Virtual Private Network Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 61.26 Billion |
| Market Size (2030) | USD 124.94 Billion |
| Growth Rate (2025 - 2030) | 15.32% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Virtual Private Network Market Analysis by Mordor Intelligence
The virtual private network market generated USD 61.26 billion in 2025 and is forecast to reach USD 124.94 billion by 2030, advancing at a 15.32% CAGR. Expansion stems from hybrid-workforce security requirements, persistent ransomware pressure, and firm migration toward Secure Access Service Edge (SASE) platforms that merge networking and security functions. Hardware appliances still anchor many deployments, yet cloud-delivered services accelerate because they remove on-premises bottlenecks and simplify administration. Zero-trust network access (ZTNA) models are replacing legacy concentrators, trimming attack surfaces and enhancing user experience. Growing device footprints in Internet of Things (IoT) factories, 5G deployments, and satellite broadband roll-outs extend encrypted connectivity requirements into new sites and geographies. Competitive advantage is shifting to vendors that integrate AI-driven threat detection, post-quantum encryption, and unified policy management.
Key Report Takeaways
- By component, hardware captured 43.5% of virtual private network market share in 2024; software is projected to grow at a 15.9% CAGR through 2030.
- By type, the hosted and managed segment held 24.7% revenue share in 2024, while MPLS VPN is forecast to expand at a 16.9% CAGR to 2030.
- By deployment mode, cloud solutions dominated with 63.2% of the virtual private network market size in 2024 and are advancing at a 17.2% CAGR through 2030.
- By end-user industry, BFSI led with 29.7% revenue share in 2024; healthcare and life sciences is expanding at a 15.8% CAGR to 2030.
- By region, North America accounted for 27.1% of the virtual private network market in 2024, whereas Asia-Pacific is growing fastest at 16.3% CAGR.
Global Virtual Private Network Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising hybrid-workforce dependence on secure remote access | +3.2% | Global, with concentration in North America and Europe | Short term (≤ 2 years) |
| Proliferation of IoT devices requiring encrypted connectivity | +2.8% | Asia-Pacific core, spill-over to MEA | Medium term (2-4 years) |
| Escalating ransomware losses driving zero-trust network spending | +2.5% | Global, particularly North America and Europe | Short term (≤ 2 years) |
| Cloud-native application adoption boosting demand for Cloud VPN and SASE | +3.1% | Global | Medium term (2-4 years) |
| Emergence of privacy regulations spurring corporate VPN roll-outs | +1.9% | Europe, expanding to Asia-Pacific and Americas | Long term (≥ 4 years) |
| Satellite broadband expansion unlocking new VPN user bases | +1.8% | MEA, Latin America, Rural Asia-Pacific | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Hybrid-Workforce Dependence on Secure Remote Access
Shifts in work patterns have elevated VPN connectivity to business-critical status. The New York City Department of Education migrated more than 1 million users and 2 million devices to a zero-trust framework and reported a 15% reduction in attacks alongside a 40% increase in blocked threats.[1]Zscaler, “State Government Saves USD 875 Million by Moving from VPN to Zero Trust,” zscaler.com Enterprises increasingly adopt cloud-native SASE platforms that route traffic directly to applications, eliminating the latency and patching burdens found in traditional concentrators.
Proliferation of IoT Devices Requiring Encrypted Connectivity
Industrial networks now demand granular, identity-based access. Cisco’s Secure Equipment Access replaces broad VPN tunnels with fine-grained, zero-trust controls for operational technology resources.[2]Cisco, “Cisco Secure Equipment Access Wins IoT Security Innovation of the Year,” blogs.cisco.com At Guangdong University, China Mobile’s 5G VPN delivered ten-fold downlink speed versus legacy solutions while supporting 20,000 concurrent users.
Escalating Ransomware Losses Driving Zero-Trust Network Spending
ThreatLabz observed an 82.5% rise in VPN Common Vulnerabilities and Exposures between 2020 and 2025; 60% carried high or critical scores. After a ransomware intrusion via legacy VPN, a government agency rebuilt remote access on Prisma Access ZTNA to close credential abuse pathways.[3]Palo Alto Networks, “Prisma Access Enables Zero Trust for Federal Agency,” paloaltonetworks.com
Cloud-Native Application Adoption Boosting Demand for Cloud VPN and SASE
Fortinet’s Unified SASE recurring revenue climbed 26% in Q1 2025 to USD 1.54 billion, underscoring enterprise appetite for single-vendor networking and security platforms. Integration of Software-Defined WAN with Security Service Edge is streamlining policy enforcement across dispersed sites.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Talent shortage in VPN/SASE administration inflating total cost of ownership | -1.8% | Global, acute in North America and Europe | Medium term (2-4 years) |
| Performance/latency penalties versus SDP and ZTNA alternatives | -2.1% | Global | Short term (≤ 2 years) |
| Heightened regulatory scrutiny on consumer VPN logging practices | -1.2% | Europe, expanding globally | Long term (≥ 4 years) |
| Commodity pricing wars among retail VPN brands squeezing margins | -1.5% | Global consumer market | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Talent Shortage in VPN/SASE Administration Inflating Total Cost of Ownership
Demand for skilled engineers exceeds supply, pushing organizations toward managed services. Providers report staffing outlays approaching 30% of total operating expense, steering customers to integrated SASE offerings that reduce manual upkeep.
