Managed VPN Market

Managed VPN Market Outlook (2024 to 2034)

According to research provided by Fact.MR analyst, the global managed VPN market is analyzed to registered revenue of US$ 24.61 billion in 2024. Demand is further forecasted to increase at Y-o-Y growth of 19.2% to touch a value of US$ 143.12 billion by the end of 2034.

The capabilities of VPNs are continuously improving because of the recently developing technologies, such as 5G and SD-WAN (Software-Defined Wide Area Networks). Managed VPN providers are including these developments to provide faster, more dependable, and adaptable services that meet the demands of contemporary business.

Companies that are expanding their businesses worldwide or need safe yet practical solutions to link remote staff are attracted to managed VPN services as cross-border communication is made easy and secure with them.

Small and medium enterprises (SMEs) are increasingly utilizing managed VPN services to obtain enterprise-grade security and connectivity without making significant investments in IT infrastructure. This is driving the market growth with the democratization of sophisticated networking technologies.

In addition, several businesses are focusing on hiring professional service providers to handle non-core IT functions. With their proficiency in network administration, these services suited this trend and freed up companies to focus on their primary goals, as per the managed VPN industry analysis.

Key Market Growth Drivers :

• The managed VPN market size is expanding along with the growing need for dependable and secure network access. This is driven by the global trend toward remote and hybrid work settings.
• Managed VPNs are gaining popularity among enterprises that have remote and hybrid working cultures as they provide scalable solutions that guarantee data security and smooth communication of staff members operating from several locations.
• Businesses are focusing on safeguarding sensitive data because of the increasing number of cyberattacks. Managed VPNs are essential for protecting data and thwarting unwanted access, as they provide strong encryption and secure access.
• Utilization of managed VPNs is growing as they save money by removing the need for internal IT departments to set up and maintain VPN infrastructure.
• Small and medium organizations who are looking for reasonably priced yet secure network solutions are particularly finding managed VPNs appealing choices.
• One of the key managed VPN market trends is the growing number of companies switching to these services as the need for reliable and secure access to cloud-based platforms is increasing. Managed VPNs offer a safe link between users and cloud apps, protecting data while it's being transmitted.
• Businesses from several industries are adopting managed VPNs as they need to comply with strict privacy and data protection laws. By guaranteeing secure data handling and facilitating compliance with regulations, such as GDPR, HIPAA, and PCI DSS, managed VPNs assist companies in meeting these needs.

Report Attribute	Detail
Managed VPN Market Size (2024E)	US$ 24.61 Billion
Forecasted Market Value (2034F)	US$ 143.12 Billion
Global Market Growth Rate (2024 to 2034)	19.2% CAGR
North America Market Value (2024E)	US$ 8.25 Billion
East Asia Market Growth Rate (2024 to 2034)	19.5% CAGR
Site-to-Site VPN Segment Value (2034F)	US$ 94.18 Billion
Enterprises Segment Value (2034F)	US$ 105.48 Billion
Key Companies Profiled	ExpressVPN; OpenVPN; Perimeter 81; SonicWall; Cisco; Fortinet; VMware; Zscaler; Barracuda Networks; Palo Alto Networks; MikroTik; NordVPN; Citrix.

Why Businesses from Several Industries Adopting Managed VPN Services?

“Growing Adoption among Businesses to Secure Sensitive Data and Communication Routes”

Businesses from several industries are focusing on protecting sensitive data and making sure that communication routes are secure due to the increasing number of sophisticated cyberattacks or computer hacking. Managed VPNs are a crucial part of this protection strategy because they offer strong encryption and safe access protocols. These solutions give businesses a guarantee that data is secure while it is in transmission mode by preventing unwanted access to networks and data.

Managed VPNs are an important part of modern cybersecurity frameworks because they allow companies to make use of advanced security features without requiring a considerable amount of in-house teams by outsourcing VPN management to specialized suppliers.

What is Limiting the Application of Managed VPNs?

“Alternative Solutions Gaining Popularity Due to Simplified Connectivity”

The concern of managed VPN service providers is increasing due to the availability of alternative secure networking solutions, such as zero-trust architectures and direct cloud access frameworks. These alternative options are gaining attention from end users as they generally do not rely on conventional VPN tunnels and provide advanced security models that emphasize confirming each user and device connecting to a network.

Direct cloud access solutions provide simplified connectivity to cloud applications by lowering latency and improving performance. These substitutes are reducing the appeal and uptake of managed VPN services as several companies look for more inventive and adaptable methods of network security.

Country-wise Insights

The North American region is evaluated to account for 33.5% of the worldwide managed VPN market share in 2024 due to its well-established IT infrastructure, early acceptance of cybersecurity solutions, and extensive adoption of remote work culture. In addition, strict data privacy laws, such as the CCPA and GDPR, which apply to international operations, are further increasing the demand for these services in this region.

What Makes the United States a Prominent Market for Managed VPNs?

