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

Market Dynamic

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.

Key Development

• 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.