Performance and Latency Penalties Versus SDP and ZTNA Alternatives
Research presented to the Brazilian Computer Society confirmed distance-related latency spikes in VPN tunnels to industrial sites. VersaBank’s deployment of a WireGuard-based mesh network erased these delays and improved remote employee productivity.
Segment Analysis
By Component: Hardware Foundation Supports Software Expansion
Hardware appliances accounted for 43.5% of the virtual private network market in 2024, underpinning many large-scale remote access roll-outs. Segment resilience is tied to long refresh cycles in sectors with on-premises compliance mandates. Yet software is growing at a 15.9% CAGR, fueled by containerized gateways and virtual firewalls that deploy in minutes on hyperscale clouds. Supply-chain tightness around semiconductors catalyzed adoption of cloud-hosted images such as pfSense Plus on AWS and Azure, accelerating proofs of concept. Services revenue, spanning managed operations and implementation projects, scales in tandem with SASE transitions and currently forms the third pillar of component spend. Organizations continue to blend hardware for on-site performance with software gateways to extend reach, signalling coexistence rather than replacement.
Note: Segment shares of all individual segments available upon report purchase
By Type: Hosted Services Lead, MPLS Rebounds
Hosted and managed offerings secured 24.7% of virtual private network market share in 2024 as enterprises shifted maintenance burdens to specialists. These services integrate continuous updates, threat intelligence feeds, and 24×7 monitoring within predictable subscription models. Meanwhile, MPLS VPN shows a renaissance, pacing at 16.9% CAGR as firms require deterministic latency for hybrid cloud and mission-critical collaboration. Cloud VPN and broader SASE suites converge IPsec, SD-WAN, and firewall-as-a-service under unified orchestration, trimming policy sprawl. IPsec VPN remains essential for defense and government entities adhering to established protocol accreditation, while emerging WireGuard solutions emphasize streamlined code bases and near-line-rate throughput.
By Deployment Mode: Cloud Dominance Accelerates
Cloud delivery owned 63.2% of the virtual private network market in 2024 and is growing at 17.2% CAGR as organizations prioritize agility over capital expenditure. Cloud gateways auto-scale to match bursts in remote connections and ship with global PoPs to reduce round-trip times. A case from The Guidance Center showed total cost halved by adopting FortiSASE, illustrating operating-expense efficiencies. On-premises deployments persist where data residency dictates local control, though many agencies now implement hybrid designs that route sensitive workloads internally and non-sensitive traffic through cloud nodes.
By End-User Industry: BFSI Holds Lead, Healthcare Surges
BFSI organizations commanded 29.7% of 2024 revenue, leveraging robust VPN fabrics to secure trading floors and branch connectivity. Capitec Bank blocked 745,000 threats annually after adopting zero-trust access, demonstrating compliance and risk reduction The segment’s defensive spending is expected to preserve absolute dollar leadership through 2030.
Healthcare and life sciences, however, is the fastest-growing vertical at 15.8% CAGR. Telehealth usage and strict patient-data rules drive hospital groups to encrypt traffic from remote clinicians and medical IoT devices. RWJBarnabas Health integrated Fortinet’s platform to connect satellite clinics securely, exemplifying the sector’s modernization push. Manufacturing, government, and education also register material growth as Industry 4.0, smart-city, and distance-learning initiatives extend attack surfaces.
Geography Analysis
North America remained the largest regional contributor with 27.1% of virtual private network market revenue in 2024. Spending momentum is sustained by early zero-trust pilots and stringent breach disclosure regulations. Federal and state programs accelerate upgrades from IPsec concentrators to identity-centric SASE nodes, while hyperscalers’ dense PoP distribution keeps latency low for dispersed users.
Asia-Pacific delivers the fastest expansion at 16.3% CAGR. Massive digitization programs, combined with rising cyber insurance uptake, push enterprises to secure cloud workloads and mobile workforces. Trials in Chinese universities demonstrate ten-fold performance gains for mobile VPN on 5G stand-alone networks. India’s financial regulators now require encrypted connectivity for outsourced processing centers, further catalyzing adoption.
