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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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Summary Table of Contents Segmentation Download PDF

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 security.

  • The demand for privacy continues to rise, propelling the Virtual Private Network Market forward.
  • North America remains the largest market, while Asia-Pacific is recognized as the fastest-growing region.
  • The Remote Access segment dominates the market, whereas the Secure Browsing segment is witnessing rapid growth.
  • Increasing cybersecurity threats and rising awareness of data privacy are key drivers influencing market expansion.

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)

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 has surged. This trend is further fueled by the rise of remote work and the need for secure connections to corporate networks. Additionally, the growing popularity of streaming services and the desire to access geo-restricted content have contributed to the expansion of this market. Companies are continuously innovating, offering enhanced features such as improved encryption protocols and user-friendly interfaces to attract a broader audience. Moreover, the competitive landscape of the Virtual Private Network Market is evolving, with numerous players vying for market share. This competition has led to a diversification of offerings, including specialized VPN services tailored for specific industries or user needs. As technology advances, the integration of artificial intelligence and machine learning into VPN solutions is becoming more prevalent, potentially enhancing user experience and security. Overall, the Virtual Private Network Market appears poised for sustained growth, as both consumers and businesses increasingly prioritize digital privacy and security in their online activities.

Rising Demand for Privacy

There is a growing awareness among users regarding the importance of online privacy. This trend is likely to drive more individuals and organizations to seek Virtual Private Network solutions that offer robust security features.

Expansion of Remote Work

The shift towards remote work arrangements has created a heightened need for secure connections. As employees access corporate networks from various locations, the demand for reliable VPN services is expected to increase.

Technological Advancements

Innovations in technology, particularly in encryption and user interface design, are shaping the Virtual Private Network Market. Enhanced features and improved performance may attract a wider range of users.

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. Secure Browsing (Fastest-Growing)

In the Virtual Private Network (VPN) Market, the application segment is primarily characterized by varying needs such as Remote Access, Site-to-Site Connectivity, Secure Browsing, Streaming Services, and Public Wi-Fi Security. Among these, Remote Access holds the largest share, reflecting the increasing demand for secure connections to personal and organizational networks. Additionally, Site-to-Site Connectivity is significant, serving businesses requiring reliable inter-office connections, while Streaming Services and Public Wi-Fi Security cater to specific needs but trail behind in overall adoption rates.

Remote Access (Dominant) vs. Secure Browsing (Emerging)

Remote Access is the dominant force in the VPN market, primarily serving the needs of remote workers and organizations that prioritize secure network access. This segment benefits from the rising trend of telecommuting and the need for secure connections to prevent unauthorized access to sensitive information. In contrast, Secure Browsing is an emerging segment that appeals to individual users focusing on internet privacy and security while navigating online content. As internet threats evolve, more users are turning to secure browsing solutions, making this segment the fastest-growing area in the market, driven by awareness of cybersecurity risks and the widespread use of public Wi-Fi.

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

The Virtual Private Network Market shows a diverse market share distribution among end users, with Small and Medium Enterprises (SMEs) holding the largest share. SMEs rely heavily on VPNs to secure remote access, protect sensitive data, and maintain operational continuity. In contrast, Government Agencies are experiencing rapid adoption of VPN technologies as they seek enhanced protection against cyber threats and the need for secure communication channels. This trend is particularly evident as agencies increasingly transition to remote work models, driven by legislative and policy frameworks that prioritize data security and privacy. The growth trends within the Virtual Private Network Market are significantly fueled by the increasing awareness of cybersecurity threats and the necessity for secure communication. As cyber attacks become more sophisticated, enterprises of all sizes recognize the importance of VPNs for protecting their networks. Government Agencies, being the fastest-growing segment, are investing in advanced VPN technologies to stay compliant with regulations and secure sensitive information against potential breaches. Additionally, the growth of remote work is propelling the need for flexible, secure access solutions across various sectors, further driving market growth.

Small and Medium Enterprises (Dominant) vs. Government Agencies (Emerging)

Small and Medium Enterprises (SMEs) are currently the dominant players in the Virtual Private Network Market, owing to their critical need for cost-effective security solutions to retain customer trust and safeguard proprietary data. They utilize VPNs to facilitate secure remote access for employees, ensuring business continuity in an increasingly digital landscape. On the other hand, Government Agencies represent an emerging segment witnessing significant growth as they adapt to evolving cybersecurity threats. These agencies are making substantial investments in VPN infrastructure to enhance the protection of sensitive information and maintain compliance with stringent government regulations. The demand for advanced security features, such as encryption and user authentication, is pushing both segments to adopt innovative technologies that meet their specific operational needs.

