A High Growth Segment
  • BFSI: The Major End Use Segment
  • Developed Regions Lead, Developing Economies to Spearhead Future Growth
  • Competition
  • Select Innovations in VPN Market
  • Comparative Review of Top Virtual Private Networks
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Transforming the Way Users Browse the Internet, VPNs Continue to Gain Prominence for Businesses & Consumers Alike
  • VPN Usage Statistics: An Overview
  • EXHIBIT 5: Global VPN User Base Breakdown (in %) by Gender
  • EXHIBIT 6: Global VPN User Base Breakdown (in %) by Age Group
  • Growing Threat of Cyberattacks and Data Breaches Spurs Adoption of VPNs
  • EXHIBIT 7: Average Annual Cost of Cybercrime (in US$ Million) by Industry for the Years 2017 and 2018
  • EXHIBIT 8: Average Cost of Cyberattacks (in US$ Thousand) by Type for 2017 and 2018
  • Implementation of Effective Security Solutions Highly Critical to Prevent Hacks
  • Internet Opens Up a Range of Online Security Issues, Bringing to Light the Importance of Secure Access to Networks
  • EXHIBIT 9: Number of Internet Users (in Million) and Percentage Penetration Rate (%) by Region (As of June 2020)
  • EXHIBIT 10: Number of Internet Users Worldwide (in Billions) for the Years 2011-2019
  • VPN Rides the Wave of Transforming Workplace Norms
  • EXHIBIT 11: Global Enterprise Mobility Market (in US$ Billion) for the Years 2019, 2022, and 2025
  • With Video & Web Conferencing Solutions Becoming Integral to Communications Amidst the Pandemic, VPN Adoption Rises among Enterprises
  • EXHIBIT 12: Rising Internet Penetration & Growing Use of Video & Web Conferencing Solutions Augurs Well for VPN Market: Internet Penetration Rate (%) in Select Countries for April 2020
  • Rapid Growth of Media Streaming Services Leads to an Increase in VPN Adoption
  • EXHIBIT 13: Entertainment Emerges as a Key Reason Driving VPN Usage: % of VPN Users Citing the Reason for Using VPN Services
  • EXHIBIT 14: COVID-19 Outbreak Increases Demand for Streamed Media Services: Streamed TV & Video Content Growth (in %) by Select Countries for 2nd Week Vs 1st Week in March 2020
  • EXHIBIT 15: Global OTT Market Revenues (in US$ Billion) by Segment for the Years 2019 & 2025
  • EXHIBIT 16: Popular VPNs for Streaming Services
  • VPN Bypasses to Drive Adoption among Private Consumers
  • With Remote/Online Education Becoming the Norm in a COVID-19 Hit World, Security and Privacy Benefits Drive Adoption of VPNs
  • EXHIBIT 17: Global E-Learning Market Size in US$ Million by Region/Country for 2019 & 2025
  • A Glance at Popular VPNs for College Institutions
  • Need for Enhanced Mobile Security Boosts Mobile VPN Market
  • Popular Android VPNs
  • EXHIBIT 18: Number of Mobile Client Installations (in Thousands) in App Store by VPN Brand
  • EXHIBIT 19: Number of Mobile Client Installations (in Thousands) in Google Play Store by VPN Brand
  • Cloud VPN Market Poised to Grow at a High Rate
  • Site-to-Site VPN Market Benefits from Rising Enterprise Investments into Networking Solutions
  • Anonymity and Privacy Advantages Drive Adoption of VPNs among Consumers
  • Small Businesses Poised to Benefit from VPN Adoption
  • OpenVPN Access Server Facilitates Faster VPN Deployment
  • Promise of Better Security Supports Adoption of VPN in BFSI Sector
  • Government Agencies Struggle with Legacy VPNs amidst the COVID-19 Outbreak
  • Use of VPN among Healthcare & Emergency Service Providers on the Rise
  • Telecommunication Industry Makes Use of VPN Capabilities
  • Restrictions on VPN, Political Censorship and Regulations in Certain Nations Impede Market Growth
  • EXHIBIT 20: Number of Government Requests to Google for Information on User Data and Activity by Country
  • VPN Holds Potential as Digital Marketing Tool
  • Emergence of Alternatives Threatens VPN
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • GEOGRAPHIC MARKET ANALYSIS
  • UNITED STATES
  • VPN Usage Picks Up During COVID-19 Pandemic
  • EXHIBIT 21: Rising Threat of Cyberbreaches Fuels VPN Adoption: Number of Data Breaches and Records Exposed (in Millions) in the US for 2005-2019
  • Market Analytics
  • CANADA
  • JAPAN
  • Market Overview
  • EXHIBIT 22: Internet Penetration Rate (In %) for the Years 2015-2019
  • An Overview of Prominent VPN Providers in Japan
  • Market Analytics
  • CHINA
  • China's ‘Great Firewall’ Augments Demand for VPN
  • List of Popular VPN Vendors in China
  • Hong Kong: Enactment of New National Security Law Spurs Interest in VPN Services
  • Market Analytics
  • EUROPE
  • Mobile VPN Gains Traction
  • Cloud Migration and Multi-site Connectivity Sustain Demand for MPLS VPN Solutions
  • Competitive Landscape
  • A Peek into Select Popular VPN Services in Europe
  • Market Analytics
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • COVID-19 Pandemic Spurs Adoption of VPNs in India
  • EXHIBIT 23: Total Number of Internet Users for the Years 2017, 2020, 2023 and 2025
  • Relaxed VPN Norms for IT and ITeS Companies Amidst Coronavirus Outbreak
  • COVID-19 Pandemic and Internet Shutdowns Boost VPN Adoption
  • Select Popular VPN Services in India
  • Market Analytics
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 115
Note: Product cover images may vary from those shown
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