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Virtual Private Network Market

ID: MRFR/ICT/1608-CR
100 Pages
Ankit Gupta
February 2020

Virtual Private Network Market, By Type (Hosted, IP, Multiprotocol Label Switching, Cloud), By Deployment (On-Premise, On-Cloud), Products (Routers, Switches, Firewalls), By End User (Government, Telecommunication, Manufacturing, Healthcare, BFSI, Utilities) - Forecast till 2035

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Virtual Private Network Market Infographic
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Virtual Private Network Market Summary

As per MRFR analysis, the Virtual Private Network Market Size was estimated at 1026.7 USD Billion in 2024. The Virtual Private Network industry is projected to grow from 1144.49 USD Billion in 2025 to 3850.8 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 12.9 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Virtual Private Network Market is experiencing robust growth driven by increasing demand for privacy and remote connectivity.

  • The market is characterized by a rising demand for privacy, particularly in North America, which remains the largest market.
  • The expansion of remote work continues to fuel the adoption of VPN solutions, especially among individual users, the largest segment.
  • Access to geo-restricted content is becoming a significant driver of VPN usage, particularly in the Asia-Pacific region, the fastest-growing market.
  • Increasing cybersecurity threats and regulatory compliance requirements are major drivers propelling the growth of the site-to-site connectivity segment.

Market Size & Forecast

2024 Market Size 1026.7 (USD Billion)
2035 Market Size 3850.8 (USD Billion)
CAGR (2025 - 2035) 12.9%

Major Players

NordVPN (LV), ExpressVPN (VG), Surfshark (NL), CyberGhost (RO), Private Internet Access (US), IPVanish (US), TunnelBear (CA), ProtonVPN (CH), VyprVPN (CH)

Virtual Private Network Market Trends

The Virtual Private Network Market is currently experiencing a notable transformation, driven by an increasing demand for online privacy and security. As individuals and organizations become more aware of the risks associated with data breaches and cyber threats, the adoption of VPN services appears to be on the rise. This trend is further fueled by the growing reliance on remote work and digital communication, which necessitates secure connections to safeguard sensitive information. Additionally, the proliferation of streaming services and geo-restricted content has led consumers to seek VPN solutions that enable access to a broader range of online resources. Moreover, advancements in technology are likely to play a pivotal role in shaping the future of the Virtual Private Network Market. Innovations such as enhanced encryption protocols and improved user interfaces may attract a wider audience, including those who may have previously been hesitant to utilize such services. As competition intensifies, providers are expected to differentiate themselves through unique features and pricing strategies, potentially leading to a more diverse marketplace. Overall, the Virtual Private Network Market is poised for continued growth as it adapts to the evolving landscape of digital security and user demands.

Rising Demand for Privacy

There is an increasing awareness among consumers regarding the importance of online privacy. This trend is likely to drive more individuals and businesses to seek Virtual Private Network solutions that offer enhanced security features.

Expansion of Remote Work

The shift towards remote work arrangements appears to be a significant factor influencing the Virtual Private Network Market. Organizations are prioritizing secure connections for their employees, which may lead to higher adoption rates of VPN services.

Access to Geo-Restricted Content

As streaming services continue to expand globally, users are increasingly turning to Virtual Private Networks to bypass geographical restrictions. This trend suggests a growing need for VPNs that facilitate access to diverse online content.

Virtual Private Network Market Drivers

Increasing Cybersecurity Threats

The rise in cybersecurity threats is a primary driver of the Global Virtual Private Network Market Industry. As organizations face increasing risks from cyberattacks, data breaches, and identity theft, the demand for VPN solutions is surging. VPNs provide a secure tunnel for data transmission, safeguarding sensitive information from malicious actors. In 2024, the market is projected to reach 1026.7 USD Billion, reflecting a growing awareness of the need for robust cybersecurity measures. Companies are increasingly adopting VPNs to protect their networks, indicating a shift towards prioritizing security in digital communications.

Market Segment Insights

By Application: Remote Access (Largest) vs. Site-to-Site Connectivity (Fastest-Growing)

The Virtual Private Network (VPN) market's application segment showcases a diverse distribution of user needs across several key categories. Remote Access holds the largest share, catering primarily to individuals working from home and organizations seeking secure connections for their employees. Following closely is Site-to-Site Connectivity, which is gaining traction as businesses continue to expand their networks and require secure inter-office communications. Other applications like Secure Browsing and Public Wi-Fi Security also contribute significantly, tailoring services to specific user concerns about data privacy and online threats.