Europe maintains steady progress under General Data Protection Regulation enforcement. Enterprises prefer providers with in-region data centers to ensure sovereignty, and many layer VPN with data-loss prevention for compliance. Government projects in Germany and France specify post-quantum readiness in new remote access procurement. Meanwhile, Middle East and Africa benefit from Starlink roll-outs that extend broadband to rural districts; VPN services ride on top to protect emerging e-commerce and e-government traffic. Latin America gains traction as Brazilian banks and Mexican retailers embrace managed VPN to bypass local talent shortages.
Competitive Landscape
Competition sits at the intersection of networking and security. Large incumbents such as Cisco, Palo Alto Networks, Check Point, and Fortinet deepen portfolios through M&A and in-house development. Check Point’s 2025 purchase of Perimeter 81 expanded its secure access service into mid-market channels. Fortinet’s acquisition of Lacework reinforced cloud-workload protection, creating a unified SASE plus CNAPP proposition.
Pure-play SASE entrants leverage cloud-native roots to simplify roll-out and pricing. Zscaler’s multitenant architecture scales from tens to hundreds of thousands of users without customer-managed hardware, landing state-wide transformations such as Oklahoma’s 100-agency consolidation. WireGuard-focused innovators, including Tailscale and Mullvad, emphasize lightweight code and post-quantum upgrades; Mullvad enabled ML-KEM key exchanges across desktop apps in 2025.
Strategic differentiation centers on AI-driven anomaly detection, unified telemetry dashboards, and cryptographic agility. Vendors are racing to integrate NIST-selected algorithms before quantum threats materialize. Price pressure is muted in the enterprise tier, where buyers prioritize reliability and compliance support over lowest list price.
Virtual Private Network Industry Leaders
-
Cisco Systems Inc.
-
Microsoft Corp. (Azure)
-
Palo Alto Networks Inc.
-
Check Point Software Technologies Ltd.
-
IBM Corp.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: T-Mobile and Palo Alto Networks launched “T-Mobile SASE, with Palo Alto Networks,” coupling 5G Advanced coverage with Prisma SASE 5G to secure business traffic without on-premises hardware.
- May 2025: Malwarebytes acquired AzireVPN, integrating “Blind Operator” technology that blocks server access to user data.
- May 2025: Palo Alto Networks reported Q3 2025 revenue of USD 2.29 billion, reflecting 15% year-over-year growth and strong demand for integrated security platforms.
- January 2025: Mullvad VPN made quantum-resistant WireGuard tunnels the default on desktop clients.
Global Virtual Private Network Market Report Scope
A virtual private network (VPN) is the programming that creates a safe and encrypted channel over a relatively less secure network, such as the public internet. VPN makes use of tunneling protocols to encrypt data at the sending end and to ensure decryption at the receiving end. To fortify security, the originating and receiving network addresses are also encrypted.
The virtual private network market is segmented by component (hardware and software & services), type (hosted, IP, MPLS, cloud, and mobile), end-user industry (BFSI, healthcare, it, government, manufacturing, and other end-user industries), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Hardware |
| Software |
| Services |
| Hosted / Managed |
| IPsec VPN |
| MPLS VPN |
| Cloud VPN / SASE |
| Others |
| Cloud |
| On-premise |
| BFSI |
| Healthcare and Life Sciences |
| IT and Telecom |
| Government and Public Sector |
| Manufacturing and Industrial |
| Retail and E-Commerce |
| Education |
| Others |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Netherlands | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia and New Zealand | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Component | Hardware | ||
| Software | |||
| Services | |||
| By Type | Hosted / Managed | ||
| IPsec VPN | |||
| MPLS VPN | |||
| Cloud VPN / SASE | |||
| Others | |||
| By Deployment Mode | Cloud | ||
| On-premise | |||
| By End-User Industry | BFSI | ||
| Healthcare and Life Sciences | |||
| IT and Telecom | |||
| Government and Public Sector | |||
| Manufacturing and Industrial | |||
| Retail and E-Commerce | |||
| Education | |||
| Others | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Netherlands | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia and New Zealand | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the projected size of the virtual private network market by 2030?
The market is expected to reach USD 124.94 billion by 2030, supported by a 15.32% CAGR.
Which deployment mode is expanding fastest in the virtual private network market?
Cloud deployment is growing at a 17.2% CAGR and held 63.2% of 2024 revenue.
Why is Asia-Pacific the fastest-growing region?
Rapid digitization, 5G expansion, and new cybersecurity mandates are driving a 16.3% CAGR in the region.
Which industry vertical shows the highest growth potential?
Healthcare and life sciences is advancing at a 15.8% CAGR due to telemedicine and strict data privacy regulations.
Page last updated on:
