Cloud VPN Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Cloud VPN Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Cloud VPN market will register a CAGR of 13.8% over the forecast period. Cloud VPN or Virtual Private Network as a Service (VPNaaS) is a VPN that utilizes a cloud-based network infrastructure to deliver VPN services. It offers VPN access, where the user can access through a cloud platform over the public Internet.

• The increasing trend towards BYOD and enterprise mobility, growing data concerns, and the adoption of work-from-home drive the demand for cloud VPN. Furthermore, the growth of cloud migrations increased VPN usage in various businesses worldwide, as most organizations store sensitive data in the cloud.
• Furthermore, as enterprises migrate away from on-premise workloads toward data centers via their cloud strategies, the need for cloud VPN is also expected to grow. The increasing demand for secure remote access and increased adoption of private clouds are also expanding the scope for vendors in the market studied.
• Many Managed Security Service Providers (MSSPs) and cloud providers offer VPNaaS. Effective security mandates the management of VPN environments. And these mandates can be outsourced to providers that either host a managed VPN solution or ensure the management of the VPN.
• As enterprises are embracing digitalization and are further leading to the growing adoption of cloud-based servers, the limited technical knowledge among the employees to deploy digitalization is further posing a challenge to the cloud VPN market.
• The spread of COVID-19 has positively impacted the market due to disruptions in the supply chain owing to extended factory closures globally. Many countries across the globe mandated work-from-home situations on public health safety concerns that drove the need for remote working infrastructure.

• Cloud VPN is becoming increasingly popular due to new, increasing needs from the telecom industry for security and quick VPN networks, which is boosting this segment's revenue development.
• The need for cloud VPN solutions has increased due to the rising global IT spending on business software and communication services.
• Flexible VPN technology is also required due to the rise in the use of powerful devices like PCs, phones, and others. Modern VPN technology's software-defined WAN (SD-WAN) capabilities, which provide granular reporting and sophisticated network information, are also propelling the cloud VPN industry.
• The need for encrypted network traffic, distributed global IP addresses, deployable private servers, the ability to manage network activity, the ability to conduct geo-targeting, and quality assurance are additional benefits of cloud VPNs that are becoming more widely known in the telecom industry and are further boosting the market's expansion.
• Cloud-based VPNs have grown significantly during the last five years, impacting the business, technology, and information technology sectors. Due to this, there has been an increase in global investment in cloud computing. It is assumed that the user and device on the other end of a VPN connection are safe.

• Most VPN providers in the region are highly active in expanding the VPN scope and adoption among various end users. As cloud services provide enhanced characteristics, the cloud VPN market has a massive opportunity to grow.
• VPN providers in the region offer various features enabling their subscribers to access information and content unavailable to them. And with the availability of cloud VPN services, this can be enhanced further.
• With the onset of COVID-19, there were various steps taken by the government of Japan to contain the spread of the virus, such as lockdowns, social distancing, and many more. These led to increased adoption of work-from-home and remote working. This created an upsurge in adopting BYOD policies in various organizations for business uses in the country. With the implementation of BYOD and work-from-home policies, cloud VPN solutions have been adopted for businesses to function.
• However, cyber security concerns in the region are restricting the implementation of cloud VPNs in the country. According to the prefectural police departments, out of 47 ransomware cases that were detected which had an apparent reason for the security breach, 70% of them were caused because of the use of a VPN.

The cloud VPN market is inclined towards fragmentation with several firms selling services and software to practically every end-user industry. In addition, new firms are entering the industry due to cloud usage and low entry barriers. The companies are pursuing acquisition tactics to increase their market share in the cloud VPN industry.

• August 2022 - Microsoft is upgrading the security and privacy of its Edge browser by integrating a free built-in virtual private network service, according to a Microsoft support page. By allowing users to browse the web using a virtual IP address, the new function also gives them the ability to conceal their location.
• July 2022 - Huawei and China Mobile Guangdong Jointly Release Mobile VPN Solution With this solution, enterprise users can securely access the Internet and campus intranet anytime and anywhere. Mobile VPN makes the mobile office more flexible and helps build a more digital and information-based campus. These advantages make Mobile VPN an optimal choice for campus dedicated networks.

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