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    B2C VPN Market

    ID: MRFR/ICT/19144-CR
    188 Pages
    Aarti Dhapte
    March 2024

    B2C VPN Market Research Report Information by Type (remote access VPN, site to site VPN, personal VPN and mobile VPN.), and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Market Forecast Till 2035

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    B2C VPN Market Infographic
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    B2C VPN Market Summary

    As per Market Research Future Analysis, the B2C VPN Market was valued at USD 845.7 Million in 2022 and is projected to grow from USD 923.5 Million in 2023 to USD 2,714.8 Million by 2032, with a CAGR of 12.7% during the forecast period. The surge in VPN demand is driven by increasing concerns over data security, especially post-pandemic, and the need to bypass government censorship. A significant portion of users, 43%, prioritize security, while 25% use VPNs for streaming services. The market is characterized by a competitive landscape with major players like ExpressVPN, NordVPN, and Surfshark leading the charge.

    Key Market Trends & Highlights

    The B2C VPN market is witnessing significant growth due to rising security concerns and government censorship.

    • Market Size in 2022: USD 845.7 Million
    • Projected Market Size by 2032: USD 2,714.8 Million
    • CAGR from 2023 to 2032: 12.7%
    • 43% of users cite security as their primary motivation for using VPNs

    Market Size & Forecast

    2022 Market Size USD 845.7 Million
    2023 Market Size USD 923.5 Million
    2032 Market Size USD 2,714.8 Million

    Major Players

    ExpressVPN, NordVPN, PrivateInternetAccess (PIA), ProtonVPN, CyberGhost VPN, IPVanish, CiscoAnyConnect, VPNWholesaler, SurfShark, Hotspot Shield, PureVPN

    B2C VPN Market Drivers

    Rising Cybersecurity Concerns

    The increasing prevalence of cyber threats and data breaches drives demand for secure internet connections, propelling the Global B2C VPN Market Industry. As individuals become more aware of the risks associated with online activities, the need for privacy and security solutions intensifies. In 2024, the market is projected to reach 1.01 USD Billion, reflecting a growing recognition of the importance of safeguarding personal information. This trend is likely to continue as consumers seek reliable VPN services to protect their data from malicious attacks, thereby contributing to the overall growth of the industry.

    Market Segment Insights

    B2C VPN Market Component Segment Insights

    B2C VPN - Type Insights

    Based on the type, the market is segmented into remote access VPN, site to site VPN, personal VPN and mobile VPN. The personal VPN segment holds the largest share of 60.4% in 2022 and is expected to grow at 17.6% CAGR during the forecast period. A personal VPN can perform the task of hiding the IP address from prying eyes. The data usage and storage practices of a VPN's provider determine its level of security.

    Forty percent of internet users use VPNs for general privacy purposes, such as protecting their personal data, while nearly half use them for general security purposes, such as preventing identity theft.

    Figure2: B2C VPN Market, by Type, 2022 & 2032 (USD Million)

    Get more detailed insights about B2C VPN Market Research Report - Global Forecast till 2032

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 48.0% in the B2C VPN Market in 2022 and is expected to maintain its dominance during the forecast period.

    Based on the surveys and research conducted, it is estimated that in North American nations VPNs are widely used for the digital security of devices and online accounts. For this, paid version of VPN is preferred as that support privacy and offer various other benefits at effective prices, thus gaining traction over free versions among individuals.

    In the realm of VPN usage, the United States stands as a frontrunner, with a remarkable 66.8% awareness among its populace. Approximately one-third of Americans actively utilize VPNs, marking a notable surge from 24.7% in 2020 to the current 33.0% in 2023. This growth, however, experienced fluctuations, notably a dip in 2021, potentially correlated with the easing of COVID-19 restrictions. The typical American VPN user, predominantly male and aged between 25-44, hails from either Gen Y or Gen X. While 44.2% opt for free VPNs, Gen Y exhibits a preference for paid versions, emphasizing a commitment to enhanced online privacy.

    Despite this, a significant portion of Gen Z, the digitally active generation, still favors free VPNs. The primary motivation behind VPN usage, with 43% seeking heightened online privacy and 33% emphasizing the digital security of their devices and online accounts. The trajectory of VPN awareness has witnessed a commendable uptick, with a substantial 6-percentage point increase between 2022 and 2023.

    Figure3: B2C VPN MARKET SIZE BY REGION 2022&2032

    B2C VPN MARKET SIZE BY REGION

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil and others.