“Strict Data Security and Privacy Regulations Pushing Companies to Adopt VPN Services”

Attribute	United States
Market Value (2024E)	US$ 5.95 Billion
Growth Rate (2024 to 2034)	19.8% CAGR
Projected Value (2034F)	US$ 36.19 Billion

Businesses in the United States need to follow strict data security and privacy laws, such as HIPAA (Health Insurance Portability and Accountability Act) and PCI-DSS (Payment Card Industry Data Security Standard). These regulations are particularly strict for companies involved in healthcare, finance, and government sectors. To comply with these laws, several companies are widely adopting managed VPN services.

Managed VPN providers assist these companies by guaranteeing secure communication and encrypted data transmission while shielding sensitive data from breaches and unwanted access. Businesses protect consumer data, stay in compliance with regulations, and stay out of trouble for data security infractions by utilizing managed VPNs.

What is the Managed VPN Industry Outlook in Japan?

“Companies widely Utilizing these Services to Protect Personal Data and Comply with Regulations”

Attribute	Japan
Market Value (2024E)	US$ 1.57 Billion
Growth Rate (2024 to 2034)	20.1% CAGR
Projected Value (2034F)	US$ 9.77 Billion

The industry in Japan is showing bullish sentiments. Adoption of these services is increasing at a high growth rate in comparison with other countries in East Asia. Similar to the United States, businesses need to have strong safeguards in place to protect personal data to comply with Japan’s data privacy laws, particularly the Act of the Protection of Personal Information (APPI).

Businesses from different industries are embracing managed VPN services as they offer a safe way to send private data across networks. Several businesses are protecting data from illegal access, guaranteeing legal compliance, and reducing the risk of data breaches by utilizing managed VPNs in Japan.

Category-wise Insights

Based on type, the market is segmented into remote access VPN and site-to-site VPN. Remote access VPN enables end users to secure an internet connection to join a private network from a distance. Employees who need to access company resources while working from home or on the go commonly use it. On the other hand, site-to-site VPNs link entire networks together instead of just a single user. This implies that a company's several office locations safely communicate with one another online.

Which Type of Managed VPN is Gaining Popularity among Companies?

“Businesses Increasingly Preferring due to Rising Connectivity Needs with Distributed Networks”

Attribute	Site-to-Site VPNs
Segment Value (2024E)	US$ 15.97 Billion
Growth Rate (2024 to 2034)	20% CAGR
Projected Value (2034F)	US$ 94.18 Billion

The site-to-site VPN segment is showing considerable growth because of its ability to securely connect with multiple remote office locations or data centers over the Internet. This is a lucrative feature for several businesses that have their operations running around the world. Site-to-site VPNs allow businesses to establish encrypted communication channels between different physical sites, ensuring data transmission in wide geographic areas.

Such features are widely used by large multinational corporations, as they offer cost-effective and scalable solutions for leased lines. Incorporated with this, the rise in remote work is also becoming trendy and further driving the demand for Site-to-Site VPNs.

Which End User Holds a Sizable Portion of the Overall Market Revenue?

“Strong Need for Secure, Reliable, and Scalable Network Solution in Daily Operations”

Attribute	Enterprises
Segment Value (2024E)	US$ 17.79 Billion
Growth Rate (2024 to 2034)	19.4% CAGR
Projected Value (2034F)	US$ 105.48 Billion

Among several end-users, the enterprise segment holds a leading position in terms of industry share because they constantly require secure, scalable, and reliable network solutions in their day-to-day operations. Large enterprises handle a massive amount of sensitive data and require decisive security actions to protect their essential data against hacking. Managed VPNs tackle this problem effectively by offering remote communication, ensuring compliance with data protection regulations, and providing access to cloud applications and internal resources.

With this, there is also increasing complexity of global operations, coupled with the need for secure inter-office connectivity. All these factors are driving the demand for managed VPN services in enterprises that are looking to enhance efficiency and data security.

Competitive Landscape

Key players in the managed VPN market are expanding their offerings to include more features, such as cloud security, multi-factor authentication, enhanced encryption, and network monitoring, to appeal to a broader clientele. This increases their revenue streams by enabling them to serve both major corporations and SMEs. Several companies are also incorporating advanced technologies, including 5G, SD-WAN, and AI-powered analytics to offer improved scalability, security, and speed.

• In June 2024, Quantum Xchange, which provides crypto agility, visibility, and management solutions for the future of encryption, announced that version 4.0 of its quantum-safe key delivery platform Phio TX is now available. This version includes Phio VPN, the first Virtual Private Network (VPN) to integrate AI-native networking with quantum-safe key management and delivery.
• In January 2024, the TNSR High-Performance VPN Concentrator was released to the AWS and Azure marketplaces, according to Netgate. Cloud, edge, and multi-cloud route-based VPN solutions are provided by the TNSR High-Performance VPN Concentrator.
• In April 2022, Peplink unveiled InTouch, a zero-touch remote network management solution that avoids costly OOBM or VPN licensing and infrastructure overhead while assisting administrators in controlling IP phones, camera systems, and other connected devices.

Fact.MR provides detailed information about the price points of key providers of managed VPNs positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Managed VPN Market Research

• By Type :

  • Remote Access VPNs
  • Site-to-Site VPNs

• By End User :

  • Service Providers
  • Enterprises
    • BFSI
    • Healthcare
    • IT & ITES
    • Energy & Power
    • Media & Entertainment
    • Transportation & Logistics
    • Manufacturing
    • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa