North America Virtual Private Network (VPN) Market Outlook, 2029

North America Virtual Private Network (VPN) Market Outlook, 2029

The VPN market will make its home in the North American digital frontier, right in the middle of the necessity for a cyber sanctuary for trails protecting data. In a world where privacy, it seems, is the new gold, and remote connectivity is the pulse for progress. In close relation, technological advancement is the biggest driver in the VPN market in North America, as it provokes innovation toward even more secure, efficient, and user-friendly VPN solution. Innovations in the area include AI and machine learning for augmented threat detection and response, adoption of quantum-resistant encryption to shield against threats today and those developing in the future, and new VPN protocols like Wireguard, which offer better performance and security. Another factor that lays a better foundation for security through VPNs is the trend in the adoption of MFA and zero-trust security models on the rise. Prominent drivers for the North American VPN market are the increased concerns associated with cybersecurity and the resultant abrupt urgent shift to remote work, growing privacy awareness, regulatory compliance needs, and BYOD trends. It has grown to require secure transmission of data since this growth of cyber-attacks, and data breaches accelerated under the Covid-19 pandemic with urgency for safe remote access to company networks. The ability of VPNs to be used in strengthening consumer awareness of online privacy and the different data protection norms that require enterprises to comply might further increase the use of VPNs. This will be further driven by the BYOD trend within workplaces and its corresponding rise of personal devices that need to be secured in order to access corporate networks using VPNs. Key contributors for the North America VPN market have been Cisco Systems, Inc., Palo Alto Networks, Inc., Fortinet, Inc., etc., For instance, For example, IBM Corporation announced the deployment of an on-premises VPN gateway to a cloud VPN built within a VPC in December 2018.

According to the research report ""North America VPN Market Overview, 2029,"" published by Bonafide Research, the North America VPN market is anticipated to grow at more than 12% CAGR from 2024 to 2029. The North America VPN market is strong, driven by a surge in cybersecurity threats and increased remote work incidents, boosting demand for safe, private access to the internet. The market is huge, and with technological advancements and increasing awareness regarding privacy for customers and businesses, it is likely to go up even further. Universal in all of this growth is a reliance on digital technologies and the proliferation of online services calling for secure connectivity. Sustainability in the North America VPN market relates to a reduction in carbon and the energy of the VPN-related infrastructure. Companies are slowly moving to adopt energy-efficient data centers and renewable sources to run their servers. Other major sustainability drivers are the cloud-based VPN solutions that optimize the resource use, thereby getting rid of huge on-premises infrastructures. It also involves the design of eco-friendly practices, wherein due respect to the environment is inbuilt into the product design and corporate strategy. Adding to the list of inhibitors in the North America VPN market are issues with respect to implementation cost, performance, management complexity, regulatory and compliance concerns, and user education. It can be quite an expensive setup cost upfront to establish a VPN infrastructure, especially for a smaller enterprise. At times, VPNs have a throttling effect on Internet speed and lead to latency, which impacts the user experience. The infrastructure involved in the provision of VPN is usually complex and, as a result, resource-intensive to manage as well as maintain.

The augmented volume of VPNs being implemented in the emerging market areas, powered by growing internet penetration and digitalization. Other potential growth opportunities toward betterment in VPN services come from advanced technologies in the additions of 5G and quantum computing. Such partnerships and collaborations will allow the company to increase its traction in the market and further extend its capabilities in the service area. This trend will also continue to provide high growth opportunities in the demand for managed VPN services, as more businesses move toward acquiring hassle-free and expertly managed security solutions. Government policies and schemes have a lot to do with shaping the North America VPN market. For instance, in the United States, acts such as the Cybersecurity Information Sharing Act and schemes such as the Federal Risk and Authorization Management Program make the usage and incorporation of robust, secure communication technologies like VPNs quite mandatory. CISA encourages information sharing of cybersecurity threat information between the government and the private sector, improving the demand for secure VPN solutions. As a result, FedRAMP eases the path to standardization in the assessment of security authorization and continuous monitoring for cloud services, VPNs included. In Canada, the Personal Information Protection and Electronic Documents Act imposes obligations to safeguard personal information on businesses, further driving up the demand for secure VPN services.

Market Drivers
• Remote Work Expansion: The COVID-19 pandemic acted as a catalyst for remote work, which has now become a persistent trend across North America. Companies have started working on hybrid and remote models that give workers secure access to corporate enterprise networks. VPNs are now more pervasive among home workers, since they enable encrypted connections that cannot be easily accessed by unauthorized parties or cyber threats. This is not a temporary expedient measure, it's rather a permanent alterative change in the work landscape that will perpetuate the demand for VPN services as businesses and workers look for reliable and secure remote access solutions .
• Cybersecurity threats: With an increased frequency and sophistication level, cyber-attacks have surged in North America against both large enterprises and small businesses. With increasing cases of data breaches, ransomware attacks, and phishing schemes, this makes organizations yearn for advanced security solutions. VPNs play a very significant role in reducing such risks through data encryption and secure tunnels across internet traffic. The growing concern for cybersecurity has propelled businesses and individual investments in VPN deployment as part of precautionary measures to protect sensitive information and preserve privacy within a cyber space that seems very vulnerable.

Market Challenges
• Regulatory Compliance: The North American regulatory landscape is very intricate, with a mix of federal and state-level regulations that govern data privacy and cybersecurity. Regulations such as the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA) bring strict requirements on how data should be managed and protected. These regulations mean VPN providers have to ensure their services comply with these provisions, which involves a lot of documentation and compliance in line with handling data while at the same time ensuring that security measures are put in place. Keeping track of these legislations be wearisome and possibly requires enormous resources to keep full compliance while at the exact time making sure there is service effectiveness.
• Bandwidth Limitations: Bandwidth available impacts the performance of VPN services so much. In these cases, the high demand for VPNs, coupled with the requirements of a high-speed internet connection, might load down the network infrastructure and cause reduced speeds with increased latency. This is further compounded by the fact that additional bandwidth could get consumed by the said encryption and tunneling processes involved, affecting your internet performance. The balance between providing strong security features and fast and reliable connections that meet the users' needs, especially in peak hours.

Market Trends
• Cloud Services: The increasing rate of adoption of cloud-based solutions puts any VPN at the point of convergence with cloud-based platforms. Being central to business activities, cloud services need secure access and data protection. In this regard, VPNs are being integrated into cloud environments to offer safe access to various applications residing in the cloud and data. This will ensure that all sensitive information remains safe while moving between on-premises infrastructures and the cloud. This trend reflects, quite visibly, the growing requirement for smooth security solutions and how they are adapting to the changing digital landscape.
• Mobile VPN Adoption: Due to increasing usage, there is a greater demand for mobile VPN solutions. With the trend of bring-your-own-device to work, this means that employees and consumers use these devices to log in to corporate networks and access personal data. The role of VPNs, hence, becomes very significant, as these VPNs can facilitate secure connectivity across supported mobile platforms. Mobile VPNs are designed to deliver an equal level of security and privacy as traditional VPNs while coping with the unique challenges of mobile environments, one of which is the fluctuating nature of network conditions and the wide range of device capabilities.

Solutions dominated the North American VPN market due to the rise in the need for secure remote access and data privacy with an increase in the digital transformation and remote work trends.

Solutions, like Virtual Private Networks, have now grown to be the leading segment of the North America VPN market, impelled by a growing requirement for secure remote access and data privacy. This increase in demand is due to digital transformation and its corresponding outgrowth of work-from-home culture. It is expected that North America, being the technologically advanced region with a high rate of internet penetration, would turn to digital business models rapidly. The digital transformation brings about increased data traffic and connected devices to the internet, thereby increasing the need for robust security solutions to protect sensitive data and ensure privacy. This has made VPNs an integral part of any business by providing an encrypted tunnel for the transmission of data in a digital operation. The COVID-19 pandemic is accelerating the remote work culture, further increasing demand for VPN solutions. With staff working on corporate networks from off-sites, vulnerabilities to cyber threats have increased in businesses. VPNs solve this to a great extent by providing safe remote access, ensuring the data exchanged between the remote devices and the corporate network is private and secured. The stringent data protection within the North American region via legislations such as the General Data Protection Regulation and the California Consumer Privacy Act has also boosted this very market. This forces the organizations and businesses to maintain consumers' private information very safely, hence, the increased demand for VPN solutions.

The cloud dominance in the North American VPN market is the huge adoption of cloud-based services, coupled with growing demand for secure and scalable remote access solutions.

The outperformance of cloud in the North American VPN market is mostly driven by rapid digital transformation across industries and the shifting and rapid movement toward cloud-based infrastructure in the region. Businesses moving increasingly to the cloud mean a correspondingly heightened demand for VPN solutions to integrate seamlessly within cloud environments. Cloud-based VPNs have some advantages that make them quite fitting for modern enterprises in North America. They offer greater flexibility and scalability that enables an organization to increase or decrease its VPN capacity easily in response to changing requirements, without heavy investments in hardware. Cloud VPNs also provide greater reliability and redundancy by building on top of major cloud providers' robust infrastructure, which guarantees consistent performance and uptime. Not only that, but they usually have enhanced global coverage, of prime importance for multinationals with different locations. A significant reason is that the pay-as-you-go model most cloud VPN services offer resonates very well with businesses looking to optimize expenses without settling on lower security standards. Advanced features, including integrated threat protection and an easy management interface with auto-updates, place the cloud VPNs at a very exciting place for highly security-sensitive North American organizations. A key factor is the great importance placed on cybersecurity and regulations concerning personal data protection in this region. Since cloud VPNs can easily keep up with evolving compliance requirements, they come to the fore in this area.

Remote access lead the VPN market in North America due to it’s secure access to company resources for telecommuters, mobile workers, and remote workers is very essential with a growing remote workforce in the region.