    North America, consisting of the US, Canada, and Mexico, stands at the forefront of technological innovation in B2C VPN market. The North American B2C VPN market is growing due to several factors. VPN usage in Canada has witnessed significant growth and awareness over the past four years. More than two-thirds of Canadians are familiar with VPNs, and 28.5% currently utilize them. The typical Canadian VPN user falls between the ages of 25 to 44, predominantly male, and belongs to Gen Y or Gen X. This demographic is financially stable, employed, and focused on saving for the future.

    Despite high awareness, some users engage in potentially risky habits, as 29.5% opt for free VPNs. Gen Y exhibits the best VPN usage practices, with a preference for paid services to enhance online privacy.

    The European B2C VPN market is witnessing immense growth opportunities, due to the rising demand for online privacy and secure internet access. Consumers are increasingly adopting VPN services for secure browsing, streaming, and data protection. Factors such as digitalization, remote work trends, and heightened awareness of cybersecurity contribute to the expanding market for VPN solutions in Europe.

    The Asia Pacific area has the most emerging market in the VPN industry.5 This market is predicted to expand by 16% between 2020 and 2027, which is 2% faster than the global population's usage growth. With large populations and rising internet access in countries such as India, more people in the Asia-Pacific area will use VPNs in the future. The number of Chinese-language tweets about VPNs increased numerous times during November, when protests broke out in China owing to widespread discontent of the country's zero-Covid policy.

    VPN-related tweets in Chinese increased by 184% on November 4 compared to the previous three-month average and stayed 159% higher the following day. This rise coincides to protests that erupted in Guangzhou at the same time.On November 14, 2020, Chinese-language VPN tweets increased 162% over the usual due to protests in Wuhan.VPN tweets in Chinese increased by 183% on November 29. VPN tweets were more than double the average both the day before and the day after this peak. These increases coincided with widespread protests in China.

    While greater censorship in China will affect how all VPNs operate in China, only the best will be able to make adjustments and circumvent the restriction.

    According to Atlas VPN's most recent VPN Adoption Index, virtual private network downloads will reach 353 million by 2022. Once again, Arab countries occupy the top of the rankings in terms of worldwide VPN adoption. The United Arab Emirates, Qatar, Oman, and Saudi Arabia occupy four of the top five positions on the list, with Kuwait ranking ninth. Last year, VPNs captured 31% of the market in these five countries.

    The Atlas VPN study team examined and ranked 85 nations based on VPN usage in 2020, 2021, and 2022. Using the Sensor Tower and AppTweak services, the VPN download data was retrieved from the Google Play Store and the Apple App Store. The 45 largest VPN providers are included in the download data. VPN usage is increasing the most in Middle Eastern countries. 1 VPN adoption or penetration refers to the percentage of the country's population who downloaded VPN apps during the specified timeframe.

    South America is witnessing a surge in demand for the VPN. The users are opting for free or trial version of VPN as it is cost-effective and meets the requirement. VPN awareness and usage surpass the global average in Brazil, where 75% are aware of VPNs, and one-third actively use them. Typical users, male and aged 25 to 44, primarily belong to Gen Y or Gen X. While free VPN usage is high at 52.4%, 39.0% opt for paid services, and 12.2% use corporate VPNs. Gen Y stands out, prioritizing privacy and security.

    Security concerns drive VPN use, with 46.0% focusing on device and account protection, and 35.4% on safeguarding online privacy.

    Key Players and Competitive Insights

    The B2C VPN Market is characterized by the presence of many regional and local vendors. The regional market is highly competitive, with all the players competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors globally provide cost-effective and efficient products to survive and succeed in a competitive market.

    The consumer VPN market is competitive, with more and more companies vying for the top of the lucrative data privacy and security pyramid. The ever-increasing demand for evading geo-restrictions and protecting your mobile, desktop, and Internet of Things (IoT) devices is driving supplier growth. Coupled with more affordable prices, it's evident that VPNs are transitioning from a business-only or solely tech-savvy market to something that's becoming more widely used.

    Virtual Private Networks (VPNs) have evolved from a niche tool for privacy obsessives to an increasingly important consumer product utilized by individuals of all backgrounds all over the world in the last decade. Consumer VPNs' popularity continues to rise in 2022, and this once-obscure piece of software is on the edge of becoming a common internet security tool.

    The market for B2C virtual private network (VPN) has been witnessing significant growth over the forecast period, driven by the growing demand for user privacy across economies. There exist several local, regional, and global players in the B2C virtual private network (VPN) market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global mobile security market who have contributed to the market growth. These include ExpressVPN, NordVPN, PrivateInternetAccess (PIA), ProtonVPN, CyberGhost VPN, IPVanish, CiscoAnyConnect, VPNWholesaler, SurfShark, Hotspot Shield, PureVPN and various other companies.

