Saturday, May 28, 2022

The VPN Market in 2022

A virtual private network (VPN) is a tunneling technology that encrypts the connection between two devices by rerouting it through a server. It offers added security and privacy benefits to users and prevents third parties from intercepting, monitoring, or altering the communications.

VPNs can be used by organizations looking for a secure internet connection. 

See below to learn all about the global VPN market:

The VPN Market

The global VPN market was valued at $25.4 billion in 2019. With a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027, it’s expected to reach $75.5 billion by the end of the forecast period.

“There’s more flexibility with remote working options and bring your own device (BYOD) policies — all of which have resulted in the need for more digital security and, subsequently, the growth of the business VPN market,” says Michael Gargiulo, a member of the Forbes Technology Council.

“The threat of cyber attacks alone has led many organizations to use secure and advanced solutions, like VPNs, to keep their data protected.”

Regionally, several countries are driving growth in the VPN market:

  • The U.S. market share was estimated at 34.8% and valued at $14.3 billion in 2021
  • China’s market is estimated to reach $11.2 billion by 2026, following a CAGR of 17.4%
  • Japan’s and Canada’s VPN markets are forecast to grow by 12% and 12.8% by 2026
  • Australia, India, and South Korea combined are expected to push the Asia-Pacific VPN market to $1.9 billion by 2026

When it comes to industry, these sectors use the most VPN services:

  • Banking, financial services, and insurance (BFSI)
  • Telecommunications
  • Health care
  • Government
  • Manufacturing

VPN Features

VPNs provide a secure and private connection for users in two categories, depending on the type and locations of the connections.

Remote Access VPN

With remote access VPNs, users are able to access and use apps and data on remote servers. 

Depending on the locations of the VPN servers, users can use a VPN to access geo-restricted content or mask their IP address for privacy.

Site-to-Site VPN

Also known as a router-to-router VPN, site-to-site VPNs connect entire networks instead of individual devices. This is most often used by companies and organizations with multiple offices.

It enables employees to securely access the company’s digital ecosystem without the risks of using an open internet connection.

This category can be further divided into intranet- and extranet-based VPNs, depending on whether the organization is connecting to other internal offices or providing access to partners, communities, and suppliers.

While the purpose of a VPN differs depending on its structure, there are a few key components needed for a VPN to work.

  • Tunneling protocol
  • Encryption algorithm
  • Source host
  • Destination host
  • Built-in kill switches

Benefits of VPN

VPNs are highly flexible and can benefit organizations in several key ways: 

  • Improved security
  • Access to multiple server locations
  • Remote data access

As for users, VPNs can also be a great addition to internet browsing:

  • Bypassing geo-restricted content
  • Online anonymity
  • Bypassing slow connection speeds
  • Overriding price discrimination

VPN Use Cases

Omnisend

Omnisend, founded in 2014, is a marketing automation platform tailored for e-commerce businesses, based in Lithuania. 

With over 70,000 regular customers, Omnisend sought to expand its teams globally into the U.S. and the North American market during 2020. However, it needed a way to effectively secure the heavier traffic load on a wider scale. 

Omnisend was able to smoothly upscale together with NordLayer. The VPN solution allowed for faster onboarding with zero-trust identity control and a smart remote access feature.

“Having technical people on all sites can be challenging, and hiring a tech-savvy person for the site is not very cost effective until more movement occurs,” says Žygimantas Stauga, director of information security at Omnisend.

“The pandemic situation proved that internal cybersecurity policy has to change together with our growing workforce. A simple document with a few screenshots was enough.”

Meredith Respiratory and Sleep Center

The Meredith Respiratory and Sleep Center is Sydney’s largest sleep disorder clinic with four locations. The six-bedroom clinic offers specialized sleep treatments, sleep studies, oxygen studies as well as wakefulness tests.

With around a third of the company’s staff working remotely, Meredith was at an increased risk for hacking and ransomware. Deploying Perimeter 81’s high-speed VPN and remote access helped bring an end to ransomware attacks.

“Since we switched, we haven’t had any problems with ransomware attacks at all. We’ve had zero attacks,” says Omar Matter, IT manager at Meredith Respiratory and Sleep Center.

“We selected Perimeter 81’s Premium Plan for its Always-On VPN and the ability to define up to 10 user configuration profiles.”

VPN Providers

Some of the top VPN providers for organizations include:

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