Remote Access (Dominant) vs. Site-to-Site Connectivity (Emerging)

Remote Access is currently the dominant application in the VPN market, favored for its user-friendly and highly secure solutions for individuals accessing corporate networks from remote locations. This segment benefits from the rise of telecommuting and the increasing need for secure and reliable access to sensitive data. On the other hand, Site-to-Site Connectivity is emerging as a key focus for enterprises looking to establish secure links between various branches. This application ensures reliable communication and data sharing without compromising security. With the growing trend towards cloud services and collaborative work environments, both values are poised to further expand, yet Remote Access remains essential for personal and business users seeking convenience in security.

By End Use: Individual Users (Largest) vs. Small and Medium Enterprises (Fastest-Growing)

In the Virtual Private Network Market, the distribution of market share among the end-use segments reveals that individual users constitute the largest segment, driven by the increasing need for privacy and security in personal online activities. They significantly outnumber the other segments; however, Small and Medium Enterprises (SMEs) are rapidly growing as businesses increasingly recognize the necessity of secure internet connections for operations and remote work arrangements. Growth trends indicate a robust adoption of VPN solutions across SMEs, fueled by rising cybersecurity threats and data privacy regulations. The push for flexible working environments, particularly post-pandemic, has amplified the demand for VPN services, allowing SMEs to safeguard sensitive information while enhancing productivity. Moreover, awareness campaigns about online risks are prompting individual users to seek reliable VPN options, contributing to market dynamism.

Individual Users (Dominant) vs. Government Agencies (Emerging)

The dominant segment of Individual Users in the Virtual Private Network Market thrives on a growing emphasis on personal data security and the need to bypass geo-restrictions for unfiltered internet access. Their purchasing decisions are largely influenced by the rise of online threats, alongside a heightened awareness surrounding privacy issues. On the other hand, Government Agencies represent an emerging segment, increasingly investing in VPN solutions to protect sensitive data and ensure secure communications in their operations. This sector is driven by a need for compliance with stringent data protection laws and a proactive approach to counter cyber threats. While Individual Users remain a substantial market presence, Government Agencies are expected to increase their market share significantly as they enhance digital security measures.

By Deployment Type: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

In the Virtual Private Network Market, the deployment type segment consists of three key categories: Cloud-Based, On-Premises, and Hybrid. Cloud-Based VPNs hold the largest market share, owing to their scalability and cost-effectiveness, making them the preferred choice for most enterprises. In contrast, On-Premises solutions are adopted by organizations with strict security requirements and data control needs, leading to a smaller market share in comparison. Meanwhile, the Hybrid deployment type is gaining traction as it combines the benefits of both Cloud-Based and On-Premises solutions, appealing to a wide range of users seeking flexibility. The growth trends within this segment are driven by an increasing demand for remote connectivity and enhanced data security. Cloud-Based deployment remains a dominant player due to its accessibility and lower maintenance costs, catering primarily to small and medium-sized enterprises. Conversely, the Hybrid model is emerging rapidly, fueled by businesses that require a balance between cloud resources and on-premises control, particularly in industries with regulatory compliance mandates. As businesses continue to evolve, the demand for combined deployment strategies is expected to rise significantly.

Deployment Type: Cloud-Based (Dominant) vs. Hybrid (Emerging)

Cloud-Based VPNs are characterized by their high scalability, ease of deployment, and reduced upfront costs, making them ideal for businesses looking to enhance their remote access solutions. They typically offer robust security features without the need for extensive in-house infrastructure, positioning them as the dominant choice for many organizations. In contrast, Hybrid VPNs are emerging as a versatile solution that caters to diverse business needs, allowing companies to leverage both on-premises equipment and cloud resources for optimized performance and security. This combination is particularly attractive for industries with stringent compliance requirements, as it allows greater control over sensitive data while still providing the flexibility of cloud services. As companies increasingly prioritize hybrid solutions, this segment is expected to witness significant growth.

By Service Type: Managed Services (Largest) vs. Professional Services (Fastest-Growing)

In the Virtual Private Network (VPN) market, the service type segment is primarily characterized by three key offerings: Managed Services, Professional Services, and Support Services. Among these, Managed Services holds the largest market share, reflecting the increasing demand for comprehensive solutions that enhance security and simplify network management for businesses. The importance of outsourced management services in facilitating remote work and ensuring data privacy has led to its significant dominance in the sector. Meanwhile, Professional Services are emerging as the fastest-growing segment, driven by heightened demand for expert guidance and custom solutions tailored to client needs.

