VIRTUAL PRIVATE NETWORK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Virtual Private Network Market Size and Trends

Virtual private network market is estimated to be valued at US$ 57.2 Bn in 2024 and is expected to reach US$ 194.7 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 19.1% from 2024 to 2031.

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The demand for VPNs is growing steadily as remote and hybrid work models have become common due to increased digitalization and smartphone usage. With growing concern for online security and privacy, there has been a tangible rise in the adoption of VPNs by both enterprises and individuals. As cyberthreats continue to increase in number and sophistication, the need amongst organizations to ensure secure Investing more in VPN services and solutions will be a priority for companies as they aim to provide their employees with better network access and smooth connectivity. Increased uptake of cloud services and widespread digital transformation across industries has also contributed to the rising reliance on virtual private networks.

Increasing demand for secure connectivity from remote workforce

There has been increase in the number of people working remotely as well as an increase in the adoption of bring-your-own-device policy among companies. This has accelerated the need for secure connectivity solutions that can provide access to internal networks, applications and resources to employees working outside the traditional office setup. With workforce becoming distributed, there is a growing emphasis on providing secure access to virtual work environments and collaboration tools. Many organizations rely on VPN technology to enable their workers to securely access private networks through public internet connections while on the move. VPN software installed on devices like laptops and smartphones allows remote employees to stay productive from any location and access critical data and systems privately and encrypted. This provides businesses continuity and flexibility while also meeting security and compliance needs. The rise of cloud-based SaaS applications and willingness of companies to support flexible work arrangements boosts demand for easy to deploy and manage VPN services among small and medium scale enterprises with distributed operations.

The rise of remote work brought on by the pandemic has highlighted the importance of VPN services for many companies. With more people expected to work remotely at least part-time even post-pandemic, the market continues to expand. Consumer use of VPNs has also increased as people look for safer options to access public Wi-Fi networks and browse privately on their personal devices outside home and office premises. The proliferation of internet-connected devices and "work from anywhere" culture is acting as a driver for further growth of virtual private network market.

For instance, in 2022, IBM  is a multinational technology company known for providing a wide range of computer hardware, software, and consulting services. reported that the average cost of a data breach in the U.S. rose to US$ 9.44 million, compared to US$ 9.05 million in 2021. Globally, the average cost per data breach was US$ 4.35 million in 2022. These figures indicate a notable increase in the occurrence of data breaches and cyber-attacks in the U.S., prompting organizations to invest in more secure and advanced solutions to safeguard their data.

With growing reliance on internet-based technologies and outsourcing of IT infrastructure, the need to protect sensitive data and ensure privacy compliance has become imperative for businesses across all industries and sizes. Stricter data privacy laws like the California Consumer Privacy Act (CCPA) and the European Union's General Data Protection Regulation (GDPR) have raised the compliance bar, prompting organizations to overhaul their security strategies and deploy solutions that can demonstrate end-to-end encryption and access controls. Virtual private networks have emerged as an effective tool to enable secure data transfer and meet the privacy and security expectations of both customers and regulators.

For instance, from October 2021 to September 2022, financial and insurance companies experienced malware attacks most frequently, affecting approximately 40% of global organizations. System anomalies ranked second, reported by 20% of organizations, followed by network and application anomalies at 23%, according to Orange Cyberdefense.