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

In the Virtual Private Network Market, the deployment type segment is primarily dominated by cloud-based solutions, which account for the largest share. Businesses increasingly prefer cloud-based VPNs due to their flexibility, scalability, and lower infrastructure costs. In contrast, on-premises VPN solutions, while less popular overall, are experiencing a surge in interest as organizations prioritize control and security over their data management. Hybrid VPNs, which combine both cloud and on-premises elements, cater to specific needs but remain a smaller niche.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based VPN solutions are characterized by their ease of deployment and management, making them the preferred choice for many businesses looking to enhance remote access capabilities. They offer the advantage of automatic updates and maintenance, which are critical as cyber threats evolve. On the other hand, on-premises VPNs provide organizations with enhanced control and security, appealing specifically to enterprises that handle sensitive information and seek to maintain strict compliance with regulatory requirements. The emerging trend of hybrid models showcases a blend of both approaches, providing organizations with the agility of cloud solutions while retaining the security and control of on-premises setups.

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

In the Virtual Private Network (VPN) Market, the Managed Services segment stands out as the largest contributor, commanding a significant share due to its comprehensive offerings that address diverse customer needs. This segment includes services that provide clients with fully managed VPN solutions, ensuring consistent performance, security, and reliability. Meanwhile, Professional Services, which encompass consulting, implementation, and optimization, have been witnessing remarkable growth, driven by the increasing complexity of network requirements and the need for tailored solutions that adapt to evolving business landscapes.

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

Managed Services represent the dominant segment within the VPN Market, characterized by its robust frameworks that facilitate secure and efficient remote access for organizations. This service model is particularly favored by businesses seeking an all-in-one solution that minimizes downtime and management overhead. On the other hand, Support Services are emerging as a crucial segment, providing essential technical assistance focused on enhancing user experience and troubleshooting issues. While Managed Services deliver comprehensive solutions, Support Services cater to ongoing operational needs, ensuring that businesses can effectively maintain their VPN infrastructures amid the growing demand for remote connectivity.

By Pricing Model: Subscription-Based (Largest) vs. Freemium (Fastest-Growing)

In the Virtual Private Network (VPN) market, the pricing model segment showcases a distinct distribution among its core values. Subscription-Based models lead the market share significantly, driven by customer preference for predictable, ongoing service access. Following this, One-Time Payment models have maintained a steady, albeit smaller share, appealing to users who prefer a one-off payment structure. Conversely, the Freemium model has emerged as a rising contender, attracting users with free access before upselling premium features, carving out a notable niche in the market. Growth trends indicate that the demand for VPN services continues to evolve, with increasing privacy concerns and cybersecurity threats pushing more consumers towards subscription-based options for their reliability and comprehensive features. Meanwhile, the Freemium model is experiencing rapid growth, particularly among younger demographics who often seek minimal initial commitment before deciding to access premium features. This dynamic shifts the focus of VPN providers towards creating attractive entry-level offerings that gradually convert free users into subscribers, thereby enhancing long-term engagement and service adoption.

Subscription-Based (Dominant) vs. One-Time Payment (Emerging)

The Subscription-Based pricing model has emerged as the dominant force in the Virtual Private Network market, providing users with unlimited access to services for a recurring fee. This model caters to a wide variety of users, from individuals to businesses, emphasizing consistent updates and superior customer support. Prominent features often include multiple server locations and robust security protocols that further enhance user experience and retention. In contrast, the One-Time Payment model presents an emerging option, allowing customers to pay once for indefinite access to a range of VPN features. This model appeals to a niche market of users who prioritize one-off costs and may not require continuous updates or additional features. With rising consumer awareness regarding online privacy essentials, the appeal of both models plays a pivotal role in shaping the overall landscape of VPN service offerings.

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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 513.35 million in 2024. The growth is driven by increasing concerns over online privacy, data security, and the rise of remote work. Regulatory support for data protection and privacy laws further catalyzes demand for VPN services, making it a critical market for both consumers and businesses. The competitive landscape is robust, with key players like NordVPN, ExpressVPN, and Private Internet Access dominating the market. The U.S. stands out as a major contributor, with a high adoption rate of VPN services among both individuals and enterprises. The presence of advanced technology infrastructure and a strong focus on cybersecurity enhances the region's market position.