Managed Services (Dominant) vs. Professional Services (Emerging)

Managed Services in the VPN market represent a comprehensive suite of offerings that include monitoring, management, and maintenance of network services, making it the dominant player in the segment. These solutions are essential for organizations looking to reduce the operational burden and enhance overall security. On the other hand, Professional Services are gaining traction as an emerging force, catering to businesses that seek specialized expertise to navigate the complexities of VPN implementations. This segment focuses on consulting, design, and deployment services, reflecting a growing trend towards tailored solutions that meet specific business objectives. The dual approach of utilizing both Managed and Professional Services allows organizations to optimize their VPN strategies effectively.

Get more detailed insights about Virtual Private Network Market

Regional Insights

North America : Market Leader in VPN Services

North America continues to lead the Virtual Private Network (VPN) market, holding a significant share of 513.35M in 2025. The growth is driven by increasing cybersecurity concerns, remote work trends, and stringent data protection regulations. The demand for secure internet access and privacy has surged, prompting both individuals and businesses to adopt VPN solutions. Regulatory frameworks, such as the California Consumer Privacy Act (CCPA), further catalyze this growth by emphasizing user data protection. The competitive landscape in North America is robust, with key players like NordVPN, ExpressVPN, and Private Internet Access dominating the market. The U.S. stands out as the largest market, driven by high internet penetration and a tech-savvy population. Companies are continuously innovating to enhance user experience and security features, ensuring they remain competitive in this rapidly evolving market.

Europe : Emerging Market with Strong Growth

Europe's VPN market is witnessing significant growth, with a market size of 307.8M in 2025. Factors such as increasing online privacy concerns, regulatory compliance, and the rise of remote work are driving demand. The General Data Protection Regulation (GDPR) has heightened awareness around data privacy, encouraging users to seek secure internet solutions. This regulatory environment fosters a favorable landscape for VPN adoption across various sectors. Leading countries in Europe include Germany, the UK, and France, where the presence of key players like Surfshark and CyberGhost is notable. The competitive landscape is characterized by a mix of established brands and emerging startups, all vying for market share. As consumers become more aware of their digital rights, the demand for VPN services is expected to grow, making Europe a critical region for future investments in this sector.

Asia-Pacific : Rapidly Growing VPN Market

The Asia-Pacific region is rapidly emerging as a significant player in the VPN market, with a market size of 175.0M in 2025. The growth is fueled by rising internet penetration, increasing cyber threats, and a growing awareness of online privacy. Countries like India and Australia are witnessing a surge in VPN usage as consumers seek to protect their data and access restricted content. The regulatory landscape is evolving, with governments recognizing the importance of cybersecurity and data protection. Key players in the region include ProtonVPN and VyprVPN, which are gaining traction among users seeking reliable and secure VPN services. The competitive environment is dynamic, with both local and international companies striving to capture market share. As digital transformation accelerates, the demand for VPN solutions is expected to rise, positioning Asia-Pacific as a vital market for future growth.

Middle East and Africa : Emerging Market with Untapped Potential

The Middle East and Africa (MEA) region is witnessing gradual growth in the VPN market, with a size of 30.55M in 2025. Factors such as increasing internet usage, rising cyber threats, and a growing awareness of online privacy are driving demand. However, the market remains relatively untapped compared to other regions. Governments are beginning to recognize the importance of cybersecurity, leading to a more favorable regulatory environment for VPN services. Countries like South Africa and the UAE are at the forefront of this growth, with increasing numbers of users seeking secure internet access. The competitive landscape is still developing, with a mix of local and international players entering the market. As awareness of digital rights and privacy continues to grow, the MEA region presents significant opportunities for VPN providers looking to expand their reach.

Key Players and Competitive Insights

The Virtual Private Network Market is currently characterized by a dynamic competitive landscape, driven by increasing demand for online privacy and security. Key players such as NordVPN (LV), ExpressVPN (VG), and Surfshark (NL) are strategically positioning themselves through innovation and regional expansion. These companies are not only enhancing their service offerings but are also focusing on user experience and customer support, which collectively shapes a competitive environment that is both fragmented and highly competitive. The emphasis on digital transformation and partnerships further intensifies the competition, as companies seek to differentiate themselves in a crowded marketplace.

In terms of business tactics, companies are increasingly localizing their services to cater to specific regional needs, optimizing their supply chains to enhance efficiency. The market structure appears moderately fragmented, with several players vying for market share. This fragmentation allows for a diverse range of offerings, but it also means that companies must continuously innovate to maintain their competitive edge. The collective influence of these key players is significant, as they set trends that others in the market may follow.