    Key Companies in the B2C VPN Market market include

    Industry Developments

    In May 2023- To celebrate Napoli winning the Scudetto, ExpressVPN announced a server for the city of Naples targeting fans and customers in need of online privacy. This new server allows customers to shield themselves from Internet penetration while sealing this historic achievement for the city in hopes of enabling them access to restricted content wherever they are in the world.

    In November 2023- ExpressVPN made new announcements, adding an ad blocker to its services and an adult-site blocker, auto-update functionalities, and boasted of an increased server in 105 countries, including the USA. At the same time, the number of simultaneous connections was raised from five to eight. These changes aim to help the users gain more towards their digital control as well as their overall experience.

    In November 2022, ExpressVPN set a record of $100,000 through Bugcrowd's Bug Bounty service, offering the highest bug bounty in history in order to attract researchers to report the weaknesses and loopholes that existed within its technology Trusted Server, which illustrated the fact that the company is dedicated to keeping its clients' privacy intact.

    In July 2023, Proton proclaimed that the use of sign-ups for VPN services would be in place to spot and prevent attacks on democracy. By using such VPN sign-ups, Proton helps to better election security and disinformation campaigns and still meet the demands of the users in regard to privacy. It has been shown that by increasing violence against democracy, space for transparency and accountability in the tech industry improves, making democratic processes within online spaces much more favorable.

    In August 2023, Surfshark increased its server presence by establishing an additional 300 new servers in various countries, enhancing connection speed and availability for its users. This expansion complements the company's effort to innovate customer service and increase its operational scope.

    Future Outlook

    B2C VPN Market Future Outlook

    The B2C VPN Market is poised for substantial growth at 13.06% CAGR from 2024 to 2035, driven by increasing privacy concerns, remote work trends, and regulatory changes.

    New opportunities lie in:

    • Develop AI-driven VPN solutions for enhanced security and user experience. Expand service offerings to include dedicated IP addresses for businesses. Leverage partnerships with cybersecurity firms to enhance product credibility and reach.

    By 2035, the B2C VPN Market is expected to achieve robust growth, solidifying its role in digital security.

    Market Segmentation

    B2C VPN Type Outlook

    • Remote Access VPN
    • Site to Site VPN
    • Personal VPN
    • Mobile VPN

    B2C VPN Regional Outlook

    • {""=>["US"
    • "Canada"]}
    • {""=>["UK"
    • "Germany"
    • "France"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {""=>["China"
    • "Japan"
    • "India"
    • "Australia"
    • "South Korea"
    • "Rest of Asia Pacific"]}
    • {""=>["South America"]}

    Report Scope

    Report Attribute/MetricDetails
    Market Size2022USD 845.7 Million
    Market Size 2023USD 923.5 Million
    Market Size 2032USD 2,714.8 million
    Compound Annual Growth Rate (CAGR)16.7 % (2023-2032)
    Base Year2022
    Market Forecast Period2023-2032
    Historical Data2019- 2022
    Market Forecast UnitsValue (USD Million)
    Report CoverageRevenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments CoveredType, and Region
    Geographies CoveredEurope, North America, Asia-Pacific, Middle East & Africa, and South America
    Countries CoveredThe U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, Brazil, and others.
    Key Companies ProfiledExpressVPN, NordVPN, PrivateInternetAccess (PIA), ProtonVPN, CyberGhost VPN, IPVanish, CiscoAnyConnect, VPNWholesaler, SurfShark, Hotspot Shield, PureVPN
    Key Market Opportunities·       Growing number of cyberattacks to increase demand for VPN ·       Cost factor associated with B2C VPN
    Key Market Dynamics·       Increased usage during covid-19 pandemic ·       Increasing demand for content with geographical access restrictions and better access to entertainment content ·       Growing use for privacy reasons

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    How much is the B2C VPN Market?

    The B2C VPN Market size is expected to be valued at USD 845.7 Million in 2022.

    What is the growth rate of the B2C VPN Market?

    The global market is projected to grow at a CAGR of 12.7% during the forecast period, 2023-2032.

    Which region held the largest market share in the B2C VPN Market?

    North America had the largest share of the global market.

    Who are the key players in the B2C VPN Market?

    The key players in the market are ExpressVPN, NordVPN, PrivateInternetAccess (PIA), ProtonVPN, CyberGhost VPN, IPVanish, CiscoAnyConnect, VPNWholesaler, SurfShark, Hotspot Shield, PureVPN

    Which Type led the B2C VPN Market?

    The Personal VPN category dominated the market in 2022.

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