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Key Market Size Shifts in the Cloud Virtual Private Network Market: A Historical Perspective and beyond
The market size for cloud virtual private networks has seen a significant surge recently. Its growth projection shows an increase from $11.7 billion in 2024 to $14.3 billion in 2025, marking a compound annual growth rate (CAGR) of 22.2%.
This rapid growth in the past years can be traced back to factors such as the globalization of businesses, improvements in user experience, the need for high-speed connections, a rise in demand for better customer service, growing knowledge about cyber threats, and the need for secure access control.
The market size for cloud virtual private networks is projected to experience significant growth over the next few years. By 2029, it is forecasted to reach a value of $32.41 billion, with a compound annual growth rate (CAGR) of 22.7%.
The surge in growth during the predicted period can be linked to factors such as the increasing uptake of cloud services, the cost-effectiveness of VPN solutions, the transition of business operations to the cloud, the necessity for dependable and secure connectivity via VPNs, and the incorporation of VPN services. Key trends during this prediction period include developments in VPN technologies, the demand for enhanced encryption protocols, innovative methods of authentication, the rising requirement for data privacy and confidentiality, as well as the promotion of innovation by technology companies.
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What’s Driving the Continued Growth of the Global Cloud Virtual Private Network Market?
The growing preference for work-from-home arrangements is predicted to boost the expansion of the cloud virtual private network market in the future. Work-from-home generally means work situations that don’t necessitate a traditional office environment.
The demand for such employment structures is fueled by the pursuit for flexibility, improved productivity, lessened commuting stress, and the potential to maintain an optimum work-life equilibrium.
This transition towards remote working conditions necessitates the utilization of cloud-based virtual private networks (VPNs) to securely link employees to organizational networks and assets from any location, ensuring data confidentiality and promoting fluid teamwork.
For example, a study conducted by AT&T, a US telecommunications firm, in February 2022 revealed that the proportion of firms adopting a hybrid work structure where employees will undertake both remote and in-office tasks is estimated to escalate from 42% in 2021 to 81% by 2024. As a consequence, the upward trend in opting for work-from-home mechanisms is steering the expansion of the cloud virtual private network market.
Top Revenue-Generating Segments in the Cloud Virtual Private Network Market
The cloud virtual private networkmarket covered in this report is segmented –
1) By Type: Remote Access Virtual Private Network, Site-To-Site Virtual Private Network
2) By Product Type: Software, Services
3) By Enterprise Size: Small And Medium Enterprise, Large Enterprise
4) By End-User Industries: Government And Public Utilities, Information Technology And Telecommunication, Banking, Financial Services And Insurance (BFSI), Healthcare, Retail, Manufacturing, Other End-User Industries
Subsegments:
1) By Remote Access Virtual Private Network: Client-Based VPN, Clientless VPN
2) By Site-To-Site Virtual Private Network: Intranet-Based Site-To-Site VPN, Extranet-Based Site-To-Site VPN
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Which Trends Will Guide the Development Path of the Cloud Virtual Private Network Industry?
Leading entities in the cloud virtual private network market are zeroing in on crafting innovative solutions, such as cloud VPN concentrators, to provide secure and dependable cloud VPN networking solutions at a reasonable cost. This securely oversees and enables interaction between multiple remote devices or networks over the internet.
As an example, in January 2024, Netgate, an American company specializing in secure networking driven by open-source, introduced the TNSR high-performance VPN concentrator. The solution provides route-based VPN service for edge, cloud, and multi-cloud settings, offering high-performance IPsec site-to-site VPNs or remote access through mobile IPsec or WireGuard.
Key features of the product involve easy installation, user-friendly management interfaces, solid security, and around the clock technical support.
How Are Different Regions Contributing to the Cloud Virtual Private Network Market’s Growth?
North America was the largest region in the cloud virtual private network market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in the cloud virtual private network market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Which Firms Are Setting the Benchmark in the Global Cloud Virtual Private Network Market?
Major companies operating in the cloud virtual private network market are Huawei Technologies Co. Ltd., Amazon Web Services, Tencent Holdings Limited, Microsoft Azure, Panasonic Corporation, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Toshiba Corporation, Google Cloud, NEC Corporation, Samsung Electronics Co.
Ltd., VMware Inc., Singapore Telecommunications Limited, ServiceNow Inc., Palo Alto Networks Inc., OpenText Corporation, Array Networks Inc., Lumen Technologies Inc., Surfshark, SoftEther VPN, Contemporary Control Systems Inc., Cohesive Networks LLC, Robustel, SonicWall
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