In November 2025, NordVPN (LV) announced a partnership with a leading cybersecurity firm to enhance its encryption protocols. This strategic move is likely to bolster its reputation as a secure VPN provider, appealing to privacy-conscious consumers. By integrating advanced security features, NordVPN aims to differentiate itself in a market where data breaches and privacy concerns are paramount.

In October 2025, ExpressVPN (VG) launched a new feature that allows users to bypass geo-restrictions more effectively. This innovation not only enhances user experience but also positions ExpressVPN as a leader in providing access to global content. The ability to navigate around regional restrictions could attract a broader user base, particularly among those seeking to access streaming services unavailable in their regions.

In September 2025, Surfshark (NL) expanded its operations into several emerging markets, including Southeast Asia. This expansion reflects a strategic focus on capturing new customer segments in regions with growing internet penetration. By localizing its marketing efforts and tailoring its services to meet regional demands, Surfshark is likely to enhance its market presence and drive growth in these areas.

As of December 2025, current trends in the Virtual Private Network Market include a strong emphasis on digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly important, as companies collaborate to enhance their service offerings and improve operational efficiencies. Looking ahead, competitive differentiation is expected to evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine how companies compete, with an emphasis on delivering superior value to consumers.

Key Companies in the Virtual Private Network Market market include

Industry Developments

An announcement has been made on 15 March 2021 by Cloud Nine Web3 Technologies that they have decided to sign an agreement with Victory Square technologies regarding an asset purchase. This will offer intellectual property rights with the production stage of VPNs.

Later, the same company bought the company’s name of “Limitless Technologies” and other companies of Victory square such as Decentrum Ed-Tech software.

Future Outlook

Virtual Private Network Market Future Outlook

The Virtual Private Network Market is projected to grow at a 12.9% CAGR from 2024 to 2035, driven by increasing cybersecurity concerns, remote work trends, and regulatory compliance demands.

New opportunities lie in:

  • Development of AI-driven VPN solutions for enhanced security features.
  • Expansion into emerging markets with localized service offerings.
  • Partnerships with cloud service providers for integrated VPN solutions.

By 2035, the market is expected to solidify its position as a critical component of global cybersecurity strategies.

Market Segmentation

Virtual Private Network Market End Use Outlook

  • Individual Users
  • Small and Medium Enterprises
  • Large Enterprises
  • Government Agencies

Virtual Private Network Market Application Outlook

  • Remote Access
  • Site-to-Site Connectivity
  • Secure Browsing
  • Streaming Services
  • Public Wi-Fi Security

Virtual Private Network Market Service Type Outlook

  • Managed Services
  • Professional Services
  • Support Services

Virtual Private Network Market Deployment Type Outlook

  • Cloud-Based
  • On-Premises
  • Hybrid

Report Scope

MARKET SIZE 20241026.7(USD Billion)
MARKET SIZE 20251144.49(USD Billion)
MARKET SIZE 20353850.8(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)12.9% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledNordVPN (LV), ExpressVPN (VG), Surfshark (NL), CyberGhost (RO), Private Internet Access (US), IPVanish (US), TunnelBear (CA), ProtonVPN (CH), VyprVPN (CH)
Segments CoveredApplication, End Use, Deployment Type, Service Type
Key Market OpportunitiesGrowing demand for enhanced online privacy drives innovation in the Virtual Private Network Market.
Key Market DynamicsRising demand for enhanced online privacy drives innovation and competition in the Virtual Private Network market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Ankit Gupta
Senior Research Analyst

Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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FAQs

How big is the Virtual Private Network Market?

The virtual private network market growth will reach USD 2714.8 billion by 2032 high rate of 12.9% of CAGR till the end of 2024-2032

What is the factor promoting the market for VPN?

The VPN market is expected to gain traction due to the efficiency in operations.

Based on verticals, which segment is heading the VPN market?

A 12.9% CAGR is estimated to promote the government segment to the forefront.

Who are the influencers in the VPN market globally?

Nord VPN, ExpressVPN, SurfShark, Private Access Internet, Hotspot Shield, IPVanish, CyberGhost VPN, Proton VPN, Ultra VPN, Norton Secure VPN are a few of the influences in the market.

By user type, which segment is influencing the VPN market?

The VPN segment is expected to lead in the segment based on user type.

What are the types of virtual private networks?

VPN mainly divided into Open VPN, Layer 2 Tunneling Protocol, TLS and SLS, Internet Protocol Security, Point to Point Tunneling Protocol

What the segments in the market for VPN?

The VPN market is expected to gain traction due to the efficiency in operations.

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