Europe : Emerging Market with Growth Potential

Europe's VPN market is witnessing significant growth, valued at 307.8 million in 2024. Factors such as increasing internet censorship, data protection regulations like GDPR, and heightened awareness of online privacy are driving demand. The region's diverse regulatory landscape encourages the adoption of VPN services, making it a vital area for market expansion and innovation. Leading countries include Germany, the UK, and France, where the presence of key players like Surfshark and CyberGhost is notable. The competitive environment is characterized by a mix of established brands and emerging startups, all vying for market share. The European market is poised for further growth as consumers increasingly prioritize online security and privacy.

Asia-Pacific : Rapidly Growing VPN Market

The Asia-Pacific region is experiencing a rapid increase in VPN adoption, with a market size of 175.0 million in 2024. This growth is fueled by rising internet penetration, increasing cyber threats, and a growing awareness of digital privacy. Regulatory frameworks in countries like Australia and Japan are also evolving to support the use of VPNs, further driving market demand. Key players such as IPVanish and TunnelBear are establishing a strong presence in this region. Countries like India and China are witnessing a surge in VPN usage, particularly among younger demographics seeking unrestricted access to online content. The competitive landscape is becoming increasingly dynamic, with both local and international players competing for market share.

Middle East and Africa : Emerging VPN Landscape

The Middle East and Africa (MEA) region is gradually emerging in the VPN market, valued at 30.55 million in 2024. The growth is driven by increasing internet usage, rising concerns over online surveillance, and the need for secure communication channels. Regulatory changes in several countries are beginning to support the use of VPNs, which is crucial for the region's digital transformation. Countries like South Africa and the UAE are leading the way in VPN adoption, with a growing number of users seeking privacy solutions. The competitive landscape is still developing, with both local and international players entering the market. As awareness of online security increases, the MEA region is expected to see significant growth in VPN services.

Virtual Private Network Market Regional Image

Key Players and Competitive Insights

The Virtual Private Network Market is currently characterized by a dynamic competitive landscape, driven by increasing concerns over privacy and security in digital communications. 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 appears to be a critical factor in retaining and attracting subscribers. The collective strategies of these firms contribute to a moderately fragmented market structure, where competition is fierce yet offers opportunities for differentiation through technological advancements and customer-centric approaches.In terms of business tactics, companies are increasingly localizing their services to cater to specific regional needs, which may involve optimizing their supply chains and enhancing their infrastructure. The competitive structure of the market remains moderately fragmented, with several players vying for market share. This fragmentation allows for a diverse range of offerings, but it also necessitates that companies continuously innovate to maintain their competitive edge. The influence of key players is substantial, as they set benchmarks for service quality and technological integration that others in the market strive to meet.

In November NordVPN (LV) announced the launch of a new feature aimed at enhancing user privacy by integrating advanced encryption protocols. This strategic move is significant as it not only reinforces NordVPN's commitment to security but also positions the company as a leader in technological innovation within the market. By prioritizing user privacy, NordVPN is likely to attract a broader customer base, particularly among privacy-conscious consumers.Similarly, in October 2025, ExpressVPN (VG) expanded its operations into several new markets in Asia, which indicates a strategic focus on regional growth. This expansion is crucial as it allows ExpressVPN to tap into emerging markets where demand for VPN services is rapidly increasing. By establishing a presence in these regions, ExpressVPN may enhance its competitive positioning and drive revenue growth.Moreover, in September 2025, Surfshark (NL) entered into a partnership with a leading cybersecurity firm to bolster its security features. This collaboration is indicative of a broader trend where VPN providers are seeking alliances to enhance their service offerings. Such partnerships not only improve the technological capabilities of these companies but also build consumer trust, which is essential in a market where security is paramount.

As of December the competitive trends in the Virtual Private Network Market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming more prevalent, shaping the landscape as companies seek to leverage each other's strengths. Looking ahead, it is anticipated that competitive differentiation will evolve, moving away from price-based competition towards innovation, technology, and supply chain reliability. This shift underscores the importance of not only meeting consumer demands but also anticipating future trends in a rapidly changing digital environment.

Key Companies in the Virtual Private Network 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.
  • Expansion into emerging markets with localized services.
  • Partnerships with cloud service providers for integrated offerings.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Virtual Private Network Market End Use Outlook

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

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 Pricing Model Outlook

  • Subscription-Based
  • One-Time Payment
  • Freemium

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% (2025 - 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)
Segments CoveredApplication, End Use, Deployment Type, Service Type, Pricing Model
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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