With increasing demand for secure and reliable access to company resources from remote workers, growth in Remote Access is noticed in the North America VPN market. Remote Access VPN resolves this by allowing remote workers to access corporate resources the same way as if they were directly connected to a corporate internal network. This is especially true for the growing remote workforce in North America. With increasing demand for a safe connection of geographically dispersed locations, the growth of site-to-site VPNs gets an impetus by reducing costs and maintenance. Big companies offer private cloud access, making the cloud resources more secure, further fueling growth in cloud VPNs. With a lot of vulnerable and unsecured hotspots, in this rather ripe internet era, connecting to any Wi-Fi is going to pose a privacy issue exposing much of your data without you even realizing it. Full-scale usage of fake Wi-Fi to dupe users into logging onto a network that a hacker completely controls is more common than what you think. With over 400 million hotspots around the world and 60% of all cellular traffic offloaded to Wi-Fi, hackers know the hotspots public Wi-Fi, in particular are a breeding ground for unprotected users.

The North American commercial VPN market is proliferating due to increased demand for stringent cybersecurity measures against the backdrop of a growing remote workforce and increasing value for data security by businesses.

The growing culture of telecommuting has built an expansive network of staff connecting to sensitive company data through their personal devices and probably unsecured Wi-Fi connections. VPNs resolve this issue by creating a secure tunnel between the employee's device and the company network. In that case, the information is encrypted, hence securing confidential information from any unauthorized access and its possible leakage. The growing awareness of data as an asset is making organizations take measures for its protection. A breach can cost an organization both in money and reputation, apart from inviting regulatory fines. VPNs are integral to security measures wherein the data gets encrypted while in transit as it is impossible to read for any interceptor. This ensures that even if a cybercriminal manages to gain access to a network, sensitive data will remain safe. In this regard, regulations such as the Gramm-Leach-Bliley Act, calling for tighter control of financial information in banks and other financial institutions, and the Health Insurance Portability and Accountability Act, requiring more stringent control of health information in healthcare providers, make it imperative that appropriate securities be put in place for North America. The proliferation of project teams working from geographically distributed locations and business operations drives demand for secure remote access to company-internal resources. VPNs support this by enabling staff to securely connect to corporate servers and applications, no matter where they are physically located.

The United States propels the North American VPN market, attributed to a high degree of concerns over digital privacy and growing demand for secure remote access, driven by a rising remote workforce and increased cyber threat.

The rate of leakage cases, identity theft, and cyber-attacks has raised awareness of the need to protect personal and organizational information. One of the key solutions offered by VPNs provides some relief against these worries are encryption of internet traffic, hiding of the IP address, and provision for secure anonymous browsing strengthen privacy and reduce risks arising from cyber threats. The COVID-19 pandemic accelerated the shift to remote work, and many organizations have retained, with its hybrid models of working, long into the future. VPNs are very useful for allowing secure remote access to corporate networks by employees working from dispersed locations, without any compromise to data security. This demand for secure remote connectivity has, hence, driven huge demand for VPN services, as businesses rush for reliable solutions that protect sensitive corporate data and guarantee the confidentiality of their communications. With rising concerns about privacy and remote work, the evolving nature of cyber threats has increased the demand for robust security measures. To inflict a cyber attack and steal sensitive information, cybercriminals are inventing sophisticated techniques for breaking in the networks. VPNs are an integral part of the strategy for defense, in which encrypted connections are provided to prevent unauthorized access hence, users are widely kept secure from several types of attacks, for example, man-in-the-middle attacks and data interceptions. Compared with other regions, regulations in the U.S. are more lenient by nature, but scrutiny over data privacy practices and a standard of cybersecurity is ongoing. This landscape motivates both consumers and businesses to promptly adopt VPNs as part of their privacy and security strategies to be at par with the regulatory environment and avoid unknown changes in the situation.
• In November 2023, EnGenius introduced the EnGenius Cloud SecuPoint VPN Client, revolutionizing the cloud VPN market with seamless networking, automated setup, and flexible licensing. Powered by the EnGenius Cloud, it secures connections across devices, enhancing scalability for modern enterprises and remote workers. This launch signifies a major advancement, catering to evolving business needs.
• In June 2023, Flexential, a company that provides colocation, cloud, connectivity, and data protection services, announced that the company is launching an upgraded version of the Interconnection Mesh solution that simplifies colocation to cloud connections with a new layer 3 VPN (L3VPN) multipoint service option.
• In November 2022, RadioIP, one of the leaders in secure mobile communications, selected NextNav, the leader in vertical location positioning, to empower its industry-leading VPN solutions with mission-critical z-axis location intelligence.
• In July 2021, Mozilla introduced its VPN service to the public, starting with Windows 10 and Android in a handful of markets.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Virtual Private Network (VPN) market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Solution
• Services

By Deployment
• Cloud
• On Premise

By Type
• Remote Access
• Site-to-site
• Others

By End User
• Commercial
• Consumer
• Service Provide

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Virtual Private Network (VPN) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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