The VPN industry is rapidly ascending. As the demand for secure online communications and data transmission increases – a seemingly inevitable outcome as devices proliferate and access expands to more users – VPNs often find themselves answering the call. The result has been a quickly growing market that shows little sign of slowing down.
Million Insights estimates the global VPN market will reach $92 billion by the end of 2027, which is a compound annual growth rate of 17.4%. Mobile VPNs are growing as well; while this is a smaller sector of the industry, analysts anticipate the mobile market will reach $2.4 billion by 2022.
However, market analysts warn that VPNs face obstacles like high deployment costs and the need for technical knowledge, which might stunt growth. The largest VPN market is in North America, with adoption being driven by a large number of cyberattacks in the U.S. and Canada. Europe is the second largest market for VPNs, but the Asia-Pacific market is growing the fastest, thanks to the expansion of the manufacturing and service industry in China and throughout Asia.
Since the VPN market is extremely competitive, vendors are looking for ways to differentiate themselves. Some do it with speed, others with privacy. Most VPN providers claim to not collect and store data on customers' internet activities, but the location of their headquarters dictates how true that is. If they are in a country that is part of the Five Eyes intelligence alliance, they may not have a choice. The countries in the Five Eyes alliance – the U.S., the U.K., Australia, Canada and New Zealand – agree to share intelligence with the government, including internet activities. VPN providers headquartered outside of those countries can't be forced to turn information over to authorities.
The Five Eyes has sparked other alliances, such as the Nine Eyes – the Five Eyes countries plus Denmark, France, Norway and the Netherlands – and the 14 Eyes, which is those nine countries plus Germany, Belgium, Italy, Spain and Sweden.
Bottom line: With so many employees connecting to networks remotely, VPNs are more important for businesses than ever before, so the industry will continue to grow.