Global Virtual Private Network (VPN) Market to Reach US$137.7 Billion by 2030

The global market for Virtual Private Network (VPN) estimated at US$50.9 Billion in the year 2023, is expected to reach US$137.7 Billion by 2030, growing at a CAGR of 15.3% over the analysis period 2023-2030. Multiprotocol Label Switching, one of the segments analyzed in the report, is expected to record a 15.3% CAGR and reach US$67.4 Billion by the end of the analysis period. Growth in the Cloud segment is estimated at 17.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$19.2 Billion While China is Forecast to Grow at 17.7% CAGR

The Virtual Private Network (VPN) market in the U.S. is estimated at US$19.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$21.5 Billion by the year 2030 trailing a CAGR of 17.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.1% and 12.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.0% CAGR.

Global Virtual Private Network (VPN) Market - Key Trends and Drivers Summarized

A Virtual Private Network (VPN) is a technology that creates a safe and encrypted connection over a less secure network, such as the internet. VPN technology was primarily developed to allow remote users and branch offices to access corporate applications and resources securely. The use of VPNs extends to individual users who utilize the services to secure their private browsing habits from their ISPs, while gaining over geo-restrictions and censorship, thus enhancing their privacy and security on the internet. VPNs encrypt the user`s internet traffic and disguise their online identity, making it more difficult for third parties to track their activities or steal data. The system operates by routing the device’s internet connection through the VPN’s private server rather than the user`s internet service provider (ISP), thereby masking data transmissions, the user`s IP address, and location.

The application of VPNs has expanded beyond corporate settings to personal consumer use due to growing concerns about personal privacy and security, particularly in public Wi-Fi networks. This shift is amplified by an increase in the number of cyberattacks and data breaches that target personal information and sensitive data. VPNs are increasingly adopted by individuals looking to protect their browsing activities and personal data from prying eyes on the internet. Moreover, as global internet censorship has increased and streaming services have grown popular, VPNs have become crucial in accessing restricted websites and media from different countries. This has particularly been the case in countries with restrictive government regulations on internet access, and for people working remotely who need to access network resources securely from different parts of the world.

The growth in the VPN market is driven by several factors, including heightened public awareness of cybersecurity threats, stringent data protection regulations, and the widespread increase in remote work arrangements. The rising prevalence of cyber threats and growing concerns over digital privacy have led consumers and businesses alike to seek out VPN services. Legislative and regulatory changes such as the GDPR in Europe and similar regulations globally have compelled both corporate and individual users to adopt VPN services to ensure compliance and protect data privacy. Furthermore, the COVID-19 pandemic accelerated the adoption of remote work models, necessitating secure access to corporate networks from remote locations and thereby boosting the demand for VPNs. The increasing penetration of internet and mobile device usage in emerging markets also contributes to growth, as new users seek ways to secure their online activities.