The Cloud VPN Market was valued at USD 5.50?billion in 2019?and is expected to reach USD 11.96?billion by 2025, at a CAGR of 13.8% over the forecast period 2020?- 2025. The evolution of technological tools has enabled solutions to be delivered as a service. Owing to this, Software as a Service (SaaS), Platform as a Service (PaaS), and Data as a Service (DaaS) have emerged as potential growth opportunities for cloud VPN solution providers.
- Increasing digitization trend is observed in organizations with their shift towards cloud-based services. The increasing reliance of organization on cloud services brings into light the security and authenticity of the connection. This increases the importance of cloud VPN services. With growing cloud-based services, the need for custom VPN solutions is rising.
- Moreover, the business trend towards Bring Your Own Device (BYOD) is giving the market a substantial push for growth. BYOD assure the mobility of the operations and employees are even more satisfied while working on their own device. The rising trends towards enterprise mobility are raising more concerns for companies for the data security driving the growth for cloud VPN market.
- The cloud VPN offers customization as per the application in a varied range of industries is also fueling market growth. However, the high initial implementation cost incorporated with the solution is restricting the cloud VPN adoption to an extent.
Scope of the Report
The adoption of cloud service is raising the security concerns among the end users and hence driving demand for cloud VPN solutions. The scope of the study for cloud VPN market is limited to the offering made by the vendors in the form of software or services for both of the enterprise sizes in a wide range of end-user industries.
Key Market Trends
Telecom and IT Segment to Grow Significantly
- With globally increasing IT spending toward enterprise software and communication services, which is estimated to be close to 50% of the global IT spending in 2018, cloud VPN solutions gained a lot of attention, especially from telecom and IT sector for secured real-time analysis and encrypted gathering business intelligence for better decision making.
- Cisco has stated in a report that 69% of IT decision makers were in favor of BYOD, viewing it as a positive addition to any workplace policy. Also, it has been estimated that companies can save an average of USD 350 per year per employee with a BYOD policy in place.
- Moreover, with the rising trend of BYOD in the sector is rising the need for monitoring the communications across social channels like Skype. Developing a culture that is as dedicated to security and compliance as it is to flexibility and efficiency is a growing opportunity in the sector.
North America to Hold Largest Share
- North America occupies the largest market share, mainly owing to the presence of many market players in the region and the rising demand for the analytics platform. The growth of machine-to-machine communication (M2M) has also opened doors for cloud solutions in the region, with the United States being one of the largest cloud solutions market in the world.
- A majority of the large equipment manufacturers have local data centers for computing needs, as they operate and deploy their equipment globally. Thus, the manufacturers require cloud VPN solutions to monitor and security of the facilities.
- According to the Digital Change Survey done by IFS in 2018 to assess the maturity of digital transformation in a range of sectors such as manufacturing, oil and gas, aviation, construction and contracting, over 46% of the companies in all industries are looking to invest in the analytics in the country.
- The Canadian e-commerce industry also offers a helping hand for boosting the demand for big data solutions. According to the Worldpay, Canadian e-commerce sales have crossed the mark of USD 50 billion in the year 2018, and it is expected to reach USD 80 billion by the year 2022. The rising enterprise mobility in the retail sector is demanding the need for cloud VPN for ensuring data security and remote access.
The cloud VPN market is inclined towards fragmentation with the presence of many players offering the software and services covering almost all the end-user industries. Also, with the adoption of cloud, and low barrier for entry into the market new players are emerging into the market. However, the companies are adopting acquisition strategies for gaining more market share for the cloud VPN market.
- April 2019 - Google LLC announced High Availability VPN and 100 Gbps Interconnect (beta). The company claims it offers to connect on-premises deployment to Google Cloud Platform (GCP) Virtual Private Cloud (VPC) with an industry-leading SLA of 99.99% service availability at general availability.
- April 2019 - Cloudflare introduced 22.214.171.124. with WARP, a mobile application for fixing mobile internet performance and security beyond DNS. The company claims that if users decide to enable Warp, instead of just DNS queries being secured and optimized, all Internet traffic is secured and optimized and this doesn’t just apply to the user’s web browser but to all apps running on their phone.
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