Before we can go further to Market analysis 2020, we need to answer the question, what is VPN. A virtual Private Network (VPN) is what gives online users privacy as well as anonymity. This is achieved through the creation of a private network out of public internet connection. VPN act as a shield or mask on the user’s internet protocol (IP) address. This ensures that any online action done cannot be traced virtually. It is an important service that establishes very secure and an encrypted connection so that you can enjoy much needed privacy, more than what exists in a secure Wi-Fi hotspot.
Importance of VPN services
When you access the internet or making online transaction without securing your Wi-Fi network means you are at risk of your personal data and browsing activities being exposed to potential hackers. This is the reason why any internet browser needs a private network and this is where VPN comes in. If you are concerned more about your online privacy and security then you need this service.
Anytime you are accessing the website and going through emails or going through your bank account transactions, your personal information is always at risk to strangers without making your network private. They can track all your browsing activities and online transactions. VPN creates an anonymity and encryption that shields all the activities you do online. It would be best if you took time to learn how to hide your IP address and use the right VPN.
Worldwide VPN Analysis
This analysis is all about the massive patterns and most of the factors that drive or hinder market growth. It also provides detailed information on the market, growth, share and size. Additionally, we examine upcoming prospects, execution of key players in the market and openings. In the forecast year, the market is expected to grow at a very considerable rate. At the beginning of 2020, the market experienced a tremendous rise compared to previous years and since key players have adopted strategies, the market can rise to greater heights towards the end of the projected year and years to come. Between 2020 and 2026, it is expected to hit greater CAGR heights.
In 2019, VPN Market size was more than $25 Billion and the growth is anticipated to be above 12% CAGR growth rate between 2020 – 2027 analysis periods. This is because several industries have increasingly adopted the use of private network services. Conducting business online and browsing has become a norm in recent years. And where a good thing exists we expect a massive exodus of people. Because of the massive attraction, cybercriminals have emerged which has led to financial thefts and frauds. There is therefore need for the enterprises to look for latest and safe security solutions that can help in safeguarding browsing activities and transactions made while on the internet.
VPN Market expected to reach $88.6 Billion globally by 2027
Before the outbreak of COVID-19 pandemic, it was estimated that VPN could reach $29.2 Billion in 2020. This figure is projected to be at $88.6 Billion in 2027 which is a CAGR growth rate of 17.2%. This is however a revision of what was projected before the crisis. During the 2020-2027 period, the growth is estimated to be at 16.9% CAGR to reach $21.4 Billion towards the end of this projected period. In the early analysis after the Corona virus outbreak, the economic crisis due to the pandemic and the growth has been readjusted to 17.6% CAGR for the coming 7 years.
The US, China and other Markets expected Growth
The VPN market in the U.S.A. is expected to be at $7.9 Billion in 2020. China is regarded to be second in the world economy and is projected to be at $20.6 Billion by 2027 and below 22.1% CAGR between 2020 and 2027. Japan is estimated to reach a growth of 12.4% while Canada forecast is expected to grow at a rate of 15.2% during the 2020 and 2027 period. In Europe, the geographic market of Germany is forecast to be at an approximated growth rate of 13.5% CAGR.
India IP segment is projected to be at a growth rate of 20% from 2020 to 2027 spearheaded by the cost benefits that the technology offers. IP is a link that joins private networks via public networks. They are regarded to be affordable than other VPN services.
Connectivity segment in Mexico has been projected to attain a growth rate of above 20% through 2026. Remote operations in Mexico have however taken another direction as a result of the National Government imposing quarantine measures as a result of the spread of COVID-19. ExpressVPN released a data in March 2020 which indicated a growth of more than 20% in the usage of private network in the country. There was also an additional of 2 hours of usage every day benefiting business based private networks.
There is also an increased attention in regard to data privacy of patient and this is aimed at spearheading the growth of healthcare sector mostly in UAE. Because of this, the VPN market in the UAE is expected to witness about a 25% growth. This is for the period between 2020 and 2027. It is as a result of increased use of private network awareness that protects patient’s personal information from being accessed by unauthorized people.
Market revenue in Europe is predicted to expand at the rate of 10% CAGR during the 2020-2027 projected period. The growth however will be influenced by the government making initiatives that are favorable and regulations that companies will find reasonable to adopt the use of advanced security policies. This comes at a time when people are trying to protect themselves from government snoopers.
Multiprotocol Label Switching Segment
In this segment, USA, Japan, Canada, China and Europe are expected to spearhead a growth rate of 15% CAGR. This is a combined $4.3 Billion market size regionally for the year 2020. This is expected to reach $11.5 Billion by the end of the analyzed period. In this regional market cluster, China is on the upper hand of being in the top flight of those expected to grow at a fastest rate. The Asia-Pacific market is also forecast to be at $13.9 Billion by 2027. Countries like Australia, South Korea, and India are amongst those which will be on the top flight. In Latin America, the growth will be at 17.2% CAGR during the period of analysis. The analysis indicate that the pandemic has really impacted the production as well as buy side in 2020 and even years to come.
Large players dominate VPN market and they include names like Microsoft, Google and Cisco. Companies that provide private network give their clients with discounts and some special offers with the aim of expanding customer base. Because of Corona virus outbreak, more people prefer to use the VPN and the trend is projected to increase greatly. In fact, there are a lot of cool things you can do while using a VPN.